[‘Daily News Updates’ will provide you with a simplified understanding of the important economic/financial events across the country]
GST Collections fall below Rs. 1 lakh crore for June
In a previous edition of Daily New Updates, we had reported that the decrease in GST collections in May is set to reverse in July based on the E-way bill data generated in the first two weeks of June. It must be kept in mind that the GST collected in a month (say June) is paid by the 20th of the next month (say July). Thus, when we say that the GST collections fell in June, we refer to the GST revenue generated in May. It was expected that the GST collections in June would be even lower than that in May (Rs. 1.02 lakh crores) and recover from July. Predictably, the GST collections for the month of June are “₹92,849 crores, first fall from ₹1 lakh crore-mark in 8 months, since September 2020.” [Note that most states and major cities were under partial/complete lockdown in May].
Economic Activity picked up in June, report The Mint
Using “three high-frequency economic indicators—electricity use, vehicle sales, and mobility levels,” the Mint reported that most Indian states have recovered in terms of their economic activity in June after a slowdown in May. Gujarat and Uttar Pradesh have grown the fastest, while North-Eastern states, which are still under a lockdown, have seen limited growth. As per the Report, the increase in growth is not only driven by a decrease in cases but also an increase in optimism regarding the vaccination numbers. However, as per an SBI Report, India may see a third wave from next month itself, with cases peaking in September. An expeditious vaccine programme is a must to avert the danger.
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