Finance ministry proposes 2-tier GST structure, special rates on select items; Council meet likely in Sept
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Hans India
21 minutes ago
- Hans India
Revanth shreds Centre's take on State debts
Hyderabad: Close on the heels of the Union government declaring in Parliament that Telangana's debts in 10 years were Rs 3.5 lakh crore, Chief Minister A Revanth Reddy has shredded the Centre's official figures on the mounting debt burden on the state, saying: "The previous government left us with mounting debts and arrears of Rs 8,21,652 crore when the people's government assumed power. Out of this, Rs. 6,71,757 crore are debts. Rs 40,154 crore dues are related to the payments of the employees and other schemes. Rs 1,09,740 crore dues are related to SC, ST sub plan, Singareni (Collieries), electricity and other departments," Reddy said. From the total debts, the state government has completed the debt service of Rs 2,20,676 crore, which included Rs 1,32,498 crore principal amount and Rs 88,178 crore interest amount till the date, he said. Speaking after unfurling the National Flag at the historical Golconda Fort here on Friday to mark the Independence Day, he amplified that, despite facing financial burden, his government was working hard to take the state forward from zero to the top level. Revanth Reddy demanded the Centre to approve the BC quota bills passed by the state legislature. He said the state Assembly has passed two bills to provide 42 per cent quota to Backward Classes in local bodies, education and jobs and sent them for presidential assent. "On this occasion, I once again demand the central government to take a quick decision on the pending bills," he said. The Socio-Economic Caste Survey and SC classification conducted in the state were courageous decisions of the state government in the history of India, he underlined. The Chief Minister took a broadside at the previous Bharat Rashtra Samithi government on the unbridled encroachment on lakes, ponds and other water bodies in Hyderabad. "In the previous government, people were not serious about the encroachment on lands, ponds and canals due to lack of a credible system. So far, the Hyderabad Disaster Management and Asset Protection Agency (HYDRAA) has protected 13 parks and 20 lakes from encroachments. Amberpet Bathukamma Kunta has been restored. The HYDRAA protected government lands worth Rs 30 ,000 crore. Today, the common people are praising HYDRAA. "The opposition parties are using HYDRAA as a weapon for political gains. My appeal to people is to think and compare the past with the current situation when the Hyderabad City received heavy rains". The opposition was trying to create unrest by showing HYDRAA as a failed system, he said. "Today, cities like Bangaluru, Mumbai and Chennai are facing flood problems. Hyderabad should not witness such a plight. To make Hyderabad a safe destination for living, HYDRAA was brought about to curb the encroachment of tanks," he said. Referring to Telangana Rising 2047 document, the Chief Minister said that the document promises a permanent solution to Hyderabad's flooding problem with the Musi Rejuvenation Project. The document also showed how India's Future City, being built to international standards, will be a gateway to the modern world. 'Telangana Rising – 2047 is a plan to radically transform the image of Telangana with the construction of the Gandhi Sarovar project at Bapu Ghat, greenfield highways, dry ports, second phase Metro Rail, radial roads between the Outer and Regional Ring Roads, Warangal and Adilabad airports, Hyderabad-Nagpur, Hyderabad-Bangalore, and Hyderabad-Vijayawada industrial corridors. Our goal is to implement this resolution and make Telangana a key player in the country's progress by 2047. The Telangana Rising – 2047 is a grand visionary document to transform Telangana into a one trillion US dollar economy by 2035 and a 3 trillion UD dollar economy by 2047. This is not just a plan. It is a resolve to make Telangana proud on the world stage.' Further, the Chief Minister said aligning the vision of Telangana Rising 2047 document with that of India@2047: "We are striving to achieve the goals and the role of Telangana in making India number one in the world. Our determination is that Telangana should play a key game changer role that will change the face of India by 2047."
