E-way bill generation has improved in May to 8.82 crore from 8.44 crore in April indicating more movement of goods.

The first indication about higher movement of goods was reflected in PMI (Purchasing Managers’ Index) manufacturing which surged to a 31-month high of 58.7 in May.

Higher generation of bills could also result in better collection of GST in June, a number which will be made public on July 1. Some experts feel higher generation appears to be testament to stricter anti-evasion measures adopted by the GST mobile squad officials across the country.

The government collected ₹1.57-lakh crore as GST in May. Although on a sequential basis, it was lower than ₹1.87-lakh crore of April, but it was higher by 12 per cent from May last year. Experts say collection in the next month could be ₹1.6-lakh crore or more.

Experts’ take

Aditi Nayar, Chief Economist with ICRA said, “Over the next few months, we expect GST revenues to print at ₹1.55-1.65-lakh crore and record an expansion of 10-11 per cent in year-on-year terms, broadly in line with the nominal GDP growth expected in FY24.”

Some experts feel regulatory action will further boost the collection.

Mahesh Jaising, Partner with Deloitte India said that the recently issued standard operating procedure for online scrutiny of returns also urges officers to prioritise cases that are riskier and have higher revenue implications while preparing scrutiny schedules. This initiative should aid in maintaining the upward trend in revenue collections this FY too.

Apart from these, the government has further reduced the e-invoicing threshold which will help weed out fake invoicing. There is also a proposal to prescribe a deadline for reporting e-invoices which should again facilitate timely reporting and revenue collections.

“With several measures in works to augment revenue collections, taxpayers hope that as collections stabilise the government will be able to focus on forward-looking GST measures and changes in the law,” Jaising said.

Abhishek Jain, Partner & National Head-Indirect Tax, KPMG in India said that with extensive Department GST audits lined up before September 2023, these figures (₹1.57-lakh crore) may likely go up from here in the months to come.

What is E-way bill?

E-way bill generation of a month gives an indication about GST collection in the following month. However, some experts say e-way bill generation is not directly linked to revenue collection.

E-way bill is an electronic document generated on a portal evidencing movement of goods. As per Rule 138 of the CGST Rules, 2017, every registered person who causes movement of goods (which may not necessarily be on account of supply) of consignment value more than ₹50,000 is required to generate an e-way bill.

This needs to be generated by the consignor or consignee himself if the transportation is being done by own/hired conveyance or by railways by air or by vessel.