CAG audit · Comptroller and Auditor General of India · 2025-08-12

CAG Report No. 12 of 2025 - Performance Audit of E-Way Bill System under GST

This performance audit examined whether the e-way bill mechanism protects revenue and whether CBIC's preventive units enforce it well. It covered EWB transactions from April 2018 to March 2022. Using a risk-based sample of 2,244 EWBs of 956 taxpayers and half of all preventive units, Audit compared EWB data with GST returns. It found many cases of goods moving without tax being paid. Missing records limited the audit: records were not produced for 108 taxpayers, and only partly for 334 more.

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Key findings and recommendations

  • 103 taxpayers moved goods worth Rs. 2,285.23 crore on EWBs but did not file returns or report the turnover, with tax of Rs. 307.37 crore involved.
  • 174 taxpayers made supplies of Rs. 1,750.87 crore without paying Rs. 168.06 crore of tax. Cancelled registrants and nil filers also kept generating EWBs.
  • 46 of 58 Commissionerates did not use NIC's 97 analytical EWB reports to plan vehicle interceptions.
  • Unregistered persons generated 3,585 EWBs above the Rs. 40 lakh registration threshold.
  • Recommendations: add system alerts for composition dealers crossing limits, for duplicate invoices and for high-value EWBs without tax payment, and check EWB history before cancelling a registration with retrospective effect.

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