Finance Ministry cites strong car sales, GST collections to remain in Q2 to emphasize growth momentum
Finance Ministry cites strong car sales, GST collections to remain in Q2 to emphasize growth momentum
India’s Goods and Services Tax (GST) collection in August is estimated to be over ₹1.42 lakh crore, up 27% over the same month of 2021, the sixth consecutive month that indirect taxes from ₹1.4 lakh crore There has been a higher yield.
“The continued growth in GST collections indicates that the growth momentum of the Indian economy is sustained beyond the first quarter of 2022-23,” the finance ministry said in a statement. GDP estimates for the first quarter released by the Office for National Statistics on Wednesday, that also included its growth outlook.
While the final GST revenue figures are due to be released on Thursday, the ministry stressed that the increase in GST revenue is “along with a strong growth in economic activity, along with various measures taken to curb anti-theft activities and encourage better compliance”. measures”.
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The ministry said that e-way bills generated under the GST regime also rose 15% to 7.56 crore in August, indicating strong domestic economic activity.
In July, GST revenue stood at ₹1,48,995 crore, the second highest monthly collection since the introduction of the tax regime in 2017 and the highest in three months. The July GST kitty was up 28% year-on-year and revenue from imports of goods grew 48%, while revenue from domestic transactions, which also included import of services, was up 22%.
While India’s retail inflation slipped to a five-month low of 6.71% in July, the finance ministry highlighted several high-frequency indicators to emphasize that India’s growth-inflation matrix was on solid ground.
“With relatively high growth and low inflation, India has faced a low trade-off between growth and inflation among major peer economies… Strong performance of high frequency indicators in July and August 2022 in Q2 of 2022-23 indicates continued growth,” it said.
“Despite semi-conductor shortage, domestic auto sales surpassed pre-pandemic levels, registering a year-on-year growth of 11.5% in July, indicating an improvement in demand conditions in urban and rural areas,” the ministry said. Is.”
Similarly, total bank credit and non-food credit continued to grow in double digits in July, as did the April-June quarter, growing at 13.4 per cent and 13.9 per cent, respectively. This is driven by increased credit flow to industry and services, the ministry argued.
Citing the Purchasing Managers’ Index (PMI) compiled by S&P Global, the ministry said the manufacturing PMI was at an eight-month high in July, while services activity remained “expanding” in the month.
“The cumulative capex of the government as of July has reached 2.1 lakh crore, an increase of 62.5% from the cumulative capex in the corresponding period of last year. The fiscal deficit in the first four months of 2022-23 has narrowed to 20.5 per cent of the budget estimate as compared to 21.3 per cent in the corresponding period of the previous year.