Tag: government

GST will boost hiring by 11% across sectors: Rudy

GST will boost hiring by 11% across sectors: Rudy

03/07/2017 12:14

Union minister Rajiv Pratap Rudy said the GST will boost hiring across sectors by 11 per cent by creating an integrated national market which will promote domestic demand and drive job creation.

The Ministry of Skill Development and Entrepreneurship announced a training programme to certify Goods and Services Tax practitioners under its flagship scheme Pradhan Mantri Kaushal Vikas Yojana to make the country’s passage to the new tax regime smooth and glitch free.

“We are also happy to know that crucial subjects like education and skill development services have been granted exemption from GST, as per the decision of the GST council.

“It will be a step towards improving the quality of vocational training, reduction in cost of the training and incentivising training providers,” Rudy said in a statement.

According to the Ministry of Skill Development and Entrepreneurship, the course will equip candidates with relevant skills to benefit from job opportunities generated by the GST.

“The tax reform is expected to fuel demand for professionals in various segments of the economy as mid-and small-sized companies are likely to outsource similar activities to third party account firms,” the Ministry said.

The training programme has begun in Delhi, Bangalore and Bhopal.

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7 states yet to pass GST laws even as rollout deadline nears

7 states yet to pass GST laws even as rollout deadline nears

06/06/2017 11:00

With less than a month left for GST rollout, seven states, including West Bengal, Tamil Nadu and Jammu & Kashmir, are yet to pass their legislations required for implementing the new indirect tax regime, said an official statement.

So far, 24 states and Union Territories, including Delhi, Odisha and Puducherry, have passed the State Goods and Services Tax (SGST) Act in their respective legislative assemblies.

However, seven states — Meghalaya, Punjab, Tamil Nadu, Kerala, Karnataka, Jammu & Kashmir and West Bengal — are yet to pass the SGST law. Baring Jammu & Kashmir where BJP is an alliance partner of PDP, all are non-BJP ruled states.

The government plans to roll out the Goods and Services Tax (GST), which will subsume 16 different taxes, from July 1. West Bengal wants the Centre to delay roll out of the GST by a month and the issue was raised by state Finance Minister Amit Mitra at the meeting of the GST Council last week.

Mitra said that implementation of the GST from July 1 will have “serious problems” as the IT infrastructure required to manage GST’s returns and invoice uploading are not in place”.

So far, GSTN has been able to do test drive on 200-300 companies in each state. Forms and rules have been changed in May.

The Union Finance Minister has to decide whether it should go ahead with the biggest fiscal reform when the IT preparedness is not 100 per cent,” Mitra said.

As per the GST Constitutional amendment, all states have to pass SGST bills by September 15, 2017, failing which they will lose their taxation powers.

Govt e-marketplace now has over 21K products, 17 services

22/05/2017 15:46

Over 21,000 products under 249 categories and 17 services such as security, transportation and IT professionals are now available on the government’s e- marketplace (GeM).

According to a document of the commerce ministry, during August 2016 and April 30 this year, the total value of purchase made on GeM amounted to Rs 454 crore.

“We are adding more products and services to the portal. Till April 30, it has 21,036 items. We are also encouraging states to sign MoUs with GeM for procurement of goods and services,” a ministry official said.

GeM was launched in August last year for online purchase of goods and services by various central government ministries and departments.

The portal covers the entire procurement process chain, right from vendor registration, item selection by buyer, supply order generation to online payment to vendor, the document said.

The move is aimed at bringing in more transparency and streamlining the government procurement, estimated at Rs 10,000 crore a year.

The Directorate General of Supplies and Disposals (DGS&D), under the ministry which manages this portal, is working on increasing more services by including areas like cleaning, third party inspection, digitisation of records and pest control.

Further, to make it an autonomous body, the government has decided to set up a special purpose vehicle (SPV), a not for profit company, to operate GeM portal.

The GeM SPV would provide an end-to-end online marketplace for central and state government ministries, departments, Public Sector Undertakings, autonomous institutions and local bodies, for procurement of common use goods and services in a transparent and efficient manner.

