Starting July 2025, the Indian government is rolling out two big tax and compliance updates that affect nearly every business:
- E-Way Bill 2.0 portal – a new, backup GST transport portal improving trust, speed, and resilience.
- Removal of the 6% equalization levy (commonly called “Google Tax”) on digital advertising — a move that enhances India–US trade relations and supports Indian businesses.
Both changes aim to enhance stability and promote economic growth. Let’s break them down clearly and explore what they mean for your business.
Part 1. E-Way Bill 2.0 Portal – Releasing July 1, 2025.
What is the E-Way Bill system?
The E-Way Bill system lets businesses electronically generate a tracking document when they transport goods above ₹50,000 value across or within Indian states. It’s a critical GST compliance tool used by sellers, transporters, and enforcement officials.
Why launch a second portal?
Until now, there’s been one main portal (E-Way Bill 1.0). But technical glitches, high traffic, or downtime have occasionally disrupted day-to-day operations.
To fix this, NIC and GSTN are launching E-Way Bill 2.0 on July 1, 2025, creating a dual-portal system for better reliability and faster service.
What does the new portal offer?
E-Way Bill 2.0 offers:
- Cross-portal operations: You can generate, extend, update transporter info, or retrieve any e-way bill using either portal.
- Real-time synchronization: Actions made on one portal appear instantly on the other — within seconds.
- API access: Developers and enterprise systems can integrate e-way bill generation and updates using APIs. A testing sandbox is available now.
- No extra logins needed: Your current credentials work across both portals, making it seamless and intuitive.
Why this matters
- Business continuity: No hold-up in transporting goods if one portal is down.
- Fewer interruptions: Smooth during peak periods like financial year-end or festive season.
- Compliance ease: Ensures enforcement officials don’t stop goods because of portal issues.
Bottom line: Whether you’re a business owner, logistics firm, or transport operator, this means more stability and no disruptions during season-high operations.
Part 2: Scrapping the 6% Digital Ad (‘Google’) Tax
What was the equalisation levy?
Since 2016, India charged a 6% equalisation levy on payments by Indian businesses to foreign digital ad platforms like Google, Meta, and others. This was aimed at taxing digital giants that earn from the Indian market.
Why remove it now?
- U.S. Trade Tensions
The USTR (United States Trade Representative) viewed the tax as discriminatory, targeting only U.S. firms. Threats of trade retaliation—including tariffs—pushed India to act. - Global digital tax norms
New OECD frameworks aim to harmonize digital taxation. India’s unilateral tax was out of sync and under criticism. - Boosting domestic digital advertising + investment
Removing the tax helps Indian businesses spend more online, encourages foreign platforms to invest here, and makes digital advertising cheaper.
The vote received approval, removing the levy in the 2025 Finance Bill prior to the 1st of April 2025. U.S. platforms will now be exempted from the 6% tax on digital advertising.
Who gains from this?
- Digital ad platforms (like Google, Meta, Amazon): No more withholding and remitting 6% tax.
- US-India trade dynamics: De-escalates friction and supports exchange of trade benefits like tariffs.
Notably, India had already removed a 2% digital services tax earlier for other non-resident digital services in 2024.
Deep Dive: What Each Change Means for You
1. Simplified E-Way Bill Experience
- Zero downtime: In emergencies, switch portals without missing updates.
- Automated logistics: APIs bring smoother ERP integration and less manual work.
- Fast updates: Real-time synchrony means fewer errors or misses in transit data.
2. Cheaper Digital Advertising
- Immediate impact: Businesses see ad cost drop instantly from April 2025.
- Better ROI: Cheaper ads mean more reach and improved digital campaigns.
- Growth boost: This incentivizes more companies—especially MSMEs—to go digital.
3. Improved Trade Relations
- No U.S. retaliation: Removing discriminatory tax helps avoid U.S. tariffs.
- Greater economic tie-ups: This change comes amid efforts for a comprehensive trade pact.
