
GST, Customs Training Institute gets ‘Athi Uttam' rating
Visakhapatnam: National Academy of Customs, Indirect Taxes and Narcotics (NACIN), Andhra Pradesh Zonal Campus, located in Akkayyapalem, Visakhapatnam received 'Athi Uttam' rating under National Standards for Civil Service Training Institutions (NSCSTI).
An assessing team from Capacity Building Commission (CBC), Government of India, visited the campus, to examine the training-related procedures on a variety of parameters and awarded the rating. During the assessment, the CBC team appreciated the innovative use of technology and initiatives of the institute in maintaining continuous connection with the field officers of the GST and Customs department.
Additional director general, Ravi Kiran Edara said that as part of 'Mission Karmayogi', the quality assurance framework for government training institutes was put in place by Central Government and NACIN in Visakhapatnam is one of the few government training institutes in the country to get such rating under CBC's NSCSTI framework. He further stated that the certification is a reflection of excellence in training delivery and that the institute continues to build competencies among GST and customs officers in innovative ways.
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Business Standard
an hour ago
- Business Standard
11 years of Seva, Sushasan, and Garib Kalyan: From stress to strength
The global economy is undergoing an unprecedented period of uncertainty, grappling with growing geo-economic fragmentation, even as elevated debt levels and emerging technologies raise concerns about financial stability. Amidst this, India continues to be a bright spot — a stark contrast to the previous major episode of volatility in 2013, famously known as the taper tantrum. Then, economic mismanagement — as a result of which India became dubbed a 'Fragile Five' economy — resulted in low growth, high inflation, high external deficit and impaired public finances. The transformation of the Indian economy over last 11 years — from having a twin-deficit problem to a five balance sheet advantage — is an outcome of the concerted policy efforts under PM Modi's leadership. When we came to power in 2014, the foremost priority was growth revival. Structural reforms were introduced, including GST, IBC , RERA, and during the pandemic years, the PLI Scheme, and ECLGS to help credit-worthy MSMEs survive the Covid shock. Equally, infrastructure and asset creation — neglected in the previous decade — was revived. Capital investment rose from 1.7% of GDP in FY2013-14 to 3.2% in FY2024-25 — effective capital expenditure, which includes the capital grants-in-aid, stood higher still (4.1% for 2024-25). In 11 years, 88 airports were operationalised, 31,000 km of rail tracks laid, metro networks expanded over fourfold, port capacity doubled, and National Highway length increased by 60%. Enhanced logistics and eased supply constraints are improving the economy's long-term efficiency and augur well for steady growth and low-and-stable inflation in the years ahead. Through this, we never lost sight of the common man — targeted interventions were launched to bring the historically deprived into the mainstream. With over 55 crore Jan Dhan accounts opened, 15 crore household tapwater connections provided, 4 crore houses built, 41 crore provided health insurance cover, and 10 crore LPG connections provided under PM Ujjwala Yojana, a welfare net against the perpetual cycle of exclusion and deprivation was established. Consequently, India has made significant strides in poverty alleviation — World Bank data shows that extreme poverty in India fell from 27.1% in 2011-12 to 5.3% in 2022-23, even under a revised, higher poverty line. India's emergence as the fastest-growing major economy is anchored on several favourable factors, and is closely intertwined with strengthening balance sheets of key sectors of the economy — banks, corporates, households, Government and the external sector. Let's take a deeper dive into this 'five balance sheet advantage'. First, corporate balance sheets are healthy. There has been noticeable improvement in interest-coverage ratio (ICR) of firms, and marked decline in the proportion of vulnerable firms. To put it in a global context, compared to 18% firms in emerging market economies (excluding China), only 12.2% Indian firms have ICR below 1, almost the same as advanced economy (AE) corporates. With strong financial flows to the commercial sector (total flow has increased from ₹33.86 lakh crore in 2023-24 to ₹34.88 lakh crore in 2024-25, with granular data showing strong support by equity issuances and corporate bonds by non-financial entities), and above average capacity utilisation in the manufacturing sector, there is ample room for investment. Second, bank and NBFC balance sheets are healthy, bolstered by strong profitability, improved asset quality, lower non-performing assets and adequate capital and liquidity buffers (see Figure 1), allowing robust credit flow to industry and agricultural sectors. This outcome results from sustained and proactive reforms, complemented by vigilant and forward-looking regulatory oversight. Third, Union Government's balance sheets are healthy, supported by buoyant revenue collections and improving debt sustainability. Government debt and the fiscal deficits, which rose briefly during the pandemic to support the most vulnerable, are back on a declining glide path, lowering economy-wide borrowing costs (see Figure 2). This has been achieved without compromising on the quality of expenditure. Our target to reduce government debt-GDP ratio to 50% (+/– 1%) by 2030-31 (from 57.1% in FY25) reflects a commitment to reducing intergenerational debt liability. The bond market has given a thumbs-up to India's fiscal management and a de facto credit upgrade as the spread to the 10-year US Treasury yield has come in below 200 basis points, and Indian 10-year bonds are priced above that of higher-rated sovereigns. Fourth, external balance sheets are healthy, supported by robust services exports, private remittances, and gross capital (particularly FDI) inflows. India's forex buffers have improved (providing import cover of over 11 months as of May 2025, up from just 7 months in 2013) and external vulnerability has declined. The low levels of current account deficit (averaging about 1% of GDP during 