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Home Economy

GST kitty improves, manufacturing contraction slows in June – Times of India

newslivenation by newslivenation
July 2, 2020
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GST kitty improves, manufacturing contraction slows in June – Times of India
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NEW DELHI: The gross GST revenue collected in June totalled Rs 90,917 crore, and augurs well for collections in the months ahead as economic activity gathers pace.
But it also marked the third straight month of decline year-on-year.
Data released by the government on Tuesday showed that the collections for the month were 91% of the GST revenues in the same period last year. Collections have been hit hard by the impact on economic activity of the lockdown unveiled to ward off the spread of the pandemic, with April and May showing a major hit. The government had also eased rules to allow firms to file returns late.
A government statement said figures of the past three months show recovery in GST revenues. Collections for the month of April were Rs 32,294 crore, which was 28% of the revenue collected during the same month last year, and for May it was Rs 62,009 crore, accounting for 62% of the revenue collected during the year earlier period.
Separate data showed contraction in manufacturing eased significantly. At 47.2 in June, the IHS Markit India Manufacturing PMI surged from 30.8 in May. Despite the rise, the latest reading pointed to a third successive monthly decline in the health of the manufacturing sector, albeit one that was far softer than registered in April and May. It showed that firms continued to reduce staff numbers at a marked pace.

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