<a href="http://www.wionews.com/world/north-koreas-kim-says-new-path-inevitable-if-us-demands-unilateral-action-187606">North Korea warns: Kim says 'new path' inevitable if </a><a href="http://www.wionews.com/world/north-koreas-kim-says-new-path-inevitable-if-us-demands-unilateral-action-187606">US</a><a href="http://www.wionews.com/world/north-koreas-kim-says-new-path-inevitable-if-us-demands-unilateral-action-187606"> demands unilateral action</a>

North Korean leader Kim Jong Un said on Tuesday that his resolve for complete denuclearisation remains unchanged but he may have no option but to seek a "new path" if the United States continues to demand unilateral action from North Korea.

<a href="http://www.wionews.com/india-news/23-goods-and-services-to-get-cheaper-from-january-1-as-reduced-gst-rates-kick-in-187607">New GST rates in effect from today: 23 goods and services to get cheaper</a>

In a new year gift to the common man, the government has notified reduction in GST rates on 23 goods and services, including movie tickets, TV and monitor screen.

<a href="http://www.wionews.com/world/democrat-warren-takes-step-to-challenge-trump-in-2020-187610">Democrat Warren takes </a><a href="http://www.wionews.com/world/democrat-warren-takes-step-to-challenge-trump-in-2020-187610">step</a><a href="http://www.wionews.com/world/democrat-warren-takes-step-to-challenge-trump-in-2020-187610"> to challenge Trump in 2020 presidential polls</a>

US Senator Elizabeth Warren, a liberal firebrand who has taken on Wall Street and traded barbs with Donald Trump, on Monday became the most prominent Democrat to announce a challenge to the Republican president in 2020.

<a href="http://www.wionews.com/world/trump-appears-to-slow-syria-troop-pullout-plan-187612">Trump appears to slow Syria troop pullout plan</a>

President Donald Trump appeared to backtrack Monday on shock plans for an immediate pullout of US troops from Syria, but said his drive to end American involvement in wars made him a "hero."

<a href="http://www.wionews.com/india-news/lpg-to-get-cheap-from-january-1-187614">LPG to get cheap from today, cooking gas price cut by Rs 5.91</a>

The price of Non-Subsidised LPG in Delhi will be decreased by Rs 120.50 per cylinder from January 1, due to fall in the price of the domestic cooking gas in international market and strengthening of US dollar-rupee exchange rate.

North Korea warns: Kim says 'new path' inevitable if US demands unilateral action North Korean leader Kim Jong Un said on Tuesday that his resolve for complete denuclearisation remains unchanged but he may have no option but to seek a "new path" if the United States continues to demand unilateral action from North Korea.

North Korea warns: Kim says 'new path' inevitable if US demands unilateral action North Korean leader Kim Jong Un said on Tuesday that his resolve for complete denuclearisation remains unchanged but he may have no option but to seek a "new path" if the United States continues to demand unilateral action from North Korea. New GST rates in effect from today: 23 goods and services to get cheaper In a new year gift to the common man, the government has notified reduction in GST rates on 23 goods and services, including movie tickets, TV and monitor screen. Democrat Warren takes step to challenge Trump in 2020 presidential polls US Senator Elizabeth Warren, a liberal firebrand who has taken on Wall Street and traded barbs with Donald Trump, on Monday became the most prominent Democrat to announce a challenge to the Republican president in 2020. Trump appears to slow Syria troop pullout plan President Donald Trump appeared to backtrack Monday on shock plans for an immediate pullout of US troops from Syria, but said his drive to end American involvement in wars made him a "hero." LPG to get cheap from today, cooking gas price cut by Rs 5.91 The price of Non-Subsidised LPG in Delhi will be decreased by Rs 120.50 per cylinder from January 1, due to fall in the price of the domestic cooking gas in international market and strengthening of US dollar-rupee exchange rate.

News brief: Big stories of the day

In a new year gift to the common man, the government has notified reduction in <a href="http://www.wionews.com/videos/gst-rates-cut-on-33-items-7-items-moved-from-28-gst-rate-185880">GST rates </a>on 23 goods and services, including movie tickets, TV and monitor screen.

The consumers will pay less for these items of common consumption as the incidence of <a href="http://www.wionews.com/business-economy/revised-gst-rates-what-becomes-cheaper-185876">Goods and Services Tax (GST) </a>on them will come down from Tuesday.

The GST Council on December 22 decided to cut tax rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks and exempted frozen and preserved vegetables from the levy.

The Council had rationalised the 28 per cent slab and restricted the highest slab to luxury, demerit, and sin goods, besides cement, large screen TV, Air Conditioners and dishwashers.

The goods on which GST has been lowered to 18 per cent from 28 per cent at present include pulleys, transmission shafts and cranks, gear boxes, retreaded or used tyres, power banks of lithium ion batteries, digital cameras, video camera recorders and video game consoles.

The GST Council has also decided to slash tax rate on parts and accessories for the carriages for disabled persons from 28 per cent to 5 per cent. Also third party insurance premium of goods carrying vehicles has been reduced from 18 per cent to 12 per cent.

The other items which will attract lower GST rate of 5 per cent include marble rubble, natural cork, walking stick, fly ash blocks.

Music books and vegetables (uncooked or cooked by steaming or boiling in water), frozen, branded and put in an unit container and vegetables provisionally preserved but unsuitable in that state for immediate consumption have been exempted from GST.

Services supplied by banks to basic savings bank deposit account holders under the Jan Dhan Yojana will not attract the GST.

Air travel of pilgrims by non-scheduled/charter operations being facilitated by the government under bilateral arrangements will attract a lower GST rate of 5 per cent.

GST on movie tickets costing up to Rs 100 has been cut to 12 per cent, from 18 per cent. Also tickets over Rs 100 will attract 18 per cent GST, against 28 per cent earlier.&nbsp;

Monitors and TV screens up to 32 inches and power banks will attract 18 per cent GST, as against 28 per cent earlier.

In a new year gift to the common man, the government has notified reduction in GST rates on 23 goods and services, including movie tickets, TV and monitor screen.

In a new year gift to the common man, the government has notified reduction in GST rates on 23 goods and services, including movie tickets, TV and monitor screen. The consumers will pay less for these items of common consumption as the incidence of Goods and Services Tax (GST) on them will come down from Tuesday. The GST Council on December 22 decided to cut tax rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks and exempted frozen and preserved vegetables from the levy. The Council had rationalised the 28 per cent slab and restricted the highest slab to luxury, demerit, and sin goods, besides cement, large screen TV, Air Conditioners and dishwashers. The goods on which GST has been lowered to 18 per cent from 28 per cent at present include pulleys, transmission shafts and cranks, gear boxes, retreaded or used tyres, power banks of lithium ion batteries, digital cameras, video camera recorders and video game consoles. The GST Council has also decided to slash tax rate on parts and accessories for the carriages for disabled persons from 28 per cent to 5 per cent. Also third party insurance premium of goods carrying vehicles has been reduced from 18 per cent to 12 per cent. The other items which will attract lower GST rate of 5 per cent include marble rubble, natural cork, walking stick, fly ash blocks. Music books and vegetables (uncooked or cooked by steaming or boiling in water), frozen, branded and put in an unit container and vegetables provisionally preserved but unsuitable in that state for immediate consumption have been exempted from GST. Services supplied by banks to basic savings bank deposit account holders under the Jan Dhan Yojana will not attract the GST. Air travel of pilgrims by non-scheduled/charter operations being facilitated by the government under bilateral arrangements will attract a lower GST rate of 5 per cent. GST on movie tickets costing up to Rs 100 has been cut to 12 per cent, from 18 per cent. Also tickets over Rs 100 will attract 18 per cent GST, against 28 per cent earlier. Monitors and TV screens up to 32 inches and power banks will attract 18 per cent GST, as against 28 per cent earlier.

New GST rates in effect from today: 23 goods and services to get cheaper

<a href="http://www.wionews.com/india-news/23-goods-and-services-to-get-cheaper-from-january-1-as-reduced-gst-rates-kick-in-187607">GST collection</a> dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month.&nbsp;

The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh, the finance ministry said in a statement.

Compensation released to states for August-September stood at Rs 11,922 crore.&nbsp;

Of the Rs 94,726 crore collected, Central GST (CGST)collection is Rs 16,442 crore, State GST (SGST) is Rs 22,459 crore, Integrated GST (IGST) is Rs 47,936 crore and Cess is Rs 7,888 crore.

The government has settled Rs 18,409 crore to CGST and Rs 14,793 crore to SGST from IGST as regular settlement, it said.&nbsp;

The total revenue earned by the central government and state governments after regular settlement in December is Rs 43,851 crore for CGST and Rs 46,252 crore for SGST, the ministry added.&nbsp;

The Goods and Services Tax (GST) collection stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September, Rs 1,00,710 crore in October and Rs 97,637 crore in November.&nbsp;

The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh, the finance ministry said in a statement.

GST collection dropped to Rs 94,726 crore in December 2018, lower than Rs 97,637 crore collected in the previous month. The total number of sales returns or GSTR-3B filed till December 30, 2018, is 72.44 lakh, the finance ministry said in a statement. Compensation released to states for August-September stood at Rs 11,922 crore. Of the Rs 94,726 crore collected, Central GST (CGST)collection is Rs 16,442 crore, State GST (SGST) is Rs 22,459 crore, Integrated GST (IGST) is Rs 47,936 crore and Cess is Rs 7,888 crore. The government has settled Rs 18,409 crore to CGST and Rs 14,793 crore to SGST from IGST as regular settlement, it said. The total revenue earned by the central government and state governments after regular settlement in December is Rs 43,851 crore for CGST and Rs 46,252 crore for SGST, the ministry added. The Goods and Services Tax (GST) collection stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September, Rs 1,00,710 crore in October and Rs 97,637 crore in November.

GST collection drops to Rs 94,726 crore in December

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered.

<a href="http://www.wionews.com/business-economy/inflation-in-2018-data-shows-price-rise-within-comfort-zone-but-farmers-187302">Attractive real yields (net of inflation)</a>, growth momentum and robust forex reserves of $394 billion are likely to be positive for the Indian rupee (INR), said the report titled '2019 India Outlook — A year to prepare and react'.

On the macro overview, the report expects India's GDP growth to remain robust in 2019, supported by tailwinds from recent policy reforms (GST and bankruptcy code implementation), signs of a revival in private capex and pre-election spending.

"In our assessment, consumer price inflation (CPI) is likely to average 4 per cent in 2019. Benign food inflation, positive base effects, recent correction in oil prices and INR stability is likely to keep inflationary pressures under check," it said.

The report also said<a href="http://www.wionews.com/business-economy/rbi-exploring-mobile-phone-based-solution-to-help-visually-impaired-identify-banknotes-187305"> the RBI</a> is likely to stay on hold in 2019, as inflation is likely to remain within its medium-term target of 4 per cent.

"However, if inflation continues to undershoot RBI's target, there is a &nbsp;possibility of a rate cut later in 2019," it noted.

On the equity market, Standard Chartered said, "We remain positive on Indian equity markets in 2019, though more cautious compared to 2018."

"As we head into 2019, Indian markets are likely to remain volatile. We take a balanced approach to investing being selective in taking risk (diversified equity exposure) while keeping a greater margin of safety (preference for bonds) and keeping some dry power for tactical opportunities during the year," said Nitin Singh, MD and Head, Standard Chartered Wealth Management India.

Citing reasons for the likely volatility in markets, the report said India's twin deficits are likely to remain under pressure in 2019 as fiscal slippage risk is high and current account deficit rises amid a weak global funding environment.

"Second, while we don't see systemic risk arising from the recent liquidity pressures on non-banking financial companies (NBFCs), markets still need to adjust in the near-term to tighter financial conditions amid an elevated credit risk," it said.

It added that "as we near the general elections in mid-2019, risk premiums could rise to factor in political uncertainty".

The report said the macro environment is still supportive for equities.

Earnings growth outlook remains robust with high double-digit growth expected in 2019, it said.

"In our assessment, the recent market correction from 2018 peak has created a greater valuation buffer, with valuations converging closer to longer-term averages, compared to peak valuations a few months back," reads the report.

However, rising margin pressures and its impact on future profitability, stretched valuations relative to bonds and cash and moderating flows amid tighter liquidity are risks to equity outlook, it added.

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered.

The US dollar strength, oil prices and next year's general elections will determine the rupee's direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, says a report by Standard Chartered. Attractive real yields (net of inflation), growth momentum and robust forex reserves of $394 billion are likely to be positive for the Indian rupee (INR), said the report titled '2019 India Outlook — A year to prepare and react'. On the macro overview, the report expects India's GDP growth to remain robust in 2019, supported by tailwinds from recent policy reforms (GST and bankruptcy code implementation), signs of a revival in private capex and pre-election spending. "In our assessment, consumer price inflation (CPI) is likely to average 4 per cent in 2019. Benign food inflation, positive base effects, recent correction in oil prices and INR stability is likely to keep inflationary pressures under check," it said. The report also said the RBI is likely to stay on hold in 2019, as inflation is likely to remain within its medium-term target of 4 per cent. "However, if inflation continues to undershoot RBI's target, there is a possibility of a rate cut later in 2019," it noted. On the equity market, Standard Chartered said, "We remain positive on Indian equity markets in 2019, though more cautious compared to 2018." "As we head into 2019, Indian markets are likely to remain volatile. We take a balanced approach to investing being selective in taking risk (diversified equity exposure) while keeping a greater margin of safety (preference for bonds) and keeping some dry power for tactical opportunities during the year," said Nitin Singh, MD and Head, Standard Chartered Wealth Management India. Citing reasons for the likely volatility in markets, the report said India's twin deficits are likely to remain under pressure in 2019 as fiscal slippage risk is high and current account deficit rises amid a weak global funding environment. "Second, while we don't see systemic risk arising from the recent liquidity pressures on non-banking financial companies (NBFCs), markets still need to adjust in the near-term to tighter financial conditions amid an elevated credit risk," it said. It added that "as we near the general elections in mid-2019, risk premiums could rise to factor in political uncertainty". The report said the macro environment is still supportive for equities. Earnings growth outlook remains robust with high double-digit growth expected in 2019, it said. "In our assessment, the recent market correction from 2018 peak has created a greater valuation buffer, with valuations converging closer to longer-term averages, compared to peak valuations a few months back," reads the report. However, rising margin pressures and its impact on future profitability, stretched valuations relative to bonds and cash and moderating flows amid tighter liquidity are risks to equity outlook, it added.

US dollar strength, oil prices, general elections to determine rupee direction in near term: Report

The government is looking at bringing untaxed sectors in the tax net as well as improving compliance to raise the tax-to-GDP ratio, Revenue Secretary Ajay Bhushan Pandey said.

He also said <a href="http://www.wionews.com/india-news/opposition-ruled-states-oppose-rate-cuts-in-gst-citing-revenue-consideration-185889">GST officials </a>would ensure that taxpayers who are paying taxes honestly are not disturbed, but those who are defaulting in payment or not filing returns should be brought within the tax fold.