2014-25 compared to an average of 2.4% of GDP from 2005-15), and the ability to comfortably finance external obligations instil confidence. Finally, household balance sheets are healthy. Gross financial saving of households have remained steady, with increased borrowings (often termed 'liabilities') majorly directed to the creation of physical assets. Households are also diversifying their savings profile — the increased investment in mutual funds, equities, life insurance, and retirement funds, reflects an increased confidence and belief in India's growth story. With retail inflation well within RBI's target range (after averaging 4.6% in FY 2024-25, it moderated to a 75-month low of 2.8% in May); robust manufacturing and services activity (India continues to record the highest PMI reading among major economies); and continued resilience in the agriculture sector (supported by bumper rabi harvests, higher summer crop acreage, and healthy reservoir levels), global optimism in India is amply justified. This progress was despite a series of external shocks – the COVID-19 pandemic, geopolitical tensions, and weaponisation of trade and technology— upending the old premises and promises of global economic integration. These continue even today — while global trade and economic policy uncertainty have eased from historic highs in recent days, they remain elevated, and disinflation has stalled as the inflation in advanced economies continues above target (see Figures 3a and 3b). India's ability to stand out as a beacon of stability has been driven by a consistent reform agenda which focused on repair and capacity-building, trusting in the creative ingenuity of our people to find answers to the country's challenges. As PM Modi said in his first address from the ramparts of Red Fort: 'this nation has neither been built by political leaders nor by rulers nor by governments. This nation has been built by our farmers, our workers, our mothers and sisters, our youth.' From the digital payment revolution initiated by UPI (achieving transaction volumes of over 185 billion in FY25) to the entrepreneurial appetite revealed by MUDRA loan uptake (cumulative disbursements of over ₹33 lakh crore to 53 crore+ loan accounts), the last 11 years have shown the heights our economy can reach when we combine trust-based governance with systematic reduction of regulatory burden and an expansion of public goods. Challenges to the globalisation era today create stronger headwinds than have been experienced in living memory. However, the 'nation-first' leadership under PM Modi have instilled confidence in India's ability to navigate uncertainty. The 'five balance sheet advantage' anchors India's resilience and high-growth momentum, while continued trust-based governance and reforms guide our journey to the goal of Viksit Bharat by 2047.

The Hindu
3 hours ago
- The Hindu
Karnataka seeks hike in devolution of funds from Centre to 50%, more weight to a State's economic performance
To overcome a stark imbalance in the devolution of funds to Karnataka from the Centre, Chief Minister Siddaramaiah on Friday demanded that the share of taxes devolved to States (vertical devolution) be increased to at least 50%, and cess and surcharges be capped at 5% in the 16th Finance Commission (FC). He also sought support for ₹1.15 lakh crore investment to strengthen Bengaluru's infrastructure, given its major role in Karnataka's economy. Bridging regional gaps During a meeting with the 16th FC Chairman Arvind Panagariya and panel members in New Delhi, the Chief Minister highlighted the need to bridge regional gaps in Kalyana Karnataka and Malnad, which earn low incomes and have poor infrastructure. The State recommended including Union non-tax revenues in the divisible pool. For sharing funds among States (horizontal devolution), Karnataka suggested that each State retain about 60% of what it contributes, with 40% going to less-developed States, ensuring both growth and equity. To make the formula fairer, Karnataka has proposed reducing the weight of the income-distance criterion and giving more weight to a State's economic contribution, so that high-performing States are not penalised, but encouraged. In its memorandum to the FC, Karnataka has called for critical reforms to make the fiscal devolution system more growth-oriented, predictable, and fair. Three key issues The State has highlighted three key issues such as the growing disparities in per-capita devolution, the flawed design of revenue deficit grants, and the unpredictable nature of State-specific grants. The Chief Minister said that for every rupee Karnataka contributes to the Union taxes, it receives only 15 paise in return. The reduction in Karnataka's share under the 15th FC from 4.713% to 3.647% has resulted in a cumulative loss of over ₹80,000 crore during the award period. Karnataka played a pivotal role in India's economic growth, contributing nearly 8.7% of the national GDP with just 5% of the population. It ranked second in GST collections, he said. Big drop in devolution Mr. Siddaramaiah said Karnataka's per capita devolution has dropped significantly, from 95% to 73% of the national average between the 14th and 15th Finance Commissions, despite increased GDP contribution. While noting that equity remained a key principle, he said it must be implemented in a time-bound and outcome-oriented manner, without disadvantaging States that demonstrate strong economic performance and sound fiscal management. He said that the income-distance weightage should be reduced by 20% and the same should be reallocated to reflect the States' fiscal contribution, as measured by their share in the national GDP. Mr. Siddaramaiah recommended replacing discretionary special grants with a formula-based allocation of 0.3% of gross Union receipts. However, he reiterated the request for grants for Bengaluru and other critical projects if the commission continues with such provisions. The Chief Minister emphasised that growth and equity must coexist, and that a strong Karnataka supported by fair fiscal devolution was essential for a strong India. 'Karnataka's fiscal strength fuels national growth. It is time to ensure that growth is not penalised but rewarded. We urge the commission to adopt a balanced, forward-looking approach to devolution,' the Chief Minister said. The FC's award period commences on April 1, 2026.

