Group of ministers on GST to meet next week
Another panel of state ministers is also tasked with issue of lower or zero GST on health and term life covers, where the resistance is lower and is likely to be finalised shortly.
Over next few weeks, govt and states are expected to work together for a revamp of the eight-year-old tax regime, with reworking of cess, which can help cover some of the possible dent to state revenues.
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Indian Express
39 minutes ago
- Indian Express
Punjab Cabinet gives nod to denotify land pooling policy
The Punjab Cabinet on Thursday gave approval to denotify the land pooling policy, which the AAP government withdrew a few days ago. The decision in this regard was taken in the meeting of council of ministers, chaired by Chief Minister Bhagwant Mann here. The Cabinet decided to withdraw notification of the department of housing and urban development, Punjab pertaining to Land Pooling Policy 2025 issued on June 4 along with subsequent amendments, said an official spokesperson of the chief minister's office. While the government did not hold any customary briefing after the Cabinet meeting, a source said, 'There were several other ex-post facto approval to be given in the meeting. These agendas were read out one after the other and the nod was given. There was no discussion in the Cabinet.' He was referring to ex-post facto approval for the formation of a Group of Ministers (GoM) to ensure the smooth procurement on Kharif and Rabi crops. This GoM is chaired by the Agriculture Minister and includes the Ministers for Food & Civil Supplies, Transport, and Water Resources as members. Another ex-post facto approval was granted to the formation of a Cabinet Sub-Committee. This committee will review and consider recommendations made by the Committee of Officers regarding Parts II and III of the 6th Punjab Pay Commission Report. A source added, 'Everything was already decided. AAP national convenor Arvind Kejriwal had already announced his decision to withdraw the policy through a conference call. It was acceptable to all as most of the party leaders were already in sync that the policy was threatening to dim the future prospects of AAP in the state,' said the source. The government had announced its decision to withdraw the policy on Monday, after weeks long protest by farmer organisations and opposition parties against the policy. It was stated that while the AAP was in no mood to withdraw the policy, the party leadership's views changed after attendees in a state-level government function in Sunam, to mark the martyrdom day of Shaheed Udham Singh, started walking out just when Kejriwal started speaking. 'This was shocking for the party. The state that loved Kejriwal just a few years ago, didn't want to listen showed him this side. This was a learning. This was stated that the land pooling policy was the reason behind this negativity.' The Punjab Cabinet had approved the land pooling policy in June and had then asserted that not a single yard will be forcibly acquired from land owners. The state government had planned to acquire around 65,000 acres of land at many places including around 45,000 acres only in Ludhiana for developing residential and industrial zones. Under the policy, an owner will be given a 1,000 square yard of residential plot and a 200 square yard of commercial plot in fully developed land in lieu of one acre of land, the state government had said.
Time of India
4 hours ago
- Time of India
Group of ministers on GST to meet next week
NEW DELHI: Amid discussions for reduction of GST for many products, a group of ministers from states, headed by Bihar deputy CM Samrat Chaudhary, will meet next week. Several members of GoM, especially those from the Opposition, had suggested maintaining status quo on slabs and rates, citing possible adverse impact on revenue, but govt has undertaken a significant amount of work. Another panel of state ministers is also tasked with issue of lower or zero GST on health and term life covers, where the resistance is lower and is likely to be finalised shortly. Over next few weeks, govt and states are expected to work together for a revamp of the eight-year-old tax regime, with reworking of cess, which can help cover some of the possible dent to state revenues. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
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Business Standard
6 hours ago
- Business Standard
Bond market sees best day in 2 months after S&P upgrades India's rating
Government bond prices surged on Thursday after global rating agency S&P upgraded India's sovereign credit rating from 'BBB-' to 'BBB' — the first upgrade since 2007 — recognising the government's resolve to maintain fiscal discipline alongside a strong infrastructure drive. The yield on the benchmark 10-year government bond fell by up to 10 basis points during the day but gave up some gains towards the end of trading due to profit booking. Bond prices and yields move inversely. The rupee, which depreciated 0.14 per cent to close at 87.56/$ compared to 87.44 in the previous session, trimmed some losses after the rating upgrade announcement. The benchmark yield declined to 6.38 per cent before settling at 6.40 per cent, compared to Wednesday's closing of 6.48 per cent. This was the largest single-day yield drop in two months. 'The yield on the benchmark 10-year bond fell due to the rating upgrade and later there was some profit booking,' said a dealer at a primary dealership. 'Now that the yield has fallen below the 6.40 per cent mark, we might see 6.35 per cent soon,' he added. Market participants said they had expected a dovish pause or a hawkish cut, but the domestic rate-setting panel kept the policy repo rate unchanged at 5.50 per cent while projecting inflation for the first quarter of the next financial year above the RBI's target of 4 per cent, thereby diminishing expectations of an additional rate cut. Experts said the bond market rally after the rating upgrade was driven mainly by positive sentiment, expectations of stronger foreign inflows, and recognition of India's improved fiscal discipline — not by expectations of lower government borrowing. They noted that the government is expected to meet its 4.4 per cent fiscal deficit target, but weak direct tax collections (particularly corporate tax) and only a moderate cash surplus mean there is little scope to reduce borrowing or the supply of government bonds. However, indirect tax collections, such as goods and services tax (GST), remain strong, and any fiscal support for exporters is likely to have limited cost. Therefore, a significant increase in borrowing is also not expected. 'The reaction of the bond market is a positive sentiment created by the rating upgrades, but I don't think it reflects the fact that the market expects a cut in borrowing — that will depend on domestic dynamics like tax collection and how the government manages expenditure. Right now, we don't expect any extra borrowing, but at the same time we don't see scope for them cutting G-sec supply,' said Gaura Sen Gupta, Chief Economist, IDFC FIRST Bank. Expectations of increased government bond supply in the latter half of the current financial year, on the back of a 50 per cent US tariff on Indian goods exports, had pushed yields higher over the past week. However, S&P said the tariff's overall impact would be minimal and is unlikely to hinder India's long-term growth prospects. 'The rating upgrade from S&P is a significant positive for India, validating the country's long-standing case for an upgrade and reinforcing the India growth story,' said Madan Sabnavis, Chief Economist, Bank of Baroda. 'S&P has also noted that India will not be severely impacted by US tariffs. While the upgrade will not affect the Indian government's borrowing costs, since it does not borrow overseas, corporates with high domestic ratings could see their cost of funds in international markets decline by 5–10 basis points. The G-sec market's reaction was a one-off, driven by S&P's praise for the government's fiscal consolidation efforts,' Sabnavis added.
