ECONOMY
Taxing times ahead: Revenue contraction of 8% may hurt govt's spending plans
In Budget 2020-21, the government has pegged gross tax revenues at Rs 24.23 lakh crore, a 12 per cent increase from Rs 21.63 lakh crore in the previous fiscal.
ECONOMY
Explained | Why states are clamouring over delayed GST compensation
Under GST law, states were guaranteed payment for any loss of revenue in the first five years of the GST implementation starting July 1, 2017. The shortfall is calculated assuming a 14 per cent annual growth in GST collections by states over the base year of 2015-16. States are promised compensation for any revenue shortfall till 2022, in case they go below the 14 per cent annual growth since the GST rollout in 2017
ECONOMY
Finance ministry says ensuring transmission of repo rate cut by banks crucial
Banks in the country are likely to witness a spike in their non-performing assets ratio by 1.9 percent and credit cost ratios by 130 basis point in 2020, following the economic slowdown on account of Covid-19 crisis, S&P Global Ratings said in a report
ECONOMY
Coronavirus impact| Government expects FY21 direct tax collections to fall short by about Rs 3 lakh crore
Direct tax collections for FY20 stood at Rs 10.27 lakh crore, missing even the revised estimate of Rs 11.7 lakh crore by Rs 1.42 lakh crore. It fell 8 percent short of the Rs 11.17 lakh crore collected during FY19
ECONOMY
Digital tax dilemma: India's equalisation levy on online business of non-resident firms may hamper FTA talks with US
Following India's levy, the US last month decided to start an investigation under Section 301 of the Trade Act, 1974, into the digital services taxes that have been adopted or were being considered by a number of countries, including India, to 'unfairly' target American tech companies.
ECONOMY
Centre considering extension of loan moratorium till December-end
Global rating agency, Standard and Poor’s expects gross non-performing assets (NPAs) of Indian banks to spike to 14 percent in FY21 from around 8.5 percent in FY20. “The COVID-19 pandemic may set back the recovery of India's banking sector by years, which could hit credit flows and ultimately, the economy," the agency said in a note last month
ECONOMY
GDP growth for 2020-21 to be in the range of (-) 6.4% and 1.5%: FICCI
The annual forecast indicated average growth of 2.7 percent for agriculture and allied activities for 2020-21. According to the report, agriculture seems to have an apparent upside as far as the performance of monsoon is concerned this year and the water reservoir levels in the country stand at good levels
ECONOMY
Coronavirus impact| July GST Council meet: Centre-state ties under strain as revenues dry up
The national lockdown imposed to contain the coronavirus pandemic has led to an increase in the states’ GST losses and differences with the Centre have only grown over the last few months with respect to the central government’s obligation to make up for the losses, a situation that wasn’t anticipated in GST laws
BUSINESS
Exclusive | India likely to announce hike in duty on imports from China in next two-three months
In FY 2018-19, bilateral trade between China and India was worth $88 billion, with a trade deficit of $53.5 billion in China’s favour, the widest India has with any country
ECONOMY
Coronavirus effect| RBI mulls loan restructuring for impacted sectors like hospitality, tourism
The government is holding discussions with the central bank to figure out if restructuring of stressed loans can be allowed till March 31, 2021.
BUSINESS
From struggling to meet domestic demand, to exporting, India's PPE manufacturing tale is one of self-reliance
In April, PPE suits that were required by health workers to tackle the COVID-19 outbreak, were found to be in an acute short supply. Following this, India ramped up production of protective gears and medical equipment, and reducing dependency on foreign countries for these items
ECONOMY
Three years of GST: Slowing revenue, compensation to states immediate challenges in post-COVID-19 world
Compliance hurdles have also resulted in lower than expected GST collections. GST collections in the month of March stood at Rs 97,500 crore. During April-February 2020, the total tax revenue collected was Rs 16.88 lakh crore, including Rs 8.13 lakh crore from direct taxes and Rs 8.75 lakh crore from indirect taxes
ECONOMY
India's exports may decline by around 10% in FY21, says FIEO
It expects export recovery to be led by pharmaceuticals, medical and diagnostic equipment, technical textiles, agriculture and processed foods, plastics, chemicals and electronics
BUSINESS
COVID-19 impact | India's economy to contract by 4% in FY21, says ADB
"As food supply disruption is expected to ease from Q2 of FY21, inflation projections are unchanged at 3.0 percent for FY21 but revised up marginally to 4.0% for FY22 on accelerating demand," the report said.
ECONOMY
Atmanirbhar Bharat | Govt identifies multiple sectors to cut import dependence
The economic impact of the coronavirus outbreak and standoff at the Ladakh border have put into sharp focus India's bilateral trade with China
BUSINESS
DGTR may take final call on anti-dumping duty on ciprofloxacin hydrochloride from China
"We have found sufficient evidence China is dumping ciprofloxacin hydrochloride below cost in the Indian market. This is considerably hurting the domestic pharmaceutical industry," a government official said.
ECONOMY
India-China border tension: Bilateral trade unlikely to be significantly impacted
Though India's trade dependence on China is considerably large, its relationship with its neighbour has been fraught with tensions in the recent past. India withdrew from the sixteen country Regional Comprehensive Economic Partnership trade negotiations in November due to unreasonable Chinese stance on certain core concerns
ECONOMY
The parotta v/s bread GST classification is just one in the list of many such tax disputes
However, it is not the first case of tax classification disputes. Producers of FMCG products were also involved in tangles with tax authorities on the same issue.
ECONOMY
GST potpourri explained: Why you'll pay more for a parotta and less for the humble bread
Under the Harmonised Commodity Description and Coding System, heading 1905 classifies pizza bread, khakhra, plain chapati or roti, rusks, toasted bread in one category, to be taxed at 5 percent GST. In the ready-to-eat category, certain unbranded edibles attract 5 percent GST, while branded ones are taxed at 12 percent
BUSINESS
GST Council meeting today: From the issue of compensation to states to revenue generation; Here's what's on the agenda
The Finance Ministry is not in favour of increasing GST rates on non-essential items, despite depressed revenue collections due to the nationwide lockdown to contain the spread of COVID-19.
INDIA
Anti-China sentiments and clarion call for self-reliance leave India's Chinese goods markets in a spot of bother
Government data shows that the total size of India's trade with China was $87 billion in 2018-19, and electronics accounted for $20.6 billion of total imports from China.
ECONOMY
COVID-19 impact | Tax devolution to states to be 30% lower than budgeted Rs 7.8 lakh crore
The provisional data released by the government shows that the centre's gross tax revenues contracted by 3.4 percent to Rs 20.1 lakh crore in FY 2020, from Rs 20.8 lakh crore in FY 2019
BUSINESS
Modi 2.0: One year of progressive policies that translated into very little
India’s GDP grew 4.5 percent in July-September 2019, the lowest since the fourth quarter of 2012-13. The economic slowdown came at the back of 5 percent GDP growth recorded in April-June and 7.1 percent in July-September last year
ECONOMY
Government staring at a gross tax revenue shortfall of Rs 4.32 lakh crore in FY21: Report
Weak economic activities are also set to have an impact on non-tax revenue, and dividend and profit and other non-tax revenue would therefore decline by Rs 1.48 lakh crore from the FY21 budget estimate, the report said
