GST RATE CUTS
Why so much buzz over a budget exercise, Kola Veri Di?
The annual budget is a significant government announcement that impacts various sectors of society. Over the years, different budgets have introduced reforms and policies that have shaped the economy. While some budgets have been revolutionary, others have focused on incremental changes such as tax exemptions and policy updates. The budget speech outlines the government's financial goals and objectives for the year. Despite the hype surrounding the budget, its true impact is evaluated over time. Beyond personal tax calculations, the budget plays a crucial role in shaping the country's economic landscape and societal development.
Central spending gives a boost to liquidity, brings overnight rate 10 bps below repo
Following recent elections, increased government spending has injected liquidity into India's banking system, resulting in lower overnight borrowing rates, Treasury Bill yields, and short-term financing costs for Indian companies. Despite these developments, the Reserve Bank of India (RBI) appears cautious about reducing policy rates. The overnight weighted average call rate (WACR), which hovered above the RBI's repo rate of 6.50% in May and June, has averaged 6.39% in July, indicating a surplus liquidity situation.
Income tax cut in Union Budget 2024: India’s middle-class is asking for it but may not get it
BUDGET TAX RELIEF: Despite yearly budget hopes, India's middle class likely faces disappointment again over tax cuts amidst inflation. Both citizens and industry seek relief, especially for lower-income earners. However, there is a chance that fiscal prudence approach may prevent tax benefits. Focus remains on growth via targeted schemes. Economists debate the efficacy of tax cuts on boosting consumption, with rural demand still rebounding.
Budget 2024: Tax cuts and lower rates top developers’ Budget wishlist
Budget Expectations: As the Union Budget 2024 nears, real estate developers eagerly await tax rationalisation and interest rate cuts for financial viability and growth. The CREDAI and Colliers survey underscores the need for GST input tax concessions and lower interest rates to boost project feasibility. Developers anticipate strong demand in Tier I and II cities, with hopes of sustaining momentum in 2024. Expectations include cost management solutions, price increases, and exploring new residential models. Developers and stakeholders look to Budget 2024 for crucial support in driving sector growth.
Centre sacrificed large amount of GST revenue to compensate states: Former CEA Subramanian
Former Chief Economic Advisor Arvind Subramanian revealed that the Centre has been sacrificing a substantial portion of GST revenue, amounting to 1 per cent of GDP annually, to uphold a 14 per cent compensation guarantee for states since the introduction of the tax regime. Subramanian emphasised the importance of maintaining the current structure of GST, stating that bringing petrol and alcohol under GST would not be advisable.
Finance ministry lauds GST, says it reduced tax rates on household goods, brought relief to every home
The Finance Ministry on Monday praised the Goods and Services Tax (GST) system on the occasion of its seventh anniversary, highlighting its role in lowering taxes on essential items such as household appliances and mobile phones, thereby providing significant relief to households. Implemented on July 1, 2017, GST replaced approximately 17 local taxes and cesses. This year's GST Day theme is "Sashakt Vyapar Samagra Vikas" (Empowered Trade Overall Growth).
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GST simplified compliance, improved tax buoyancy; fake ITC generation still a challenge
Introduced seven years ago, the Goods and Services Tax (GST) has streamlined compliance and boosted tax revenues, but challenges persist with fake invoices and fraudulent registrations causing tax evasion concerns. Despite this, GST has simplified the tax regime, increased taxpayer numbers, and improved tax buoyancy and state revenues. However, efforts to combat evasion are ongoing, with the need for further measures such as operationalizing the GST appellate tribunal.
GST council refers Par panel recos to cut GST on fertiliser to Group of Ministers
Talking to reporters after the 53rd GST council meeting, Keshav said the proposal to reduce the GST rate on fertilisers has been referred to the Group of Ministers (GoM). The issue of further reduction of tax on fertilisers was placed before the GST council in its 45th and 47th meetings held in September 2021 and June 2022, though the council did not recommend any change in rates.
Budget 2024: What will happen to Income Tax in this Budget, will it be cut?
Finance Minister Nirmala Sitharaman is gearing up to present the Union Budget 2024 in late July, her seventh budgetary address. Following the interim budget in February, expectations are high regarding potential income tax rate cuts to stimulate consumption and address economic priorities. Industry bodies like FICCI and CII have advocated for tax relief, while the Ministry of Finance explores measures targeting higher-spending individuals, potentially introducing a new tax bracket.
ETMarkets Smart Talk: Progressive Budget, normal monsoons & strong inflows will further re-rate markets: Amnish Aggarwal
We expect the NDA government to sustain focus on capex-led growth around PLI, Roads, Ports, Aviation, Defence, Railways, and Green energy, given a 20 bps lower fiscal deficit in FY24 (Than RE), normal monsoons, and Rs 2.1 lakh crore dividend from RBI.
Hike capex by 25%, reduce GST slabs to maximum of 3 in Union Budget: FICCI tells Nirmala Sitharaman
Budget 2024: Industry lobby group FICCI in pre-budget consultation with Finance Minister Nirmala Sitharaman in Delhi emphasized the need to support growth momentum, infrastructure development, rein in food inflation, support MSMEs, and prioritize innovation and research & development for accelerated growth.
Fertiliser stocks jump up to 9% amid hopes of exemption in upcoming GST Council meeting
Fertiliser stocks surged by up to 9% on Wednesday following reports of anticipated relief for the sector through Goods and Services Tax (GST) rate rationalization, expected to be discussed at the GST Council meeting scheduled for June 22, Saturday.
Delta Corp shares surge 15% on GST cut hopes
Shares of Delta Corp, the sole listed company in India's casino gaming industry, saw a significant surge of nearly 15%. This increase in stock price came amidst expectations that the Goods and Services Tax (GST) Council might review the tax structure applicable to online gaming in its upcoming meeting scheduled for June 22.