Mint
an hour ago
- Mint
Trump-Putin meeting to GST reforms: How Indian stock market may react on Monday? EXPLAINED
Trump-Putin meeting: The most-awaited three-on-three Trump-Putin meeting ended in Alaska on Friday with a hope that the next round of meetings will be held in Moscow soon. However, the US President Donald Trump didn't walk out of the meeting as he had vowed ahead of the meeting, which signals development in the bid for a ceasefire in the Russia-Ukraine war. Apart from this, Indian Prime Minister Narendra Modi's announcement of GST reforms from the Red Fort in his Independence Day speech may also work as a positive domestic trigger for the Indian stock market. According to stock market experts, ice has been broken in the US-Russia bilateral relations as both global leaders (Vladimir Putin and Donald Trump) vowed to sit for another round of meetings. They said Donald Trump promised to leave the meeting if he didn't like Putin's approach. However, after the end of the Trump-Putin meeting, both leaders talked positively, which signals 'progress but no deal'. When it opens on Monday, they said the Trump-Putin meeting outcome is expected to be respected by the global markets, including Dalal Street. They also expected a positive response to the GST reforms that Narendra Modi announced in his 15th August speech on Friday. They predicted a positive opening on Dalal Street but doubt the Nifty 50 could break above the 24,800 hurdle. Decoding the outcome of the Trump-Putin meeting, Avinash Gorakshkar, a SEBI-registered fundamental analyst, said, "The most-awaited Trump-Putin meeting has ended with progress without any deal. Both leaders agreed to meet for the next round of talks, which is a good sign in bringing an end to the Russia-Ukraine war. Ahead of the meeting, the US President had vowed to walk out of the meeting if he didn't like Russian President Vladimir Putin's line of approach. However, after the end of the Trump-Putin meeting, both leaders talked positively, which may be a positive trigger for the global markets, including the Indian stock market." However, Gorakshkar maintained that there was no development on Trump's tariffs, and the fear of US tariffs is still around. Pointing towards the GST reforms announced by Narendra Modi in his Independence Day speech, Anuj Gupta, Director at Ya Wealth, said, "The Indian stock market has already discounted Trump's tariff, and any further negative could have happened if the Trump-Putin meeting had failed. However, in this 'progress with no deal' situation, the market is expected to remain unaffected by no big breakthrough on Trump's tariffs. However, a big domestic trigger is the GST reforms, which Prime Minister Narendra Modi announced in his Independence Day speech. This is expected to enable bulls to outshine bears on Monday, and we may see a positive opening when trading resumes on Dalal Street after a gap of three days." Advising investors to look at domestic consumption-driven segments, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, "Domestic consumption-driven sectors like banking and finance, telecom, aviation, capital goods, hotels, FMCG, and cement will not be impacted by Trump's tariffs. But it is important that investors choose stocks that are fairly valued in these segments." On why Trump's tariff may not be a significant factor in the near-term, Gaurav Goel, Founder & Director at Fynocrat Technologies, said, "One reason for the market's stability is the strong and steady support from domestic institutional investors. They have been putting large amounts of money into Indian equities, acting as a cushion against external shocks. In May, DIIs bought ₹ 67,642 crore worth of stocks, in June ₹ 72,673 crore, in July ₹ 60,939 crore, and in August ₹ 51,899 crore. With this level of consistent buying, the market is finding the strength to stay stable." "Another factor is the strength and diversity of the Indian economy. Our growth does not rely on any single export market. Domestic consumption, services, manufacturing, and technology create a broad base that cannot be easily shaken by a single policy decision abroad. Even if the full set of proposed tariffs comes into effect, experts estimate the impact on India's GDP to be less than 0.2 per cent. This is a reminder of how small this challenge is in the context of our overall economy," Goel added. However, market experts maintained that Monday's upside would be limited, and the Nifty 50 index may not be able to break the 24,800 hurdle. "The Indian stock market may have a positive opening on Monday, but the rise will be limited and the Nifty 50 index may find it tough to break above the 24,800 hurdle," Avinash Gorakshkar said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Hindustan Times
an hour ago
- Hindustan Times
Will the government's proposal for two GST slabs—5% and 18%—under a revamped tax regime benefit homebuyers?
