Two sets of data released on Tuesday indicated India’s economy may be on the mend. For one, Goods and Services Tax (GST) revenue figures for November showed indirect tax collections crossed the psychological mark of Rs 1 lakh crore for the second month in a row, at Rs 1.04 lakh crore.
While this was slightly lower than the October mop-up of Rs 1.05 lakh crore, it was 1.4% more than the GST revenue recorded in November 2019, as festive demand drove up sales and tax collections. Festive sales also saw the Nikkei Purchasing Managers’ Index (PMI) at 56.3 in November, a sign that companies were hoping for continued sales in December and were buying inputs in anticipation.
Though the PMI, compiled by IHS Markit, declined to 56.3 in November from October’s decadal high of 58.9, it still remained well above the 50-level separating growth from contraction. Officials said that of the total GST collection, central GST was Rs 19,189 crore, state GST Rs 25,540 crore, IGST Rs 51,992 crore (including Rs 22,078 crore collected on import of goods) and while Cess stood at Rs 8,242 crore (including Rs 809 crore collected on import of goods). The government has settled Rs 22,293 crore to CGST and Rs 16,286 crore to SGST from IGST as regular settlement.
Source from: https://www.newindianexpress.com/business/2020/dec/02/healthy-gst-revenue-pmi-data-show-recovery-is-on-2230631.html