GST Council to meet on Saturday amid rate cut talk, but some states not fully on board

The Council will also likely discuss a proposal to lower the cess on plug-in hybrid cars to bring down effective tax incidence for such vehicles from 43 percent

The Goods and Services Tax (GST) Council will meet on December 22 amid heightened expectations that the panel will cut rates on several items, although some states want the move’s impact on revenues to be fleshed out in greater detail before levies are lowered.

A discussion on the revenue position of the Centre and states, easing refund-related rules for exporters, is also likely to be on the agenda.

The Council, headed by finance minister Arun Jaitey is the highest decision making body of the new indirect tax system that came into effect from July 1, 2017.

It is also expected to take up the issue of transferring ownership of the IT backbone GST Network in a government owned company, a proposal that was approved by the Cabinet in September, sources said.

In addition, there could be discussions on reducing cess on plug-in hybrid cars, which currently falls in the 28 percent tax slab. However, the overall tax incidence for the green vehicle is 43 percent right now.

It is learnt that the road ministry has proposed bringing down the tax liability to 35 percent.

Rate cuts have always been a contentious issue as the Centre and states have to come to a consensus. In that light, the meeting assumes all the more significance, coming as it does after the recent elections in five states that saw the Congress wresting power in all the three Bharatiya Janata Party (BJP)-ruled states.

Days ahead of the meeting, Prime Minister Narendra Modi said the government wants to ensure that ‘99 percent things’ attract GST at 18 percent or lower rate.

“Today, the GST system has been established to a large extent and we are working towards a position where 99 per cent things will attract the sub-18 percent GST slab,” Modi said, while also hinting that the highest  tax slab will be restricted to luxury and sin goods.

A range of goods from air conditioners to dishwashers, from television sets to digital cameras could become cheaper,  if the Council expected to slashes rates to 18 percent on all products in the 28 percent slab, except demerit goods, cement and automobiles.

This could effectively set 18 percent as the highest GST tax slab, except only two broad categories of goods and services.

Over 1,200 goods and services fall into four broad tax slabs- 5, 12, 18 and 28 percent. Currently, there are close to 40 goods and services in the 28 percent slab, which comprises demerit and luxury goods, among other items.

The move comes barely four months ahead of the crucial Lok Sabha elections in April-May, 2019. The cut in rates, however, could affect GST revenues, given that the collections are still short of the budgeted target.

The last major round of rate cut happened in July when the Council decided to cut tax on 80 items. The government, then, had to forego revenue worth of Rs 10,000 crore-Rs 11,000 crore annually.

Source: https://www .moneycontrol.com/news/business/economy/gst-council-to-meet-on-saturday-amid-rate-cut-talk-but-some-states-not-fully-on-board-3316281.html

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NITI Aayog’s ‘Strategy for New India @75’ report aims for 9-10% GDP growth

NITI Aayog’s also aims to modernise agricultural technology, increase productivity, efficiency and crop diversification

National Institution for Transforming India (NITI) Aayog expects Indian economy to grow at 9-10 percent by 2022-23, the government’s premier policy think-tank said in its report ‘Strategy for New India @ 75.

“The objective is - steadily accelerate the gross domestic product (GDP) growth rate to achieve a target of about 8 percent during 2018-23. This will raise the economy’s size in real terms from USD 2.7 trillion in 2017-18 to nearly USD 4 trillion by 2022-23,” the report said calling for growth that is inclusive, sustained, clean and formalised.

NITI Aayog today unveiled its strategy for the country as India completes 75 years of independence in 2022. It is a detailed exposition across 41 crucial areas, that recognises the progress already made, identifies binding constraints, and suggests the way forward for achieving the clearly stated objectives.

The forty-one chapters in the document have been disaggregated under four sections--drivers, infrastructure, inclusion and governance.

“Our emphasis on reforms, market reforms, allowing entrepreneurship to grow has to be accompanied with some social consciousness of the economic planners. That is why we want this model, where you allow India to grow, allow entrepreneurship, you allow the private sector to play a very important role…utilize increased resources of the states towards better infrastructure, township, healthcare facilities. Use large part of resource to use for the poor,” finance minister Arun Jaitley said releasing the report.

The document said that a slew of measures will be required to boost both private and public investment, for India to raise its rate of investment to about 36 percent of the GDP by 2022-23 from about 29 percent in 2017-18.

To enhance public investment, India should aim to increase its tax-GDP ratio to at least 22 percent of GDP by 2022-23, the report said, adding that demonetisation and the Goods and Services Tax (GST) will contribute positively to this critical effort.

Besides, the government should rationalise corporate tax and personal income tax, ease tax compliance burden and eliminate direct interface between taxpayers and tax officials using technology.

On infrastructure, the think-tank has recommended doubling the share of freight transported by coastal shipping and inland waterways, developing an IT-enabled platform for integrating different modes of transport and promoting multi-modal and digitised mobility.

It also aims to deliver all government services at the state, district, and gram panchayat level digitally by 2022-23 though Bharat Net programme.

The report has also suggested a successful implementation of Ayushman Bharat programme, including the establishment of 150,000 health and wellness centres across the country, and rolling out the Pradhan Mantri Jan Arogya Abhiyaan (PM-JAY).

DOUBLING FARMERS’ INCOME

NITI Aayog also aims to modernise agricultural technology, increase productivity, efficiency and crop diversification.

It has called for replacing the minimum support price (MSP) by a minimum reserve price (MRP), which could be the starting point for auctions at mandis.

MSP is a price at which the government buys crops from farmers, irrespective of its price. It acts as a floor price mainly during production shortages, to protect agriculture producers from sharp falls in farm prices.

