The number of e-way bill generation has increased to 8.82 crores in May from 8.44 crores in April, which indicates more movement of goods.
As per the PMI (Purchasing Managers’ Index) manufacturing, the result rose to a 31-month high of 58.7 in May, providing the first indication of increased goods movement.
Increased bill generation may also lead to higher GST collection in June, which will be revealed on July 1. According to some experts, the higher generation appears to be a testament that GST mobile squad authorities nationwide have adopted tighter anti-evasion methods.
As of May, the government had received 1.57 lakh crore in GST. Even while it was lower than the Rs. 1.87 lakh crores in April on a sequential basis, it was up 12% over May of the previous year. Experts say that GST collection in the next month could be expected to be around Rs. 1.6 lakh crores or more.
Experts’ Opinions
ICRA Chief Economist Aditi Nayar said that over the next few months, it is expected the GST collection to print at 1.55-1.65 lakh crore and mark an increase of 10-11 per cent in year-on-year terms, broadly in line with the nominal Gross Domestic Product (GDP) growth expected in FY24.
According to some experts, regulatory action will increase the collection even further.
According to Mahesh Jaising, a partner at Deloitte India, the recently released standard operating procedure for online scrutiny of returns also directs officers to give priority to cases that are riskier and have greater financial ramifications when creating schedules for scrutiny. This initiative ought to contribute to continuing the fiscal year’s rising trend in revenue collection.
Besides, the e-invoicing limit has been reduced by the government which will result in getting rid of the fake GST invoicing. A deadline for filing e-invoices is also being proposed which will be expected to aid in timely reporting and revenue collection.
Jaising said that with several measures in the works to augment revenue collections, taxpayers expect collections to be steady, and the government will be able to make the forward-looking GST measures and changes in the law a priority.
Abhishek Jain, Partner & National Head-Indirect Tax, KPMG in India, stated that these statistics (Rs. 1.57 lakh crore) may likely increase from here in the next months due to extensive Department GST audits scheduled before September 2023.
What is an E-Way Bill?
The generation of a GST e-way bill of a month points to the collection of GST in the next month. E-way bill generation, according to some experts, is not linked to revenue collection directly.
An “e-way bill” is an electronic document of the transportation of goods that is generated on a portal. Every registered person who causes the movement of goods (which may not always be on account of supply) with a consignment value of more than Rs. 50,000 is required to produce an e-way bill under rule 138 of the CGST Rules, 2017.
Important: Is GST E Way Bill Mandatory For Even 1 KM of Distance?
If the transaction is carried out by a train, an aeroplane, a ship, or any other mode of conveyance, the consignor or consignee must produce this documentation themselves.
