BENGALURU: In an encouraging sign of the economic recovery in Karnataka, the government has collected 5% more in State Goods and Services Tax (SGST) in October compared to the like period last year on the back of Dasara festival shopping.
The government has collected Rs 2,024 crore from October 1 to 28 this year against Rs 1,924 crore in the corresponding month last year. The Diwali season is expected to boost the recovery further.
Revenue from the Integrated GST (IGST) settlement - the tax share the state gets from interstate transactions - has seen a 46% growth, with Rs 1,656 crore collection against Rs 1,132 crore in October 2019. With most sectors registering steady growth after several editions of unlock measures since June, the SGST collection for the April-October period stands at Rs 11,714 crore against Rs 14,104 crore in 2019-20.
"The graded unlocking measures have helped many sectors to return to business, while ensuring the people's safety from Covid-19. The process of revival is still on. The Dasara fillip is expected to gather momentum in the Deepavali season," said commercial tax commissioner Srikar MS.
Electronic goods, FMCG sectors on road to recovery
Experts said Karnataka has been the most proactive state in making efforts to reboot the economy, leveraging the stimulus package that came along the unlock plans. About 70% of six lakh units of micro, small and medium enterprises in Karnataka availed the preapproved working capital loan scheme announced by the Centre in May.
Barring garments, tourism and hospitality, all other key sectors — automotive, home appliances, electronic equipment, fast moving consumers goods and food — are quick in getting back on track.
The festive season has brought cheer to the retail sector, and malls are reporting more footfalls. “Families have started returning to malls. Before Covid, we would get crowds, but many were curious visitors. Now, people come to malls to shop,” said Suresh Singaravelu, executive director (retail) of Prestige Group that owns six shopping malls, including UB City, in Karnataka.
Growth has been recorded in goods transport too. Last year, 43.5 lakh e-way bills were generated between October 1 and 28 and the number rose to 48.6 lakh in the same period this year. Fuel consumption, too, saw a corresponding increase. The commercial tax department has collected Rs1,295 crore tax through sales of petrol and diesel in October compared to Rs 1,177 crore last year.
“Complete recovery is a long way off. The trend shows Karnataka is on the right trajectory, with potential to lead the country in growth. The government has a lot to do. Its initiatives have been helpful in addressing the supply-side issues. It should come up with policies to revitalise the demand side,” said Rajagopal Kumar, CEO, Retailers’ Association of India.