The World Opinion

Category: Economy

  • GST Revenue Growth Rate Slows In Sep, Collections At Rs 1.73 Lakh Crore | Economy News

    New Delhi: Goods and services tax (GST) revenue growth rate declined to 6.5 per cent in September at Rs 1.73 lakh crore as the rise in collections from domestic transactions as well as imports slowed.

    However, with the festival season ahead, collections are expected to be better in the coming months, tax experts said. According to government data released on Tuesday, GST revenues in September last year was Rs 1.63 lakh crore, while the In August 2024, the mop-up was Rs 1.75 lakh crore.

    Gross domestic revenue grew 5.9 per cent to about Rs 1.27 lakh crore. Revenue from import of goods was up 8 per cent to Rs 45,390 crore. Refunds worth Rs 20,458 crore were issued during the month, an increase of 31 per cent over the year-ago period.

    After adjusting refunds, the net GST revenue in September stood at Rs 1.53 lakh crore, 3.9 per cent higher than the year-ago period. GST collections during the April-September period of the current fiscal year grew 9.5 per cent to over Rs 10.87 lakh crore.

    PwC India Partner Pratik Jain said while the year-to-date GST revenues (September 2024) grew over 9 per cent, the monthly growth is perhaps less than expected.

    “This may need a closer look by the GST Council, particularly in the wake of rate rationalisation exercise. However, with festive seasons coming, the collection for next couple of months might be better,” Jain said.

    Deloitte India Partner MS Mani said the GST revenues for the coming months will be eagerly watched as they are also a proxy for the economic growth and can be correlated with the GDP numbers.

    However, the significant increase in GST refunds, especially IGST Export refunds, depicts the efforts of tax authorities in expediting refunds and the policymakers in simplifying the refund process.

    “The tepid single-digit growth in GST revenues in many of the large states should, hopefully, be corrected in the coming months,” Mani added.

    EY Tax Partner Saurabh Agarwal said the significant increase in GST refunds for exports suggests a substantial rise in exports from India. Adding further, the overall increase in GST refunds demonstrates the government’s commitment to timely release funds to support the working capital of exporters and industries facing an inverted duty structure.

  • Income Tax Audit Report Deadline Extended For AY 2024-25: Check New Date, Penalty, And How To Submit Online | Personal Finance News

    Income Tax Audit Report Deadline: The Central Board of Direct Taxes (CBDT) has extended the deadline for submitting tax audit reports for the assessment year 2024-25, offering relief to those required to comply with this obligation. The original deadline of September 30, 2024, has now been extended to October 7, 2024.

    This extension comes in response to difficulties faced by taxpayers during electronic submissions under the Income Tax Act, particularly due to problems with the e-filing portal. The new deadline specifically applies to assessees covered under section 139 of the Income Tax Act, 1961. 

    What Is Tax Audit? 

    It is an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint. It makes the process of income computation for filing of return of income easier. 

    Penalty If You Delay In Filing Tax Audit Report 

    If a taxpayer is required to undergo a tax audit but fails to do so, a penalty may be imposed. The penalty would be the lesser of 0.5% of the total sales, turnover, or gross receipts, or Rs 1,50,000. However, if the taxpayer give a reasonable cause for failing to complete the audit, no penalty will be levied under section 271B. 

    Who Needs To Submit A Tax Audit Report?

    -Businesses making more than Rs 1 crore in total sales. 

    -Professionals earning over Rs 50 lakh in a year.

    -Companies, no matter how much they earn.

    Other specific cases are mentioned in tax rules, like those using the presumptive taxation scheme but not meeting certain conditions. These taxpayers must get their accounts checked by a Chartered Accountant, who will prepare an audit report (Form 3CA/3CB and Form 3CD) for them to submit. 

    How To Submit Income Tax Audit Report

    Step 1: Ensure your auditor completes the audit, verifying all details for accuracy and correctness.

    Step 2: Log in to the income tax e-filing portal using your credentials to access your account.

    Step 3: Navigate to the appropriate section for uploading audit reports within the portal.

    Step 4: Select the correct assessment year for which the audit report is being submitted.

    Step 5: Follow the instructions to upload the completed audit report, including Forms 3CA/3CB and 3CD.

    Step 6: After uploading the report, confirm that the submission has been successful and received by the system. 

  • Centre Approves Rs 11,000 Crore For Strengthening Road Network In THIS State | Mobility News

    Road Network In Chhattisgarh: The Union government on Monday approved Rs 11,000 crore to strengthen road connectivity in Chhattisgarh, a state government official said. The nod was received from Road Transport and Highways Minister Nitin Gadkari during a review meeting with Chief Minister Vishnu Deo Sai in New Delhi, a state government release stated.

