MAM
Consumer sentiment dips in June, yet India holds onto highest national index score: LSEG-Ipsos PCSI June 2024
Mumbai: Consumer sentiment has weakened and dipped -2.6 percentage points in June 2024, though notably India continues to lead with the highest national index score across all 29 markets polled, according to the LSEG-Ipsos primary consumer sentiment index (PCSI) June 2024 wave.
The LSEG-Ipsos survey also maps consumer sentiment across four sub-indices and all of them have seen a drop this month: the PCSI employment confidence (“Jobs”) sub- index, is down -4.6 percentage points; the PCSI current personal financial conditions (“Current Conditions”) sub-index is down -0.7 percentage points; the PCSI investment climate (“Investment”) sub-index too is down -0.6 percentage points; and the PCSI Economic expectations (“Expectations”) sub-index is down -6.4 percentage points.
Elaborating on the findings of the survey, Ipsos India CEO Amit Adarkar said, “Confidence around personal and household expenses is still stable and same goes for investments in savings and big-ticket purchases. It is the confidence around the economy and jobs that has seen a significant drop. Some of the impact is due to macro conditions, with the global economic slowdown and job cuts and further, with the new government in the saddle and the union budget yet to be announced, the overall approach is cautionary and tardy. It has also been a hot summer with the farm sector impacted due to drought in some. Monsoons could bring back some cheer and a growth-oriented budget announcement in July 2024.”
“Even The Reserve Bank of India (RBI) warned mid June that the exceptionally hot summer and low reservoir levels could stress the summer crops of vegetables and fruits, potentially disrupting efforts to control inflation. And while overall inflation has eased, food prices remain volatile and elevated, complicating the inflation battle,” added Adarkar.
How global markets stack up
The global consumer confidence index is the average of all surveyed countries’ overall or “National” indices. This month’s installment is based on a monthly survey of more than 21,000 adults under the age of 75 from 29 countries conducted on Ipsos’ Global Advisor online platform. This survey was fielded between 24 May and 7 June 2024.
Consumer sentiment in 29 countries
Among the 29 countries, India (65.2) continues to hold the highest national index score. India and Indonesia (63.2) are the only countries with a national index score of 60 or higher.
Ten other countries now show a National Index above the 50-point mark: Singapore (58.1), Mexico (57.2), the Netherlands (55.2), Thailand (55.2), Sweden (54.7), Great Britain (53.9), the U.S. (53.8), Malaysia (52.9), Brazil (52.3), and Australia (50.5).
In contrast, just five countries show a National Index below the 40-point mark: South Korea (39.5), Japan (37.7), Hungary (37.0), Peru (36.7), and Türkiye (29.1).
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
