Goods and services tax (GST) collections fall drastically in April and May 2020. The reason being decrease in the number of electronic permits or e-way bills generated for transporting goods by around 30% in March 2020 and by more than 80% in April 2020. E-way bills are required for transporting goods worth more than ₹50,000 within and across states. These enable officials to keep a eye on the transactions, without physically interfering with goods movement.
It is estimated that there is roughly more than 83% fall in the e-way bills generated in April, is all set to have effect on the GST revenue to be collected in May, 2020. Businesses get time till the 20th of a month, so as to pay taxes for transactions in the previous month. May revenue can be clearly reflected because of the drop in economic activities in the current scenario.
The 40 million e-way bills generated in March reflects a 28.9% drop in February. In the April-March period of 2020, GST revenue collection grew by 3.8% to ₹12.2 trillion from last year.