At the GST Council meetings, there was a feedback from State Finance Ministers about various loopholes due to which tax revenue was not accruing to the government, FM said. Elaborating, Revenue Secretary said that a targeted approach was being followed by tapping on data analytics and Artificial Intelligence and it has helped improve GST collections.
In December 2019, the Centre had released Rs 35,298 crore to states to compensate for the revenue loss on account of GST rollout.
This is in line with the target set by Revenue Secretary Ajay Bhushan Pandey after high-level meetings with senior officials of the tax department.
Target has been raised to Rs 1.15 lakh crore over the next two months and Rs 1.25 lakh crore in March.
In investing, as long as there is one investor willing to buy without looking at price or valuation, the price can go higher and higher. We saw that during the Harshad Mehta bull run, says the Managing Director of Kotak AMC.
A slowdown in consumption is also hurting tax collections and a prolong period of economic uncertainty will further pressure.
The govt is not in denial over unemployment and the state of the economy, finance minister Nirmala Sitharaman said, adding there were clear indications that employment was rising and economy was looking up.
Tax experts said that the move was likely to trigger litigations with taxpayers challenging the demands, since the government had at the time of migration to the new indirect tax regime waived off interest and penalties for filing their tax returns.
Crossing the Rs one-lakh crore mark for the second time in a row, India’s goods and services tax collections for December is at Rs 1.03 lakh crore. It had risen 6% to Rs 1,03,492 crore lakh crore in November, reversing two months of decline, with experts attributing the increase to festive shopping and better compliance.GST collection at Rs 1.03 lakh cr in December
Rise due to festive sales and better compliance a sign of revival: Govt sources
Apart from a late payment fee of Rs 100 a day for central GST and a matching amount for state GST, the law also provides for a levy of 18% penal interest.
India is not in trouble and the economy is moving towards the $5 trillion goal, Sitharaman has insisted.
In order to spur growth, the government is trying to frontload infrastructure.
By the Centre's own estimates, the administration succumbed to Rs 45,682 cr in GST fraud by mid last year.
Partner & CIO at Sarthi Group says the abolition of DDT will benefit Indian companies big time.
What are the top investment ideas from top D-Street honchos? Here’s a clue.
BSE Midcap & BSE Smallcap indices dropped 0.21 per cent and 0.11 per cent, respectively.
Congress leader Kumari Selja says states will lose around Rs 5,000 crore due to GST, demands compensation; BSP’s Veer Singh pushes for reservations in private sector jobs.
Under the Goods and Services Tax (GST) law, states are guaranteed compensation for revenue loss for 5 years if their revenue does not increase 14 per cent on the base year of 2015-16. However, with revenue mop-up from compensation cess falling inadequate, the Centre held back fund transfer to states for revenue shortage beginning August.
The FM should have picked 3-4 programmes that could have generated additional income for the rural poor.
Helped by government stimulus measures, the Goods and Services Tax (GST) collection in November crossed Rs 1 lakh crore, after dropping below the Rs 1 lakh crore level for three consecutive months amid a deceleration of economic growth. November's GST collection stood at Rs 1,03,492 crore, of which CGST was Rs 19,592 crore, SGST Rs 27,144 crore, IGST collections stood at Rs 49,028 crore (including Rs 20,948 crore collected on imports) and Cess was recorded at Rs 7,727 crore (including Rs 869 crore collected on imports).GST collection crosses Rs 1 lakh crore mark in November
GST collections were Rs 97,637 crore in November last year and Rs 95,380 crore in October this year. The increase in collections was a sign of economic revival, recovery in demand and measures to ease compliance, government officials told ET. After two months of negative growth, GST revenues witnessed an impressive recovery.
Revenue Secretary Ajay Bhushan Pandey had a video conference meeting with top tax officials and impressed upon them to step up measures to achieve direct and indirect tax collection target. The target has been set in the backdrop of the GST collection failing to meet the target for the current fiscal on account of slowdown.
The brokerage added that prices hikes may lead to better GST collections, but its impact on volumes needs to be seen.
