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GST Council cuts rates on 80 items 29 goods, 54 services to become cheaper; move towards simpler return-filing process Barely a fortnight to the Budget, the Goods and Services Tax (GST) Council on Thursday cut rates on 83 employment-oriented goods and services. This will hit the exchequer by Rs 10-12 billion annually.The Council is moving towards one return form, though a final decision in this regard is yet to be taken. The government also got the enabling power to have a single registration for services, a key demand of many players including those in the banking sector. This may be exercised later for specific services. Briefing reporters after the meeting, Finance Minister Arun Jaitley said the rates were rationalised for 54 categories of services and 29 goods. These include secondhand vehicles, diamonds, and precious stones, LPG supplied to domestic users by private players, information sought under the Right to Information Act, exploration of oil, 20 litre packaged potabl

Markets shoot up on bank FDI hopes HDFC Bank m-cap touches Rs 5 trillion Indian market son Thursday recorded new highs with the Sen sex consolidating above 35,000 and the 50 share Nifty closing above 10,000 Banking shares led the gains for a second day, this time on hopes that the government would raise the foreign direct investment (FDI) ceiling for the sector to 100 per cent. A day earlier, they had jumped after the Centre announced a cut in additional borrowing to Rs 200 billion After rallying as much as 425 points, the Sensex settled 178.5 points, or 0.5 per cent, higher at 35,260 and the Nifty closed at 10,817, up 28.5 points, or 0.26 per cent.The markets came off their highs as some investors booked profits judging recent gains as excessive, said experts. The broader market in fact saw widespread losses. The BSE Mid- and Smallcap indices fell 1.6 per cent and 2 per cent, respectively. The breadth of the market also remained negative with over three shares declining for

Matching Invoices May Soon Be taxpayers'Job The onus of matching invoices to claim input tax credit under the goods and services tax (GST) regime may soon fall on the taxpayers instead of the IT the GST Network( GS TN ), if Info sys Chairman Nan dan Nile kan i’ s (pictured) recommendations, made to the Council on Thursday, are implemented .” According to the presentation, the onus of matching invoices will fall on the supplier and buyer rather than on the GSTN. This will be a much simpler process. There will be no filing of returns, butonly uploading of invoices,” saida senior government official.It will be a system where the seller will upload the invoice and the buyer will acknowledge it. The government is keen to bring back the suspended invoice-matching system after a fall in GST revenue raised concerns over tax evasion. The GST revenue collections fell to Rs 808.08 billion in November, the lowest since the roll-out of the indirect tax in July last year. Jammu and Kashm

Improve pricing of risk-based loans, RBI tells banks Deputy governor Vishwanathan calls for better standards of underwriting, timely enforcement of loan covenants Banks in India must improve pricing of loans based on risk assessment, a skill that would have helped them avoid non-performing assets, N.S. Vishwanathan, deputy governor of the Reserve Bank of India, said on Thursday. He also asked banks to improve underwriting standards by writing strong loan covenants—agreements with the borrowers—as well as enforcing them on time. Indian banks are currently sitting on a stressed asset pool of over Rs10 trillion.“Risk-based pricing of loan would need fair assessment and understanding of the risk involved, rather than merely relying on collateral and/or guarantees obtained from stakeholders including equity holders. Banks should charge interest rate that is commensurate with the risk involved in the projects that are being financed,” he said at an event. In many instances, risk is

 Rupee slips on rising oil, trade deficit concerns The rupee was one the worst performing emerging market currencies in the world on Tuesday as rising oil prices and worsening trade deficit, which hit a three-and-a-half year high in December, spooked investors. The local unit lost nearly 1% to the US dollar and yields on old benchmark bonds surged to about 22-month high to 7.56% after RBI deputy governor Viral Acharya warned banks to manage interest rate risk on their own. In terms of spot returns, the rupee ranked 23, yielding -0.65% this calendar year, just ahead of Turkish Lira among emerging market, Bloomberg data show. "Poor deficit number, coupled with rising oilBSE 1.46 % prices, is leading to a short-term panic in the markets," said Ashish Vaidya, head of markets for India at Singapore's DBS Bank. "If this trend sustains for a few days, we need to be on a high alert as markets are expected to turn volatile." The rupee closed at 64.04 to a dollar,

Black money: Govt heat on 120,000 firms  The government on Tuesday said it had decided to strike off the names of 120,000 more companies from the official records for various noncompliances as part of its continuing fight against the black money menace. Nearly 226,000 firms have been deregistered and around 309,000 directors associated with these entities have been disqualified. Minister of State for Corporate Affairs PPChaudhary, who chaired the review meeting of the actions taken with respect to deregistered firms last week, has directed officials to expedite action against the companies that are to be struck off the records. These moves are part of larger efforts to curb illicit fund flows. According to the release, 1,157 cases had been filed with the National Company Law Tribunal (NCLT) for restoration of deregistered companies. “Of these cases, the NCLT had given orders for considering restoration of 180 companies, of which 128 firms have been restored by the registrars

  10 states join eway bill platform; GSTN starts trial run   As many as six more states, including Gujarat, Haryana, and Bihar, on Tuesday joined the government´s centralised eway bill system for interstate road transportation of goods in the goods and services tax (GST) GST regime, taking the total to 10. Under the GST rolled out from July last year, interstate movement of goods beyond 10 km, with a value of Rs 50,000 and above, will mandatorily require eway bill from February 1. Four states —Karnataka, Rajasthan, Uttarakhand, and Kerala —had already started using eway bill. On Tuesday, six more states —Haryana, Bihar, Maharashtra, Gujarat, Sikkim, and Jharkhand —have started the trial runs kick started by the GST Network (GSTN). “Other states are also likely to join us soon in this initiative. Transporters and other taxpayers will not be required to visit any tax office or check post under this system and the eway bill can be generated electronically,” GSTN Chief Executive Of