Economy

Generation of e-way bills picks up pace during the first two weeks of August 2021

The daily average count of e-way bills being generated so far in August 2021 has been approximately 1% lower than the daily average count in the previous month. However, the week-on-week numbers in August 2021 give us a positive picture. There is a 5% jump in the daily average count in the second week compared to the first week of August 2021.

GST taxpayers across India generated 20.5 lakh e-way bills for their consignments during the week ending 15th August 2021. It shows that the business transactions are picking up at a fair rate. If this continues for the rest of August 2021, the daily average is expected to reach new highs.

The daily average count of e-way bills was 19.24 lakh in the first eleven days of July 2021. It was 20.4 lakh in the week ending 18th July 2021 and 20.2 lakh in the week ending 25th July 2021. However, there was a significant rise in the last six days of July 2021 to reach the 24.3 lakh level

Close to 3.07 crore e-way bills were generated between 1st August and 15th August 2021. The increase is on account of releasing lockdowns across various parts of India since July 2021. Nonetheless, the monthly count has always seen an uptick this year. The monthly count of e-way bill generation stood at 4 crores in May 2021. It was 5.5 crores and 6.42 crores in June 2021 and July 2021, respectively. 

There is a close relationship between the e-way bill generation and the GST collections clocked for a month. The higher the number of e-way bills generated, the higher the GST collections for the month. GST collections registered a magnificent Rs.1.16 lakh crore mark in July 2021. Taxes for sales achieved by businesses in a particular month is collected in the subsequent month. The government collects taxes for sales made by businesses in a specific month only in the following month. So, the July 2021 collections largely comprised business transactions of June 2021. 

The increasing trend is expected to continue till October 2021 due to the oncoming festive season. Further, taxpayers are expected to finish their annual GST reconciliations for the FY 2020-21 while filing their GST returns for September 2021, due in October 2021. The government can expect taxpayers to clear any pending tax dues for FY 2020-21.

The GST collections over Rs.1 lakh crore mark is a relief to the authorities. It demonstrates a steady revenue much-needed for this fiscal’s budgeted spending. It also reflects a bright economic recovery after the second COVID-19 wave.

For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@cleartax.in

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