Signs of recovery in the economy, rise in GST collection to auto sales
Amidst speculation about the recovery rate within the battered economy of Corona, there are now signs of great relief. Figures range from GST collection to auto sales for the month of June are giving a transparent indication of recovery. FMCG companies also are on the increase, reaching a pre-Corona era level. the govt is predicted to extend the consumption of rural India even further with the relief package given for rural India, bumper purchase of rabi, and expectation of normal monsoon.
According to Finance Ministry data, the GST collection for the month of June stood at Rs 90,917 crore. Apparently, this includes arrears of February, March, and April, but despite this, the boom is being considered positive. In April and should this year, GST collections were estimated at Rs 32,294 crore and Rs 62,009 crore respectively. However, the GST collection for June this year was lower by about 9000 crores as compared to June last year. consistent with economic experts, if the GST collection remains around June level for the subsequent three months, then you’ll be fully assured about the recovery.
Sales of the auto sector also are showing a more relaxed picture on the economic front than in May. The country’s largest carmaker Maruti Suzuki sold 57,428 vehicles in June this year, while in May this year, Maruti sold only 13,702 vehicles. However, in June last year, Maruti sold 1.24 lakh vehicles. Hero Moto Corp sold 4.5 lakh two-wheelers in June this year, a rise of 300% over May sales this year. However, this year, Hero Moto’s June sales are 26.86 percent but in June last year.
Rural India’s hand in recovery
Rural India is more visible within the recovery of the economy. Sales of cars and two-wheelers continued to say no compared to last year, but the tractor sales used for farming increased sharply compared to last year. In June this year, Escorts sold 10,851 tractors while in June last year the corporate sold 8,960 tractors, which is 21 percent quite the previous year. Mahindra tractor sales increased by 10 percent over June last year.
According to a recent Nilsson report, sales of FMCG in rural India reached 85 percent of COVID 19 East, while in urban areas it had been seen near 70 percent of East a corporation like Parle expects a doubling in demand from rural India compared to urban India.
This is because the impact of COVID in rural India is far but within the city. There was a bumper crop of rabi whose farmers got Rs 80,000 crore from government procurement. This year, Kharif sowing has been doubled compared to last year thanks to the normal monsoon. a further allocation of Rs 40,000 crore was made for MGNREGA as a part of the government’s relief package. Recently, the govt has allocated Rs 50,000 crore to supply employment in 25 sectors in rural India. aside from this, the assistance of 500-500 rupees in the free ration and Jan Dhan women account is additionally getting to rural India. consistent with economic experts, the insight into these packages, rural India is going to be the important help in reviving the economy.
In view of the increasing outbreak of Corona, the All India Tax Advocates Forum has demanded to start out using e-process to settle cases associated with GST. For this, the advocates have written a letter to the minister of finance Nirmala Sitharaman and demanded. The president of the institution MK Gandhi suggested that the govt should now start the electronic process altogether central and state GST offices. He said that the supreme court and therefore the Supreme Court also is using this process to stop corona.