E-way bills moderate in Sep but remain among highest
₹5 crore kicked in on 1 August for businesses to report wholesale transactions in designated portals (called e-invoicing), it is natural that compliance in raising e-way bills for goods shipment will also improve, according to experts. The e-invoice transaction data feeds automatically into other tax documents like e-way bills and the GST returns, facilitating greater reporting and oversight of economic activity.
The sustained increase in reporting requirements in the GST regime is seen as contributing to greater formalization of the economy and tax compliance. GST proceeds of the Centre and states in October will reflect the sales achieved in September that, to some extent, gets reflected in the number of e-way bills raised in the month.
However, GST revenue collection cannot be precisely forecast as it is a function of the value of transactions, the different tax slabs and proceeds from services. GSTN does not release the value of e-way bills raised on a monthly basis.
“The number of e-way bills generated during a month, while being indicative of the trends, should ideally be accompanied by data on their value, which would be a more accurate barometer of production and consumption activities of goods across the economy,“ said M S Mani, a partner at Deloitte India. The Centre and states together collected ₹1.62 trillion in GST in September, the fourth largest monthly collection so far under the new tax regime, showing a 10% annual growth from the year-ago period.
This is broadly in line with the 10.5% nominal GDP growth projected for this year by the government. The expected monthly average receipt from the consumption tax for Centre and states this year is ₹1.65 trillion."Exciting news! Mint is now on WhatsApp Channels
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