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Jaitley Hints at Rationalising GST Rates as Revenues Surge A STABILISED TAX REGIME A YEAR AFTER ROLLOUT June collections at Rs 95,610 crore, well above FY18 monthly average of Rs 89,885 crore India may soon be looking at rationalising goods and services tax (GST) rates as the year-old indirect tax regime stabilises, finance minister Arun Jaitley said, even as he dismissed the idea of a single rate that Congress president Rahul Gandhi has called for. Jaitley added that GST has helped expand the tax base, including that of direct taxes. India implemented GST on July 1 last year. “We will be busy in the process of shifting a large number of items from (the top rate of) 28% to the lower rate,” said Jaitley, who was addressing an event to mark one year of GST on Sunday via video link. “The weighted average of the total taxation basket has significantly come down and therefore we are in the process of rationalising the rates itself.” Data released on Sunday showed GST collections...

GST Mopup Edges Closer to Rs 1 Lakh Crore  In a FB post, Jaitley says once revenue stabilises Council will look into tax simplification and including more products Goods and services tax (GST) collections rose further in June, raising the expectations of further rationalisation in the 28% slab as the mop-up moves closer to the ?1 lakh crore mark. India marked the first anniversary of GST on Sunday, with the government hailing one of the country’s most significant tax reforms since independence as a success. Data released by the government showed GST collection in June at Rs 95,610 crore, higher than Rs 94,016 crore in May and well above the monthly average of Rs 89,885 crore in the last financial year. “A steady and consistent increase in GST collections this financial year reflects the achievement of better tax compliance of GST,” said Abhis hek Jain, tax partner, EY India. Policymakers have repeatedly said that as GST revenues stabili se, the government will consider fu...

 At 3%, FDI inflows clocked slowest growth rate of last five years in FY18 According to experts, it is critical to revive domestic investments Foreign direct investment (FDI) in India seems to be petering out with the inflows growth rate recording a five-year low of 3 per cent at Dollar 44.85 billion in 2017-18. According to the latest data of the Department of Industrial Policy and Promotion (DIPP), FDI in 2017-18 grew by only 3 per cent to Dollar44.85 billion. Foreign inflows in the country grew by 8.67 per cent in 2016-17, 29 per cent in 2015-16, 27 per cent in 2014-15, and 8 per cent in 2013-14. However, FDI inflows recorded a negative growth of 38 per cent in 2012-13. According to experts, it is critical to revive domestic investments and further ease of doing business in the country to attract foreign investors.   Depositories share companies' information with exchanges on FDI limits Anil Talreja, Partner, Deloitte India, said the low growth of FDI in the c...

Idea of single rate for GST 'flawed', says Arun Jaitley Observing that countries implementing GST had witnessed major disruption, Jaitley said he too had felt that it would cause disruption in the Indian economy Union Minister Arun Jaitley on Sunday said rollout the Goods and Services Tax (GST) has not been disruptive in the last one year and exuded confidence that higher revenue collections would enhance the capacity of the government to rationalise tax rates going forward. Speaking on the occasion of the first anniversary of the GST rollout, the minister stressed that the best in terms of the impact of new tax regime on the GDP growth, ease of doing business, expansion of trade and industry, Make in India initiative and promoting honest business practices was yet to come. He also dismissed the idea of a single rate GST being advocated by Congress president Rahul Gandhi as “flawed” saying that it can only work in a country where the entire population has 'similar...

File your property tax till July 15 The North Delhi Municipal Corporation has extended the last date for payment of property tax and availing the rebate of 15% from June 30 to July 15. North Corporation mayor Aadesh Gupta said this date has been extended to facilitate maximum property tax payers to pay their due property tax on time and avail the rebate of 15%. “We expect to collect double the revenue by extending the date for submitting the house tax for current financial year,” said Tilak Raj Kataria, leader of house. The Hindustan Times, 30th June 2018, New Delhi

Getting PAN is faster now with e-facility One can easily get PAN on real time basis now. The government on Friday launched the allotment of e-PAN. The facility will be available free of cost. This facility, open for a limited period of time, is available only for resident individuals holding a valid Aadhar. No physical document is required to be submitted and you simply need to fill your Aadhar and upload the signature, said a note from the income tax department. The Business Standard, 30th June 2018, New Delhi

