GST collections in Telangana

There is a marked 20% increase in the tax rate collections in Telangana district of Hyderabad. The state collected a total of Rs. 42,076 crore in 2017-18 under the Goods and Services Tax (GST) as against Rs. 34, 235 crore collected in 2016-17 under the VAT regime. Rs. 6,540 crore has been collected as State Goods and Services Tax (SGST) and Income through IGST (Integrated GST) amounts to Rs. 6,534 crore.

Tax collections for the month of March in Telangana district of Hyderabad have been recorded the highest in the country. The state collected a total of Rs. 904 crore in March, 2018 as State Goods and Services Tax (SGST). The collections were reported to be Rs. 853 crore in January, 2018. The state also saw collections worth Rs. 799 crore in March as Integrated Goods & Services Tax (IGST) which is levied and collected by the inter-state supply of Goods and Services. Arrears on VAT (Value Added Tax) amounting to Rs. 564 crore have also been realised for the month of march.

The increase in tax revenues has been due to the initiatives taken by the Commercial Tax Department. The Commercial Tax department had issued notices to the VAT defaulters for the payment of arrears. It actively worked for the recovery of VAT arrears, appeal fees and deferment amounts that have been pending since long. The application of GST on goods and services according to the GST rate list has led to an increase in the revenue tax collections.

Steady increase in the prices of petrol and diesel are likely to help the state government to generate more revenues every month. The hike in petrol and diesel prices from March 29 to April 3 is seen to be 111 paise and 114 paise respectively.

The percentage of tax revenue is expected to increase in the coming months under the GST regime.

What is an e-way bill and why it is important

E-Way Bill or Electronic Way bill is a document that is generated on the e-way portal for the intra-state shipment of goods worth more than Rs. 50,000. It is generated before the movements of goods by the supplier, transporter or the recipient by uploading the relevant information on the GST-portal. It is a mandatory document needed for the shipment of goods under section 68 of the Goods and Services Tax (GST) Act.

The transporter is required to carry an invoice and a copy of the e-will bill or the e-way bill number are the documents for the movement of the goods. The goods can be shipped in the supplier/recipient’s own vehicle or via road, rail or air transport. The recipient can either accept or reject the e-way bill on the portal. However, if no action is taken in 72 hours; the bill shall be taken as accepted.

Generating a bill on line eliminates the time involved in interception. But the consignment can be intercepted anytime for verification of its E-way bill. Any consignment without any e-way bill is penalized for Rs. 10,000 or tax; whichever is greater.

It also reduces the time taken in inter-state check points. Data from Ministry of Road transport and Highways tells us that a typical trucks spends 20% of its time in inter-state check points. This time goes up to 2 hours in states like Bihar or Jharkhand. So, an e-way bill eliminates the time involved at check points.

It has also reduced the time consumed in the manual cross-checking of the way-bill with tax returns filed. Every e-way bill generated gets automatically updated in the Outward sales return (GSTR1) of the supplier, thereby leaving little scope for tax evasions on shipments.

This has also reduced the paperwork and various inter-state clearances for supplier, transporters and recipient. It also minimizes the transportation costs and facilitates the easy movement of goods across state borders.

E-way bill comprises of 2 parts. Part A includes the details of GSTIN of recipient, place of delivery (PIN code), invoice or challan number, date, value of goods, HSN code, transport document number and reasons for transportation. Part B includes transporter’s details (vehicle number).

E-way bill can be generated or cancelled on e-way portal and also through sms, android app. On the generation of e-bill, a unique e-way bill number (EBN) is made available to the supplier, transporter, and recipient. The validity of e-way bill is based on the approximate distance to be covered. If the distance to be covered is 100 kms, then the e-way bill is valid for a day and if the distance is 200 kms, then it is valid for 2 days and so on.

E-way bill is not only generated for individual consignments; it can also be generated for multiple consignments. If multiple consignments are to be transported in a single conveyance, then a consolidated e-way bill can be generated on the e-way portal. Click here How to generate an e-way bill to know the steps for generating a consolidated e-way bill.

Thus by switching from manual way-bills to e-way bills, the problems caused by way-bill compliances can be mitigated. This system is in line with ‘Digital India’ scheme thereby digitalizing the process of permission for shipment of goods. It is expected to reduce time taken as well as the cost involved; in turn facilitating faster movement of goods. Thus, it is an important document to make the process of transportation hassle-free.