This is news regarding low number of E-way bills in India despite high GST revenue. The GST regime covers e-way bills for the transport of goods, which went down during October, even as the tax inflow was high.
For the month of October India's GST collection has surpassed the INR 1.5 lakh Cr. mark for the second time. This can be attributed to factors that as high sales during the festive season and inflation. Apart from high sales during the festive season, the rise in tax revenue on everything from groceries to transport could also be attributed to factors such as inflation.
Even though the tax inflow was high, E-way bills for the transport of goods went down during the month of October. This indicates the decline in the movement of goods around India, while factory output went up as the purchase managers index was up from 55.1 to 55.3.
Even though E-way bills went down from 8.4 crore in September to 7.68 crore in October, they still maintained steady pace, which indicates a healthy growth in shipments, as it stayed above 7 crores since March. This drop in E-way bills could have been triggered by a higher number of holidays during the festive season. These e-way bills are an indicator of the balance between consumption and supply in the country, and showed a healthy growth in shipments from May to September, staying above seven crores since March.
Whenever there is a transport of goods worth more than Rs 50,000 crore within a state or between states, it is required to generate the E-way bill from an online portal. The physical copy of the e-receipts is to be carried by the transporter, and the mechanism is meant to ensure compliance and curb tax evasion.
For any further clarification/doubt, feel free to contact GST professional. Our team of GST experts assist in comprehensive matters in regard to GST.
Source: Free press journal
Also read: GST Update on E-way bill Generation for the Movement of Gold
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