GDP growth to slow to 5.7% in Jan-Mar 2017: Nomura

GDP growth to slow to 5.7% in Jan-Mar 2017: Nomura

13/02/2017 16:13

India’s economic growth is likely to remain muted in the first quarter of this calender year with the GDP likely to grow at 5.7 per cent in the January-March period amid subdued activity, says a report.

According to the global financial services major Nomura, following subdued growth in the first quarter, a V-shaped recovery is on the cards due to remonetisation, wealth redistribution and the lagged effects of lower lending rates.

“We expect growth to remain subdued in the first quarter of 2017 as the activity level remains below its recent peak,” Sonal Varma chief India economist at Nomura said in a research note.

Nomura expects economic growth to remain in a downtrend. As per the report, from 7.3 per cent GDP growth in the July-September 2016, the October-December 2016 quarter GDP growth is likely to slow to 6 per cent and further to 5.7 per cent in the first quarter of 2017 (January-March).

“We expect GDP growth to slow from 7.3 per cent in Q3 2016 to 6.0 per cent in Q4 and 5.7 per cent in Q1 2017,” it said.

According to official figures, industrial production contracted to a four-month low of 0.4 per cent in December, largely due to decline in production of capital goods and consumer goods.

“The moderation in industrial output growth is not a surprise; weak demand since demonetisation has likely forced companies to cut production in order to clear the excess inventory,” Nomura said.

Notwithstanding the improvement in manufacturing PMI in January, industrial output growth should sequentially improve though growth is expected to remain subdued in the first quarter of 2017 as the activity level remains below its recent peak.

“Thereafter, we expect a V-shaped growth recovery to take hold in the second half of 2017, due to remonetisation, wealth redistribution and the lagged effects of lower lending rates,” it added.

Budget 2017: Govt to complete 1,00,00,000 houses by 2019 for homeless

Budget 2017: Govt to complete 1,00,00,000 houses by 2019 for homeless

01/02/2017 11:47

The Finance Minister in his budget speech said that the government is looking to complete 1,00,00,000 houses by 2019 for houseless and those living in kaccha houses.

The FM also said that open defecation free villages were now being given priority for piped water supply.

Also, FM was confident that 100 per cent village electrification would be achieved by May 1, 2018. Also, FM said that sanitation in rural areas had gone up from 42 per cent in October 2014 (launch of Swachh Bharat) to 60 per cent now.

The FM has also raised allocation for Pradhan Mantri Awaaz Yojana up from Rs 15,000 crore to 23,000 crore.

FM to fix fiscal deficit target of 3.5% of GDP in 2017-18: BofA-ML

06/01/2017 15:58

A report has said that the ensuing budget is likely to fix a fiscal deficit target of 3.5 per cent of GDP in 2017-18, relaxing the 3 per cent target earlier in order to support growth.

According to global financial services major Bank of America Merrill Lynch, (BofA-ML) the financial year 2017-18 fiscal deficit target is likely to be the same as this fiscal.

Commenting on the issue, a BofA-ML Official told the media, “We expect Finance Minister Arun Jaitley to target a fiscal deficit of 3.5 per cent of GDP – same as 2016-17 – in 2017-18 in his February 1 Budget, easing the 3 per cent target.”

As per reports, fiscal deficit, the gap between expenditure and revenue for the entire fiscal, has been pegged at Rs 5.33 lakh crore, or 3.5 per cent of GDP, in 2016-17.

According to official figures, fiscal deficit touched Rs 4.58 lakh crore, or 85.8 per cent of the budget estimate for the whole financial year, at the end of April-November.

Govt getting ready to present budget on Feb 1: Reports

04/11/2016 16:17

A Government Official has said that Finance Ministry is gearing up to present the Budget for next fiscal around February 1, advancing the scheduled date by a month so as to complete the entire process by March 31, and preparations for it are very much under control.

Commenting on the issue, Economic Affairs Secretary Shaktikanta Das told the media, “There are three major changes that we are undertaking for the next year (Budget). First presentation of Budget is advanced by about a month. We expect Budget to be presented around February 1.”

“The pre-Budget meetings for the current year’s for revised expenditure estimates as well as for the next Budget’s estimates have already started. Revenue Department has also started the pre-budget consultations with the various stakeholders and Finance Minister’s consultation with major stakeholders are also planned to be held in advance,” he added.

