Latest news with #AbhishekRastogi
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Business Standard
3 days ago
- Business
- Business Standard
E-way bills grow nearly 19% to 122.65 million in May, shows data
The year-on-year (Y-o-Y) growth in e-way bills — electronic permits required for transporting goods across and within states — surged by nearly 19 per cent in May, compared with a 23.29 per cent growth registered in April, according to data from the Goods and Services Tax Network (GSTN). This is the second-highest growth after a record 124.5 million in March this year. Sequentially, the number of e-way bills increased by 2.83 per cent in May, reaching 122.65 million, after a dip of 4.2 per cent in April to 119.26 million. E-way bills are required to move goods worth more than ₹50,000 and are often used as an early indicator of demand and supply in the economy. These trends typically manifest in larger economic indicators after some time. Intra-state e-way bills stood at 80.17 million in May, while inter-state e-way bills totalled 42.48 million during the month. According to GSTN data, there are 15.2 million registered GST payers, with 6.19 billion e-way bills generated cumulatively so far. The noticeable increase in the generation of e-way bills signals a significant improvement in compliance, indicating a stronger potential to reduce tax leakages, according to Abhishek Rastogi, Founder of Rastogi Chambers. "Businesses have become increasingly cautious in issuing accurate e-way bills, especially in response to numerous instances where flying squads have intercepted vehicles and taken stringent action against non-compliance. Such proactive enforcement has prompted businesses to adhere more strictly to GST norms," Rastogi said. He further noted that these compliance-oriented mechanisms are instrumental in strengthening the overall GST revenue collection framework. However, Rastogi also highlighted that there have been cases, some even reaching the courts, where perishable goods were subjected to manifestly arbitrary and unlawful actions. 'The GST Council must ensure that enforcement efforts are balanced and fair,' Rastogi added. 'It is essential that genuine businesses are protected from undue hardship, and all measures must be taken to prevent actions that could be detrimental to legitimate trade.' The Reserve Bank of India (RBI) cut the repo rate by 50 basis points on Friday and stated that private consumption, which drives overall demand, is performing well, helped by a slow rise in non-essential spending. It noted that rural demand is steady, urban demand is improving, and investment activity is picking up. The central bank expects the economy to grow by 6.5 per cent in FY26, with balanced risks.
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Business Standard
24-04-2025
- Business
- Business Standard
Companies can't claim tax deduction on regulatory settlements, says govt
Companies can no longer claim tax benefits for money spent on settling cases related to violations of key financial and competition laws, according to a notification issued by the Central Board of Direct Taxes (CBDT). The tax department clarified that any expenditure incurred to resolve proceedings under four specific laws will not be treated as a business expense. These laws are: the Securities and Exchange Board of India (Sebi) Act, 1992; the Securities Contracts (Regulation) Act, 1956; the Depositories Act, 1996; and the Competition Act, 2002. The change is effective immediately from April 23. This means that fines, penalties, or settlement amounts paid under these laws cannot be deducted while calculating a company's income for tax purposes. The notification has been issued under Section 37 of the Income-tax Act, 1961, which deals with business expenditure. It makes clear that such payments, being related to legal violations, will not be considered as made for the purpose of business or profession. "The government is making it clear that breaking rules won't just cost companies in fines, but also in higher taxes. This change stops companies from saving tax on money spent to settle cases where they've gone against the law. The government is sending a strong message that non-compliance will carry financial consequences—not just in fines but also in tax treatment,' said Abhishek Rastogi, founder of Rastogi Chambers.