India's external debt went up 12.4% to Dollar 529.7 billion in March The external debt level, however, suffered from valuation loss after the US dollar depreciated against major currencies that time India's external debt increased 12.4 per cent in March 2018 from a year-ago figures, primarily on account of an increase in commercial borrowings, short-term debt, and deposits from non-resident Indians (NRIs).  At the end of March 2018, India's external debt was at  Dollar  529.7 billion, recording an increase of  Dollar  58.4 billion over its level at the end of March 2017, the RBI said in a notification. The external debt level, however, suffered from valuation loss after the US dollar depreciated against major currencies that time. The dollar has started strengthening now. Excluding the valuation effect, the increase in external debt would have been  Dollar  53.1 billion. The external debt to GDP ratio stood at 20.5 per cent at the end of March ...

Fiscal deficit hits 55% of full-year target on the back of higher capex The fiscal deficit target for 2018-19 is Rs 6.24 trillion, or 3.3 per cent of the gross domestic product (GDP) The Centre’s fiscal deficit for the first two months of fiscal year 2018-19 stood at Rs 3.45 trillion, or 55 per cent of the full year target, on the back  of higher capital expenditure.  However, the pace of spending in relative terms was slower than the same period last fiscal. Fiscal deficit for April-May 2017 touched 68.3 per cent of the full year target.  The fiscal deficit target for 2018-19 is Rs 6.24 trillion, or 3.3 per cent of the gross domestic product (GDP).  “Fiscal deficit for April-May 2018 recorded a welcome year-on-year decline on the back of robust growth in indirect tax and non tax revenues as well as near  stagnant revenue spending, allowing for a healthy rise in capital expenditure in the early part of the year,” said Aditi Nayar, principal economist at ...

GSTN portal to be shut on July 1 for disaster recovery drill In a mail to taxpayers, the authorities have said it is planning a disaster recovery drill and so services will not be available for 12 hours, between 9am  and 9pm, on July 1 On a day when the goods and services tax regime would mark the first anniversary of its roll-out, the tax-filing portal — GST Network (GSTN) — will stay  paralysed. On Sunday, the GSTN would conduct a 'disaster recovery drill' to create a backup system in Bangalore in order to cope with disasters such as a  terror attack, power grid failure or an earthquake.  "We are creating a backup so that the system remains safe, functioning, and available in case of any disruption or disaster. The objective is that normal  course of business should not get disrupted," Prakash Kumar, Chief Executive Officer, GSTN told Business Standard. In a mail to taxpayers, the authorities have said it is planning a disaster recovery drill and so se...

Hopeful of sorting trade issues, India may scrap additional duties on 29 US goods India could withdraw the notification to levy additional duties on 29 US products from August 4, if both sides are able to resolve differences over tariffs before that date, official sources said, after three rounds of talks with representatives of the US administration in New Delhi. The two sides will also come up with a white paper at a meeting next month in Washington on issues that can be resolved over six months to 3-4 years. “We are hopeful of resolving trade issues before August 4,” said an official, adding that any country that notifies the World Trade Organization about tariffs has the right to withdraw or defer it. From the US side, assistant US Trade Representative (USTR) for South and Central Asian Affairs Mark Linscott, assistant USTR for agricultural affairs and commodity policy Sharon Bomer Lauritsen, deputy USTR Brendan Lynch and officials from the high commission attended the meetin...

RBI to the Rescue Again, Offloads Greenbacks Sells Dollar 400-500 m in onemonth futures contracts and an almost equal amount in the spot market Two weeks after South Block had decided to swap high-denomination bills in the autumn of 2016, the rupee came within touching distance of the 69 mark to the dollar. On Thursday, it breached that level, reportedly requiring the central bank to enhance supplies of the world’s reserve currency to prevent the local unit’s rout. During the day, the rupee hit a record low of 69.09, sliding past its earlier trough of 68.86, reported on November 24, 2016. In early trading Thursday, the Reserve Bank of India (RBI) is said to have sold  Dollar  400-500 million in one-month futures contracts. Later, Mint Street sold an almost equal amount in the spot market, some dealers said.  The RBI could not be contacted immediately for comments.  Such moves collectively helped the local unit erase some of its early losses. The rupee closed ...