The Impact of the GST E-Way Bill on the Iron and Steel Trading Industry in India: Evidence from Traders Across Nine Cities

Business Taxation

he Goods and Services Tax (GST) reform, which was introduced in India in July 2017, represented one of the most comprehensive structural transformations in the country’s indirect taxation framework. Its primary objective was to replace multiple indirect taxes with a unified system that could bring greater efficiency, accountability, and transparency to business transactions. One of the most important innovations within this framework was the introduction of the electronic waybill (E-Way Bill) in April 2018. The E-Way Bill was conceptualized as an ICT-driven mechanism to ensure tax compliance, reduce evasion, and promote transparent documentation for the movement of goods across state and regional boundaries. This study focuses on assessing the role of the E-Way Bill specifically in the iron and steel trading industry in India, a sector that contributes nearly 2% of the national GDP and provides critical inputs to construction, infrastructure, and manufacturing industries. The research employed a structured questionnaire that was distributed to 100 traders across nine major cities. Out of these, 65 valid responses were analyzed using statistical techniques, including factor analysis and chi-square tests through SPSS software. The analysis revealed four principal benefits of the E-Way Bill system: accountability, efficiency, effectiveness, and convenience. Traders indicated that the system had reduced billing time, improved transparency, enhanced monitoring, and provided 24/7 accessibility. However, alongside these benefits, the study also identified three categories of challenges: facilitating conditions, discomfort, and insecurity. Many traders reported difficulties related to system complexity, high compliance costs, lack of training, and a sense of insecurity regarding customer relationships and institutional support. The findings of this paper highlight that while the GST E-Way Bill has introduced significant positive changes, several concerns remain unaddressed. The duality of improved transparency and efficiency, combined with ongoing challenges of usability and compliance, provides useful insights for both policymakers and industry stakeholders. This research contributes sector-specific empirical evidence, which can serve as a foundation for further reforms and comparative studies

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