Upsurge in GST collections unlikely to sustain beyond November 2020

by Nidhi Bhati

Experts have cautioned about over-interpreting the Goods and Services Tax (GST) collection numbers and said their sustainability needed to be watched beyond November 2020, as per a report in Business Standard. GST collection crossed Rs.1 trillion for the first time in eight months in October 2020. ICRA’s Principal Economist Aditi Nayar said that the uptick in GST collection in recent months appeared to have benefited from pent-up demand, the building up of inventories before the festive season and e-invoicing. However, she remains circumspect about the durability of the spikes being seen in various sectors and therefore of healthy headline GST collection after November. According to Deloitte India’s Partner M S Mani, current and the next month are expected to be robust from the GST collection standpoint due to pent-up demand and the festive season. However, he added that collection would depend on the pace of revival of economic activities, business conditions and the impact of the next phase of e-invoicing rollout.

References
1. https://www.business-standard.com/article/economy-policy/difficult-to-sustain-rs-1-trillion-monthly-gst-collection-say-experts-120112100021_1.html
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
6.8 +2.1
Consumer Sentiments Index
Base September-December 2015
51.8 +0.3
Consumer Expectations Index
Base September-December 2015
53.6 0.0
Current Economic Conditions Index
Base September-December 2015
48.9 +0.9
Quarterly CapEx Aggregates
(Rs.trillion) Dec 19 Mar 20 Jun 20 Sep 20
New projects 5.56 4.02 0.78 0.82
Completed projects 1.67 1.78 0.25 0.69
Stalled projects 0.61 0.73 0.11 0.08
Revived projects 0.82 0.42 0.68 0.36
Implementation stalled projects 0.13 10.04 0.09 0.05
Updated on: 05 Dec 2020 3:28PM
Quarterly Financials of Listed Companies
(% change) Dec 19 Mar 20 Jun 20 Sep 20
All listed Companies
 Income -1.7 -5.0 -27.6 -6.2
 Expenses -2.2 -1.9 -27.9 -10.1
 Net profit -10.9 -48.2 -40.2 45.3
 PAT margin (%) 5.1 2.4 5.3 8.3
 Count of Cos. 4,459 4,316 4,300 4,204
Non-financial Companies
 Income -5.5 -9.0 -37.4 -10.3
 Expenses -6.4 -5.0 -37.6 -14.0
 Net profit -13.9 -49.4 -55.7 30.1
 PAT margin (%) 5.7 3.3 4.5 8.1
 Net fixed assets 13.3 6.0
 Current assets 3.0 0.7
 Current liabilities 5.8 -2.9
 Borrowings 15.6 8.1
 Reserves & surplus 1.4 4.5
 Count of Cos. 3,311 3,229 3,220 3,163
Numbers are net of P&E
Updated on: 05 Dec 2020 3:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.4 13.4 0.3
 Expenses 9.9 13.7 0.9
 Net profit -40.6 22.1 -19.9
 PAT margin (%) 2.0 2.3 4.1
 Assets 10.9 9.5 9.3
 Net worth 7.5 8.6 5.0
 RONW (%) 3.4 4.2 5.9
 Count of Cos. 28,469 27,687 7,454
Non-financial Companies
 Income 8.6 14.0 -2.8
 Expenses 8.8 14.1 -1.7
 Net profit -9.2 23.2 -28.6
 PAT margin (%) 2.7 3.1 4.3
 Net fixed assets 7.2 5.5 13.0
 Net worth 6.1 8.4 1.9
 RONW (%) 5.6 6.8 7.3
 Debt / Equity (times) 1.0 1.0 0.8
 Interest cover (times) 2.1 2.4 2.8
 Net working capital cycle (days) 77 70 58
 Count of Cos. 23,112 22,440 5,526
Numbers are net of P&E
Updated on: 05 Dec 2020 2:43PM