May 04, 2021
E-way bills suggest GST receipts could see a decline in May
Goods and services tax (GST) collections of the central and state governments could come off their peak in May after touching a record high of Rs.1.41 lakh crore in April, according to data on the number of e-permits generated for the movement of goods in April.
Data showed that e-way bills generated for the movement of goods within and across states in April dropped by 31% to 48.9 million from 71 million in March. Movement restrictions are in place in several parts of the country as the authorities seek to contain coronavirus infections. Taxes for April sales are paid in May.
The e-way bill generation data for April compares with the levels in July and August 2020, when monthly e-way bills generated were below 50 million and the economy was beginning to emerge out of the impact of the nationwide lockdown. The corresponding GST receipts for the months were below Rs.1 lakh crore— Rs.86,449 crore in August and Rs.95,480 crore in September.
GST receipts in the following months were above Rs.1 lakh crore, reflecting the economic recovery and a host of measures by the tax authorities to check evasion, including the drive against the use of fake invoices by businesses.