Govt notifies GST Council

16/09/2016 14:41

Government has formally notified the GST Council, which will decide on the tax rate, exempted goods and the threshold under the new taxation regime, reported PTI.

The council will be chaired by Union Finance Minister and have Minister in charge of Finance or Taxation or any other Minister nominated by each State Government as its member. Also Minister of State in charge of Revenue or Finance at the Centre would be a member.

“In exercise of the powers conferred by article 279A of the Constitution, the President hereby constitutes the Goods and Services Tax Council…,” said a government notification.

Earlier this week, the Union Cabinet had approved setting up of all powerful GST Council, which is expected to thrash out a decision on all major aspects of GST roll out by November 22.

The first meeting of the GST Council will be held on September 22-23.

The government is planning to introduce GST legislations — Central GST (CGST) and Integrated GST (IGST) — in Winter Session of Parliament in November. The legislation would mention the tax rate, exempted goods and also the threshold.

Prime Minister Narendra Modi too has directed all officers to ensure that steps are taken to stick to the April 2017 roll out date.

In his meeting with top revenue department officials yesterday, Modi said the GST Council would need to have intensive meetings to be able to make timely recommendations relating to its mandate, including proposals relating to Model GST laws, GST rates, goods and services that may be subjected to or exempted from GST.

The Constitution (122nd Amendment) Bill, 2016, for introduction of the goods and services tax in the country was accorded assent by the President on September 8 and the same has been notified as the Constitution (One Hundred and First Amendment) Act, 2016.

As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A. The notification for bringing into force Article 279A with effect from September 12, 2016 was issued on September 10, 2016.

The government is keen to implement the biggest tax reform since Independence from April 1,s so as to ensure a smooth rollover to the changed tax structure from the beginning of the new fiscal and avoid mid-year alterations.

Patel as new RBI head to ensure continuity: Mundra

Patel as new RBI head to ensure continuity: Mundra

23/08/2016 14:35

The appointment of Urjit Patel as 24th Governor of the Reserve Bank will ensure continuity of policy as he has been incharge of the monetary policy, RBI Deputy Governor S S Mundra said as per the PTI report.

“While Patel is new as a Governor, he’s not new for RBI. Second thing is, in his present role as deputy governor RBI, he is incharge of monetary policy, which was already the centre-stage of inflation…Interest rate-related activity or Monetary policy related activity,” he said on the sideline of an event organised by CII.

“From that perspective, this would be work in progress. So, it would be reasonable to expect that there would a continuity,” he said.

The government on Saturday appointed Patel as the 24th head of the Reserve Bank of India. He will replace Raghuram Rajan who demits office on September 4.

It is expected that the next monetary policy review would be undertaken by Monetary Policy Committee rather than RBI Governor. The next bi-monthly RBI policy is scheduled on October 4, said the media report.

The MPC was set up by amending the RBI Act, 1934, through the Finance Bill 2016. Under this new system, the RBI Governor is ex-officio Chairperson.

Under the agreement with the government, RBI is committed to anchoring retail inflation at 4 per cent (plus/minus 2 per cent) and has set itself a target of 5 per cent by next March as part of a ‘glide path’ to achieving the median mark.

Govt realizes Rs 919 cr through SGB scheme: Reports

01/08/2016 10:30

The Indian Government has said that it has realised Rs 919 crore through the fourth tranche of its Sovereign Gold Bond scheme.

Commenting on the issue, the Finance Ministry Official told the media, “Collections under the Sovereign Gold Bond scheme reached a new high. The amount realised through the fourth tranche, at around Rs 919 crore, is the highest achieved as yet.”

“The previous highest was Rs 746 crore, which was realised in the second tranche, when the issue price was Rs 2,600 per gram of gold,” he added.

As per reports, in the latest subscription, the issue price was fixed at Rs 3,119. This time around, the amount was mobilised through over 1.95 lakh applications representing around 2.95 tonnes of gold.

In the Union Budget 2015-16, the SGB scheme was launched as an alternative to keeping physical gold.

Launched in November 2015, the aim of SGB is to reduce demand, including through imports, for physical gold, and in process reduce India’s current account deficit (CAD).