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The Hindu
3 hours ago
- Business
- The Hindu
CM directs Commercial Taxes dept. to curb evasion of GST
Chief Minister A. Revanth Reddy has directed the Commercial Taxes department to take steps to curb evasion of payment of Goods and Services Tax. The department was asked to ensure that all the tax assessees under GST paid their taxes in time. At the same time, the department should set up a call centre to clear doubts among the tax payers. The department could leverage artificial intelligence in ensuring effective operation of the centre. The Chief Minister reviewed the functioning of the department late on Tuesday night. He wanted the officials concerned to study the implementation of GST and collection of other taxes in other States and replicate the best practices being adopted there. Steps should also be initiated to provide efficient services to the users in the offices of the Commercial Taxes department.
News18
4 hours ago
- Business
- News18
Land, Forest Clearance Issues Delayed Nearly 500 Highway Projects Beyond March 2025 Deadline: MoRTH
The ministry also said that it is making all efforts to resolve the pending issues in close coordination with state governments and other stakeholders to complete these projects As many as 489 national highway projects across the country are delayed beyond the March 2025 deadline, the ministry of road transport and highways (MoRTH) informed the Rajya Sabha on Wednesday. These projects are facing delays owing to land acquisition hurdles, forest and wildlife clearances, railway approvals, and utility shifting challenges. 'Completion of about 489 projects, originally scheduled to be completed within March 2025, are pending due to land acquisition, forest/wildlife clearances, railway approvals, utility shifting, and other issues like contractor's slow progress, force majeure events, etc," MoRTH said in a written reply. The ministry also said that it is making all efforts to resolve the pending issues in close coordination with the state governments and other stakeholders to complete these projects. Aam Aadmi Party's Sandeep Kumar Pathak had asked union minister Nitin Gadkari about the projects missing the deadline and the cost overrun. Explaining this, Gadkari said that cost overrun has been incurred in some of the delayed projects due to various factors like 'enhanced cost of compensation for land and structures, price escalation, Goods and Services Tax (GST) impact, additional Vehicular Underpass (VUP) or Pedestrian Underpass (PUP) on public demand or otherwise". Changes in General Arrangement Drawing (GAD), design for Road Over Bridges and Road Under Bridges (ROBs/RUBs) to meet the Railway standards also impact the estimated cost, the ministry added. 'However, there is no cost overrun on aggregated basis to the extent of 35%," Gadkari added. The ministry also explained that if projects are inordinately delayed due to some reasons and further progress under the ongoing contract is not envisaged, the contract is terminated or foreclosed and re-awarded, with or without modification in the project configuration. Gadkari also informed the House that in order to avoid time and cost overruns in projects and prevent contractual disputes, the ministry issued a policy circular in May 2025 laying down milestones for land acquisition and forest and wildlife clearances to be adhered to by all project implementing agencies for approval, award, and declaration of appointed dates. The new policy aims to streamline project execution and prevent future delays. view comments First Published: July 30, 2025, 18:56 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
a day ago
- Business
- Business Standard
India's top 18 states' revenues to edge up 7-9% in FY26, says CRISIL
India's 18 largest states, accounting for over 90 per cent of the country's gross state domestic product (GSDP), are likely to record a marginal uptick in revenue growth of 7–9 per cent in FY26, compared to the 6.6 per cent growth seen in FY25, according to a report by rating agency CRISIL on Tuesday. This growth, slower than the decadal average of about 10 per cent, is expected to lift these states' cumulative revenue to approximately ₹40 trillion in FY26, up from ₹37.26 trillion in FY25. The anticipated uptick in state revenues will mainly be driven by steady Goods and Services Tax (GST) collections and continued support from the Centre through tax devolutions and grants. States' own tax revenues, which make up about 52 per cent of their total income, are projected to grow by roughly 8 per cent in FY26, reaching ₹21.08 trillion. Within this, GST collections, which account for the largest share, are expected to grow 9-10 per cent to ₹9.18 trillion, slightly lower than the 10.2 per cent increase observed last year. 