Heatwave grip on May consumption, base-year effect cool GST growth

Analysts suggest that while this does not signify a slowdown, it indicates a moderation in consumption, likely influenced by severe heatwave conditions prevailing in the country during May

The single-digit growth of 7.7 per cent in goods and services tax (GST) collections in June points to the impact of the May heatwave on consumption, coupled with a base year effect, according to analysts.

The gross GST collection for June, reflecting transactions made in May, stood at Rs 1.74 trillion, Business Standard reported on Monday. This year-on-year growth was notably less than the 12.4 per cent and 10 per cent increases recorded in April and May, respectively.

Analysts suggest that while this does not signify a slowdown, it indicates a moderation in consumption, likely influenced by