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GST collections fall to lowest in November  In continuance with the slide, the mopup under the goods and services tax (GST) in November fell to just above Rs 80,000 crore –a decline that could be attributed to the rate reduction for more than 200 items in the same month and the use of the integrated GST (IGST) as credit for paying taxes This will heighten the Centre´s fiscal concerns ahead of the Union Budget, dashing hopes of any further reduction in rates in the near future.“The collection under the GST for November has been Rs 80,808 crore till December 25, 2017,” the government said in a release on Tuesday. The collections are lower than the Rs 83,346 crore in October and way below the average target of Rs 91,000 crore a month.Experts say the GST collections will decline also in December and stabilise from January.The slow down has prompted the GST Council, in meeting on December 16, to a nation wide rollout of electronic way bill on June next year to plug revenue leaka...

Proportion of return filers at lower levels of income declining Number of individuals reporting an annual income of more than Rs 10 lakh has risen by 21 per cent The Central Board of Direct Taxes may(CBDT) celebrate the arrival of “acche din” with the latest in come tax returns data showing a 23.5 percent increase in the number of individuals reporting an annual gross total lincome of over Rs 1crore to  59,830.But it may also need to closely examine the rapid decline in the number of returns by individuals who a reat the lower ranges of reported income. This raises questions on the efficacy of the government´s drive towards filing of more returns by individuals and on whether raising tax exemption levels has led to reduced compliance in filing of returns by those who go out of the tax net.In 2012-13, the share of returns by individuals declaring an annual gross total income of less than Rs 2.5 lakh was 43 percent of the 33.58million returns filed that year. In the following...

Sebi may ease FPI norms The Securities and Exchange Board of India (Sebi) is mulling easing access norms for investment by foreign portfolio investors (FPIs) and bringing a new framework to strengthen the governance structure for mutual funds (MFs), senior officials have said.Also, Sebi has plans to review the framework for credit rating agencies (CRA), as it seeks to check the menace of ´rating shopping´ and ´pick and choose´ approach in their actions. Further, the regulator is looking at providing an additional method for listed entities to achieve the minimum public shareholding requirements.These issues would be taken up at the Sebi board meeting schedule for Thursday, senior officials sai With regard to FPIs, the markets watchdog may consider simplifying regulatory requirements pertaining to access norms, withaview to easing direct registration for overseas investors.The regulator will review the norms for CRA on the basis of public comments.It had come out with a consulta...

NSE revises penalty structure for unauthorised trade The National Stock Exchange (NSE) has decided to impose a penalty of Rs10,000 for every unauthorised trade by a trading member as identified by investor grievance redressal panel, from January1, next year.The amended indicative penalty structure for unauthorised trading also includes debarment of the panel in the immediately preceding calendar quarter a redetermined to be illicit transactions. "Based on the representations received from members for review of the indicative penalty with respect to unauthorised trading, the exchange has amended the indicative penalty structure," the NSE said in a circular onTuesday."The revised measures will come into effect from January1 onwards," it added. The Business Standard, New Delhi, 27th December 2017

Sliding GST collections may put pressure on government ST rate cut and lenient implementation of the tax reform has caused GST collection in December to slip to Rs 80,808 crore, down 14% from August and 3% from NovemberThings don’t augur well for the exchequer, with recent GST rate cuts and a lenient implementation of the goods and services tax causing collections to slide further in December, posing a challenge to the government. Total GST collection of the central and state governments, including taxes on inter-state supplies and the cess on certain items, added up to Rs80,808 crore in December.This is a 14% drop from the collections in August, the first month of tax collection and return filing under the new indirect tax system that kicked in on 1 July. Compared with the receipts in November, December’s GST collection was marginally lower by 3%.Lower-than-expected GST collections, along with the extra spending that Parliament approved earlier this month involving a net cash ...

Sebi likely to ease Invit, Reit framework The Securities and Exchange Board of India (Sebi) is looking at ways to revive the infrastructure investment trust (InvIT) market.After two listings earlier this year, the fortunes of the newest investment vehicle that helps cash starved infrastructure companies raise capital by transferring assets and listing them as InvITs have seen as lump. No companies are coming forward with InvIT plans, while the trading volumes on the two existing ones —India Grid Trust and IRB InvIT Fund —have dried up.Sources say Sebi at its board meeting on Thursday could announce relaxations in the InvIT and real estate investment trust (ReIT) framework. Tax clarity, changes in the minimum ticket size, and allowing pension funds to participate are some demands made by players operating in this space.In the past two years, the Centre and Sebi have taken measures to boost the market.But more can be done, say industry players. The recent provisions around the ...

