E-way bills point to pickup in GST receipts in July

India’s Goods and Services Tax (GST) revenue collections are likely to stage a recovery from July after falling in May and June, official data on e-way bills for the first fortnight of June indicated, highlighting the gradual resumption of economic activity in line with a decline in coronavirus cases and easing of lockdown curbs.

Data from GSTN, the company that processes tax returns, showed that the average e-way bills generated this month until June 13 stood at 1.61 million, 25% more than the daily average reported for May. It also showed a reversal of the sequential decline seen in April and May.

Rajesh Gupta, co-founder and chief technology officer of BUSY Infotech Pvt. Ltd, said the second wave has taken a heavy toll on several sectors, including retail and transportation.

“We are certain that the businesses will regain their momentum from June and continue to bolster in July and further in coming months,” said Gupta.

With easing restrictions, many analysts have predicted economic growth picking up in the coming months.

However, the level of pent-up demand may be less than what was seen last year.

According to Archit Gupta, founder and chief executive officer of Cleartax, an online tax service provider, an uptick in e-way bill activity will likely reflect on improved collections as well.

“Strong collections will help the government meet requirements of states and help with Covid relief work. However, small businesses may still need help to come out of the crisis,” he said.

Source:https://www.hindustantimes.com/business/eway-bills-point-to-pickup-in-gst-receipts-in-july-101623795952933.html

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BIO of Author:-

The author, CA Jayprakash Pandey is a practicing Chartered Accountant (Founder of Jayprakash P & Company) having Office at Mumbai, with more than 5 years of professional cum practical experience, Direct Tax, International Taxation, Indirect Tax & FEMA related advisory, litigation & compliance matters.

 

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