ICRA said the GST compensation fund may see a shortfall of Rs 15,000-25,000 crore for 2019-20. The Centre by law has to pay the states at 14% annually for the first 5 years of the GST regime and the government had earlier projected an 18% growth in collections for this year, while the same has been tepid at a little over 5 per cent till January.
In a tweet, senior Congress leader and former Union Minister Jairam Ramesh said, "Slowest tax collection growth in a decade, highest unemployment rate in three years and sharpest slump in core sector output. The Trishul that conclusively establishes economic slowdown. But 'Sab Changa Si' (everything's fine)." He also attached a graph to back his claims.
With the new compliance regulations, including e-invoicing, proposed from April 2020, the revenue collection is likely to improve with real-time tracking of input credits claimed by businesses.
Here’s breaking down the pre-market actions.
Nirmala Sitharaman has followed the globally emerging trend of protecting the domestic industries for self-reliance and accelerate growth. In order to boost the ‘Make in India’ initiative, the Union Budget has proposed several measures including customs duty rationalization.
Congress said the budget was devoid of a clear message or memorable idea and alleged the government "has given up on reviving the economy or accelerating the growth rate or promoting private investment or increasing efficiency or creating jobs or winning a greater share of world trade."
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 209 crore on Tuesday, data available with NSE suggested.
Despite improved festive demand, GST collection remained below Rs 1 lakh crore in October. GST collection rose to Rs 95,380 crore in October against Rs 91,916 crore in September, but it was still 5.29 per cent less in comparison to Rs 1 lakh crore collected in the same month last year. This is yet another month in a row when GST mop-up has slipped below Rs 1 lakh crore. Hit by consumption slowdown, the tax collections have been subdued in the last few months. GST collections remain subdued at Rs 95,380 cr in October
"It is not only the government, it is also the industry which also has to play an important role. In GST, we are seeing a lot of fake invoicing and it is from business to business," Thakur said at the annual session of Consumer Electronics and Appliances Manufacturers Association.
Auto sector, which has seen sales decline for 11 straight months, led the decline with Rs 3,500 crore, followed by cement (around Rs 1,500 crore) and steel (around (Rs 1,200 crore).
This is the third consecutive month when GST mop-up remained below the Rs 1 lakh crore mark.
The FY21 divestment target, if met, will be a record.
Nirmala Sitharaman also said that GST collection, which crossed Rs 1 lakh crore per month mark during the last two months, will remain "good" in coming days. "The government has been regularly taking steps to help sectors which are facing challenges. Without waiting for the Budget, we are taking the steps," the minister said at a press conference here.
With a crashing GDP, declining consumption and decreasing investments, the nation was expecting a visionary and futuristic budget that would revive business sentiment.
Rajan Wadhera, President, SIAM points out that in the past also, the government has extended support in 2009 and 2014 at times of degrowth. Also, we are hopeful that the finance minister will consider giving more money to people by reducing the income tax rates in the Budget.
The mood could change once the fine print is read and numbers are crunched as even lacklustre budgets sometimes hold surprises.
Currently, only BSNL landline broadband service with 2G speed is functional in Jammu while the entire Kashmir region with 10 districts is without net facility.
For the next financial year, beginning April 1, the government expects a substantial Rs 90,000 crore revenue from disinvestment of government stake in public sector banks and financial institutions. This would be in addition to Rs 1.20 lakh crore estimated to be mopped up from CPSE stake sales in 2020-21.
The net addition to the ESIC, after excluding those who ceased paying their contribution during the month, was 6.97 lakh, the highest for any month in the current fiscal year.
Auto Inc's been battling high tax and weak sentiments. It is high time for incentive-based scrappage policy.
Here's a weekly tracker of returns that will keep you updated on how the stock market index, gold prices and 10-year bond yields have performed. This will give investors an idea of how their investments performed over a long period.
The worsening employment scene is likely to hit Indian economy in a number of ways.
Out-of-the-box thinking is required this Budget, but the chances of this coming are limited.
Despite a significant increase in central allocation, the fiscal situation of states is a cause for concern.
According to the Central Bank, the share of SGST collections in total GST revenue has been higher than CGST, attributable to the adjustment for input tax credit.