Time of India
6 hours ago
- Time of India
India's inefficient tax collection methodology – a review is needed!
Homeyar Jal Tavaria is a professional accountant with interest in the science of accounts and audit, observer and commentator on macro economic commercial, financial and economic events, occasional blogger'. LESS ... MORE The main heads of tax collection in India are Income Tax, Goods & Services Tax (GST), excise duty, customs duty, and securities transaction tax (STT). There is enough empirical data to show that our tax collection mechanism is faulty and there is definitely serious tax evasion at both the direct tax (income tax) and indirect tax ends (mainly GST). For the purpose of better understanding, we need to break up the 2 main heads of tax collection (income tax on sources of income – different income heads) and GST tax – on consumption of goods and services. We are all aware of the anomalies and failures of income tax. Certain types of income (agriculture income) are fully exempt, significant number of PAN Card holders do not file income tax returns. Also, one can be reasonably sure that the maximum payment of income tax (% of income tax payable to taxable income) is in the middle tier. The bottom tier % of income tax paid will be low because of progressive taxation rates and allowed tax deductions, while the upper tier manages the taxability of income very well, exploiting the exemptions and set offs extremely well. Similarly, we seem to be having some issues with GST collection. The geographical states spread across India and GST collections from those states linked with the Gross State Domestic Product (GSDP – cumulative being national GDP) are giving surprising results. Note – there is not much available in the public domain on GST collection details in terms of applicable years and geography (state contribution). However, whatever data is available is raising plenty of issues on the quality of GST tax collection and the need to really review the entire tax collection and tax payment system. For the year 2024/25, the Top 10 GST paying states of India and the GSDP generated by them for the year 2023/24 are as under. Note that the data years are different, but the issue of concern being raised does not get really impacted. Details are as under: State Rank Name of State GST collected / GSDP values – % GST collected – Rs Billions 2024/25 GSDP generated – Rs Billions 2023/24 1. Maharashtra 7.88 3184.97 40443.00 2. Gujarat 7.94 1749.38 22034.00 3. Karnataka 5.72 1430.23 25007.00 4. Tamil Nadu 4.13 1124.56 27216.00 5. Uttar Pradesh 4.15 1057.89 25479.00 6. Haryana 9.98 982.34 9841.00 7. West Bengal 5.72 876.54 15318.00 8. Rajasthan 5.64 765.43 13579.00 9. Telangana 4.99 654.32 13118.00 10. Andhra Pradesh 4.16 543.21 13035.00 Notes: GST being a consumption-based tax, one would have thought that the states GST collected and GSDP generated % would largely be in one narrow band as percentages. That is not the case per the data above. There are 3 percentage bands coming up – More than 7.5% (GST / GSDP %) – states contributing Maharashtra, Gujarat, Haryana Between 5% to 7.5% – states contributing are Karnataka, West Bengal, and Rajasthan Below 5% – states contributing being Tamil Nadu, Uttar Pradesh, Telangana, Andhra Pradesh. The Western India states of Maharashtra and Gujarat are in the top contributors, while surprisingly, the Southern India states of Tamil Nadu, Telangana, Andhra Pradesh are the laggards. Such a big differential in GST contribution % needs to be looked into. The North India and East India states need to shake off their lethargy and become worthwhile indirect tax (GST) contributors. It would help to analyse why certain states have such low GST contributions as % of GSDP. There is a mine available to be exploited. India has to significantly upgrade its GST tax collection mechanism. The above collection % differential highlights that the tax collection structure needs a review. India cannot be sanguine that the direct and indirect tax collections are buoyant. The buoyancy is on a weak foundation base, and the tax structure needs a major relook to keep the buoyancy going and ensure that all are caught in the tax net so that the taxes can be called fair and equitable taxes. Fair and equitable taxes ensure that businesses are operating on a level playing field. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.