- Balanced policy: Aligns with international digital tax norms, boosting India’s economic image.
What Businesses Should Do Now
Prompt Actions for E-Way Bill 2.0
- Explore both portals
Log in and test on both e-way bill sites to understand their use. - Test API workflows
If your ERP or TMS systems auto-generate e-way bills, test the sandbox APIs early. - Train teams
Ensure transport/logistics staff know they can switch portals if one goes down. - Update SOPs
Standardize process with fallback procedures—either portal works.
Compliance & Tax Strategy
- GST teams: Ensure e-way bills sync across both portals. Watch for batches that still use 1.0 when 2.0 is faster.
- Finance teams: Remove references to the 6% levy in payment documents and tax returns.
- Advisors: Advise clients on digital strategy and cost savings across platforms.
Potential Concerns & Planning Ahead
Potential Challenges
- Portal sync glitches: Rare but possible; dual systems bring new tech risks.
- API implementation delays: Businesses integrating later may lag in operational efficiency.
- Strategic ad reallocation: Firms must invest savings wisely—sudden shifts can disrupt campaigns.
Risk Mitigation Steps
- Use Sandbox early: Test new e-way bill APIs in advance.
- Monitor portal uptime: Use both platforms during peak logistics seasons.
- Phase-in ad strategy: Gradually increase ad spend, tracking performance.
Conclusion
- E-Way Bill 2.0 ensures stable, seamless transport billing.
- Digital ad tax abolition offers savings and global trade peace.
- Both changes reflect India’s twin goals: stronger commerce and modern tax systems.
These reforms bring real benefits for manufacturers, transporters, advertisers, and policy planners. It’s time to tune systems, train teams, and prepare for a smoother business environment.
FAQs
1. Will the old E‑Way Bill portal be shut down?
No, the original E-Way Bill portal will continue to operate. The new E-Way Bill 2.0 is launched to improve system reliability and offer users a backup option. You can choose either portal as per your convenience.
2. Do I need to register again for E-Way Bill 2.0?
No, there is no need for separate registration. Your existing user credentials and GSTIN login work on both the original and new E-Way Bill portals without any additional setup.
3. What’s new in E-Way Bill 2.0 compared to the older version?
The new portal offers improved speed, fewer downtimes, better mobile responsiveness, and stronger backend security. It’s designed to handle peak-hour traffic and support future integration with logistics and transport APIs.
4. Can I switch between portals while generating E-Way Bills?
Yes, you can generate and manage E-Way Bills from either portal. The system is fully synchronized, so your records and entries will be updated across both platforms instantly.
5. Is the digital advertisement tax removed permanently?
Yes, the 6% Equalisation Levy on digital advertisements targeting the Indian market was fully removed starting April 1, 2025. This marks a permanent withdrawal aimed at improving global trade relations.
6. Why was the digital ad tax scrapped?
The tax was a point of contention in India–US trade discussions. Removing it eases tensions, aligns India with global norms, and encourages international tech firms to operate more freely in the Indian market.
7. Will this removal affect my business tax deductions?
No. Businesses that advertise online can still claim those expenses as deductions under standard business expenditure rules. The tax removal only affects what the ad platforms charge—not how you claim it.
8. Are any other digital economy taxes still in place?
Most digital-specific levies have now been removed. The Equalisation Levy for online ads and e-commerce platforms has been phased out. Normal GST and income tax laws continue to apply where relevant.
9. Will ad costs on platforms like Google or Meta reduce now?
Yes, since the 6% levy is no longer added to ad invoices, companies like Google, Meta, and Amazon may revise ad pricing downward. This can reduce ad spending for Indian startups and small businesses.
10. Do I need to update my invoices or tax settings?
Yes, businesses should review their vendor invoices for digital ads to ensure the Equalisation Levy is no longer applied. Update your accounting templates if you previously accounted for this tax separately.
ALSO READ
Which ITR Form to Use for Income Return Filing
How to Check FSSAI License Number