Look at this chart
Now where do you see GST Collection rising?
In fact you can clearly see that it has been falling since April 2024.
Media headlines would have you believe that GST Collection is rising. How they achieve this astounding feat is by showing you figures from September 2023. Of course, it is going to be ahead of 2023 Figures, isn’t our economy growing?
What is known is that Automobile Industry, a major contributor to GDP, has unsold inventory worth 7,00,000 Crores lying with dealers. Now unless this inventory is liquidated, there will be no GST that will go the government. Maximum markup on price happens at the sale level. If you take GST at 18% on these vehicles, at least 1,26,000 crores remains to be realized on this account alone!
Government wants to tell you that all is well, while the actual situation is that all is in the well.
Household savings are falling leading to crunch in the banks.
Cost of Living, retail inflation are all up. 500 Rupees does not buy you much. While government claims that inflation is in control and the figure they quote is small, reality is that this is because of baseline effect. What they are showing you is incremental inflation.
According to experts, India is in a middle income trap. After Corona, there has been a K-Shaped recovery, where the poor have become more poor and the rich have become richer.
The mindless speculation in the stock markets, where IPO’s are getting 200-400 percent over subscription shows that people are desperate to do anything to increase their incomes, even taking high risk on the stock exchanges.
According to Government’s own estimates, more than 80,00,00,000 (Eighty Crore) out of 140,00,00,000, or almost 60% of India is living on free rations!
There has been great erosion of purchasing power and that has now started getting reflected in all sectors.
Recently, top companies shed 52,000 people from their retail operations.
While crude prices across the globe have come down, Indians continue to pay the same price for petrol, diesel and gas.
Oil Marketing Companies are now making massive profits (almost all owned by Government of India) while general public suffers.
In the coming time, GST collections are going to fall some more as the economy tanks and people cut down on all sorts of discretionary spending.
There is more bad news yet to come.
