The Goods and Services Tax (GST) revenue collections will likely start improving from July 2021 after falling in May and June 2021. The e-way bills official data on the GSTN portal for the first fortnight indicates the gradual resumption of economic activity. The resumption is due to a decline in COVID cases across the country and easing lockdown restrictions by the states.
The GSTN portal showed that taxpayers generated a total of 2.09 crore e-way bills till 13th June 2021. The e-way bill average per day in June is 16.12 lakhs which is 25% more than the daily average reported for May 2021. It also showed a reversal of the sequential decline seen in April and May.
The experts have predicted economic growth picking up in the coming months as the states started easing lockdown restrictions. The increase in e-way bill activity corroborates the experts’ opinion and indicates increased GST collections in July 2021.
The increased collections will help the central and state governments meet the financial requirements and aid in combating COVID-19.
The second wave of COVID-19 has hampered businesses across many sectors, including retail and transportation. Still, the small businesses need help to come out of the crisis. However, we can see that the businesses will regain their momentum from June 2021 and continue to rise in July 2021 and further.
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DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.