“You are listening to Expresso Business Update. This is the latest news from the world of Indian and international business brought to you by The Indian Express and The Financial Express.
Let’s start. India’s biggest tax reform, the Goods and Services Tax, today completes its half-decade journey, with many hits and some misses, and also brought about a paradigm shift in the use of technology to achieve tax compliance and recovery of Rs 1 lakh crore revenue collection every month ‘a new normal’. A nationwide GST, which included 17 local levies such as excise, service and VAT taxes and 13 exemptions, was implemented at the stroke of midnight on July 1, 2017. Under GST, a four-rate structure that exempts or imposes a low rate There is a 5 per cent tax on basic necessities and a maximum rate of 28 per cent on cars. The other tax slabs are 12 and 18 percent. In the pre-GST era, the total of VAT, excise duties, CST and their cascading effect led to 31 percent as tax to be paid, on average, for a consumer. In addition, there is a special rate of 3 percent for gold, jewelery and precious stones and 1.5 percent for cut and polished diamonds.
Meanwhile, Prime Minister Narendra Modi launched the Rs 6,062.45 crore World Bank-Assisted central government program to boost and accelerate the performance of MSMEs on Thursday, three months after it was approved by the cabinet chaired by Prime Minister Modi. The five-year RAMP scheme will start in the current fiscal year 2022-23, even as the government and the World Bank announced it in 2020 to support Covid-affected MSMEs in their business recovery. Addressing the ‘Udyami Bharat’ program in New Delhi, Prime Minister Modi said: “18,000 MSMEs have been transferred digitally for more than Rs 500 crore and more than Rs 1,400 crore has been released under the Self-Reliant India Fund of 50 000 crores for MSMEs. MSMEs play a very important role in the country’s progress. About a third of the contribution to India’s GDP comes from MSMEs. If India earns Rs 100, Rs 30 is due to MSMEs. Strengthening the MSME sector benefits everyone”.
In the industrial sector, the government has extended for the fourth time the deadline for submitting applications under the incentive scheme linked to the production of special steels until July 31, 2022. Initially, March 29 was the last date for Manufacturers will apply to the benefits under the Incentives Linked to Production scheme for special steels. It was then extended until April 30 and again until May 31, 2022. It was then extended until June 30. On July 22 last year, the Union Cabinet chaired by Prime Minister Narendra Modi approved a Rs 6,322 crore PLI scheme to boost special steel production in India. The move is expected to attract an additional investment of about Rs 40,000 crore and create 5.25 lakh job opportunities.
Towards the Market. Sebi has delisted Parsvnath Developers from the stock market for six months and imposed a Rs 15 lakh fine on the company for breaching listing rules. The company was ordered to pay the fine within 45 days, the Securities and Exchange Board of India said in an order. Sebi found that Parsvnath Developers Ltd failed to make a provision for the outstanding amount in the ledger accounts of contractors and subcontractors and failed to strictly comply with Accounting Standards 7 or AS 7, which deals with construction contracts.
In more market news, Moody’s Investors Service said on Thursday that global credit conditions have turned more negative amid rising borrowing costs, the protracted conflict between Russia and Ukraine and slower economic growth. He said rising energy and food costs caused by the conflict in Ukraine are sapping household purchasing power, raising input costs for businesses and dampening investor confidence. Among sovereign debt issuers, debt sustainability will be especially challenging for many frontier market sovereigns as their borrowing costs rise while their economies have yet to fully recover from the COVID-19 pandemic crisis, said. Moody’s in a report said global credit conditions have turned more negative and will tighten for the rest of the year amid rising borrowing costs, the prospect of a protracted military conflict between Russia and Ukraine, materially weaker growth slow world economy, rising prices. for energy and commodities, renewed supply chain disruption and increased financial market volatility.
And finally, let’s see how the stock market performed today. BSE Sensex and NSE Nifty 50 ended the volatile session in the red on Thursday, a weekly and monthly F&O expiration day. BSE Sensex fell 8 points to finish at 53,019, while the Nifty 50 finished at 15780, down 19 points. Tech Mahindra, IndusInd Bank, Bajaj Finance, Tata Steel, Bajaj Finserv, HCL Tech, M&M, HDFC were among the main draggers of the index. On the other hand, Axis Bank, State Bank of India (SBI), Kotak Mahindra Bank, NTPC, ICICI Bank, Reliance Industries Ltd, L&T were among the top gainers from BSE Sensex.
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