In an interview to PTI, Pandey, who took charge as the Revenue Secretary earlier this month, said the Income Tax Department will implement faceless assessment for all scrutiny cases over the next one year as it seeks to make the process objective without any scope for bias.

Asked how the government would go about increasing the tax-to-GDP ratio, Pandey said: "There are two issues to this. One involves the policy of the government as to which are the areas which are not taxed and should be brought into the tax net. The other involves wherever some steps are required to improve compliance, their compliance should be ensured.

"So in the areas where is there of scope taxation, and where it can be done without any adverse impact, such areas will have to be identified and accordingly we will have to work on this."

In the last four years, the country's tax-to-GDP ratio has improved from 10 per cent to 11.5 per cent.

<a href="http://www.wionews.com/india-news/future-roadmap-will-be-to-work-towards-a-single-standard-rate-instead-of-two-arun-jaitley-186136">Finance Minister Arun Jaitley</a> had earlier said that while the salaried class pays its due share of taxes, "most other sections" have to improve their tax payment record, which is keeping India "far from being a tax-compliant society".

Pandey said the number of income tax return filers has jumped 50 per cent to over 6 crores in the assessment year 2018-19 compared to the year-ago period.

He said in order to improve the tax compliance and also to facilitate honest taxpayers, various initiatives are being planned by the Central Board of Direct Taxes.

"Our endeavour is that over a period of next one year or so, we should move towards a system where the scrutiny will happen in a faceless manner where a person can be given a questionnaire of the points which have been raised in the scrutiny and then the person can reply on the portal or through the emails to the officer who can be located anywhere in the country so that the case of scrutiny is decided in a very, very objective manner without any scope for any bias or harassment," he said.

With regard to the Goods and Services Tax (GST), Pandey said tackling evasion would be one of the priority areas as it not only affects the revenue of the government but also makes those businesses which are honestly paying tax less competitive.

"Our effort is to bring in systems so that the tendency to evade is brought down so that those who are paying taxes honestly are not put at disadvantage.

"What we are trying to ensure is a large number of taxpayers who are paying taxes honestly, they are not to be disturbed. And those who are defaulting in payment or filing returns, or not filing correct returns, and not paying due taxes should be brought within the tax fold," he said.

Over 1.16 crore businesses are registered under GST, which was rolled out on July 1, 2017, after subsuming 17 local taxes, including excise duty, service tax and VAT.

Stating that only a "fraction of a per cent" of registered taxpayers would be asked for clarification in case of mismatch in returns, Pandey said in cases where clarification is not sufficient, further action would be taken.

"Whole purpose is no honest taxpayer should be disturbed and at the same time we have to discourage people who evade taxes so that government revenue is not impacted and competitiveness of honest businesses also does not suffer," he said.

The monthly GST revenues have averaged Rs 97,100 crore in the April-November period of the current fiscal, up from Rs 89,100 crore in the previous financial year.

The government is looking at bringing untaxed sectors in the tax net as well as improving compliance to raise the tax-to-GDP ratio, Revenue Secretary Ajay Bhushan Pandey said.

The government is looking at bringing untaxed sectors in the tax net as well as improving compliance to raise the tax-to-GDP ratio, Revenue Secretary Ajay Bhushan Pandey said. He also said GST officials would ensure that taxpayers who are paying taxes honestly are not disturbed, but those who are defaulting in payment or not filing returns should be brought within the tax fold. In an interview to PTI, Pandey, who took charge as the Revenue Secretary earlier this month, said the Income Tax Department will implement faceless assessment for all scrutiny cases over the next one year as it seeks to make the process objective without any scope for bias. Asked how the government would go about increasing the tax-to-GDP ratio, Pandey said: "There are two issues to this. One involves the policy of the government as to which are the areas which are not taxed and should be brought into the tax net. The other involves wherever some steps are required to improve compliance, their compliance should be ensured. "So in the areas where is there of scope taxation, and where it can be done without any adverse impact, such areas will have to be identified and accordingly we will have to work on this." In the last four years, the country's tax-to-GDP ratio has improved from 10 per cent to 11.5 per cent. Finance Minister Arun Jaitley had earlier said that while the salaried class pays its due share of taxes, "most other sections" have to improve their tax payment record, which is keeping India "far from being a tax-compliant society". Pandey said the number of income tax return filers has jumped 50 per cent to over 6 crores in the assessment year 2018-19 compared to the year-ago period. He said in order to improve the tax compliance and also to facilitate honest taxpayers, various initiatives are being planned by the Central Board of Direct Taxes. "Our endeavour is that over a period of next one year or so, we should move towards a system where the scrutiny will happen in a faceless manner where a person can be given a questionnaire of the points which have been raised in the scrutiny and then the person can reply on the portal or through the emails to the officer who can be located anywhere in the country so that the case of scrutiny is decided in a very, very objective manner without any scope for any bias or harassment," he said. With regard to the Goods and Services Tax (GST), Pandey said tackling evasion would be one of the priority areas as it not only affects the revenue of the government but also makes those businesses which are honestly paying tax less competitive. "Our effort is to bring in systems so that the tendency to evade is brought down so that those who are paying taxes honestly are not put at disadvantage. "What we are trying to ensure is a large number of taxpayers who are paying taxes honestly, they are not to be disturbed. And those who are defaulting in payment or filing returns, or not filing correct returns, and not paying due taxes should be brought within the tax fold," he said. Over 1.16 crore businesses are registered under GST, which was rolled out on July 1, 2017, after subsuming 17 local taxes, including excise duty, service tax and VAT. Stating that only a "fraction of a per cent" of registered taxpayers would be asked for clarification in case of mismatch in returns, Pandey said in cases where clarification is not sufficient, further action would be taken. "Whole purpose is no honest taxpayer should be disturbed and at the same time we have to discourage people who evade taxes so that government revenue is not impacted and competitiveness of honest businesses also does not suffer," he said. The monthly GST revenues have averaged Rs 97,100 crore in the April-November period of the current fiscal, up from Rs 89,100 crore in the previous financial year.

Focussing on improving compliance, identifying areas which escaped tax net: Revenue Secretary AB Pandey

Political differences came into open at the <a href="http://www.wionews.com/india-news/gst-council-slashes-rates-of-7-items-from-28-jaitley-calls-meeting-fruitful-185843">GST Council meeting </a>on Saturday with finance ministers of opposition-ruled states objecting to rate cut, citing revenue consideration but finally agreeing after a BJP minister proposed that the minutes be recorded and compared with their speeches delivered outside.

Chattisgarh and Rajasthan, where the Congress came to power earlier this month, sent only officers to attend the GST Council meeting, Madhya Pradesh did not send any representative, sources said.&nbsp;

The GST Council after much haggling agreed to cut rates on 23 items of common consumption, which will have an annual revenue implication of Rs 5,500 crore.

Sources said ministers of the opposition-ruled states argued that if a rate cut is to be done at this juncture, then the Centre should agree to compensate states for revenue loss on account of GST implementation for a period beyond the stipulated five years.

Kerala, sources said, said that with revenues not increasing, the time is not right to cut rates.

West Bengal, which had said that it wanted an 18 per cent rate for goods other than luxury and sin goods, in Saturday's meeting said that this was not the time for a rate cut.

However, BJP-ruled Assam pointed out that all opposition ministers in their speeches say that Goods and Services Tax (GST) rates should be lowered to 18 per cent from 28 per cent, but participating in the GST Council deliberation they oppose rate cuts.&nbsp;

The BJP minister demanded that the position taken by all the state ministers in the Council meetings be put in the minutes of the meeting so that it can be compared with their public speeches in future.

Finance Minister Arun Jaitley is understood to have intervened to say that only the views expressed by ministers during the Council meeting should be taken into consideration.

Sources said state ministers finally agreed to discuss and go by the suggestions made by the fitment committee or officers committee on rate cut.

The GST Council, chaired by Union Finance Minister and comprising his state counterparts, Saturday decided to cut rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy. The reduced rates would be applicable from January 1, 2019.&nbsp;

In the first eight months (April-November) of the current fiscal, the government has mopped up over Rs 7.76 lakh crore from GST. The 2018-19 budget had estimated annual GST collection at Rs 13.48 lakh crore, which means a monthly target of Rs 1.12 lakh crore.

Briefing reporters after the Council's meet, Jaitley said the average monthly revenue under GST has risen from Rs 89,000 crore in the last fiscal, to around Rs 95,000-96,000 crore in the current fiscal.&nbsp;

Also, compensation to be paid to the states has come down in the current fiscal.

He said a Group of Ministers would be set up to study the data of those states which are not showing improvement of revenues post GST implementation. The GoM would take expert assistance from NIPFP.

States which have shown improvement in tax collection included Andhra Pradesh, Uttar Pradesh, West Bengal and Tamil Nadu while laggard states included Punjab, Himachal Pradesh and Uttarakhand.&nbsp;

Also while consuming states like North East have shown improvement in revenue, manufacturing and consuming states like Maharashtra and West Bengal have shown significant improvement.&nbsp;

Political differences came into open at the GST Council meeting on Saturday with finance ministers of opposition-ruled states objecting to rate cut, citing revenue consideration but finally agreeing after a BJP minister proposed that the minutes be recorded and compared with their speeches delivered outside.

Political differences came into open at the GST Council meeting on Saturday with finance ministers of opposition-ruled states objecting to rate cut, citing revenue consideration but finally agreeing after a BJP minister proposed that the minutes be recorded and compared with their speeches delivered outside. Chattisgarh and Rajasthan, where the Congress came to power earlier this month, sent only officers to attend the GST Council meeting, Madhya Pradesh did not send any representative, sources said. The GST Council after much haggling agreed to cut rates on 23 items of common consumption, which will have an annual revenue implication of Rs 5,500 crore. Sources said ministers of the opposition-ruled states argued that if a rate cut is to be done at this juncture, then the Centre should agree to compensate states for revenue loss on account of GST implementation for a period beyond the stipulated five years. Kerala, sources said, said that with revenues not increasing, the time is not right to cut rates. West Bengal, which had said that it wanted an 18 per cent rate for goods other than luxury and sin goods, in Saturday's meeting said that this was not the time for a rate cut. However, BJP-ruled Assam pointed out that all opposition ministers in their speeches say that Goods and Services Tax (GST) rates should be lowered to 18 per cent from 28 per cent, but participating in the GST Council deliberation they oppose rate cuts. The BJP minister demanded that the position taken by all the state ministers in the Council meetings be put in the minutes of the meeting so that it can be compared with their public speeches in future. Finance Minister Arun Jaitley is understood to have intervened to say that only the views expressed by ministers during the Council meeting should be taken into consideration. Sources said state ministers finally agreed to discuss and go by the suggestions made by the fitment committee or officers committee on rate cut. The GST Council, chaired by Union Finance Minister and comprising his state counterparts, Saturday decided to cut rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy. The reduced rates would be applicable from January 1, 2019. In the first eight months (April-November) of the current fiscal, the government has mopped up over Rs 7.76 lakh crore from GST. The 2018-19 budget had estimated annual GST collection at Rs 13.48 lakh crore, which means a monthly target of Rs 1.12 lakh crore. Briefing reporters after the Council's meet, Jaitley said the average monthly revenue under GST has risen from Rs 89,000 crore in the last fiscal, to around Rs 95,000-96,000 crore in the current fiscal. Also, compensation to be paid to the states has come down in the current fiscal. He said a Group of Ministers would be set up to study the data of those states which are not showing improvement of revenues post GST implementation. The GoM would take expert assistance from NIPFP. States which have shown improvement in tax collection included Andhra Pradesh, Uttar Pradesh, West Bengal and Tamil Nadu while laggard states included Punjab, Himachal Pradesh and Uttarakhand. Also while consuming states like North East have shown improvement in revenue, manufacturing and consuming states like Maharashtra and West Bengal have shown significant improvement.

Opposition-ruled states oppose rate cuts in GST citing revenue consideration

The GST Council on Saturday held a meeting in New Delhi and decided to slash rates for items from 28 per cent. &nbsp;

Union Finance Minister Arun Jaitley held a press conference after the meeting wherein he informed that the GST council has not increased any rates, rather have brought down several.&nbsp;

"Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%. Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%," the finance minister informed.&nbsp;

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Union Finance Minister Arun Jaitley: 28% slab rate is only applicable on 34 items now. These are luxury items. <a href="https://t.co/s0agEgE113">pic.twitter.com/s0agEgE113</a>
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Jaitley added that the rates were revised keeping the Fitment committee's recommendation in mind and that the exercise is aimed at directing revenue inflow.&nbsp;

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Finance Minister Arun Jaitley on the decisions taken in GST Council meet: Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28% <a href="https://t.co/BpOmhTj7Kj">pic.twitter.com/BpOmhTj7Kj</a>
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"States with higher consumption have improved. North East states have shown a better implementation of GST," Jaitley noted.&nbsp;

In a relief to the common man, the GST Council cut rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks.

The annual revenue implication of the rate cuts would be Rs 5,500 crore, Finance Minister Arun Jaitley said.

The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab.

The new tax rates will come into effect from January 1, 2019.&nbsp;

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V Narayanasamy, Puducherry Chief Minister on GST Council meet in Delhi: 33 items have come down from 18% to 12% &amp; 5% as they are common man’s consumption goods. (1/2) <a href="https://t.co/fs6MqhFJDb">pic.twitter.com/fs6MqhFJDb</a>
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Puducherry Chief Minister V Narayanasamy also interacted with reporters and informed that that 33 items have come down from 18% to 12% &amp; 5% as they are common man’s consumption goods.&nbsp;

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FM: There are 28 items left in the 28% bracket if we include luxury &amp; sin items. 13 items are from automobile parts &amp; 1 is cement. Cement’s revenue is 13000 crore &amp; automobile parts revenue is 20000 crore. If they are brought down from 28% to 18% implications are of 33000 crore <a href="https://t.co/EWaUBOd5tp">https://t.co/EWaUBOd5tp</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1076430287624724481?ref_src=twsrc%5Etfw">December 22, 2018</a></blockquote>
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"The original demand by Congress that all goods should come down to 18% and below except luxury items has been agreed by the Government. Except for 34 items, all other will come down to 18% &amp; below," Narayanasamy stated.

 
&nbsp;

The GST Council on Saturday held a meeting in New Delhi and decided to slash rates for items from 28 per cent. Union Finance Minister Arun Jaitley held a press conference after the meeting wherein he informed that the GST council has not increased any rates, rather have brought down several.

