With surge in GST collection and car sales, India’s economic recovery gathers pace
India's economic recovery gathers pace: As per the data by finance ministry, GST collection was Rs 95,480 crore in Sept as against Rs 86,449 crore in August this year. The collection stood at Rs 91,916 crore in September last year.
New Delhi: Coronavirus pandemic and the subsequent lockdown brought the economy to near standstill, pushed growth downwards to – 23% for last quarter and doesn’t paint a good picture of GDP estimate for the year 2020-21.
However, some sectors have shown promising growth just after months of opening of economic activity and thus has raised hopes of faster economic revival than expected. Economic indicators like tax collection, manufacturing, car sales have shown good signs of rebound.
GST collection touches 6 month high in September
According to Ministry of Finance, the gross Goods and Services Tax (GST) revenue collection in September stood at Rs 95,480 crore. September’s revenue collection is not just the highest of this fiscal but is also 4% higher than GST revenue of September last year.
As per the data by finance ministry, GST collection was Rs 95,480 crore in September against Rs 86,449 crore in August this year. The collection stood at Rs 91,916 crore in September last year.
Out of total GST collection, Central GST accounted for Rs 17,741 crore, State GST stood at Rs 23,131 crore while Integrated GST at Rs 47,484 crore and Cess at Rs 7,124 crore.
Auto firms register bumper growth in sales
Two-wheeler as well four-wheeler have shown considerable growth in sales. Maruti Suzuki posted 30.8% increase in total sales during September. The company sold at 1.6 lakh units this September, as compared to 1.2 lakh units in September 2019. And, its domestic demand that has pushed its sales.
TVS Motor Company said it registered sales growth of 14% in September 2020 with 327,692 units as against 287,398 units in September 2020.
Bajaj Auto said it sold a total of 4.41 lakh units as against 4.02 lakh units year-on-year. In August, it recorded good sales at 3.56 lakh units.
Overall, two-wheeler recorded 20% jump in sales at 4.04 lakh units as against 3.36 lakh units in September 2019 while three-wheeler sales went down 44% as compared to last year. Domestic sales went up 6% while exports recorded 14% growth on year-on-year basis.
Mahindra & Mahindra’s recorded 0.2% growth in commercial sales. Light commercial sales was up 1.6% at 18,754 units as against 18,464 units.
Escorts too registered jump in sale of units. Its total sales went up 9.2% as compared to last year. It sold 11,453 units last month as against 10,521 units last year.
Railways back on track
The Indian Railways said that it has arrested fall in freight traffic to 9% in the half-year period and ended September at 533 million tonnes (mt).
Freight earnings witnessed a decline of 17% at Rs 50,168 crore during the first half of the current financial year.