Latest SBI loan interest rates June 2024: State Bank of India hikes interest rates on these loans
SBI loan interest rates June 2024: The State Bank of India (SBI) has hiked the marginal cost of funds-based lending rate (MCLR) on select tenures by 10 basis points (bps), making most consumer loans costlier for borrowers.
Strategic reforms in customs duties, GST, commerce to push India's inclusive growth, says GTRI
The think tank suggested increasing the GST exemption limit for a firm's annual turnover from 40 lakh to 1.5 crore as this will be transformative for India's MSME sector, promoting job creation and growth. Firms with less than Rs 1.5 crore turnover make up over 80 per cent of registrations but contribute less than 7 per cent of the tax collected, it said adding a yearly turnover of 1.5 crore equals 12-13 lakh monthly turnover, translating to just Rs 1.2 lakh at a 10 per cent profit margin.
Auto industry body seeks cut in two-wheeler GST; SIAM suggests three-level slabs based on fuel types
Society of Indian Automobile Manufacturers (Siam) has requested a reduction in GST rates on two-wheelers in India. They proposed different slabs for different types of two-wheelers to lower the rates. Siam also wants the removal of the 3% cess on high cubic capacity bikes.
IGL is the only preferred play in CGD pack: Harshvardhan Dole
I think there is possibility of earnings upgrade across the sector which includes upstream companies, downstream companies, and to an extent some of the gas entities. So, we are quite positive on the whole sector to begin with.
From tax schemes to pension demands: Modi's new finance minister has their work cut out as challenges mount
A day after PM Narendra Modi and his new council of ministers were sworn in, speculation was high about the next finance minister. Questions were arising whether Nirmala Sitharaman will continue in her role in the finance ministry or take on a different ministry this term. However, with PM's recent announcement of ministries, the air has now been cleared. The responsibilities remain the same for Sitharaman this time around: boosting the economy and navigating challenges amid global uncertainties.
View: GOI has the solution of India's economic puzzle but it needs to let go fiscal hesitations
India's economy is thriving with 8.2% GDP growth, strong public investment, and tax revenues. However, weak consumer demand and private capex remain issues. To boost growth, the government should create more public sector jobs, increasing incomes and consumption, funded by local savings.
RBI unlikely to cut interest rate on June 7, say experts
The Reserve Bank of India is unlikely to cut the benchmark interest rate in its upcoming monetary policy review amid inflation challenges and improving economic growth. Scheduled for June 5-7, the Monetary Policy Committee (MPC) is expected to maintain the current 6.5% repo rate. Experts cite steady economic conditions and ongoing inflation concerns as reasons for maintaining the status quo
How will RBI's Rs 2.11 lakh cr dividend payout to government help Indian economy? A Balasubramanian answers
So, I think combination of these two things put together have made RBI to come with about highest ever dividend, especially at a time where the market is also generally getting, not market, in general, the bond market keeps a very close eye on fiscal numbers.
Government adopted pro-poor approach in GST implementation, revenues reached pre-GST levels: Nirmala Sitharaman
Sitharaman's efficient tax administration highlighted in maintaining stable revenues with a pro-poor approach in GST implementation. Despite lower tax rates, revenues reached pre-GST levels, benefiting states. The turnover threshold rose, tax submissions reduced, and tax buoyancy improved post-GST implementation.
'Over-regulation of the market': Rajiv Bajaj says taxes are too high on 2-wheelers as prices rise
Rajiv Bajaj at the launch of the new Pulsar criticized the high prices of two-wheelers, attributing them to excessive regulation. While acknowledging the benefits of norms like BS-VI, he urged the government to lower the GST rate on these vehicles, comparing it unfavorably to rates in other countries. Bajaj advocated for a GST rate of 12-18%.
Triple blow of demonetisation, GST, unplanned Covid lockdowns decimated MSMEs in TN: Congress
Congress general secretary Jairam Ramesh said that before the BJP came to power, Tamil Nadu boasted a thriving ecosystem of more than 10 lakh Micro, Small, and Medium Enterprises (MSMEs), more than any other state.
ETMarkets Smart Talk: Top 3 reasons why we expect double-digit growth in FY2025 in stock market: Deepak Ramaraju
The demand environment is strongly driven by strong government spending, narrowing the fiscal deficit, fiscal prudence maintained by the government, strong GST collection and stable PMI data.
A second look: Modi's beyond-the-Budget booster shot for Indian manufacturing
Finance Minister Nirmala Sitharaman announced a corporate tax rate cut in September 2019. The tax cut aimed to make Indian corporate tax rates competitive and attract investment in manufacturing. The move was well received by the stock market, with Sensex surging on the day of the announcement. Analysts believe that the tax cut has helped boost the appeal of the Indian economy, especially in manufacturing. Other measures taken to enhance manufacturing include liberalizing FDI norms and introducing the PLI scheme.
Cut risk weight to help SMEs, banks tell RBI
Banks have asked the regulator to consider lowering the 'risk weight' on loans to unrated small and medium enterprises. An overwhelming number of small businesses do not have any ratings that bigger businesses and corporates obtain from credit rating agencies to get a better deal from lenders.
GST Council's fitment committee rejects rate cut on over dozen items; defers call on uniform cess on tobacco products
The Fitment Committee of goods and services tax (GST) Council has recommended exempting powdered millet from GST when sold in loose form, with 70% millet content. The fitment committee, which comprises revenue officials from both the Centre and states also deferred decision on imposing uniform cess on cigarettes and bidi, as the industry said that the current cess system is not uniform.
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