Sources said e-way bills generated by businesses for inter-state commerce in May were marginally lower than April, but significantly higher than the year-ago month, suggesting that the June GST collection was around 1.35 per cent. trillion would be Rs.
E-way bills stood at 73.62 million in May 2022, the third highest since the system was introduced in 2018, and was up 84% partly due to a very low base. However, on a month-on-month basis, the e-way bill in May was 2% lower as compared to the previous month.
Collections hit an all-time high of Rs 1.68 trillion in April (March transaction), largely reflecting the efficient plugging of tax evasion, continued shift of business to the formal sector of the economy and year-end tax payments by firms. Is.
Monthly gross GST collection in May stood at Rs 1.41 trillion, reflecting a 4% decline in e-way bills in April.
A sustained pick-up in GST receipts from July 2021 saw the average gross GST collection in FY22 at Rs 1.23 trillion, up 29% year on year. Officials believe that the monthly GST revenue in FY23 could average Rs 1.35 trillion, as against the budget estimated at Rs 1.2 trillion on an average. A sustained spurt in GST collections for several months in a row will help allay the concerns of state governments that they may have to deal with a revenue shock after the five-year revenue security ends on June 30.
Given that an initial pick-up in consumption has resulted in a more-than-proportionate jump in GST revenue, a strong economic recovery could allow collections to settle at a higher level, comparable to the higher revenues of broad-based consumption tax. Proves productivity. , Officials believe that the increase in monthly gross GST collection has given the GST Council some breathing room to re-examine an action plan on tax rates, as the GST reduction by the states after the end of the compensation regime Won’t be that much.
Under the GST compensation mechanism, which is constitutionally guaranteed, state governments are assured 14% annual revenue growth for the first five years after the July 2017 launch of the tax.