The government has recorded 78.21 million e-way bills created by businesses for moving goods in August 2022. It has risen by 19% during the year, indicating a rise in shipments with the beginning of the festive season. It demonstrates yet another month of all-time high GST collections in September 2022.
There was a drastic increase in e-way bill numbers in August 2022 compared to April 2018, when it was first implemented. The development suggests that the Goods and Services Tax (GST) revenue will show strong growth of over Rs.1.5 trillion in September 2022.
The gross collections of March 2022 were at a record high of Rs.1.68 trillion when 78.16 million e-way bills were generated. Hence, there are expectations of a higher revenue collection with 78.21 million e-way bills. The e-way bills for domestic sales within the states surpassed 48.83 million in August 2022. In contrast, e-way bills for inter-state sales increased to 29.38 million.
The GST collections have stabilised due to improvement in compliance. The gross GST revenue for FY 2022-23 may surpass the target by Rs.3 trillion, out of which the Centre’s share could be about Rs.1.4 trillion.
The Financial Express publication mentioned that the Joint Secretary of the All India Transporters Welfare Association (AITWA), Shri Abhishek Gupta, expressed a drastic gain in the momentum of automotive sales for August 2022. Further, the wholesalers are preparing a sufficient inventory to address the festive demand starting with the Ganesh Chaturthi.
An e-Way bill under GST refers to a mandatory document generated from the government’s e-way bill portal when moving goods worth over Rs.50,000 in a single consignment. It can be caused either by the consignor, consignee or the transporter, in the absence of the first two parties or when the cumulative value exceeds the defined limit. The threshold limits vary with each state and also for interstate transactions.
An increase in consumption is directly relatable to the jump in GST revenues. GST collections will settle at an elevated level with a more robust economic recovery in the coming months.
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Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.