The Central government has proposed two tax rates of 5% and 18% in the revamped goods and services tax (GST), slated to replace the current indirect tax regime by Diwali this year, according to media reports. The Central government has proposed two tax rates of 5% and 18% in the revamped goods and services tax (GST), slated to replace the current indirect tax regime by Diwali this year. (Representative photo) (iStockphoto)(MINT_PRINT) While the presently nil or zero per cent GST tax is charged on essential food items, 5% is charged on daily use items, 12% on standard goods, 18% on electronics and services, and 28% on luxury and sin goods, the revamped GST regime will have two slabs plus a special rate of 40% for luxury and 'sin' goods. The development comes hours after Prime Minister Narendra Modi, during the Independence Day address, promised next generation Goods and Services Tax (GST) reforms as a Diwali gift for the country. In real estate, construction materials attract varying GST rates, cement at 28%, steel at 18%, paint and varnishes at 28%, ceramic tiles at 18%, and sanitary ware at 18%. Services like architectural design and project management are taxed at 18%. These rates directly influence project costs and, in turn, housing prices. Under construction real estate projects attract GST of XX and ready-to-move-in YY%. Under-construction residential property attracts 5% GST (1% for affordable housing), while ready-to-move-in property with an occupancy certificate attracts no GST. Also, under the proposed GST structure, most goods and services would fall under either the 5% or 18% slab, replacing the current 5%, 12%, 18%, and 28% rates. However, even if the government cuts indirect taxes, the key question remains: will developers pass on the savings to homebuyers, or retain them to protect profit margins, say experts. 'A reduction in GST on under-construction homes would provide much-needed relief, making housing more affordable and boosting sentiment in the real estate sector,' says Vikas Bhasin, MD of Saya Group, a luxury real estate developer. Agrees Pradeep Aggarwal, founder and chairman, Signature Global (India), 'The housing sector stands to benefit from these reforms, as moving to a two-slab structure will not only make GST compliance easier for real estate developers, but also help rationalise input costs, improve cash flows and eventually reduce the cost of homes for buyers.' Lower input costs may boost affordability Currently GST in the real estate sector applies through multiple rates. Affordable housing projects attract a GST of 1% without input tax credit. On the other hand, non-affordable housing attracts a GST of 5%. Affordable housing is officially defined as a residential unit up to 60 sq. m carpet area in metropolitan cities and 90 sq. m in non-metros) and priced up to ₹45 lakh. Let us take the case of cement which is a key input. If GST on cement reduces from 28% to 18%, developers will see a significant reduction on construction costs. GST proposals: A 10%–20% reduction in overall taxation would make property more affordable, say financial experts.(HT Graphic) 'Even if the government reduces indirect taxes, the real question is whether developers will pass on the benefit to homebuyers. There's a possibility they may retain it to safeguard their margins, rather than lowering prices,' says Abhishek Kumar, founder and chief investment advisor of SahajMoney, a financial planning firm. Affordable housing rates are likely to change substantially, if the concessional tax treatment continues. However, luxury housing can see higher indirect costs if high-end fittings and finishes fall under the 40% luxury rate, say experts.. Push towards formalisation of property deals Experts believe that revision of GST rates could do more than trim costs. It has the potential to bring a structural shift in the way real estate transactions are conducted. With the lowering of the overall tax burden, the sector could witness higher compliance, reduced cash dealings and a greater flow of transactions through formal channels. Also Read: Is Gurugram's luxury real estate boom sustainable? Experts weigh in on price and demand trends 'A 10%–20% reduction in overall taxation would make property more affordable, spur transactions, and shift dealings into the formal economy, a major boost for India's largely cash-oriented real estate sector,' says B. Srinivasan, director and founder, Shree Sidvin Investment Advisors. Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics
