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Sitharaman-led GST Council has a key task now to develop a long-term vision for tax
GST Council’s 54th meeting addressed industry concerns by rationalizing GST rates, providing exemptions, and clarifying laws to avoid litigation. New GoMs were formed to tackle critical issues. The introduction of e-invoicing for B2C transactions and the IMS system aims to streamline compliance and enhance efficiency.
Telangana urges 16th Finance Commission to increase states’ share in Central taxes to 50%
The Telangana Government has urged the 16th Finance Commission to increase the states’ share in Central taxes from 41% to 50%. Deputy Chief Minister Bhatti Vikramarka emphasized the need for greater fiscal autonomy and a revised formula for horizontal devolution to address regional disparities and support local development.
GST Council spices things up: Here’s what got cheaper overnight in India
GST Council Meeting decisions: The GST Council’s meeting on Monday announced significant tax cuts to make essential goods and services more affordable. Key reductions include lowering GST on cancer drugs to 5%, reducing the levy on fried snacks, and cutting taxes on shared helicopter rides. The Council also exempted R&D activities from GST and deferred decisions on insurance and compensation cess.
GST Council Meeting: Exemptions for foreign airlines, rate reductions, and new Groups of Ministers formed
The GST Council has exempted foreign airlines from import service taxes and approved flight training courses. It reduced GST on certain cancer drugs, helicopter rides, and savoury snacks. Two groups of ministers will examine GST on insurance premiums and compensation cess. Educational institutions won’t pay GST on research grants.
GST on online gaming spiked revenue 412% in six months, netted Rs 6,909 cr, says FM Sitharaman
Post the GST Council meet on Monday, Finance Minister Nirmala Sitharaman announced that the Centre has seen a 412 percent jump in revenue from the increased levy on online gaming, according to a status report submitted to the fitment committee.
Namkeens to get cheaper as Centre announces GST cuts
At the 54th GST Council meeting on Monday, the Centre decided to cut down on the cost of namkeen and savoury products, announced Finance Minister Nirmala Sitharaman at the press meet after the meet. The GST rate on such products have been reduced prospectively to 12 percent from 18 percent, she said.
GST on online gaming resulted in 412% more revenue in six months, netted ₹6,909 crore, says Finance Minister Sitharaman
Finance Minister Nirmala Sitharaman announced a significant increase in revenue from online gaming, with a 412 percent jump to ₹6,909 crore in six months. This follows the implementation of a 28 percent GST on both skill-based and chance-based online games starting October 1, 2023. Casinos also saw a 30 percent revenue increase. India has 442 million gamers, making it the second largest market globally, with the industry expected to grow significantly.
GST Council decides to form new GoM for health insurance premium
The GST Council has postponed its decision on reducing the GST rate on health insurance premiums to November. A Group of Ministers will review the matter and submit a report by October 2024. The current GST rate on health and life insurance policies is 18 per cent, and the industry anticipates potential relief for policyholders.
Tax terrorism? A storm brewing in India’s academic circles can’t be taken for granted
Seven top Indian institutions, including IIT Delhi and Anna University, have received showcause notices from the Directorate General of GST Intelligence for unpaid taxes on research grants since 2017. This has sparked a debate within the academic community, with some calling it ‘tax terrorism.’ Legal experts urge the Centre to reconsider before the matter reaches courts.
Surplus liquidity shows govt’s foot on spending pedal
Government expenditure is rebounding, leading to surplus liquidity in the banking sector as the Centre injects cash into the system. The Reserve Bank of India’s tolerance of this surplus suggests a potential shift toward softer monetary policy. Analysts note that government spending has been steadily increasing over the past few months, supporting economic growth.
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Freebies are smart politics, but they’re turning into bad economics as states struggle to fulfill poll promises
Himachal Pradesh ministers have decided not to withdraw salaries for two months as the Congress-led state government struggles with a significant debt burden. Several other states, including Madhya Pradesh, Karnataka, Telangana, and Punjab, are also facing financial strain due to poll promises and subsidies, impacting their ability to fund development projects.
GST cut on health insurance: You may not celebrate a likely tax cut this time
The GST Council is set to discuss reducing the high GST on health and life insurance policies. While there’s consensus on lowering the tax for life insurance, concerns remain about health insurance. States worry that insurers may not pass on the savings to consumers, and there’s no active anti-profiteering body to ensure this happens.
Health insurance GST: Indian states may be blocking the way for a big tax relief
Health Insurance Tax: The GST Council is set to discuss reducing the tax burden on health and life insurance policies, but faces resistance from states concerned about revenue loss. The debate follows Union Transport Minister Nitin Gadkari’s call to scrap GST on health insurance due to rising premiums. Other agenda items include online gaming taxation and company branch regulations.
General Insurance stake sale: Govt likely to earn Rs 4,700 crore from 6.8% divestment in GIC Re
The government is set to sell a 6.8% stake in General Insurance Corporation of India (GIC Re) through an offer-for-sale, priced at Rs 395 per share. This move aims to raise around Rs 4,700 crore and contribute to the disinvestment fund. The sale will be conducted over two days for different investor categories.
View: India needs more lending — but not to everyone
India’s Reserve Bank plans to introduce a ‘unified lending interface’ to expand digital payments into lending. This system aims to help farmers and small businesses access credit more easily. However, there are concerns about the potential impact on household debt, which is already rising.
FDI inflows jump 47.8% to USD 16.17 bn in Apr-June 2024, Singapore top source
Foreign direct investment in India surged by 47.8% to USD 16.17 billion in April-June this fiscal, driven by strong inflows in services, computer, telecom, and pharma sectors. Total FDI grew by 28% to USD 22.49 billion during the first quarter. Maharashtra received the highest inflow of USD 8.48 billion.
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