India’s market cap to GDP nears 100% Indian stocks are nearing the red zone as the country’s market capitalisation is now almost equal to its gross domestic product (GDP).With the benchmark indices recording new highs, India’s market capitalisation has swelled to Rs 150.7 lakh crore, 95 per centof GDP (on a trailing four-quarter basis). The market cap-to-GDP ratio was just 72 per cent a year ago. The surge of 23 percentage points is due to exuberance in the equity market despite economic growth slowing.The Indian market cap has risen by Rs 44.44 lakh crore, or 42 per cent, in the past-one year.Besides the sharp share price increase, high equity issuances, particularly initial public offerings (IPOs), have contributed to the increase in market cap this year. Meanwhile, GDP has managed to rise by only eight per cent during the same period. Domestic GDP in the June quarter had slowed to 5.7 per cent (year-on-year growth) due to demonetisation and the introduction ofthe goods and s...

Govt likely to give Sebi powers to regulate private placements The government is planning to relax a few key norms in the Companies Act to give Sebi more powers over private placements so that there's no conflict with the proposed crowdfunding norms. The government is likely to give the Securities and Exchange Board of India (Sebi) the power to regulate private placements by any Indian entity at a time when the capital markets regulator is finalizing norms for crowdfunding, said two people with direct knowledge of ongoing discussions between the regulator, the ministry of corporate affairs (MCA) and the ministry of finance. At present, private placements by unlisted firms are regulated by the MCA, while Sebi regulates fundraising activities by listed firms.Private placement means raising funds from less than 200 investors in a financial year. Funds raised from more than 200 investors automatically becomes a public offering and the issuer has to list these securities. Foll...

Revenue concerns may push back further GST cuts With revenue concerns surfacing,areduction in goods and services tax (GST) rates for consumer durables in the 28 per cent slab may take longer than expected.With almost three months to go for the fiscal year to end, pruning the 28 per cent slab again may not happen in the next GST Council meeting in January. The reduction in rates for more than 200 items in the November meeting had raised expectations that white goods would be taken out of the 28 per cent slab.According to officials, the January meeting will not discuss rate reduction and the focus will be on stabilising revenue collection “The meeting in January is unlikely to look at reducing rates.A decision will be taken after the Union Budget is presented in February.The revenue position will become clear after that,”asenior official in the Council told Business Standard The focus was to meet the revenue collection target, he added.The Centre and the states should collect R...

Divestment 2018: Some Profitable PSUs Too May Be Put On The Block With Rs. 52,500 crore coming in from disinvestment so far this fiscal, the government has exceeded Rs. 45,500 crore raised through PSU stake sale last fiscal The government may include some profitable Central Public Sector Enterprises (CPSEs) - which are not of much strategic importance -- in the the list of entities targeted for disinvestment in 2018, along with sick and loss-making units, a top official has said.The government was so far focused on strategic sale of sick and loss-making CPSEs. "This (privatisation) process will continue because Niti Aayog has been mandated to see how we can get rid of loss-making CPSEs, and may be even some profit-making CPSEs where we can find a very good buyer or government's interest is not so relevant," the official told PTI. The Niti Aayog, the official said, has already recommended a list of 23 PSUs for privatisation which are being looked at by the Depart...

Govt says no question of closing any PSB Dismissing rumours, both the government and the Reserve Bank said on Friday there was no question of closing any public sector bank (PSB). The decision of the Reserve Bank to initiateaPrompt Corrective Action (PCA) against large stateowned Bank of India led to rumours that the government may close down some banks.The RBI said it has come across some "misinformed communication" in some section of media, including social media, about closure of some PSBs in the wake of their being placed under the PCA. The government, too, dismissed the rumours, saying on the contrary, it is planning to strengthen stateowned banks."The government is strengthening PSBs by Rs 2.11 lakhcrore recapitalisation plan.Do not believe rumour mongers.Recap, Reforms road map for PSBs firmly on track," said financial services Secretary Rajeev Kumar inatweet. The RBI said, "the PCA framework is not intended to constrain normal operations of th...