In another sign of slump, GST collection dropped below Rs 1 lakh cr mark to Rs 91,916 crore for September.
While the EPFO data suggests that annualised new enrolments could be 106.2 lakh crore for FY’20, the SBI research team calculations show that actual annualised net new payroll could be 73.9 lakhs, about 21 per cent or 15.8 lakh lower than actual net new pay roll generated in FY’18.
Here is a lowdown on the taxes that you will get to hear in the Budget speech.
As the Budget draws near, the odds for a personal income tax cut are becoming less and less likely.
A low tax-to-GDP ratio poses significant challenges for the government to spend money on creating necessary infrastructure in the economy and raise investment.
"I am in constant touch with the industry and various sections seeking out interventions. I expect to be on track for $5 trillion target. We need to address the challenges and difficulties. I am not comparing our numbers today to what it should be but focussing on moving towards achieving the target," Sitharaman said.
India's gross GST collections slipped below Rs 1 lakh crore to Rs 98,202 crore in August, according to official data released on Sunday.Gross revenue collections from the Goods and Services Tax (GST) in July stood at Rs 1.02 lakh crore.The August 2019 mop-up was, however, 4.5 per cent higher than the Rs 93,960 crore collected in the same month last year.This is the second time during this year that the revenue collection from the GST has slipped below the Rs 1 lakh crore mark. First, it happened in June when the collection was Rs 99,939 crore.Central GST collections stood at Rs 17,733 crore, State GST Rs 24,239 crore, and Integrated GST Rs 48,958 crore (including Rs 24,818 crore collected on imports) during August this year, a statement said. GST collections drop below Rs 1 lakh cr to Rs 98,202 cr in August
The numbers are in line with the other disappointing economic indicators.
The numbers are in line with the other disappointing economic indicators.
This year's survey comes at a time when the government is trying to revive the economy that is facing its worst slowdown in the recent years.
Some small and medium enterprises have dragged the government to court over levying cesses on firms exempted from customs duty even as the revenue department scrambles to boost tax collections.
“The revenue secretary will hold a day-long meeting on January 7 with tax commissioners to discuss ways to streamline the GST system and plug leakages due to fraud,” said a person aware of the development.
Gross GST collection stood at Rs 1,00,289 crore in May and Rs 1,13,865 crore in April.
Here’s breaking down the pre-market actions.
In absolute terms, the total tax collection during April-July of this fiscal year rose to Rs 3.56 lakh crore, as per the data accessed by .
The sector — suffering for a year now — reported its worst-ever sales decline in two decades during 2019.
Under fire over delay in GST compensation, the government today released Rs 35,298 crore to states.
Competing with private companies for limited resources could cap the room for RBI to cut interest rates. Even if it does, market rates won’t ease due to higher government debt. Also, with inflation being predicted to ease by the second half of 2020 towards the target of 4%, prospects for sharp rate cuts diminish.
CGST collection during Apr-Nov stood at Rs 3.28 lakh crore against budgeted estimate of Rs 5.26 crore.
Nilesh Shah, MD & CEO, Envision Capital, says just saying that we will probably grow 6-7% may not satisfy the market and it is going to ask what is that fiscal deficit number that you have?
In such a market, precision eye for value-price-quality tradeoff will be vital.
The all-powerful GST Council, headed by Finance Minister Nirmala Sitharaman, is set to meet on December 18 in the backdrop of lower-than-expected GST collection. As of now, there are four slabs under the GST regime -- 5, 12, 18 and 28 per cent. Goods and services under the 28 per cent category also attract cess over and above the rate.
The FM said the government has expedited payments to those who have rendered services especially the MSMEs.
Industry will come back to growth after FY21. The next financial year will be another year of consolidation and strengthening. Most businesses are not in a hurry to grow. Most smart players are using this period as a time to strengthen, stabilise, restructure, focus on training and invest significantly in technology. This is a great way to invest in technology.
If the Budget can specifically target real estate and NBFC sectors and take away that fear factor, that can help the cyclical improvement in growth, says Kaushik Das, Director & Chief Economist, Deutsche Bank Research.
