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Karnataka, Uttar Pradesh, and West Bengal witnessed a significant increase in GST collections Of the top 10 states in terms of goods and services tax (GST) collections from domestic activities, six saw a fall in year-on-year growth in February. While three states — Karnataka, Uttar Pradesh, and West Bengal — witnessed a significant increase in GST collections, Rajasthan saw a tad one percentage point rise. Business Standard, 03rd March 2020

Business Standard Opinion pieces for the day talk about government finances in the context of GST, along with other policy issues. According to an estimate by a foreign brokerage, India’s gross domestic product growth could be impacted by 0.20 per cent in the March quarter because of coronavirus. The Indian economy is battling a severe slowdown and the spread of coronavirus could affect the chances of recovery.  Slower than expected growth will also affect government finances.  Business Standard Opinion pieces for the day talk about government finances in the context of GST, along with other policy issues. It is important to realise that the idea of compensating states for 14 per cent growth in GST collection was unrealistic from the beginning, argues our lead editorial.  An implosion of the telecom sector with economy-wide ramifications is the last thing India needs right now, writes former TRAI chairman Rahul Khullar.  The combined effect of a relatively stab...

Bank credit growth declined to 8.5 per cent in January from 13.5 per cent in the year-ago period In a meeting between the chiefs of public sector banks (PSB) and the Reserve Bank of India (RBI) officials, the RBI pointed out the muted credit growth in the economy and asked them to take steps to increase credit growth.  “The moot point was why the credit growth is still muted and there was exchange of views between the bankers and the governor. Since, the private sector banks are seeing credit growth the public sector will also have to make sure that credit growth picks up”, said a senior banker with a public sector bank. Another public sector bank executive who was part of the meeting said, state owned banks informed the RBI that after the asset quality review, their staff has been spending considerable time on recoveries and resolutions and there was less emphasis on sales and business development across regions. But now the situation is changing and banks have put more team...

Market regulator Sebi on Tuesday said foreign investors from Mauritius will continue to be eligible for FPI registration with increased monitoring as per international norms. The announcement comes after the tax haven was put on the “grey list” of Financial Action Task Force (FATF) — an inter-governmental policy making body that sets anti-money laundering standards. A significant percentage of foreign portfolio investors (FPIs) investing in the Indian market is registered in Mauritius. The island nation is the second largest source after the US from which foreign portfolio investments come into the country. As per January NSDL data, assets under custody of US FPIs are worth Rs 11,62,579 crore and those from Mauritius stood at Rs 4,36,745 crore. Following the FATF notice, some fund managers knocked on Securities and Exchange Board of India’s (Sebi) door overnight, raising concerns over validity of FPI registration done through the tax haven. The regulator on Tuesday said, “Foreign i...

Nominating Das, the magazine said India's banks have faced a series of challenges, from non-performing loans to issues around fraud Reserve Bank of India (RBI) Governor Shaktikanta Das has been named the Central Banker of the Year, Asia-Pacific 2020, by the Banker magazine, a unit of Financial Times (FT). The award is given to central bankers who have “best managed to stimulate growth and stabilise their economy.” Jorgovanka Tabakovi, National Bank of Serbia, was adjudged the winner as the Global Central Banker of the Year. The awards were announced in an editorial of the Banker magazine on January 2. Nominating Das, the magazine said India’s banks have faced a series of challenges, from non-performing loans to issues around fraud. Repeated economic slumps saw the central bank cut interest rates five times during 2019, and it was open to cutting them again, if necessary. “Faced with these challenges, Shaktikanta Das has taken steps to bring banking in India up to standard via a r...

Army planners are increasingly worried about this drain on funds that could otherwise go towards equipment modernisation For the first time ever, the defence budget for 2020-21 allocates more money towards pensions for retired Army soldiers than for salaries for soldiers still in the standing Army. Scrutiny of the defence budget reveals that Rs 111,294 crore has been allocated for Army salaries, including civilian employees. The Rs 113,278-crore allocated for Army pensions surpasses that. There are slightly under 1.3 million soldiers serving in the Army, including officers. Meanwhile, 2.06 million individuals, including Army widows, are drawing pensions, according to the defence ministry, in answer to a parliamentary question in November 2016. The pension budget has steadily risen since the grant of One Rank, One Pension (OROP) in 2015-16. That year, it was Rs 60,000 crore for the entire military. For 2020-21, it will stand at Rs 1.33 trillion. Army planners are increasingly worried ...

From rationalising GST rates for 5-star hotels to FDI in coal mining, here are the top 10 business headlines on Wednesday GST Council may rationalise rates for five-star hotels in Friday meeting The Goods and Services Tax (GST) Council is likely rationalise rates for five-star hotels in its meeting on Friday, holding out hopes for a boost to the tourism industry. The fitment panel, comprising Central and state officials, recommended a rate cut for outdoor catering and rate rationalisation for match sticks in its final agenda circulated to the council members. Rail coach making gets a hand from robots; MCF beats expectations In 2018-19, when Modern Coach Factory (MCF) at Raebareli manufactured about 1,500 rail coaches against a capacity of a mere 1,000, it surprised many. Apart from its human workforce, 44 robots are also being credited for this stupendous success. Robots are now being used increasingly in the integrated-shell assembly line and robotic bogie-fabrication line. Bain, ...