The GST Council on Saturday held a meeting in New Delhi and decided to slash rates for items from 28 per cent. Union Finance Minister Arun Jaitley held a press conference after the meeting wherein he informed that the GST council has not increased any rates, rather have brought down several. "Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%. Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%," the finance minister informed. Union Finance Minister Arun Jaitley: 28% slab rate is only applicable on 34 items now. These are luxury items. pic.twitter.com/s0agEgE113 — ANI (@ANI) December 22, 2018 × Jaitley added that the rates were revised keeping the Fitment committee's recommendation in mind and that the exercise is aimed at directing revenue inflow. Finance Minister Arun Jaitley on the decisions taken in GST Council meet: Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28% pic.twitter.com/BpOmhTj7Kj — ANI (@ANI) December 22, 2018 × "States with higher consumption have improved. North East states have shown a better implementation of GST," Jaitley noted. In a relief to the common man, the GST Council cut rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks. The annual revenue implication of the rate cuts would be Rs 5,500 crore, Finance Minister Arun Jaitley said. The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab. The new tax rates will come into effect from January 1, 2019. V Narayanasamy, Puducherry Chief Minister on GST Council meet in Delhi: 33 items have come down from 18% to 12% & 5% as they are common man’s consumption goods. (1/2) pic.twitter.com/fs6MqhFJDb — ANI (@ANI) December 22, 2018 × Puducherry Chief Minister V Narayanasamy also interacted with reporters and informed that that 33 items have come down from 18% to 12% & 5% as they are common man’s consumption goods. FM: There are 28 items left in the 28% bracket if we include luxury & sin items. 13 items are from automobile parts & 1 is cement. Cement’s revenue is 13000 crore & automobile parts revenue is 20000 crore. If they are brought down from 28% to 18% implications are of 33000 crore https://t.co/EWaUBOd5tp — ANI (@ANI) December 22, 2018 × "The original demand by Congress that all goods should come down to 18% and below except luxury items has been agreed by the Government. Except for 34 items, all other will come down to 18% & below," Narayanasamy stated.

GST council slashes rates of 7 items from 28%; movie tickets, TV screens likely to get cheaper

GST rates cut on 33 items; 7 items moved from 28% GST rate

The GST Council on Saturday held a meeting in New Delhi and decided to <a href="http://www.wionews.com/india-news/gst-council-slashes-rates-of-7-items-from-28-jaitley-calls-meeting-fruitful-185843">slash rates for items from 28 per cent</a>. Union Finance Minister Arun Jaitley told media that rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks have been slashed in a move billed to bring relief to the common man.&nbsp;

The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab.

The new tax rates will come into effect from January 1, 2019.&nbsp;

Puducherry Chief Minister V Narayanasamy also interacted with reporters and informed that 33 items have come down from 18% to 12% &amp; 5% as they are common to man’s consumption goods.&nbsp;

Here's taking a look at the revised rates and commodities that will now be available at cheaper prices.&nbsp;

<table border="1" cellpadding="1" cellspacing="1" style="width: 500px;">
	<tbody>
		<tr>
			<td>Items</td>
			<td>Previous rate</td>
			<td>New rate</td>
		</tr>
		<tr>
			<td>
			Cinema tickets above Rs 100
			</td>
			<td>28</td>
			<td>18</td>
		</tr>
		<tr>
			<td>
			Cinema tickets up to Rs 100
			</td>
			<td>18</td>
			<td>12</td>
		</tr>
		<tr>
			<td>
			Power banks of lithium ion batteries
			</td>
			<td>28</td>
			<td>12</td>
		</tr>
		<tr>
			<td>
			Monitors and TVs up to 32 inches
			</td>
			<td>28</td>
			<td>18</td>
		</tr>
		<tr>
			<td>
			Digital cameras and video camera recorders&nbsp;
			</td>
			<td>28</td>
			<td>18</td>
		</tr>
		<tr>
			<td>
			Video game consoles, others under HS code 9504
			</td>
			<td>28</td>
			<td>18</td>
		</tr>
		<tr>
			<td>
			Third party insurance premium of goods carrying vehicles
			</td>
			<td>18</td>
			<td>12</td>
		</tr>
		<tr>
			<td>
			Vegetables frozen, branded and stacked in a unit container
			</td>
			<td>5</td>
			<td>0</td>
		</tr>
		<tr>
			<td>Vegetable provisionally preserved but unsuitable in that state for immediate consumption 
			&nbsp;</td>
			<td>5</td>
			<td>0</td>
		</tr>
	</tbody>
</table>

The new tax rates will come into effect from January 1, 2019. Other items with reduced GST rates include music books, pulleys, transmission shafts, gear boxes, accessories for the carriages for disabled people, among others.

According to the finance minister, the annual revenue implication of the rate cuts would be Rs 5,500 crore.

"Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%. Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%," the finance minister informed.&nbsp;

The GST Council on Saturday held a meeting in New Delhi and decided to slash rates for items from 28 per cent. Union Finance Minister Arun Jaitley told media that rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks have been slashed in a move billed to bring relief to the common man.

The GST Council on Saturday held a meeting in New Delhi and decided to slash rates for items from 28 per cent. Union Finance Minister Arun Jaitley told media that rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks have been slashed in a move billed to bring relief to the common man. The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab. The new tax rates will come into effect from January 1, 2019. Puducherry Chief Minister V Narayanasamy also interacted with reporters and informed that 33 items have come down from 18% to 12% & 5% as they are common to man’s consumption goods. Here's taking a look at the revised rates and commodities that will now be available at cheaper prices. Items Previous rate New rate Cinema tickets above Rs 100 28 18 Cinema tickets up to Rs 100 18 12 Power banks of lithium ion batteries 28 12 Monitors and TVs up to 32 inches 28 18 Digital cameras and video camera recorders 28 18 Video game consoles, others under HS code 9504 28 18 Third party insurance premium of goods carrying vehicles 18 12 Vegetables frozen, branded and stacked in a unit container 5 0 Vegetable provisionally preserved but unsuitable in that state for immediate consumption 5 0 The new tax rates will come into effect from January 1, 2019. Other items with reduced GST rates include music books, pulleys, transmission shafts, gear boxes, accessories for the carriages for disabled people, among others. According to the finance minister, the annual revenue implication of the rate cuts would be Rs 5,500 crore. "Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%. Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%," the finance minister informed.

Revised GST rates: What is likely to become cheaper

Former Chief Economic Advisor to the government, Arvind Subramanian, on Sunday said that the GST could have done more on the lines of what he had recommended initially.

His comments came during an event in Delhi. He also added that GST was "certainly not a failure."

"GST was certainly not a failure but it could have more along the lines of what I had initially recommended," he stated.

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<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a>: "GST was certainly not a failure but it could have more along the lines of what I had initially recommended," says Former CEA Arvind Subramanian in Delhi <a href="https://t.co/o6qW6QhhOj">pic.twitter.com/o6qW6QhhOj</a>
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Last month, the former Chief Economic Adviser had called demonetisation a "<a href="http://www.wionews.com/india-news/demonetisation-a-massive-draconian-monetary-shock-former-chief-economic-adviser-arvind-subramanian-180150">massive, draconian, monetary shock</a>" that dragged India's GDP growth rate down.&nbsp;

Subramanian is succeeded by <a href="http://www.wionews.com/business-economy/isb-professor-krishnamurthy-subramanian-appointed-as-chief-economic-adviser-182205">Krishnamurthy Subramanian</a>, a professor from the Indian School of Business.

Krishnamurthy Subramanian took charge as his predecessor, Arvind Subramanian, abruptly left the country's finance ministry in June, news agency Reuters reported.&nbsp;

Former Chief Economic Advisor to the government, Arvind Subramanian, on Sunday said that the GST could have done more on the lines of what he had recommended initially.

Former Chief Economic Advisor to the government, Arvind Subramanian, on Sunday said that the GST could have done more on the lines of what he had recommended initially. His comments came during an event in Delhi. He also added that GST was "certainly not a failure." "GST was certainly not a failure but it could have more along the lines of what I had initially recommended," he stated. #WATCH: "GST was certainly not a failure but it could have more along the lines of what I had initially recommended," says Former CEA Arvind Subramanian in Delhi pic.twitter.com/o6qW6QhhOj — ANI (@ANI) December 9, 2018 × Last month, the former Chief Economic Adviser had called demonetisation a "massive, draconian, monetary shock" that dragged India's GDP growth rate down. Subramanian is succeeded by Krishnamurthy Subramanian, a professor from the Indian School of Business. Krishnamurthy Subramanian took charge as his predecessor, Arvind Subramanian, abruptly left the country's finance ministry in June, news agency Reuters reported.

GST could have done more on what I had initially recommended: Former chief economic advisor

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added. So, a firm producing a particular good or service has to pay tax only on the value it adds to the product, while deducting the tax payments made on its inputs (which have already been paid by the input supplier). These tax deductions on inputs are called Input Tax Credits (ITCs).

Firms can avail ITCs from the tax authorities only if they can show that their supplier of inputs paid GST on those inputs. This forces all firms in the value chain to maintain records of their tax payments as firms higher up the value chain will demand these records to avail their respective ITCs.

This self-policing feature of the GST is therefore expected to raise compliance and increase government revenues. It also has one more advantage. Firms in the informal sector are by definition out of the tax net. If these firms are suppliers of inputs to formal sector firms (that pay taxes), then they will be forced to register with the tax authorities and get their GSTIN numbers.

Otherwise, the formal sector firms that procure their products as inputs will switch over to formal sector suppliers as they can use the suppliers’ GSTIN numbers to avail ITCs. Thus, the GST is also expected to formalise the economy, as more and more hitherto informal firms register with the tax authorities.

But there is a reverse possibility also. Consider two firms A and B. A is the supplier of inputs to B. Assume A is in the informal sector and B is in the formal sector. According to the previous paragraph, B will force A to get a GSTIN number so that B can avail ITC.

So, A registers and comes into the formal sector. However, if the cost of GST compliance is very high, then B might instead be tempted to stop paying taxes or de-register and join the informal sector.

As a result, both A and B are now part of the informal sector and the entire value chain slips out of the tax net. Thus, if the costs of compliance are high enough, GST can actually shrink the formal economy and lower revenues.&nbsp;

Two American economists, de Paula and Scheinkman, studied the effects of the introduction of Value Added Tax (VAT) on Brazil. They found that the costs of compliance were so high that it marginally shrank the Brazilian formal sector initially. Later tax reforms reversed this trend and the formal sector expanded as expected. Has something like that happened in India?

It is too early to say given the limited data. No doubt there has been a 50 per cent increase in the indirect taxpayer base (according to the Economic Survey). But there is clear anecdotal evidence to suggest that firms are evading the payment of GST.

Thus, value chains are slipping out of the tax net. Steps are, therefore, being taken to reduce the costs of compliance and incentivise firms to pay GST. The attempts by various stakeholders to make this tax reform work is promising.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-impact-of-gst-on-the-formal-sector-2688997">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added.

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added. So, a firm producing a particular good or service has to pay tax only on the value it adds to the product, while deducting the tax payments made on its inputs (which have already been paid by the input supplier). These tax deductions on inputs are called Input Tax Credits (ITCs). Firms can avail ITCs from the tax authorities only if they can show that their supplier of inputs paid GST on those inputs. This forces all firms in the value chain to maintain records of their tax payments as firms higher up the value chain will demand these records to avail their respective ITCs. This self-policing feature of the GST is therefore expected to raise compliance and increase government revenues. It also has one more advantage. Firms in the informal sector are by definition out of the tax net. If these firms are suppliers of inputs to formal sector firms (that pay taxes), then they will be forced to register with the tax authorities and get their GSTIN numbers. Otherwise, the formal sector firms that procure their products as inputs will switch over to formal sector suppliers as they can use the suppliers’ GSTIN numbers to avail ITCs. Thus, the GST is also expected to formalise the economy, as more and more hitherto informal firms register with the tax authorities. But there is a reverse possibility also. Consider two firms A and B. A is the supplier of inputs to B. Assume A is in the informal sector and B is in the formal sector. According to the previous paragraph, B will force A to get a GSTIN number so that B can avail ITC. So, A registers and comes into the formal sector. However, if the cost of GST compliance is very high, then B might instead be tempted to stop paying taxes or de-register and join the informal sector. As a result, both A and B are now part of the informal sector and the entire value chain slips out of the tax net. Thus, if the costs of compliance are high enough, GST can actually shrink the formal economy and lower revenues. Two American economists, de Paula and Scheinkman, studied the effects of the introduction of Value Added Tax (VAT) on Brazil. They found that the costs of compliance were so high that it marginally shrank the Brazilian formal sector initially. Later tax reforms reversed this trend and the formal sector expanded as expected. Has something like that happened in India? It is too early to say given the limited data. No doubt there has been a 50 per cent increase in the indirect taxpayer base (according to the Economic Survey). But there is clear anecdotal evidence to suggest that firms are evading the payment of GST. Thus, value chains are slipping out of the tax net. Steps are, therefore, being taken to reduce the costs of compliance and incentivise firms to pay GST. The attempts by various stakeholders to make this tax reform work is promising. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Impact of GST on the formal sector

Union Finance Minister Arun Jaitley on Sunday stated that the banking system needs further strengthening, news agency PTI reported.&nbsp;

Jaitley further added that although GST slowed down growth rate for two quarters, it rose after that.&nbsp;

Critics and cynics say GST slowed down economic growth, but it was a smoothly-implemented, monumental reform, the minister stated.

He also said that NPAs need to be minimised and steps taken in that regard are bearing fruits. &nbsp;

Jaitley's remarks follow former RBI Governor Raghuram Rajan comments wherein he blamed the indirect taxation reform for derailing India's growth story.

"You will always have critics and cynics who will come up and say it (GST) slowed down India's growth," Jaitley said, speaking at state-run Union Bank of India's 100th-anniversary celebrations event in Mumbai.

Jaitley said that the growth increased to 7 per cent, then to 7.7 per cent and went up till 8.2 per cent last quarter and specifically pointed out that this is much higher than the 5-6 per cent expansion achieved between 2012-14.

The Goods and Services Tax (GST), India's biggest tax reform since independence which came into force on July 1, 2017, had "disruptionist" impact on economic growth only for two quarters, he said.

Former RBI Governor Raghuram Rajan on Saturday launched an attack on the Central government, calling demonetisation and the Goods and Services Tax (GST) as the two major headwinds that held back India's economic growth last year.

Rajan added that the current seven per cent growth rate is not enough to meet the country's needs.

"The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up," he said delivering the second Bhattacharya Lectureship on the Future of India.

"The reality is that seven is not enough for the kind of people coming into the labour market and we need jobs for them, So, we need more and cannot be satisfied at this level," he said.&nbsp;

"What happened in 2017 is that even as the world picked up, India went down. That reflects the fact that these blows (demonetisation and GST) have really really been hard blows...Because of these headwinds we have been held back," news agency PTI quoted Rajan.&nbsp;

(With inputs from PTI)&nbsp;

Union Finance Minister Arun Jaitley on Sunday stated that the banking system needs further strengthening, news agency PTI reported. Jaitley further added that although GST slowed down growth rate for two quarters, it rose after that.