A number of experts have revised their fiscal deficit target for current fiscal. Fitch has raised the fiscal deficit target to 3.6 per cent for FY20. The data released by the Controller General of Accounts showed that the government had reached 115 per cent of the target for the full year in the first eight months of the current fiscal.
There is widespread speculation that rate increases will be announced at the GST Council meeting on Dec 18.
In a written reply to a question in the Lok Sabha, Sitharaman said concerted efforts have been made to improve tax compliance.
Most of the readings reinforce the prevailing slowdown mood and hint at Q2 numbers falling below those in Q1.
While structural factors are responsible for the high unemployment, the slowdown has made things worse.
An estimated 500,000 cases have been pending in the courts and quasi-judicial forums for years.
India let fiscal deficit widen for a second straight year as Narendra Modi, who’s seeking a second term in office in elections currently underway, tried to win over voters through cash handouts for farmers and tax cuts for the middle class.
A panel of state and central government officials, set up to suggest measures for revenue augmentation, has also backed rejig in the GST rate structure to shore up revenues besides a tighter administrative hand to improve compliance.
Two years after its launch, the government has begun the review of GST, including a possible resetting of rates along with the slabs, the Standing Committee on Finance headed by Jayant Sinha said in its report tabled in Parliament.
Bullion counter may trade on a weaker path, said brokerage SMC Global.
The slowdown is the lagged impact of weak investment cycle and weak housing market.
Most leading indicators show production and demand conditions have remained weak.
A panel of officials looking at the option of small hikes in lower rates or moving up items in tranches.
Sushil Modi, who heads the Group of Ministers (GoM) on GST revenue shortfall, said that the economic slowdown, particularly the muted sales in the automobile sector, is leading to lower collections in the new indirect tax regime. Speaking at an event, he said that the automobile sector is a major contributor to the GST compensation pool.
Noting that Goods and Services Tax (GST) is a work in progress, he said that when it was introduced, there were people who said the new indirect tax regime would lead to incremental GDP growth of 1.5-2 per cent.
The fiscal deficit or the gap between expenditure and revenue was at Rs 8,07,834 crore as on November 30, 2019.
It is still early days yet but one would expect a positive outcome from the e-assessment scheme.
Arvind Subramanian said the govt has no leeway to cut taxes nor it has space to hike GST rates.
Revenue collections from GST may fall short & compensation requirement of major states could jump.
First advance estimates pegged nominal GDP growth at 7.5%, substantially lower than 12% projected in Budget.
The government collected highest ever GST for the month of March crossing the Rs One lakh crore mark. The government mopped up Rs 1,06,577 crore of which CGST is Rs 20,353 crore, SGST is Rs 27,520 crore, IGST is Rs 50,418 crore (including Rs 23,521 crore collected on imports) and Cess is Rs 8,286 crore (including Rs 891 crore collected on imports). GST collection records Rs 1.06 lakh cr in March
The time has come for the government to shed its obsession about fiscal deficit targets and borrow more from the market, both to compensate the states for their shortfall in GST collections and to meet its own expenditure commitments. India still has deep reserves of economic resilience and it is necessary to avoid any self-defeating talk of recession.
The Goods and Services Tax (GST) collection for the month of May rose 6.67 percent to Rs 1,00,289 crore from a year ago period staying above Rs 1 lakh crore in monthly revenue mop-up. The collection is, however, lower compared to April when the gross revenue had touched all time high of Rs 1,13,865 crore. This figure is about 6.67% higher on a yearly basis but lowers on a monthly basis.GST collections in May cross Rs 1 lakh crore, up 6.67% YoY
Due to the Reserve Bank of India's (RBI) - Operation Twist, the long duration mutual fund schemes have gained a lot. However, financial experts are giving a word of caution to debt mutual fund investors. Here's why.
The panel suggested two slabs of 10% and 20%. Alternatively, some goods could be moved from the 18% slab back to 28%, the panel said in a presentation to Bihar deputy CM Sushil Modi in Bengaluru on Monday. The GST Council had, at its recent meeting, asked Modi to look into revenue augmentation measures.
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