The first day of August has brought relief for the government and consumers on seven fronts, including record collection in Goods and Services Tax (GST), fall in unemployment, reduction in prices of aircraft fuel and easing of prices of commercial gas cylinders. This is the sixth time since the introduction of GST in the year 2017 that the GST collection has crossed Rs 1.40 lakh crore. This is being seen as a sign of the country’s economy gaining momentum by overcoming the challenges of Kovid.
1. GST Collection Will Cross Budget Estimates
GST collections grew 28 per cent to Rs 1.49 lakh crore in July due to economic reforms and measures taken to check tax evasion. The government gave this information on Monday. The Goods and Services Tax (GST) collection stood at Rs 1,16,393 crore in July, 2021.
LPG Price Today 1 August 2022: LPG cylinder becomes cheaper, see new rates from Delhi to Patna
This is the second largest monthly collection since the implementation of GST in July, 2017, the Finance Ministry said in a statement. Earlier, in April 2022, the collection had reached a record high of Rs 1.68 lakh crore. This is the sixth time and the fifth consecutive month since March 2022, that the monthly GST collection has exceeded Rs 1.40 lakh crore, the ministry said. According to the statement, in the current financial year till July 2022, there has been an increase of 35 percent in GST revenue as compared to the same period last year. ICRA Chief Economist Aditi Nair said the GST collection in July 2022 is higher than the monthly average estimate of Rs 1.45 lakh crore for this year. We expect this to increase over the budget estimates for FY 2022-23 for CGST collection. In July, the revenue from import of goods increased by 48 per cent.
2. Rapid employment will increase in manufacturing
Manufacturing sector activity in India reached an eight-month high in July 2022. A monthly survey said on Monday that the rally was driven by a significant increase in trade orders. This can increase employment opportunities. The seasonally adjusted S&P Global India’s Manufacturing Purchasing Managers’ Index (PMI) rose from 53.9 in June to 56.4 in July. This is the highest level in eight months. The PMI data for July pointed to an improvement in overall operating conditions for the 13th consecutive month. In PMI parlance, a score above 50 indicates expansion, while a score below 50 indicates contraction. Poliana De Lima, Joint Director, S&P Global Market Intelligence, said the Indian manufacturing industry was greeted by a welcome trend of faster economic growth and moderation in inflation during July. Production expanded at the fastest pace since last November, she added. And it shows a rise in new orders.
3. The biggest cut in the price of aircraft fuel
Aircraft fuel (ATF) prices in the country were cut by a whopping 12 per cent on Monday. This is the biggest ever cut in ATF. The reduction came amid prospects of a fall in international crude oil prices. In the national capital, the price of ATF was cut by Rs 16,232.36 per kl or 11.75 per cent to Rs 121,915.57 per kl. This is the biggest reduction in rates so far. Earlier on July 16, there was a decrease of Rs 3,084.94 per kiloliter (2.2 per cent).
4. Commercial LPG Gets Affordable
The price of 19 kg commercial LPG cylinder has been reduced by Rs 36 to Rs 1,976.50. Commercial LPG is used by hotels, restaurants and other commercial establishments. This is the fourth cut in commercial LPG rates since May. Overall the prices have come down by Rs 377.50 per cylinder. There is no change in the price of LPG gas used in domestic cooking. The price of a 14.2 kg domestic LPG cylinder in the national capital is Rs 1,053.
5. Unemployment rate at its lowest level in six months
The unemployment rate in the country dropped to 6.80 per cent in July this year. Whereas in June this year it was at the level of 7.80 percent. This is the lowest level of unemployment rate in six months. This has been revealed in the CMIE data. It said that good monsoon has increased employment opportunities in rural areas.
6. Vehicle sales boomed
Tata Motors’ total sales grew by 51.12 per cent year-on-year to 81,790 units in July 2022. Maruti Suzuki’s total sales grew by 8.28 per cent to 1,75,916 units in July 2022. Hyundai Motor India’s total sales grew by 6 per cent to 63,851 units in July 2022. Mahindra & Mahindra’s (M&M) domestic passenger vehicle sales grew 33 per cent year-on-year to 28,053 units. Kia India’s wholesale sales grew by 47 per cent to 22,022 units in July 2022.
7. Electricity consumption increased by 3.8 percent
Electricity consumption rose by 3.8 per cent year-on-year to 128.38 Billion Units (BU) during the month of July amid monsoon rains across the country. This information has been received from the data released by the Ministry of Power. A pick-up in demand for electricity is considered a sign of growth in business activities. Earlier, in July last year, electricity consumption was 123.72 billion units, as compared to 112.14 billion units in the same month of the year 2020.
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