Union Finance Minister Arun Jaitley on Sunday stated that the banking system needs further strengthening, news agency PTI reported. Jaitley further added that although GST slowed down growth rate for two quarters, it rose after that. Critics and cynics say GST slowed down economic growth, but it was a smoothly-implemented, monumental reform, the minister stated. He also said that NPAs need to be minimised and steps taken in that regard are bearing fruits. Jaitley's remarks follow former RBI Governor Raghuram Rajan comments wherein he blamed the indirect taxation reform for derailing India's growth story. "You will always have critics and cynics who will come up and say it (GST) slowed down India's growth," Jaitley said, speaking at state-run Union Bank of India's 100th-anniversary celebrations event in Mumbai. Jaitley said that the growth increased to 7 per cent, then to 7.7 per cent and went up till 8.2 per cent last quarter and specifically pointed out that this is much higher than the 5-6 per cent expansion achieved between 2012-14. The Goods and Services Tax (GST), India's biggest tax reform since independence which came into force on July 1, 2017, had "disruptionist" impact on economic growth only for two quarters, he said. Former RBI Governor Raghuram Rajan on Saturday launched an attack on the Central government, calling demonetisation and the Goods and Services Tax (GST) as the two major headwinds that held back India's economic growth last year. Rajan added that the current seven per cent growth rate is not enough to meet the country's needs. "The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up," he said delivering the second Bhattacharya Lectureship on the Future of India. "The reality is that seven is not enough for the kind of people coming into the labour market and we need jobs for them, So, we need more and cannot be satisfied at this level," he said. "What happened in 2017 is that even as the world picked up, India went down. That reflects the fact that these blows (demonetisation and GST) have really really been hard blows...Because of these headwinds we have been held back," news agency PTI quoted Rajan. (With inputs from PTI)

GST is a 'monumental reform', hit growth for only 2 quarters: Jaitley

Demonetisation and the Goods and Services Tax (GST) are the two major headwinds that held back India's economic growth last year, former RBI Governor Raghuram Rajan has said, asserting that the current seven per cent growth rate is not enough to meet the country's needs.

Addressing an audience at the University of California in Berkley on Friday, Rajan said for four years -- 2012 to 2016 -- India was growing at a faster pace before it was hit by two major headwinds.&nbsp;

"The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up," he said delivering the second Bhattacharya Lectureship on the Future of India.

Rajan said a growth rate of seven per cent per year for 25 years is "very very strong" growth, but in some sense this has become the new Hindu rate of growth, which earlier used to be three-and-a-half per cent, Rajan said.

"The reality is that seven is not enough for the kind of people coming into the labour market and we need jobs for them, So, we need more and cannot be satisfied at this level," he said.&nbsp;

Observing that India is sensitive to global growth, he said India has become a much more open economy, and if the world grows, it also grows more.&nbsp;

"What happened in 2017 is that even as the world picked up, India went down. That reflects the fact that these blows (demonetisation and GST) have really really been hard blows...Because of these headwinds we have been held back,"&nbsp;he said.&nbsp;

While India's growth is picking up again, there is the issue of oil prices, the economist noted referring to the huge reliance of India on import of oil for its energy needs.

With the oil prices going up, Rajan said things are going to be little tougher for the Indian economy, even though the country is recovering from the headwinds of demonetisation and initial hurdles in the implementation of the GST.

Commenting on the rising Non-Performing Assets (NPA), he said the best thing to do in such a situation is to "clean up".&nbsp;

It is essential to "deal up with the bad stuff", so that with clean balance sheets, banks can be put back on the track. "It has taken India far long to clean up the banks, partly because the system did not had instruments to deal with bad debts," Rajan said.

The bankruptcy code, he asserted, cannot be the only way to clean up the banks. It is the only one element of the larger cleanup plan, he said and called for a multi-prong approach to address the challenge of NPAs in India.

India, he asserted, is capable of a strong growth. As such the seven per cent growth is now being taken granted.&nbsp;

"If we go below seven per cent, then we must be doing something wrong," he said adding that that is the base on which India has to grow at least for next 10-15 years.&nbsp;

India, he said, needs to create one million jobs a month for the people joining the labour force.

The country today is facing three major bottlenecks. One is the torn infrastructure, he said, observing that construction is the one industry that drives the economy in early stages. "Infrastructure creates growth,"&nbsp;he said.&nbsp;

Second, short term target should be to clean up the power sector and to make sure that the electricity produced actually goes to the people who want the power, he said.&nbsp;

Cleaning up the banks is the third major bottleneck in India's growth, he said.

Part of the problem in India is that there is an excessive centralisation of power in the political decision making, he said.&nbsp;

"India can't work from the centre. India works when you have many people taking up the burden. And today the central government is excessively centralised," Rajan said.&nbsp;

An example of this is the quantum of decisions that requires the ascent of the Prime Minister's Office, Rajan said as he highlighted the recent unveiling of the 'Statue of Unity' of Sardar Vallabhbhai Patel as an example of a massive project that required the approval of the PMO.&nbsp;

Demonetisation and the Goods and Services Tax (GST) are the two major headwinds that held back India's economic growth last year, former RBI Governor Raghuram Rajan has said, asserting that the current seven per cent growth rate is not enough to meet the country's needs.

Demonetisation and the Goods and Services Tax (GST) are the two major headwinds that held back India's economic growth last year, former RBI Governor Raghuram Rajan has said, asserting that the current seven per cent growth rate is not enough to meet the country's needs. Addressing an audience at the University of California in Berkley on Friday, Rajan said for four years -- 2012 to 2016 -- India was growing at a faster pace before it was hit by two major headwinds. "The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up," he said delivering the second Bhattacharya Lectureship on the Future of India. Rajan said a growth rate of seven per cent per year for 25 years is "very very strong" growth, but in some sense this has become the new Hindu rate of growth, which earlier used to be three-and-a-half per cent, Rajan said. "The reality is that seven is not enough for the kind of people coming into the labour market and we need jobs for them, So, we need more and cannot be satisfied at this level," he said. Observing that India is sensitive to global growth, he said India has become a much more open economy, and if the world grows, it also grows more. "What happened in 2017 is that even as the world picked up, India went down. That reflects the fact that these blows (demonetisation and GST) have really really been hard blows...Because of these headwinds we have been held back," he said. While India's growth is picking up again, there is the issue of oil prices, the economist noted referring to the huge reliance of India on import of oil for its energy needs. With the oil prices going up, Rajan said things are going to be little tougher for the Indian economy, even though the country is recovering from the headwinds of demonetisation and initial hurdles in the implementation of the GST. Commenting on the rising Non-Performing Assets (NPA), he said the best thing to do in such a situation is to "clean up". It is essential to "deal up with the bad stuff", so that with clean balance sheets, banks can be put back on the track. "It has taken India far long to clean up the banks, partly because the system did not had instruments to deal with bad debts," Rajan said. The bankruptcy code, he asserted, cannot be the only way to clean up the banks. It is the only one element of the larger cleanup plan, he said and called for a multi-prong approach to address the challenge of NPAs in India. India, he asserted, is capable of a strong growth. As such the seven per cent growth is now being taken granted. "If we go below seven per cent, then we must be doing something wrong," he said adding that that is the base on which India has to grow at least for next 10-15 years. India, he said, needs to create one million jobs a month for the people joining the labour force. The country today is facing three major bottlenecks. One is the torn infrastructure, he said, observing that construction is the one industry that drives the economy in early stages. "Infrastructure creates growth," he said. Second, short term target should be to clean up the power sector and to make sure that the electricity produced actually goes to the people who want the power, he said. Cleaning up the banks is the third major bottleneck in India's growth, he said. Part of the problem in India is that there is an excessive centralisation of power in the political decision making, he said. "India can't work from the centre. India works when you have many people taking up the burden. And today the central government is excessively centralised," Rajan said. An example of this is the quantum of decisions that requires the ascent of the Prime Minister's Office, Rajan said as he highlighted the recent unveiling of the 'Statue of Unity' of Sardar Vallabhbhai Patel as an example of a massive project that required the approval of the PMO.

India's economic growth held back due to demonetisation, GST: Raghuram Rajan 

A speech by a top Reserve Bank of India (RBI) official last Friday blew the lid off an increasingly toxic dispute between the central bank and the government of Prime Minister Narendra Modi over monetary policy and who controls the institution's reserves.

While historically there have been differences between the <a href="http://www.wionews.com/india-news/government-very-upset-with-rbi-for-making-rift-public-sources-174359">RBI and the nation's governments</a>, the extent of the rift and its public nature are unprecedented.

By Wednesday morning, there were Indian media reports saying that RBI Governor Urjit Patel was about to resign. The RBI declined comment.

This followed three letters to the RBI from the finance ministry <a href="http://www.wionews.com/india-news/government-invokes-never-used-before-powers-to-issue-directions-to-rbi-report-174517">threatening to invoke Section 7</a> of the RBI Act that would allow the government to dictate policy to the central bank, according to a senior source with direct knowledge of developments.

But faced with declines in the rupee and government bond prices as investors got unnerved, the government issued a statement supporting the RBI's autonomy while indicating it would still be pressing very hard to have its own way.

In his speech, <a href="http://www.wionews.com/india-news/a-govt-that-does-not-respect-rbis-independence-will-incur-wrath-of-markets-rbi-deputy-governor-173752">RBI Deputy Governor Viral Acharya</a> said that undermining central bank independence could be "potentially catastrophic", and he even cited meddling by the Argentine government in the affairs of its central bank in 2010 - prompting big drops in that nation's financial markets - as a sign of how bad things can get.

The remarks were widely seen as a sign that the&nbsp; RBI was pushing back hard against government pressure to relax its policies and reduce its powers ahead of a general election due by May.

Finance ministry and RBI spokespersons declined comment.

The RBI is not statutorily independent, as the governor is appointed by the government, but it has enjoyed broad autonomy in regulating the banking sector. It is mandated to control inflation within a 2 to 6 percent range while keeping in mind India's economic growth objective.

HERE ARE SIX CRITICAL AREAS OF CONFLICT:

CASH GRAB

The government has made repeated calls for the RBI to hand over more money from the RBI's reserves to help fund its fiscal deficit. The RBI currently hands over its profits earned from various activities in the form of a dividend. But the government also wants to tap a share of the RBI's 3.6 trillion rupees ($48.73 billion) of capital reserves. The RBI has consistently pushed back against the demand.

OUT OF THE SHADOWS

The government wants the RBI to provide more liquidity to the shadow banking sector, which has been hurt by the defaults of major financing company, Infrastructure Leasing &amp; Financial Services (IL&amp;FS). Those defaults triggered sell-off in bonds and stocks of non-banking financial companies. The government has been asking the RBI for a dedicated liquidity window for these lenders similar to one allowed during the 2008-2009 global financial crisis.

JUST RELAX

The government has also been urging the RBI to relax its lending restrictions on 11 state-run banks. The curbs were imposed because the banks had a low capital base and major bad debt problems. The 11 are barred from lending unless they reduce their bad debt levels, improve their capital ratios and become profitable. The government says the restrictions have gone too far and have reduced the availability of loans for small- and medium sized businesses.

ENCROACHING

The RBI is also irked by the government's efforts to trim the central bank's regulatory powers by proposing to set up an independent payments regulator. Currently the RBI regulates all payments and settlements in the economy. The government says it wants a separate payment regulator which will be able to adapt to rapid changes in technology.

BOARD INFLUENCE

The government appointed S Gurumurthy, a prominent BJP supporter and an affiliate of the Hindu nationalist Rashtriya Swayamsevak Sangh (RSS), to the RBI board earlier this year along with Satish Marathe, a former banker with ties to the RSS. Such political appointments have been unusual in the past as the RBI board's external members have mostly been economists and industrialists. Traditionally, the RBI's board has approved decisions related to internal functions of the central bank and it has not interfered in its supervisory and monetary policy functions.

KEEPING MUM

Senior government officials, as well as BJP and RSS officials, are angry that the RBI decided to go public over the quarrels. Acharya made it clear he had been asked to address the independence question by Patel and in a show of unity the three other deputy governors attended his speech. In its statement concerning autonomy on Wednesday, the government stressed that it will keep discussions confidential.

WHY IT MATTERS

FOR GOVERNMENT

The central government has been under pressure ahead of regional polls due at the end of 2018 because of weak farm prices and surging fuel costs, which have been hurting rural incomes. The government recently cut excise duty on gasoline and diesel, adding to pressure on its deficit.

The Budget is also being undermined by muted revenue collection from recently introduced Goods and Service Tax (GST).

Added to this, the IL&amp;FS woes have led to a liquidity crunch across much of the shadow banking sector and throttled off some lending.

All of this could slow a $2.6 trillion economy, the world's sixth largest, only months before the general election. To prevent that from happening, Prime Minister Narendra Modi is expected to spend more on populist programmes, including boosts to rural wages, fuel subsidies and buying crops at a guaranteed minimum price.

FOR INVESTORS

The rift has created political and economic uncertainty. Investors want policy continuity from both the RBI and the government to ensure inflation is kept in check and economic stability is maintained.

A persistent fall in the inflation rate since 2014 in a country that was used to volatile price pressures instilled confidence in the central bank and attracted investors. However, investors fear such hard-earned economic gains could be at risk if the government can pull the RBI’s strings.

A speech by a top Reserve Bank of India (RBI) official last Friday blew the lid off an increasingly toxic dispute between the central bank and the government of Prime Minister Narendra Modi over monetary policy and who controls the institution's reserves.

