Rising e-way bills in July signal GST collections set to increase

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Electronic-way bill generation improved sequentially in July, signalling a continued recovery in economic activity and a likely improvement in goods and services tax (GST) collections in August, offering relief to policymakers.

Data issued by the GST Network on Monday showed that daily average e-way bills this month as of 18 July was at 1.97 million, an 8.5% rise from the full-monthly average for June. This is significant as it comes on the higher base of June, which saw a 37% sequential rise in e-way bills at 54.6 million.

The improvement in electronic permits raised for transportation of goods within and across states is expected to reflect in GST receipts of central and state governments in July and August.

The spurt in e-way bill generation in June is a sign of improved consumption during that month and better revenue collections in July.

The same trend seen so far in July implies a further growth in GST receipts in August.

From transactions in May, the Centre and states had collected 92,849 crore of GST revenue in June, the first instance of GST receipts dropping below the 1-trillion mark since last October.

The uptick in e-way bills seen in June and July underscore a rebound in economic activity.

Source from: https://www.livemint.com/economy/rising-e-way-bill-generation-in-july-signals-continued-economic-recovery-11626685708986.html