'While better tax compliance and the continuing shift in economic activity from the unorganised to the organised sectors are expected to support GST revenue, subdued domestic consumption and inflation could dampen growth and pose a downside risk to that expectation,' said Anuj Sethi, Senior Director at CRISIL Ratings. Revenue from liquor sales is also projected to grow 9-10 per cent, reaching ₹4.17 lakh crore, driven by a combination of rising consumption and higher excise duties. On the other hand, revenue from petroleum taxes is expected to rise by just 2 per cent to ₹2.87 trillion. Other sources, such as states' non-tax revenue, are also expected to grow slowly at around 4 per cent. The 18 states include Maharashtra, Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh, Telangana, Rajasthan, West Bengal, Madhya Pradesh, Andhra Pradesh, Kerala, Odisha, Punjab, Bihar, Chhattisgarh, Haryana, Jharkhand, and Goa. After a contraction of about 10 per cent last fiscal year, grants-in-aid from the Centre are expected to recover, with projected growth of 3-4 per cent. This rebound is attributed to increased outlays for centrally sponsored schemes and local body grants, as outlined in the latest Union and state budgets. The report also noted that states will continue to benefit from central tax devolutions, which are expected to grow 11-12 per cent this year, following a nearly 14 per cent increase in FY25. 'Rising gross tax collections, supported by growth in income tax and GST collections, remain a key driver,' said Aditya Jhaver, Director, CRISIL Ratings. CRISIL's projections depend on steady nominal GDP expansion and could be affected by uncertainty in global markets, weak domestic demand, and inflation trends. However, states could outperform projections if tax buoyancy exceeds expectations or if there is stronger central government support. 'To ensure sustainable revenue growth, states will have to focus on expanding their own revenue and improving collection efficiency,' the report concluded.
Mint
a day ago
- Business
- Mint
NSE Q1 Results: IPO-bound firm posts 14% YoY rise in profit to ₹2,924 crore, even as revenue dips 11%
NSE Q1 Results: IPO-bound National Stock Exchange (NSE) posted a mixed set of numbers for the first quarter of the fiscal year 2025-26 (Q1 FY6). NSE, the largest derivatives exchange in the world by number of contracts traded, posted a jump in its profit for the quarter ended June 2025 even as its revenue declined. NSE's consolidated net profit in Q1 FY26 stood at ₹ 2924 crore, up 14% year-on-year, as against ₹ 2,567 crore posted in the same period last year. However, its revenue from operations saw an 11% YoY decline to ₹ 4,032 crore from ₹ 4,510 crore in the same period last year, reflecting the impact of softer trading activity and fee compression. A key factor was the drop in F&O transaction charges, which fell to ₹ 1,729 crore from ₹ 2,744 crore a year ago—a 37% decline. Despite this, average daily turnover in the F&O segment rose 39% YoY to ₹ 360 lakh crore, underlining a paradox of high volumes but declining realisations, said Harshal Dasani, Business Head, INVasset PMS. The operating EBITDA stood at ₹ 3,130 crore in the quarter ended June 2025, as against ₹ 3,106 crore in the same period a year ago. Meanwhile, EBITDA margins improved from 69% to 78%. During the first quarter of FY26, NSE contributed a total of ₹ 14,331 crore to the exchequer. This included ₹ 12,338 crore in Securities Transaction Tax (STT) and Commodity Transaction Tax (CTT), ₹ 875 crore in stamp duty, ₹ 265 crore in SEBI fees, ₹ 338 crore in income tax, and ₹ 515 crore in Goods and Services Tax (GST). Meanwhile, in the unlisted market NSE share price has declined 6% in the last one month. According to Unlisted Zone, which deals in the pre-IPO shares of companies, NSE share price has dropped to ₹ 2,175 from ₹ 2,325 in the last one month. However, for the past six months, the stock has been higher by 14%. According to Dasani, NSE's profitability resilience despite revenue contraction signals strong operational leverage and cost control. However, the reliance on derivatives—and SEBI's scrutiny on F&O volumes—makes future earnings visibility sensitive to regulatory shifts, he said. 'As the IPO approaches, this result will likely be viewed favourably by long-term investors who value its scale, duopoly status, and high cash flows, but caution around the sustainability of F&O economics will remain,' Dasani added.