A speech by a top Reserve Bank of India (RBI) official last Friday blew the lid off an increasingly toxic dispute between the central bank and the government of Prime Minister Narendra Modi over monetary policy and who controls the institution's reserves. While historically there have been differences between the RBI and the nation's governments, the extent of the rift and its public nature are unprecedented. By Wednesday morning, there were Indian media reports saying that RBI Governor Urjit Patel was about to resign. The RBI declined comment. This followed three letters to the RBI from the finance ministry threatening to invoke Section 7 of the RBI Act that would allow the government to dictate policy to the central bank, according to a senior source with direct knowledge of developments. But faced with declines in the rupee and government bond prices as investors got unnerved, the government issued a statement supporting the RBI's autonomy while indicating it would still be pressing very hard to have its own way. In his speech, RBI Deputy Governor Viral Acharya said that undermining central bank independence could be "potentially catastrophic", and he even cited meddling by the Argentine government in the affairs of its central bank in 2010 - prompting big drops in that nation's financial markets - as a sign of how bad things can get. The remarks were widely seen as a sign that the RBI was pushing back hard against government pressure to relax its policies and reduce its powers ahead of a general election due by May. Finance ministry and RBI spokespersons declined comment. The RBI is not statutorily independent, as the governor is appointed by the government, but it has enjoyed broad autonomy in regulating the banking sector. It is mandated to control inflation within a 2 to 6 percent range while keeping in mind India's economic growth objective. HERE ARE SIX CRITICAL AREAS OF CONFLICT: CASH GRAB The government has made repeated calls for the RBI to hand over more money from the RBI's reserves to help fund its fiscal deficit. The RBI currently hands over its profits earned from various activities in the form of a dividend. But the government also wants to tap a share of the RBI's 3.6 trillion rupees ($48.73 billion) of capital reserves. The RBI has consistently pushed back against the demand. OUT OF THE SHADOWS The government wants the RBI to provide more liquidity to the shadow banking sector, which has been hurt by the defaults of major financing company, Infrastructure Leasing & Financial Services (IL&FS). Those defaults triggered sell-off in bonds and stocks of non-banking financial companies. The government has been asking the RBI for a dedicated liquidity window for these lenders similar to one allowed during the 2008-2009 global financial crisis. JUST RELAX The government has also been urging the RBI to relax its lending restrictions on 11 state-run banks. The curbs were imposed because the banks had a low capital base and major bad debt problems. The 11 are barred from lending unless they reduce their bad debt levels, improve their capital ratios and become profitable. The government says the restrictions have gone too far and have reduced the availability of loans for small- and medium sized businesses. ENCROACHING The RBI is also irked by the government's efforts to trim the central bank's regulatory powers by proposing to set up an independent payments regulator. Currently the RBI regulates all payments and settlements in the economy. The government says it wants a separate payment regulator which will be able to adapt to rapid changes in technology. BOARD INFLUENCE The government appointed S Gurumurthy, a prominent BJP supporter and an affiliate of the Hindu nationalist Rashtriya Swayamsevak Sangh (RSS), to the RBI board earlier this year along with Satish Marathe, a former banker with ties to the RSS. Such political appointments have been unusual in the past as the RBI board's external members have mostly been economists and industrialists. Traditionally, the RBI's board has approved decisions related to internal functions of the central bank and it has not interfered in its supervisory and monetary policy functions. KEEPING MUM Senior government officials, as well as BJP and RSS officials, are angry that the RBI decided to go public over the quarrels. Acharya made it clear he had been asked to address the independence question by Patel and in a show of unity the three other deputy governors attended his speech. In its statement concerning autonomy on Wednesday, the government stressed that it will keep discussions confidential. WHY IT MATTERS FOR GOVERNMENT The central government has been under pressure ahead of regional polls due at the end of 2018 because of weak farm prices and surging fuel costs, which have been hurting rural incomes. The government recently cut excise duty on gasoline and diesel, adding to pressure on its deficit. The Budget is also being undermined by muted revenue collection from recently introduced Goods and Service Tax (GST). Added to this, the IL&FS woes have led to a liquidity crunch across much of the shadow banking sector and throttled off some lending. All of this could slow a $2.6 trillion economy, the world's sixth largest, only months before the general election. To prevent that from happening, Prime Minister Narendra Modi is expected to spend more on populist programmes, including boosts to rural wages, fuel subsidies and buying crops at a guaranteed minimum price. FOR INVESTORS The rift has created political and economic uncertainty. Investors want policy continuity from both the RBI and the government to ensure inflation is kept in check and economic stability is maintained. A persistent fall in the inflation rate since 2014 in a country that was used to volatile price pressures instilled confidence in the central bank and attracted investors. However, investors fear such hard-earned economic gains could be at risk if the government can pull the RBI’s strings.

Why Modi government wants to increase control over the RBI

Taking his attack against Prime Minister Narendra Modi to poll-bound Rajasthan, Congress president Rahul Gandhi Tuesday said demonetisation and the Goods and Services Tax, which he referred to as Gabbar Singh Tax, had destroyed India's economy.&nbsp;

Addressing a rally in Dholpur's Mania area, Gandhi said the prime minister had declared during elections that he wanted to be a 'chowkidar' but never clarified who he wanted to guard. The Congress president alleged that he benefited 15-20 industrialists of the country instead of farmers.

According to Gandhi, the former UPA government led by his party had waived farmers' loans worth Rs. 70,000 crore. But bad debt worth Rs. 3.5 lakh crore was written off by the present government and the prime minister did not help farmers with even a one rupee waiver, he alleged.&nbsp;

Gandhi, who is on a two-day visit to the state, named several industrialists, including Nirav Modi, Mehul Choksi, Lalit Modi and Anil Ambani, and said the PM benefited them but did not take care of farmers and youths.

Gandhi claimed the government had destroyed the country's economy with decisions like demonetisation and GST.&nbsp;

Modi, he said, benefited his industrialist friend in Rafale deal and did not speak a single word when he raised the matter in Parliament.&nbsp;

The Congress president said the Centre and state governments worked against people, small-scale business, farmers, women and youths.&nbsp;

The former UPA government introduced several schemes and programmes for the poor, including MGNREGA. Moreover, the former Ashok Gehlot government in Rajasthan had brought free medicines schemes but the BJP governments had weakened them and worked against the people, Gandhi said.

The Congress chief, who is holding a 150 km roadshow in eastern Rajasthan, will visit Bikaner Wednesday.&nbsp;

Elections in Rajasthan will be held on December 7.&nbsp;

Taking his attack against Prime Minister Narendra Modi to poll-bound Rajasthan, Congress president Rahul Gandhi Tuesday said demonetisation and the Goods and Services Tax, which he referred to as Gabbar Singh Tax, had destroyed India's economy.

Taking his attack against Prime Minister Narendra Modi to poll-bound Rajasthan, Congress president Rahul Gandhi Tuesday said demonetisation and the Goods and Services Tax, which he referred to as Gabbar Singh Tax, had destroyed India's economy. Addressing a rally in Dholpur's Mania area, Gandhi said the prime minister had declared during elections that he wanted to be a 'chowkidar' but never clarified who he wanted to guard. The Congress president alleged that he benefited 15-20 industrialists of the country instead of farmers. According to Gandhi, the former UPA government led by his party had waived farmers' loans worth Rs. 70,000 crore. But bad debt worth Rs. 3.5 lakh crore was written off by the present government and the prime minister did not help farmers with even a one rupee waiver, he alleged. Gandhi, who is on a two-day visit to the state, named several industrialists, including Nirav Modi, Mehul Choksi, Lalit Modi and Anil Ambani, and said the PM benefited them but did not take care of farmers and youths. Gandhi claimed the government had destroyed the country's economy with decisions like demonetisation and GST. Modi, he said, benefited his industrialist friend in Rafale deal and did not speak a single word when he raised the matter in Parliament. The Congress president said the Centre and state governments worked against people, small-scale business, farmers, women and youths. The former UPA government introduced several schemes and programmes for the poor, including MGNREGA. Moreover, the former Ashok Gehlot government in Rajasthan had brought free medicines schemes but the BJP governments had weakened them and worked against the people, Gandhi said. The Congress chief, who is holding a 150 km roadshow in eastern Rajasthan, will visit Bikaner Wednesday. Elections in Rajasthan will be held on December 7.

Demonetisation and GST destroyed economy: Rahul Gandhi

The Congress Sunday dismissed the Rs 2.5 a litre cut in petrol and diesel prices as “electoral lollipop” aimed at the five poll-bound states, and asked the Narendra Modi government to bring petroleum products under the GST regime. Congress spokesperson Pawan Khera told reporters that oil prices have begun rising again since the cut was effected on Thursday, adding that it showed the government’s duplicity and hypocrisy.&nbsp;

He questioned the government’s claim of oil prices being deregulated, saying they depend upon the electoral calendar as they remained unchanged for 17 days during the Karnataka assembly polls, and a similar pattern was seen during the Gujarat polls.

“We reiterate our demand to bring in petroleum products under the ambit of GST so as to completely demolish this sheer hypocrisy of credit-seeking just before the electoral season,” he said. This government believes in tokenism for short-term applause, he said. After “ghar-ghar Modi” (Modi in every home) time for “bye-bye Modi” has come, and the government can bring a smile on people’s faces as it departs by bring petrol and diesel under the GST, he said.

Taking a dig at Finance Minister Arun Jaitley, whom he dubbed as a full-time blogger and part-time minister, Khera accused him of “lying” in his claim that the increase in the government’s revenue is on the account of an increase in tax base. Khera said oil companies have made over Rs 13 lakh crore, which is fuelling the government’s coffers. The government has used money in event management and publicity, he alleged, noting that it allocated merely Rs 2,000 crore for the Ayushmaan Bharat scheme, a health insurance scheme for the poor.

Since coming to power, the government has increase central excise duty on petrol by 211 per cent and on Diesel by 443 per cent, the Congress leader said. When the Congress demitted power the excise duty on petrol was merely Rs 9.23 a litre and has been raised by the Modi government to Rs 19.48 a litre. The excise duty on diesel has been raised from Rs 3.46 a litre to Rs 15.33 a litre, he said. Even the Value Added Tax (VAT) levied by state governments is among the highest where the BJP is in power, he said.

The Congress Sunday dismissed the Rs 2.5 a litre cut in petrol and diesel prices as “electoral lollipop” aimed at the five poll-bound states, and asked the Narendra Modi government to bring petroleum products under the GST regime.

The Congress Sunday dismissed the Rs 2.5 a litre cut in petrol and diesel prices as “electoral lollipop” aimed at the five poll-bound states, and asked the Narendra Modi government to bring petroleum products under the GST regime. Congress spokesperson Pawan Khera told reporters that oil prices have begun rising again since the cut was effected on Thursday, adding that it showed the government’s duplicity and hypocrisy. He questioned the government’s claim of oil prices being deregulated, saying they depend upon the electoral calendar as they remained unchanged for 17 days during the Karnataka assembly polls, and a similar pattern was seen during the Gujarat polls. “We reiterate our demand to bring in petroleum products under the ambit of GST so as to completely demolish this sheer hypocrisy of credit-seeking just before the electoral season,” he said. This government believes in tokenism for short-term applause, he said. After “ghar-ghar Modi” (Modi in every home) time for “bye-bye Modi” has come, and the government can bring a smile on people’s faces as it departs by bring petrol and diesel under the GST, he said. Taking a dig at Finance Minister Arun Jaitley, whom he dubbed as a full-time blogger and part-time minister, Khera accused him of “lying” in his claim that the increase in the government’s revenue is on the account of an increase in tax base. Khera said oil companies have made over Rs 13 lakh crore, which is fuelling the government’s coffers. The government has used money in event management and publicity, he alleged, noting that it allocated merely Rs 2,000 crore for the Ayushmaan Bharat scheme, a health insurance scheme for the poor. Since coming to power, the government has increase central excise duty on petrol by 211 per cent and on Diesel by 443 per cent, the Congress leader said. When the Congress demitted power the excise duty on petrol was merely Rs 9.23 a litre and has been raised by the Modi government to Rs 19.48 a litre. The excise duty on diesel has been raised from Rs 3.46 a litre to Rs 15.33 a litre, he said. Even the Value Added Tax (VAT) levied by state governments is among the highest where the BJP is in power, he said.

Congress dubs fuel price cut electoral lollipop, demands oil products under GST

A day after Finance Minister Arun Jaitley announced a Rs 2.50 reduction in the prices of fuel, Congress President Rahul Gandhi once again called for the inclusion of petrol and diesel under the ambit of the Goods and Services Tax (GST).

In a tweet addressed to Prime Minister Narendra Modi, Rahul said the common man was badly affected by the skyrocketing prices of fuel, and therefore urged the former to bring petroleum products under the GST to provide some respite to citizens.

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<blockquote class="twitter-tweet" data-lang="en">
आदरणीय श्री मोदीजी, आम जनता पेट्रोल-डीजल के आसमान छूते दामों से बहुत ज्यादा परेशान है. 
 
आप कृपया पेट्रोल-डीजल को GST के दायरे में ले आइए।
— Rahul Gandhi (@RahulGandhi) <a href="https://twitter.com/RahulGandhi/status/1048063675578417152?ref_src=twsrc%5Etfw">October 5, 2018</a></blockquote>
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Fuel prices have been witnessing an upward trend for the last few weeks, burning a hole in people's pockets. In Mumbai, petrol rates had breached Rs 90 per litre mark.

In the wake of the skyrocketing fuel prices, Jaitley, while addressing the media on Thursday, announced a cut of Rs 2.50 per litre on both petrol and diesel, and directed the state governments to implement the same.

A day after Finance Minister Arun Jaitley announced a Rs 2.50 reduction in the prices of fuel, Congress President Rahul Gandhi once again called for the inclusion of petrol and diesel under the ambit of the Goods and Services Tax (GST).

A day after Finance Minister Arun Jaitley announced a Rs 2.50 reduction in the prices of fuel, Congress President Rahul Gandhi once again called for the inclusion of petrol and diesel under the ambit of the Goods and Services Tax (GST). In a tweet addressed to Prime Minister Narendra Modi, Rahul said the common man was badly affected by the skyrocketing prices of fuel, and therefore urged the former to bring petroleum products under the GST to provide some respite to citizens. आदरणीय श्री मोदीजी, आम जनता पेट्रोल-डीजल के आसमान छूते दामों से बहुत ज्यादा परेशान है. आप कृपया पेट्रोल-डीजल को GST के दायरे में ले आइए। — Rahul Gandhi (@RahulGandhi) October 5, 2018 × Fuel prices have been witnessing an upward trend for the last few weeks, burning a hole in people's pockets. In Mumbai, petrol rates had breached Rs 90 per litre mark. In the wake of the skyrocketing fuel prices, Jaitley, while addressing the media on Thursday, announced a cut of Rs 2.50 per litre on both petrol and diesel, and directed the state governments to implement the same.

Rahul urges for inclusion of petrol, diesel under GST

The Goods and Service Tax (GST) revenue for the month of September witnessed a marginal upward trend to touch Rs&nbsp;94,000 crore, up from Rs&nbsp;93,690 crore last month.

Of the total collection, central GST (CGST) mop-up was Rs&nbsp;15,318 crore, state GST (SGST) was Rs 21,061 crore, integrated GST was Rs 50,070 crore (including Rs&nbsp;25,308 crore collected on imports) and cess was Rs 7,993 crore (including Rs. 769 crore collected on imports).

"The total revenue earned by the central government and the state governments after settlement in the month of September 2018 is Rs&nbsp;30,574 crore for CGST and Rs&nbsp;35,015 crore for the SGST," a statement from the Finance Ministry read.GST revenue for August was the lowest in the five months so far in this fiscal.

In July, the collection was Rs 96,483 crore, in June it was Rs 95,610 crore, in May it was Rs 94,016 crore, while April saw a record-high collection of over Rs 1.03 lakh crore.&nbsp;

The Goods and Service Tax (GST) revenue for the month of September witnessed a marginal upward trend to touch Rs 94,000 crore, up from Rs 93,690 crore last month.

The Goods and Service Tax (GST) revenue for the month of September witnessed a marginal upward trend to touch Rs 94,000 crore, up from Rs 93,690 crore last month. Of the total collection, central GST (CGST) mop-up was Rs 15,318 crore, state GST (SGST) was Rs 21,061 crore, integrated GST was Rs 50,070 crore (including Rs 25,308 crore collected on imports) and cess was Rs 7,993 crore (including Rs. 769 crore collected on imports). "The total revenue earned by the central government and the state governments after settlement in the month of September 2018 is Rs 30,574 crore for CGST and Rs 35,015 crore for the SGST," a statement from the Finance Ministry read.GST revenue for August was the lowest in the five months so far in this fiscal. In July, the collection was Rs 96,483 crore, in June it was Rs 95,610 crore, in May it was Rs 94,016 crore, while April saw a record-high collection of over Rs 1.03 lakh crore.

GST collection surpasses Rs 94,000 crore in September

GST Council, the highest decision-making body of the Goods and Services Tax regime, today decided to set up a seven-member group of ministers to suggest on cess demand for Kerala flood rehabilitation.

Briefing reporters after the 30th meeting of the GST Council, Finance Minister Arun Jaitley said the panel discussed the proposal from Kerala to levy Calamity Tax, a special tax or cess to raise additional resources aimed at meeting the cost of reconstruction in Kerala in the aftermath of floods.

