GST collections set to further moderate in June
Staff writer
NEW DELHI: Goods and services tax (GST) receipts of the central and state governments are set to further moderate in June after scaling a historic high in April by riding on fiscal year-end spike in sales, according to data on the generation of e-way bills.
Generation of electronic permits needed for goods transportation within and across states slowed down in May to 73.6 million, from 75.2 million in April.
The record e-way bill generation that was seen in March of 78.2 million had contributed to a record ₹1.68 lakh crore in GST receipts in April as businesses cleared inventory to meet fiscal year targets.
India’s factory output continued to expand in May for the 11th consecutive month, while service sector growth continued to strengthen in the same month with companies reporting the quickest increase in business activity since April 2011, S&P Global had said earlier this month quoting its purchase managers’ indices (PMIS). Manufacturing PMI was at 54.6 in May, little changed from the 54.7 in April, while services PMI moved up to 58.9 in May from 57.9 in April.
The indices show expansion at 50 or above and contraction below this mark.
According to experts, expanding the scope of Gst-related reporting requirements have immensely helped in boosting revenue collections as it ensured that sales do not go unreported. The government has made e-invoicing or real time electronic reporting of business-to-business transactions compulsory for businesses with sales of ₹20 crore or more from April, down from the ₹50 crore threshold earlier. This has improved the tax authorities’ surveillance of economic activity and has made it hard to under-report sales.
E-invoicing is applicable for services and exports too. With Gst-related reporting improving, the focus of tax authorities now is to ensure the quality of the reported information by conducting departmental audits.