CA Online

Asset quality is holding up in the micro, small, and medium enterprises (MSME) segment, but there are nascent signs of stress visible in micro enterprises, and the retail loan segment needs close monitoring, the Reserve Bank of India’s Financial Stability Report has noted.“In the MSME segment, while some nascent stress is visible in micro enterprises, the overall gross NPA ratio has shown improvement,” the report said, stressing that overall asset quality remains benign amid above-average loan growth in the MSME and retail segments.Household debt continued to rise, reaching 45.5 per cent of gross domestic product (GDP) at the end of September 2025.The increase was driven mainly by non-housing retail loans, which accounted for 58.4 per cent of total household borrowings as of March 2026. Borrowings for consumption purposes constituted nearly half of household debt, followed by loans for productive purposes, while loans for asset creation grew at a slower pace.Although gross NPA ratios i...

On July 1, the Goods and Services Tax (GST) will enter its tenth year. Over the past nine years, the GST Council has emerged as one of the country's most important tax policymaking bodies, deciding everything from rate cuts on essential goods to exemptions for key sectors.Here's a look at how proposals to change GST rates move through committees, negotiations and constitutional processes before they are officially notified. Who can propose a GST rate change? Unlike many other tax proposals, suggestions to revise GST rates can come from multiple sources. Industry associations, companies, state governments, central ministries, tax authorities and even judicial rulings can trigger a review of an existing GST rate or product classification.Businesses and trade bodies frequently submit representations seeking lower tax rates, exemptions or clarification on classification disputes. State governments can also recommend changes based on local industry concerns or revenue considerations...