The Kerala government on Thursday also announced it will give free ration for three months to all those who lost everything in the deadly floods, reports said.&nbsp;

The Mahatma Gandhi National Rural Employment Guarantee Act scheme announced the decision adding that various committees headed by senior officials to formulate policies and to speed up rebuilding efforts in flood-hit state.

Since this would set a precedence, a group of ministers was formed to give suggestions, he said.

The Council also reviewed revenue trends and deficit of states, he said, adding state deficit this year is 13 per cent and may reduce further as consumption picks up.

GST collections in many North-east states is above expectation.

GST Council, the highest decision-making body of the Goods and Services Tax regime, today decided to set up a seven-member group of ministers to suggest on cess demand for Kerala flood rehabilitation.

GST Council, the highest decision-making body of the Goods and Services Tax regime, today decided to set up a seven-member group of ministers to suggest on cess demand for Kerala flood rehabilitation. Briefing reporters after the 30th meeting of the GST Council, Finance Minister Arun Jaitley said the panel discussed the proposal from Kerala to levy Calamity Tax, a special tax or cess to raise additional resources aimed at meeting the cost of reconstruction in Kerala in the aftermath of floods. The Kerala government on Thursday also announced it will give free ration for three months to all those who lost everything in the deadly floods, reports said. The Mahatma Gandhi National Rural Employment Guarantee Act scheme announced the decision adding that various committees headed by senior officials to formulate policies and to speed up rebuilding efforts in flood-hit state. Since this would set a precedence, a group of ministers was formed to give suggestions, he said. The Council also reviewed revenue trends and deficit of states, he said, adding state deficit this year is 13 per cent and may reduce further as consumption picks up. GST collections in many North-east states is above expectation.

GST council meets to consider new tax for Kerala flood, future calamities

The Central Board of Indirect Taxes and Customs (CBIC) has cleared over Rs 7000 crore worth Goods and Services Tax (GST) refunds of exporters during the initial phase of the special refund drive undertaken by the authorities.

The tax department has also asked the exporters and traders to visit their jurisdictional GST office or Custom House/Port and settle their pending claims during the Special Refund Fortnight from May 31, 2018, to June 14, 2018.

On the other hand, Chief Commissioner of Delhi Customs Sunil K Sawhney has informed that they will try to scroll down around 26,000 shipping bills, which are still pending due to lack of relevant documents, during this special drive.

"To facilitate the exporters for an expeditious disbursal of the refund of Integrated Goods and Services Tax (IGST) paid on the goods exported by them up to 30th April, we are holding a special fortnight from 31 may to June 14, 2018, to remove the errors made by the exporters in their shipping bills," Sawhney said.

As of now, the Delhi customs zone has successfully scrolled out IGST refunds amounting to Rs 290 crore over 12,000 shipping bills in the last eight days.

During this process, the customs department has been able to correct 8,000 shipping bills of the exporters involving about Rs 143 crore of IGST and Rs 194.75 crore of Rebate of State Levies (RoSL), till June 8.

Incomplete information and mismatch errors have caused much trouble in processing the refund amount for exporters.

Several measures have been taken by the government to ease the backlog of refunds and help exporters and traders.

Incomplete information and mismatch errors have caused much trouble in processing the refund amount for exporters.

The Central Board of Indirect Taxes and Customs (CBIC) has cleared over Rs 7000 crore worth Goods and Services Tax (GST) refunds of exporters during the initial phase of the special refund drive undertaken by the authorities. The tax department has also asked the exporters and traders to visit their jurisdictional GST office or Custom House/Port and settle their pending claims during the Special Refund Fortnight from May 31, 2018, to June 14, 2018. On the other hand, Chief Commissioner of Delhi Customs Sunil K Sawhney has informed that they will try to scroll down around 26,000 shipping bills, which are still pending due to lack of relevant documents, during this special drive. "To facilitate the exporters for an expeditious disbursal of the refund of Integrated Goods and Services Tax (IGST) paid on the goods exported by them up to 30th April, we are holding a special fortnight from 31 may to June 14, 2018, to remove the errors made by the exporters in their shipping bills," Sawhney said. As of now, the Delhi customs zone has successfully scrolled out IGST refunds amounting to Rs 290 crore over 12,000 shipping bills in the last eight days. During this process, the customs department has been able to correct 8,000 shipping bills of the exporters involving about Rs 143 crore of IGST and Rs 194.75 crore of Rebate of State Levies (RoSL), till June 8. Incomplete information and mismatch errors have caused much trouble in processing the refund amount for exporters. Several measures have been taken by the government to ease the backlog of refunds and help exporters and traders.

Over Rs 7000 cr GST refunds of exporters cleared

Former finance minister P Chidambaram&nbsp;blamed the NDA government on Monday for the prevailing state of the Indian economy.

He said that the policies implemented by the NDA were responsible for the bad economy of the state.

He further said the tyres of three of the four wheels on which the economy rides were punctured.

"The tyres of three of the four wheels on which the economy rides are punctured. Firstly exports: the growth rate in the last four years have been negative. Secondly, private investment: it is in the doldrums, if not dead. Gross fixed capital formation is stuck at 28.5 per cent for three years. Thirdly, private consumption: it was limping until a few months ago, there is a mild up-pick, and we keep our fingers crossed".

Hitting out at the government's GST and Demonetisation policies, he said a flawed road to GST continues to haunt trade and business, and the adverse effect of demonetisation have been established 'beyond doubt'.

He added that the various sections of the country like the farmers and the youth were distressed due to the unavailability of enough remunerative prices for their produce and unemployment.

"The only tyre that seems to be inflated is government expenditure, but here too the government's options are getting limited because of the pressure on the current account deficit and the fiscal deficit," he said.

"So far nobody has bought the innovative idea that 'frying pakoras is also a job'," he quipped.&nbsp;

Chidambaram was addressing a press conference in New Delhi on Monday.

&nbsp;

(With inputs from PTI)

'The tyres of three of the four wheels on which the economy rides are punctured. Firstly exports: the growth rate in the last four years have been negative. Secondly, private investment: it is in the doldrums, if not dead'

Former finance minister P Chidambaram blamed the NDA government on Monday for the prevailing state of the Indian economy. He said that the policies implemented by the NDA were responsible for the bad economy of the state. He further said the tyres of three of the four wheels on which the economy rides were punctured. "The tyres of three of the four wheels on which the economy rides are punctured. Firstly exports: the growth rate in the last four years have been negative. Secondly, private investment: it is in the doldrums, if not dead. Gross fixed capital formation is stuck at 28.5 per cent for three years. Thirdly, private consumption: it was limping until a few months ago, there is a mild up-pick, and we keep our fingers crossed". Hitting out at the government's GST and Demonetisation policies, he said a flawed road to GST continues to haunt trade and business, and the adverse effect of demonetisation have been established 'beyond doubt'. He added that the various sections of the country like the farmers and the youth were distressed due to the unavailability of enough remunerative prices for their produce and unemployment. "The only tyre that seems to be inflated is government expenditure, but here too the government's options are getting limited because of the pressure on the current account deficit and the fiscal deficit," he said. "So far nobody has bought the innovative idea that 'frying pakoras is also a job'," he quipped. Chidambaram was addressing a press conference in New Delhi on Monday. (With inputs from PTI)

Tyres of Indian economy are punctured: Chidambaram

Goods and Services Tax(GST) collections in May declined to Rs 94,016 crore from over Rs 1.03 lakh crore in April, the finance ministry said today.

As many as 62.47 lakh businesses filed their summary sales return GSTR-3B in the month of May.

The total gross GST revenue collected in May 2018 is Rs 94,016 crore, of which CGST is Rs 15,866 crore, SGST Rs 21,691 crore, IGST Rs 49,120 crore and cess Rs 7,339 crore, the ministry said.

"Though current month's revenue collection is less compared to last month's revenue, still the gross revenue collection in the month of May (Rs 94,016 crore) is much higher than the monthly average of GST collection in the last Financial Year (Rs 89,885 crore). The April revenue figure was higher because of year end effect," the ministry said.

As much as Rs 6,696 crore has been released to the states as GST compensation for the month of March 2018, as on May 29.

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The total GST collection for May 2018 is Rs 94,016 crores, which is higher compared to average monthly collection of Rs 89,885 crores of 2017-18. This reflects better compliance after introduction of e-way bills.
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Therefore, the total GST compensation released to the states for the FY 2017-18 (July 2017 to March 2018) has been Rs 47,844 crore, the ministry said.

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"The total GST collection for May 2018 is Rs 94,016 crores, which is higher compared to average monthly collection of Rs 89,885 crores of 2017-18. This reflects better compliance after introduction of e-way bills," Finance Secretary Hasmukh Adhia tweeted.

The total gross GST revenue collected in May 2018 is Rs 94,016 crore

Goods and Services Tax(GST) collections in May declined to Rs 94,016 crore from over Rs 1.03 lakh crore in April, the finance ministry said today. As many as 62.47 lakh businesses filed their summary sales return GSTR-3B in the month of May. The total gross GST revenue collected in May 2018 is Rs 94,016 crore, of which CGST is Rs 15,866 crore, SGST Rs 21,691 crore, IGST Rs 49,120 crore and cess Rs 7,339 crore, the ministry said. "Though current month's revenue collection is less compared to last month's revenue, still the gross revenue collection in the month of May (Rs 94,016 crore) is much higher than the monthly average of GST collection in the last Financial Year (Rs 89,885 crore). The April revenue figure was higher because of year end effect," the ministry said. As much as Rs 6,696 crore has been released to the states as GST compensation for the month of March 2018, as on May 29. The total GST collection for May 2018 is Rs 94,016 crores, which is higher compared to average monthly collection of Rs 89,885 crores of 2017-18. This reflects better compliance after introduction of e-way bills. — Dr Hasmukh Adhia (@adhia03) June 1, 2018 × Therefore, the total GST compensation released to the states for the FY 2017-18 (July 2017 to March 2018) has been Rs 47,844 crore, the ministry said. The total GST collection for May 2018 is Rs 94,016 crores, which is higher compared to average monthly collection of Rs 89,885 crores of 2017-18. This reflects better compliance after introduction of e-way bills. — Dr Hasmukh Adhia (@adhia03) June 1, 2018 × "The total GST collection for May 2018 is Rs 94,016 crores, which is higher compared to average monthly collection of Rs 89,885 crores of 2017-18. This reflects better compliance after introduction of e-way bills," Finance Secretary Hasmukh Adhia tweeted.

GST collections in May declined to Rs 94,016 crore: Finance Ministry

Vice President M Venkaiah Naidu said on Wednesday that Goods and Service Tax (GST) and demonetisation were "revolutionary steps" taken by Prime Minister Narendra Modi towards making the nation corruption free.

Praising Prime Minister Modi for introducing various central schemes for the development of the country, the Vice President said, "With the introduction of GST and demonetisation, the Prime Minister took revolutionary steps. The GST revenue in April has crossed Rs 1.4 lakh crore, indicating high hopes for the new tax regime."

Vice President Naidu was speaking at the 11th convocation ceremony of the Tripura University.

In his speech, he also emphasised on the role of the present Union government towards the infrastructural development in the northeastern states for better connectivity and business in the region and the neighbouring nations.

The 11th convocation of the Tripura University was held after five years. As many as 142 scholars rePhDd PhD&nbsp;degrees and about 400 students from many streams received gold and silver medals.

Tripura Governor Tathagata Roy, Education Minister Ratan Lal Nath, Vice-Chancellor Anjan Kumar Ghosh, Registrar Santi Deb Roy and other dignitaries were present in the Maharaja BB auditorium for the convocation.

Naidu emphasised on the role of the present Union government towards the infrastructural development in the northeastern states for better connectivity

Vice President M Venkaiah Naidu said on Wednesday that Goods and Service Tax (GST) and demonetisation were "revolutionary steps" taken by Prime Minister Narendra Modi towards making the nation corruption free. Praising Prime Minister Modi for introducing various central schemes for the development of the country, the Vice President said, "With the introduction of GST and demonetisation, the Prime Minister took revolutionary steps. The GST revenue in April has crossed Rs 1.4 lakh crore, indicating high hopes for the new tax regime." Vice President Naidu was speaking at the 11th convocation ceremony of the Tripura University. In his speech, he also emphasised on the role of the present Union government towards the infrastructural development in the northeastern states for better connectivity and business in the region and the neighbouring nations. The 11th convocation of the Tripura University was held after five years. As many as 142 scholars rePhDd PhD degrees and about 400 students from many streams received gold and silver medals. Tripura Governor Tathagata Roy, Education Minister Ratan Lal Nath, Vice-Chancellor Anjan Kumar Ghosh, Registrar Santi Deb Roy and other dignitaries were present in the Maharaja BB auditorium for the convocation.

GST and demonetisation were revolutionary steps to make India corruption free: Venkaiah Naidu

Petroleum minister Dharmendra Pradhan said today that the government was deliberating on an immediate solution to control the rising fuel prices and that apart from the Goods and Services Tax (GST), other ways were also being thought of to ease the situation.

The petroleum minister also asked the Odisha government to reduce the Value Added Tax (VAT) on petroleum products to contain the cascading effect on rising fuel prices.

"The oil ministry is of the view to bring petroleum products under the purview of the GST in order to bring down the prices of petrol and diesel. We are deliberating on an immediate solution to this problem till that time," Pradhan told reporters here.

"We will certainly find a way out to deal with the situation," he said.

The union minister said the central government had in October last year reduced the excise on fuel by Rs 2 per litre keeping in view the interest of the poor people. This time the Centre is looking at both short and long term solutions, he said.

The petroleum minister attributed the rising oil prices to "circumstances in the international market" because of which the value of the Indian rupee had reduced in comparison to the dollar leading to the surge in oil prices.

"The political differences between two oil-producing countries Iran and Venezuela has been a major cause behind the rise in the price of fuel in the international market," he said.

Odisha Finance Minister SB Behera criticised Pradhan and accused him of "evading responsibility."

"The reasons that the union oil minister is giving is not justified. He is telling this to suppress the central government's inability to deal with the situation. The price of petrol and diesel will automatically come down if the centre reduces excise duty," he said.

On Pradhan's suggestions to include petroleum products under GST, Behera said, "All the state governments will take a decision in regard to the proposal of including petroleum products under GST. Now the Centre should not escape from its responsibility."

