Anupam Manur was quoted in an article by Rahul Jayaswal, Senior editor of Hindustan Times on the massive fall in GST revenue and diesel consumption.
“The lockdown allowed the production, distribution and sale of only essential items, a lot of which (including agricultural products) do not attract a tax. The severe restrictions placed on the movement of people and vehicles and the resultant empty streets explains the fall in diesel consumption.”
Manur, however, said the recovery of diesel consumptions will be far quicker than that of GST collections. “With many of the strictest rules of the lockdown lifted and movement of people and travel allowed, demand for fuel will increase.”
“Recovery of GST collections is a lot more complex and will depend on India’s ability to mend broken supply chains, restore people’s incomes and jobs, and increase consumer confidence, which will, in turn, greatly depend on how quickly we can contain the growth rate of Covid cases,” he added.
Read the full article here