E-way bills are a crucial part of indicating business activities in India. Interestingly, we are seeing a Rise in e-way bills in our nation. Hence, A Rise in e-Way Bills also indicates Increased GST Collections in July 2021. In this article, we will get to know about this increase in the generation of e-Way bills.
Rise in e-Way Bills in June 2021
The increase in e-way bill production in June is a hint of higher consumption and higher revenue collections in July.
A similar pattern as in July suggests that GST receipts would rise much more in August.
However, The Centre and States collected 92,849 crores in GST revenue in June from transactions in May. It is the first time GST receipts fell below the $1 trillion barriers since last October.
The sequential increase in e-way bills in June was expected. According to experts, it is because the impact of the pandemic’s second wave was significantly decreasing.
Furthermore, the experts suggest this rise in e-way bills also indicates enhanced supplies, which means higher GST collection.
Impact of Increased GST Collection
Increased GST collections will help the center and state governments satisfy their financial obligations while also aiding in the fight against COVID-19.
COVID-19’s second wave has impacted firms in a variety of industries, including retail and transportation. Small enterprises, on the other hand, require assistance to recover from the crisis. However, beginning in June 2021, we may expect enterprises to regain their momentum and continue to rise in July 2021 and beyond.
Important Note – The government has also announced the GST Amnesty Scheme which is a massive relief to taxpayers. It allows taxpayers to file GST Return at a very low penalty rate. Know more about GST Amnesty Scheme – GST Late Fee Reduced on GST Late Return filing: New Amnesty Scheme (e-startupindia.com)
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