Both opposition Congress and ruling BJD in Odisha have launched agitations against the spiralling prices of petrol and diesel.&nbsp

(With inputs from agencies)

Dharmendra Pradhan saidthat the government was deliberating on an immediate solution to control the rising fuel prices and that apart from the Goods and Services Tax, other ways were also being thought of to ease the situation

Petroleum minister Dharmendra Pradhan said today that the government was deliberating on an immediate solution to control the rising fuel prices and that apart from the Goods and Services Tax (GST), other ways were also being thought of to ease the situation. The petroleum minister also asked the Odisha government to reduce the Value Added Tax (VAT) on petroleum products to contain the cascading effect on rising fuel prices. "The oil ministry is of the view to bring petroleum products under the purview of the GST in order to bring down the prices of petrol and diesel. We are deliberating on an immediate solution to this problem till that time," Pradhan told reporters here. "We will certainly find a way out to deal with the situation," he said. The union minister said the central government had in October last year reduced the excise on fuel by Rs 2 per litre keeping in view the interest of the poor people. This time the Centre is looking at both short and long term solutions, he said. The petroleum minister attributed the rising oil prices to "circumstances in the international market" because of which the value of the Indian rupee had reduced in comparison to the dollar leading to the surge in oil prices. "The political differences between two oil-producing countries Iran and Venezuela has been a major cause behind the rise in the price of fuel in the international market," he said. Odisha Finance Minister SB Behera criticised Pradhan and accused him of "evading responsibility." "The reasons that the union oil minister is giving is not justified. He is telling this to suppress the central government's inability to deal with the situation. The price of petrol and diesel will automatically come down if the centre reduces excise duty," he said. On Pradhan's suggestions to include petroleum products under GST, Behera said, "All the state governments will take a decision in regard to the proposal of including petroleum products under GST. Now the Centre should not escape from its responsibility." Both opposition Congress and ruling BJD in Odisha have launched agitations against the spiralling prices of petrol and diesel. (With inputs from agencies)

GST is one way: Petroleum minister on curbing rising fuel prices

The Indian economy is expected to grow at 7.4 per cent in the current fiscal and accelerate further to 7.8 per cent as it recovers from the impact of demonetisation and GST roll out, IMF said today.

Asia continues to be the main engine of the world's economy, accounting for more than 60 per cent of global growth, three-quarters of which comes from China and India alone, as per IMF's Regional Economic Outlook: Asia and Pacific (REO).

"But there are risks and challenges ahead, including from a tightening of global financial conditions, a shift toward inward-looking policies, and ? over the longer run ? population aging, slowing productivity growth, and the rise of the digital economy," it said.

Also read:&nbsp;<a href="http://www.wionews.com/south-asia/why-is-indias-growth-not-creating-more-jobs-16771">Why is India's growth not creating more jobs?</a>

Asia is expected to grow at 5.6 per cent this year and next, it said, adding that the outlook is supported by strong global demand, as well as still accommodative policies and financial conditions.

"In India, growth is forecast to rebound to 7.4 percent in FY 2018/19 as the economy recovers from disruptions related to the currency exchange initiative and the rollout of the new Goods and Services Tax," it said.

China, it said, is projected to grow at 6.6 per cent in the current year which will moderate to 6.4 per cent next year.

Noting that present rates of inflation in Asia are some of the lowest in decades, it said, it has seen some upward movement since September 2017 on the back of rising oil prices.

"But core inflation ? which excludes food and energy ? remains low and below target in many economies. In 2017, headline inflation on average was 0.6 percent lower than target in Asian advanced economies, and 0.8 percent under target in Asian emerging market economies," it said.

The latest report explores why inflation has been so low. And it finds that first that temporary global factors, including commodity prices and imported inflation, have been key drivers of low inflation.&nbsp; 
But these factors could reverse, and inflation could rise.

According to the report, inflation has become more backward-looking, meaning that past inflation drives current inflation more than future expectations. This suggests that if inflation rises, it may persist.

"Further, there is some evidence that the sensitivity of inflation to economic slack has decreased (i.E., the Phillips curve has flattened), suggesting that if inflation rises, there may be a large hit to output when reducing it," it said.

All of these mean that central banks should watch out closely for signs of inflation pressure now and stand ready to respond.&nbsp;

India's growth rate is expected to increase to 7.8% in 2019, the IMF said. China on the other is expected to grow at 6.6% in 2018 and 6.4% next year

The Indian economy is expected to grow at 7.4 per cent in the current fiscal and accelerate further to 7.8 per cent as it recovers from the impact of demonetisation and GST roll out, IMF said today. Asia continues to be the main engine of the world's economy, accounting for more than 60 per cent of global growth, three-quarters of which comes from China and India alone, as per IMF's Regional Economic Outlook: Asia and Pacific (REO). "But there are risks and challenges ahead, including from a tightening of global financial conditions, a shift toward inward-looking policies, and ? over the longer run ? population aging, slowing productivity growth, and the rise of the digital economy," it said. Also read: Why is India's growth not creating more jobs? Asia is expected to grow at 5.6 per cent this year and next, it said, adding that the outlook is supported by strong global demand, as well as still accommodative policies and financial conditions. "In India, growth is forecast to rebound to 7.4 percent in FY 2018/19 as the economy recovers from disruptions related to the currency exchange initiative and the rollout of the new Goods and Services Tax," it said. China, it said, is projected to grow at 6.6 per cent in the current year which will moderate to 6.4 per cent next year. Noting that present rates of inflation in Asia are some of the lowest in decades, it said, it has seen some upward movement since September 2017 on the back of rising oil prices. "But core inflation ? which excludes food and energy ? remains low and below target in many economies. In 2017, headline inflation on average was 0.6 percent lower than target in Asian advanced economies, and 0.8 percent under target in Asian emerging market economies," it said. The latest report explores why inflation has been so low. And it finds that first that temporary global factors, including commodity prices and imported inflation, have been key drivers of low inflation. But these factors could reverse, and inflation could rise. According to the report, inflation has become more backward-looking, meaning that past inflation drives current inflation more than future expectations. This suggests that if inflation rises, it may persist. "Further, there is some evidence that the sensitivity of inflation to economic slack has decreased (i.E., the Phillips curve has flattened), suggesting that if inflation rises, there may be a large hit to output when reducing it," it said. All of these mean that central banks should watch out closely for signs of inflation pressure now and stand ready to respond.

India to grow at 7.4% in 2018, says IMF

The all-powerful GST Council today deferred a decision on levying a cess on sugar and referred the issue of incentivising digital payments to a group of state finance ministers.

The panel, the highest decision making body of the Goods and Services Tax (GST) regime, in its 27th meeting agreed to a proposal to convert the GST Network -- the company that provides IT backbone to the new indirect tax regime -- into a government-owned entity.

Announcing the decisions taken today, Finance Minister Arun Jaitely, who chaired the meeting conducted through a video conferencing, said a road map for introduction of simplified return filing has been decided.

A single monthly return filing system would come into force in six months, Finance Secretary Hasmukh Adhia said.

Jaitley said while most states were in favour of giving a 2 per cent incentive if all payments are paid digitally or through cheques, some wanted a small negative list and so the issue will be referred to a five-member group of state finance ministers.

Another group of ministers (GoM) would look at the issue of levy of cess on sugar beyond the GST tax rates.

West Bengal Finance Minister Amit Mitra said some states were not in favour of such a levy.&nbsp;

Jaitley said the GST Network or GSTN currently is 24.5 per cent owned by the central government and a similar percentage is held by state governments collectively. The remaining 51 per cent is with five private financial insitutitions -- HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd.

The council agreed to a proposal of buying out the stake of private entities to make GSTN a government-owned entity, he said adding the central government will own 50 per cent and the remaining would be collectively held by state governments.&nbsp;

A single monthly return filing system would come into force in six months, Finance Secretary Hasmukh Adhia said.

The all-powerful GST Council today deferred a decision on levying a cess on sugar and referred the issue of incentivising digital payments to a group of state finance ministers. The panel, the highest decision making body of the Goods and Services Tax (GST) regime, in its 27th meeting agreed to a proposal to convert the GST Network -- the company that provides IT backbone to the new indirect tax regime -- into a government-owned entity. Announcing the decisions taken today, Finance Minister Arun Jaitely, who chaired the meeting conducted through a video conferencing, said a road map for introduction of simplified return filing has been decided. A single monthly return filing system would come into force in six months, Finance Secretary Hasmukh Adhia said. Jaitley said while most states were in favour of giving a 2 per cent incentive if all payments are paid digitally or through cheques, some wanted a small negative list and so the issue will be referred to a five-member group of state finance ministers. Another group of ministers (GoM) would look at the issue of levy of cess on sugar beyond the GST tax rates. West Bengal Finance Minister Amit Mitra said some states were not in favour of such a levy. Jaitley said the GST Network or GSTN currently is 24.5 per cent owned by the central government and a similar percentage is held by state governments collectively. The remaining 51 per cent is with five private financial insitutitions -- HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd. The council agreed to a proposal of buying out the stake of private entities to make GSTN a government-owned entity, he said adding the central government will own 50 per cent and the remaining would be collectively held by state governments.

GST Council defers decision on sugar cess, refers digital payments incentive issue to GoM

The Centre on Tuesday stated that the revenue collected towards Goods and Services Tax (GST) for the month of April 2018, surpassed the Rs 1 lakh crore mark.

As per the Ministry of Finance, the total gross GST revenue collected in the month of April stood at Rs.1,03,458 crore, consisting of Central GST (CGST) worth Rs.18,652 crore, State GST (SGST) of Rs.25,704 crore, Integrated GST (IGST) of Rs. 50,548 crore (including 21,246 crores collected on imports) and cess of Rs.8554 crore (including Rs.702 crore collected on imports).

Furthermore, the ministry noted that a total of 60.47 lakh GSTR 3B returns were filed for the month of March, as on April 30, as against 87.12 lakh, who are eligible to file returns for March, thus accounting for 69.5 per cent of the eligible proportion.

Meanwhile, out of 19.31 lakh composition dealers, the ministry said 11.47 lakh filed their quarterly return (GSTR 4) (59.40 per cent) and paid a total tax of Rs.579 crores, which is included in the aforementioned figure of total GST collected.

"The buoyancy in the tax revenue of GST reflects the upswing in the economy and better compliance.However, it is usually noticed that in the last month of the financial year, people also try to pay arrears of some of the previous months.Therefore, this month`s revenue cannot be taken as a trend for the future"&nbsp;the ministry clarified.

The department further noted that the Central and State Governments earned a total revenue of Rs. 32,493 crore for CGST and Rs. 40,257 crore for the SGST respectively, after settlement in the month of April.

Last week, the Finance Ministry said Rs 7.19 lakh crore was mobilised from the GST during the period of August 2017 to March 2018.

This includes Rs 1.19 lakh crore of CGST, Rs&nbsp;1.72 lakh crore of SGST, Rs&nbsp;3.66 lakh crore of IGST, including Rs&nbsp;1.73 lakh crore on exports, and Rs&nbsp;62,021 crore of cess, including Rs&nbsp;5702 crore on imports.&nbsp;

As per the Ministry of Finance, the total gross GST revenue collected in the month of April stood at Rs.1,03,458 crore, consisting of Central GST (CGST) worth Rs.18,652 crore, State GST (SGST) of Rs.25,704 crore, Integrated GST (IGST) of Rs. 50,548 crore (including 21,246 crores collected on imports) and cess of Rs.8554 crore (including Rs.702 crore collected on imports)

The Centre on Tuesday stated that the revenue collected towards Goods and Services Tax (GST) for the month of April 2018, surpassed the Rs 1 lakh crore mark. As per the Ministry of Finance, the total gross GST revenue collected in the month of April stood at Rs.1,03,458 crore, consisting of Central GST (CGST) worth Rs.18,652 crore, State GST (SGST) of Rs.25,704 crore, Integrated GST (IGST) of Rs. 50,548 crore (including 21,246 crores collected on imports) and cess of Rs.8554 crore (including Rs.702 crore collected on imports). Furthermore, the ministry noted that a total of 60.47 lakh GSTR 3B returns were filed for the month of March, as on April 30, as against 87.12 lakh, who are eligible to file returns for March, thus accounting for 69.5 per cent of the eligible proportion. Meanwhile, out of 19.31 lakh composition dealers, the ministry said 11.47 lakh filed their quarterly return (GSTR 4) (59.40 per cent) and paid a total tax of Rs.579 crores, which is included in the aforementioned figure of total GST collected. "The buoyancy in the tax revenue of GST reflects the upswing in the economy and better compliance.However, it is usually noticed that in the last month of the financial year, people also try to pay arrears of some of the previous months.Therefore, this month`s revenue cannot be taken as a trend for the future" the ministry clarified. The department further noted that the Central and State Governments earned a total revenue of Rs. 32,493 crore for CGST and Rs. 40,257 crore for the SGST respectively, after settlement in the month of April. Last week, the Finance Ministry said Rs 7.19 lakh crore was mobilised from the GST during the period of August 2017 to March 2018. This includes Rs 1.19 lakh crore of CGST, Rs 1.72 lakh crore of SGST, Rs 3.66 lakh crore of IGST, including Rs 1.73 lakh crore on exports, and Rs 62,021 crore of cess, including Rs 5702 crore on imports.

GST revenue collected for April exceeds Rs 1 lakh crore

According to the finance ministry, the government was able to mobilise Rs 7.41 lakh crore from the Goods and Services Tax (GST) during 2017-18.

"During the year 2017-18, total revenue collections under GST in the period between August 2017 and March 2018 has been Rs 7.19 lakh crore. Including the collection of July, 2017, the total GST collections during the 2017-18 stands provisionally at Rs. 7.41 lakh crore," the Finance Ministry said in a tweet.

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During the year 2017-18, total Revenue Collections under GST in the period between August 2017 and March 2018 has been Rs. 7.19 Lakh Crore .
— Ministry of Finance (@FinMinIndia) <a href="https://twitter.com/FinMinIndia/status/989738503264133120?ref_src=twsrc%5Etfw">April 27, 2018</a></blockquote>
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"This includes Rs 1.19 lakh crore of CGST, Rs.1.72 lakh crore of SGST, and Rs 3.66 lakh crore of IGST (including Rs 1.73 lakh crore on imports) and Rs 62,021 crore of cess (including Rs 5,702 crore on imports)," it said.

According to the finance ministry, the average monthly collection during the August-March period has amounted to Rs 89,885 crore.

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The SGST Collection during the year 2017-18 including the settlement of IGST has been Rs. 2.91 Lakh Crore.
— Ministry of Finance (@FinMinIndia) <a href="https://twitter.com/FinMinIndia/status/989741622186332160?ref_src=twsrc%5Etfw">April 27, 2018</a></blockquote>
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Total compensation released to the states for a period of eight months during 2017-18 was Rs 41,147 crore, this was to ensure that the revenue of the states is protected at the level of 14 per cent over the base year tax collection in 2015-16.

The ministry further noted that the Revenue Gap in each state has been on the decline over the last eight months.

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Including the collection of July, 2017, the total GST Collections during the Financial Year 2017-18 stands provisionally at Rs. 7.41 Lakh Crore.
— Ministry of Finance (@FinMinIndia) <a href="https://twitter.com/FinMinIndia/status/989739237217001472?ref_src=twsrc%5Etfw">April 27, 2018</a></blockquote>
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The GST was rolled out on July 1, 2017.