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
India eyes uniform 12% GST on textile value chain
India may reconsider the Goods and Services Tax (GST) structure across the entire textile value chain. The current differential tax rates on various textile products are not only creating an inverted duty structure—where raw materials are taxed higher than downstream products—but are also making it difficult for industry players to claim input tax credit (ITC). The GST Council may bring forward a proposal to introduce a uniform tax rate of 12 per cent on all products in the textile value chain. This aims to simplify the tax structure, increase industry competitiveness, and attract investment. However, such a proposal could raise taxes and prices on cotton, potentially reducing its appeal in comparison to synthetic fibres, which are currently taxed at higher rates. India is considering a uniform 12 per cent GST across the textile value chain to simplify taxation and correct the inverted duty structure that currently burdens cotton products and hampers input tax credit claims. While the move may boost competitiveness and attract investment, it could raise prices for cotton-based goods and garments under ₹1,000, potentially favouring cheaper synthetic alternatives. Government sources have indicated that the proposal may be considered by the GST Council before September as part of the next phase of GST reforms. It is likely to feature in the rate rationalisation report by the Group of Ministers (GoM). The proposal aims to correct the long-standing inverted duty structure in the sector. At present, cotton is taxed at 5 per cent, yarn at 12 per cent, and synthetic fibres—as well as the chemicals used to produce them—at 18 per cent. Garments priced below ₹1,000 attract 5 per cent GST, while those priced above ₹1,000 are taxed at 12 per cent. The Indian industry has long been demanding a correction in the inverted duty structure to enable manufacturers to claim ITC. This distortion imposes an indirect financial burden on the sector and reduces its global competitiveness. A simplified and uniform tax rate would not only ease this burden but also attract fresh investment. Government officials and the GST Council have acknowledged the challenges faced by the industry. The Council is working on a broader move to simplify GST in general, aiming to boost the country's growth rate. Under the proposed plan, the GST rate on synthetic fibres would be reduced from 18 per cent to 12 per cent. However, the tax on cotton would rise from 5 per cent to 12 per cent. Garments—the final product in the textile value chain—would also be subject to a uniform 12 per cent tax, regardless of retail price. Currently, garments priced below ₹1,000 are taxed at 5 per cent, while those priced above that threshold attract 12 per cent. Hence, the tax rate for low-priced garments would increase, while that for higher-priced garments would remain unchanged. While the proposed tax adjustments may ease compliance for the textile industry, the cotton value chain could come under pressure due to the higher tax burden. Cotton fibre and fabric, currently taxed at 5 per cent, would see the rate rise to 12 per cent. Cotton yarn and thread—as well as their synthetic counterparts—are already taxed at 12 per cent. Thus, the cotton value chain also suffers from an inverted duty structure. A yarn trader from Delhi told Fibre2Fashion, 'A uniform tax rate of 12 per cent would simplify taxation for the textile industry if the GST Council approved the proposal. However, raising the tax on cotton fibre and fabric from 5 per cent to 12 per cent will increase their prices. Currently, cotton-based products attract lower GST than synthetic ones. Since synthetic fibre, yarn, and fabric are already cheaper than cotton, a higher tax on cotton will widen the price gap and make cotton products comparatively more expensive.' The proposal may also include removing the ₹1,000 price threshold for garments and applying a flat 12 per cent GST across all apparel, regardless of value. Fibre2Fashion News Desk (KUL)