Despite higher MSP on the cost of production for Kharif crops announced by the government in budget for 2018-19, farmers have not been able to gain much.

“Raising MSP or prices can only be a partial solution to the problem of assuring remunerative returns to farmers. A long-term solution lies in the creation of a competitive, stable and unified national market to enable better price discovery, and a long-term trade regime favourable to exports,” the report said.

On the recent announcements by states such as Madhya Pradesh on farm loan waivers, NITI Aayog Vice Chairman Rajiv Kumar said that while states may offer such relief measures for the cash-strapped farmers, but the NITI Aayog has not recommended a country-wide waiver.

NITI Aayog, Member Ramesh Chand also said that ‘farm loan waivers’ are not a solution as all farmers do not benefit from it.

In fact, the government must ensure that farmers get a better price for their crops, apart from looking at crop surplus management, Chand said.

Source: https://www .moneycontrol.com/news/business/economy/niti-pitches-for-labour-reforms-higher-women-participation-social-security-3308301.html

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Stocks in the news: Tata Steel, NMDC, Ashoka Buildcon, Glenmark, Graphite India

Godrej Industries | Glenmark Pharma | Bombay Dyeing | Bank of Baroda | Graphite India | Infibeam Avenues and Tata Steel are stocks which are in the news today.

Tata Steel: Andreas Goss, currently Chief Executive Officer (CEO) of thyssenkrupp's Steel division, will be the future Chief Executive Officer of the planned Joint Venture and chair the Management Board of thyssenkrupp Tata Steel BV. Hans Fischer, currently the CEO of Tata Steel Europe, will be the Deputy CEO & Chief Technology Officer of the Joint Venture.

Standard Chartered Plc: The Group agreed terms for the spin out of its private equity business and a sale of the majority of its private equity investment portfolio to funds managed by ICG Strategic Equity, part of Intermediate Capital Group Plc (ICG).

NMDC: Company fixes lump ore price at Rs 3,250 per tonne and price of fines at Rs 2,860 per tonne from December 13.

Ashoka Buildcon: Subsidiary raises Rs 150 crore from Morgan Stanley India Infrastructure.

Godrej Industries: National Company Law Tribunal approved the Scheme of Amalgamation of Vora Soaps Limited with company.

Bank of Baroda to shut three overseas branches by June

Glenmark Pharma: Company announces new data on GBR 1302, a HER2xCD3 Bispecific antibody, presented at the ESMO Immuno-Oncology Congress 2018.

Bombay Dyeing: Company has given its consent by signing the shareholder's resolution of its subsidiary in Indonesia i.e. PT Five Star Textile Indonesia (PTFS) for closure of the same.

Graphite India: Kamataka State Pollution Control Board has renewed the consent for operations at Bengaluru graphite electrode plant for a period up to 30.6.2020 only with condition to shift the unit from the existing location.

IL&FS Transportation Networks: The interest due and payable on December 17 on the NCDs was not paid to the debenture holders due to insufficient funds.

Mahindra & Mahindra Financial Services: India Ratings reaffirmed its AAA/Outlook-Stable rating for Rs 10,000 crore worth public issue of non-convertible debentures.

Infibeam Avenues: Suvidhaa Infoserve Private Limited acquires 5 percent equity stake in company's subsidiary NSI Infinium Global Private Limited.

RITES: Board fixed December 28 as the record date for the purpose of payment of dividend.

Punjab and Sind Bank revised MCLR rate w.e.f. December 16

Goldiam International: Company announces the closure of the buyback with effect from December 17.

M&M signed agreement with Sampo Rosenlew Oy, Finland, an Associate of the Company to increase stake from 35% to 49.04%

Mac Hotels: Goa based public listed company will add another 160 rooms effective from 1st January 2019, taking the total number of rooms to 238.

Corporation Bank - ICRA reaffirmed rating on certificate of deposits of Rs 30000 crore to ICRA A1+

Sadbhav Infra

Ongoing litigation amongst the Company, Sadbhav Engineering on the one side and Montecarlo on the other have arrived at amicable settlement

NCLT and High Court of Gujarat dispose the matter and accordingly the said legal matters now stands closed

Bulk Deals on December 17

DRS Dilip Roadlines: Babulal Vadilal Shah sold 94,400 shares of the company at Rs 75.5 per share on the NSE.

Godha Cabcon Insulat: Mark Corporate Adviosrs sold 72,000 shares of the company at Rs 30 per share on the NSE.

Manaksia Steels: Payal Agrawal bought 3,38,715 shares of the company at Rs 26.91 per share on the NSE.

BC Power Controls: Deepen Bharat Shah bought 3,00,000 shares of the company at Rs 28.71 per share on the BSE.

Analyst or Board Meet/Briefings

Sandhar Technologies: Board meeting is scheduled on February 2, 2019 to consider the un-audited standalone financial results, for the quarter and nine months ended December 2018.

JCT Limited: Board meeting is scheduled on December 31 to consider fresh issuance of equity shares aggregating to Rs 9.16 crore on preferential basis to term lenders.

Tube Investments of India: Meeting with institutional investors/analysts on the unaudited financial results for the second quarter ended September 2018 is scheduled on December 18.

Dishman Carbogen Amcis: Management meet and plant visit at company's Bavla plant with certain institutional investors and analysts has been scheduled on December 18 and 19.

Genus Power Infrastructures: Officials of the company will be meeting investors and analyst at its plant in Jaipur on December 18.

Great Eastern Shipping: Company's officials will be meeting ICICI Pru AMC on December 18.

Source: https://www .moneycontrol.com/news/business/markets/stocks-in-the-news-tata-steel-nmdc-ashoka-buildcon-glenmark-graphite-india-3300311.html

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