(With inputs from PTI)&nbsp;

The ministry further noted that the Revenue Gap in each state has been on the decline over the last eight months

According to the finance ministry, the government was able to mobilise Rs 7.41 lakh crore from the Goods and Services Tax (GST) during 2017-18. "During the year 2017-18, total revenue collections under GST in the period between August 2017 and March 2018 has been Rs 7.19 lakh crore. Including the collection of July, 2017, the total GST collections during the 2017-18 stands provisionally at Rs. 7.41 lakh crore," the Finance Ministry said in a tweet. During the year 2017-18, total Revenue Collections under GST in the period between August 2017 and March 2018 has been Rs. 7.19 Lakh Crore . — Ministry of Finance (@FinMinIndia) April 27, 2018 × "This includes Rs 1.19 lakh crore of CGST, Rs.1.72 lakh crore of SGST, and Rs 3.66 lakh crore of IGST (including Rs 1.73 lakh crore on imports) and Rs 62,021 crore of cess (including Rs 5,702 crore on imports)," it said. According to the finance ministry, the average monthly collection during the August-March period has amounted to Rs 89,885 crore. The SGST Collection during the year 2017-18 including the settlement of IGST has been Rs. 2.91 Lakh Crore. — Ministry of Finance (@FinMinIndia) April 27, 2018 × Total compensation released to the states for a period of eight months during 2017-18 was Rs 41,147 crore, this was to ensure that the revenue of the states is protected at the level of 14 per cent over the base year tax collection in 2015-16. The ministry further noted that the Revenue Gap in each state has been on the decline over the last eight months. Including the collection of July, 2017, the total GST Collections during the Financial Year 2017-18 stands provisionally at Rs. 7.41 Lakh Crore. — Ministry of Finance (@FinMinIndia) April 27, 2018 × The GST was rolled out on July 1, 2017. (With inputs from PTI)

Average monthly GST collection since rollout Rs 90,000 crore: Finance Ministry

India has informed the UN that the Goods and Services Tax reform implemented by it, coupled with the demonetisation of high-value currency notes, has brought 1.8 million more people into the income-tax net.

Additional Secretary in the Ministry of External Affairs A Gitesh Sarma, addressing the ECOSOC Forum on Financing for Development Follow Up, said India is currently implementing a wave of reforms.&nbsp

Apart from encouraging digital over cash transactions, India introduced the Goods and Service Tax regime which provides for uniform taxes. He said this has led to a 50 per cent increase in the number of indirect taxpayers.&nbsp

"Coupled with demonetisation of high-value currency notes, the GST brought 1.8 million more people into the income-tax net, he said at the forum in United Nations on Thursday.

He added that India stands firm on its stand on the fundamental principles of the World Trade, including multilateralism, rule-based consensual decision-making, an independent and credible dispute resolution and appellate process, the centrality of development, which underlies the Doha Development Agenda, and special and differential treatment for all developing countries.

He said the global economic recovery is progressing gradually, with improved resilience and emergence of new sources of growth.&nbsp

"However, there are concerns that a durable recovery may remain constrained by factors such as the persistence of low productivity and debt overhang problems in advanced economies as well as in some emerging market economies, rising populism and protectionism, and the slow pace of structural reforms,"&nbsphe said.

India has also committed to remaining mindful of new gaps in the domestic resource mobilisation that may result from financial innovations, including digital finance, and the implications of fin-tech and the weightless economy on financial inclusion and access to finance, Sarma said.

Further, stepping up its cooperation with the southern countries in the spirit of solidarity, last year India established the India-UN Development Partnership Fund that supports Southern-owned and led, demand-driven, and transformational sustainable development projects across the developing world, with a focus on Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

"I would like to reiterate that the international community must step up its efforts to fulfill the commitments already undertaken not as a charity but with full realisation that it will be in our collective interest,? he said. 
&nbsp

'However, there are concerns that a durable recovery may remain constrained by factors such as the persistence of low productivity and debt overhang problems in advanced economies as well as in some emerging market economies, rising populism and protectionism, and the slow pace of structural reforms,' Additional Secretary in the Ministry of External Affairs said

India has informed the UN that the Goods and Services Tax reform implemented by it, coupled with the demonetisation of high-value currency notes, has brought 1.8 million more people into the income-tax net. Additional Secretary in the Ministry of External Affairs A Gitesh Sarma, addressing the ECOSOC Forum on Financing for Development Follow Up, said India is currently implementing a wave of reforms. Apart from encouraging digital over cash transactions, India introduced the Goods and Service Tax regime which provides for uniform taxes. He said this has led to a 50 per cent increase in the number of indirect taxpayers. "Coupled with demonetisation of high-value currency notes, the GST brought 1.8 million more people into the income-tax net, he said at the forum in United Nations on Thursday. He added that India stands firm on its stand on the fundamental principles of the World Trade, including multilateralism, rule-based consensual decision-making, an independent and credible dispute resolution and appellate process, the centrality of development, which underlies the Doha Development Agenda, and special and differential treatment for all developing countries. He said the global economic recovery is progressing gradually, with improved resilience and emergence of new sources of growth. "However, there are concerns that a durable recovery may remain constrained by factors such as the persistence of low productivity and debt overhang problems in advanced economies as well as in some emerging market economies, rising populism and protectionism, and the slow pace of structural reforms,"&nbsphe said. India has also committed to remaining mindful of new gaps in the domestic resource mobilisation that may result from financial innovations, including digital finance, and the implications of fin-tech and the weightless economy on financial inclusion and access to finance, Sarma said. Further, stepping up its cooperation with the southern countries in the spirit of solidarity, last year India established the India-UN Development Partnership Fund that supports Southern-owned and led, demand-driven, and transformational sustainable development projects across the developing world, with a focus on Least Developed Countries (LDCs) and Small Island Developing States (SIDS). "I would like to reiterate that the international community must step up its efforts to fulfill the commitments already undertaken not as a charity but with full realisation that it will be in our collective interest,? he said.

GST, demonetisation brought 1.8 million more people into Income-Tax net: India

The reforms carried out by India has been bearing fruits and benefiting people, making a strong case for more steps, a top IMF official has said.

The implementation of the goods and services tax (GST), despite a bumpy road, is going to help secure the solidity of foundation of public finances, David Lipton, the International Monetary Fund (IMF)'s First Deputy Managing Director David Lipton, told PTI.

The recent steps taken to deal with the accumulated problems in banks are important ones, Lipton said, as he identified digital ID technology and other structural reforms important moves towards inclusive growth and making India an economic powerhouse.

"There's certainly more to be done but India is certainly seeing benefits from what it has done," he said on the sidelines of the Spring meeting of the IMF and the World Bank.

"India's reforms have been bearing fruits and we see that in growth performance. (India's) growth last year was 6.7 per cent. We're now projecting 7.4 this fiscal year and 7.8 the following (year). That's a very healthy acceleration and it really means for a country that is huge, adds up to an awful lot of economic activity.

"India's goal is to have sustained growth and to have a growth that boosts the living standards very broadly across the population. The reforms that have been carried out so far have had benefits and make a very good case for carrying forward with further reforms," Lipton said.

A country of India's size has to be very careful to keep public finances under control because any interruption of economic activity that comes from fiscal difficulties would be a setback, he said.

Strengthening the foundation of fiscal finances with the GST is one reform that stands out, Lipton said.

Asked if these reforms have been inclusive enough, Lipton said the eco-system being built around digital ID technology offers a big help in this regard.

The problem of inclusion in India is particularly a difficult one given the size of the country and the remoteness of much of the population as well as the complexity of some very overburdened urban areas, he said.

"There's been progress, but I think that this is a challenge that has been not solved yet and may not be solved for a while. But what makes sense is to carry on.

"I hope that in India's case, new technologies, some of which are already being applied can help overcome remoteness and can promote inclusivity, whether it's retina ID numbers system and the architecture of finance and commerce that's going to be built around that or some of the new fintech innovations that allow people to do commerce or banking, whether it's savings and earning on their savings or borrowing may be useful for the creation and building businesses through new technologies," Lipton said.

The Indian government is effectively looking at how technologies can lead to better efficiency and less waste and corruption in government interactions with the people, whether it's in spending and benefits or the collection of taxes, the senior IMF official said.

"So, I think in a big country, technology can be a way to leapfrog the more old-fashioned ways in building connectivity that leads to inclusion in the country," he said.

Asked about the Aadhaar Card technology, Lipton said it is relatively new and seems to have many advantages.

"It surely has huge promises and could help overcome remoteness and promote inclusion," he said.

There certainly are possible drawbacks, he noted.

"From the beginning, it's been clear that issues of privacy and data security are going to arise when you use a technology like this. And it'll be the societies' job to figure out the do's and don'ts of that," he said.

"I hope it (India's progress) will show in poverty reduction statistics and eventually in a measurement of metrics of inclusion.

"I've said there's more to be done. There are further reforms both in terms of consolidating the budget situation to ensure that there's never an incident of doubt about fiscal finances in terms of making the banking system more competitive and dealing with the legacy problems of NPAs (non- performing assets)," he said.

The important job is not just to recapitalise, but to change the governance and change the competitiveness so that banks serve as a positive force, allocating credit well and being a driving force in the economy, he said.

Asked about IMF Managing Director Christine Lagarde's remarks that she does not expect any major economic reforms in an election year, Lipton said: "It's always difficult to make policy during election years.

"We certainly hope that there can continue to be a progress, but it's really the judgement of the politicians, the government about what can be done when".

"If policies are managed well and reforms are supportive of inclusive growth, India's economy could become a powerhouse economy. It is already, I think the 10th largest, but with the population and the growth rate there's more potential.

"The challenges of getting from here to there are very substantial. India needs a process of growth and development. And development means both economic and social development and more inclusion. We do think the gender gap in involving women, in the economy in a way that their full potential can contribute to India's economic growth is very important objective," Lipton added.

The implementation of the goods and services tax (GST), despite a bumpy road, is going to help secure the solidity of foundation of public finances, David Lipton, the International Monetary Fund (IMF)'s First Deputy Managing Director David Lipton said

The reforms carried out by India has been bearing fruits and benefiting people, making a strong case for more steps, a top IMF official has said. The implementation of the goods and services tax (GST), despite a bumpy road, is going to help secure the solidity of foundation of public finances, David Lipton, the International Monetary Fund (IMF)'s First Deputy Managing Director David Lipton, told PTI. The recent steps taken to deal with the accumulated problems in banks are important ones, Lipton said, as he identified digital ID technology and other structural reforms important moves towards inclusive growth and making India an economic powerhouse. "There's certainly more to be done but India is certainly seeing benefits from what it has done," he said on the sidelines of the Spring meeting of the IMF and the World Bank. "India's reforms have been bearing fruits and we see that in growth performance. (India's) growth last year was 6.7 per cent. We're now projecting 7.4 this fiscal year and 7.8 the following (year). That's a very healthy acceleration and it really means for a country that is huge, adds up to an awful lot of economic activity. "India's goal is to have sustained growth and to have a growth that boosts the living standards very broadly across the population. The reforms that have been carried out so far have had benefits and make a very good case for carrying forward with further reforms," Lipton said. A country of India's size has to be very careful to keep public finances under control because any interruption of economic activity that comes from fiscal difficulties would be a setback, he said. Strengthening the foundation of fiscal finances with the GST is one reform that stands out, Lipton said. Asked if these reforms have been inclusive enough, Lipton said the eco-system being built around digital ID technology offers a big help in this regard. The problem of inclusion in India is particularly a difficult one given the size of the country and the remoteness of much of the population as well as the complexity of some very overburdened urban areas, he said. "There's been progress, but I think that this is a challenge that has been not solved yet and may not be solved for a while. But what makes sense is to carry on. "I hope that in India's case, new technologies, some of which are already being applied can help overcome remoteness and can promote inclusivity, whether it's retina ID numbers system and the architecture of finance and commerce that's going to be built around that or some of the new fintech innovations that allow people to do commerce or banking, whether it's savings and earning on their savings or borrowing may be useful for the creation and building businesses through new technologies," Lipton said. The Indian government is effectively looking at how technologies can lead to better efficiency and less waste and corruption in government interactions with the people, whether it's in spending and benefits or the collection of taxes, the senior IMF official said. "So, I think in a big country, technology can be a way to leapfrog the more old-fashioned ways in building connectivity that leads to inclusion in the country," he said. Asked about the Aadhaar Card technology, Lipton said it is relatively new and seems to have many advantages. "It surely has huge promises and could help overcome remoteness and promote inclusion," he said. There certainly are possible drawbacks, he noted. "From the beginning, it's been clear that issues of privacy and data security are going to arise when you use a technology like this. And it'll be the societies' job to figure out the do's and don'ts of that," he said. "I hope it (India's progress) will show in poverty reduction statistics and eventually in a measurement of metrics of inclusion. "I've said there's more to be done. There are further reforms both in terms of consolidating the budget situation to ensure that there's never an incident of doubt about fiscal finances in terms of making the banking system more competitive and dealing with the legacy problems of NPAs (non- performing assets)," he said. The important job is not just to recapitalise, but to change the governance and change the competitiveness so that banks serve as a positive force, allocating credit well and being a driving force in the economy, he said. Asked about IMF Managing Director Christine Lagarde's remarks that she does not expect any major economic reforms in an election year, Lipton said: "It's always difficult to make policy during election years. "We certainly hope that there can continue to be a progress, but it's really the judgement of the politicians, the government about what can be done when". "If policies are managed well and reforms are supportive of inclusive growth, India's economy could become a powerhouse economy. It is already, I think the 10th largest, but with the population and the growth rate there's more potential. "The challenges of getting from here to there are very substantial. India needs a process of growth and development. And development means both economic and social development and more inclusion. We do think the gender gap in involving women, in the economy in a way that their full potential can contribute to India's economic growth is very important objective," Lipton added.

India's reforms bearing fruits, make case for more steps: IMF

The World Bank on Monday noted that the Indian economy has recovered from the effects of demonetisation and the Goods and Services Tax (GST) and predicted a growth rate of 7.3 per cent for the country in 2018.

Further, the apex international financial institution forecast a rate of growth of 7.5 per cent for 2019 and 2020.

The World Bank in its twice-a-year South Asia Economic Focus report said that the growth is expected to accelerate from 6.7 per cent in 2017 to 7.3 per cent in 2018, and will subsequently stabilise, supported by a sustained recovery in private investment and private consumption.

The report also noted that India should strive to accelerate investments and exports to take advantage of the recovery in global growth.

Meanwhile, the bank also acknowledged that disruptions from demonetisation and the implementation of GST led to a setback in the economic activity, and a potentially larger negative effect on the poor and vulnerable.&nbsp;

The bank added that India would grow at 7.5% in 2019 and 2020

The World Bank on Monday noted that the Indian economy has recovered from the effects of demonetisation and the Goods and Services Tax (GST) and predicted a growth rate of 7.3 per cent for the country in 2018. Further, the apex international financial institution forecast a rate of growth of 7.5 per cent for 2019 and 2020. The World Bank in its twice-a-year South Asia Economic Focus report said that the growth is expected to accelerate from 6.7 per cent in 2017 to 7.3 per cent in 2018, and will subsequently stabilise, supported by a sustained recovery in private investment and private consumption. The report also noted that India should strive to accelerate investments and exports to take advantage of the recovery in global growth. Meanwhile, the bank also acknowledged that disruptions from demonetisation and the implementation of GST led to a setback in the economic activity, and a potentially larger negative effect on the poor and vulnerable.

Indian economy has recovered from demonetisation, GST: World Bank

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