    The approved fund will be spent to develop four major national highways which will transform the state’s transport landscape and promote industrial growth, it said. Gadkari also approved the preparation of DPRs for other projects.

    The Union minister reviewed the progress of the ongoing national highway projects in Chhattisgarh and emphasised the need to remove hindrances that are delaying these works, the government said.

    Gadkari directed the Forest department to expedite clearances and resolve pending issues, urging for the timely completion of all ongoing and proposed projects, the release said.

    The four projects discussed in the meeting include Urga-Katghora bypass (NH-149B), Basna to Sarangarh (Manikpur) feeder route, Sarangarh to Raigarh feeder route, and Raipur-Lakhanadon economic corridor.

    The total length of these projects is 236.1 km for which the union minister has approved Rs 9,208 crores. Eight projects of Rs 908 crore have also been approved under the Central Road Fund during the Gadkari-Sai meeting.

    An additional amount of Rs 1,200 crore was cleared for the development of various roads, the state government stated. Four-lane widening work of Keshkal Ghat in Kondagaon district and Dhamtari-Jagdalpur road was also approved, it said.

    Gadkari directed the completion of the Raipur-Visakhapatnam road and Bilaspur-Urga-Pathalgaon road under the NHAI within the prescribed time limit, the release stated.

    “The move will provide a new direction to the state’s industrial and business activities,” Sai said.

  • Small Cities Lead India Festive Season Sales Across E-Commerce Platforms | Economy News

    New Delhi: Driven by rising disposable incomes, especially in the small cities and towns amid growing digital payments, the India festive season has kicked off to a roaring start, e-commerce platforms said on Monday. 

    Amazon said it witnessed a record 11 crore customer visits in the first 48 hours, with 80 per cent coming from tier 2 and smaller towns, during the “The Amazon Great Indian Festival 2024”.

    According to the company, more than three lakh unique products including apparel, smartphones, beauty, everyday essentials and more were delivered within the same day or the next day.

    UPI usage on the platform grew 16 per cent compared to last year. According to Saurabh Srivastava, Vice President–Categories, Amazon India, they are witnessing an overwhelming participation of sellers across India, including small and medium businesses.

    Flipkart said it saw more than 33 crore user visits on its platform during Early Access and Day 1 combined during the ‘Big Billion Days 2024’, reflecting festive enthusiasm from shoppers from across the country.

    “Some of the early trends indicate an increase in demand for categories that enable a lifestyle upgrade, and tier 2+ cities have been showing growth in the run up to this year’s festive season,” said Harsh Chaudhary, Vice President-Growth, Flipkart.

    Myntra said it witnessed 15 times new users over business as usual (BAU) joining the platform, and a two times growth in OPM (orders per minute) at peak over last year, in the opening hour of its Big Fashion Festival, including 120 million visitors during Early Access and Day 1 sales.

    Unicommerce said it saw e-commerce order volumes growing by 20 per cent during the first four days of the festive season sale (September 26-September 29), compared to the first four days of the festive season sales last year.

    In the same period, the gross merchandise value (GMV) also increased by 24 per cent over last year.

    Kapil Makhija, MD and CEO of Unicommerce, said they see an increasing number of brands participating in the sale season, affirming India’s status as a digitally forward country.

  • Ola Electric Share Tanks 4%, Trades Below Rs 100 For 1st Time | Economy News

    Mumbai: Shares of Ola Electric Mobility fell more than 4 per cent on Monday and slipped below the Rs 100 mark for the first time since its listing last month.

    During the intra-day trade, the Bhavish Aggarwal-run Ola Electric shares nosedived to Rs 97.84 apiece on the lower end and Rs 102.38 per share on the higher end.

    At 1:36 p.m., Ola Electric shares were at Rs 99.10, down 3 per cent. With this decline, the stock has now dropped about 36 per cent from its peak of Rs 157.4.

    Share of the electric two-wheeler maker has declined for ninth out of the last 11 trading sessions.

    This recent slump highlights a troubling trend for the company, which once experienced a significant surge following its IPO. Ola’s shares had gained over 107 per cent within two weeks from its listing before entering a consolidation phase.

    According to recent reports, “Ola Electric’s flagship S1 series EV scooter has become a nightmare for hundreds of customers who are consistently facing issues like malfunctioning hardware and glitching software and spare parts are hard to come by, resulting in inordinate delays.”

    Ola Electric is based on a direct-to-customer model. The company owns and operates all 500 plus experience centres and 430 service centres across the country.

    Last Friday, the company announced to double its company-owned service network to 1,000 centres by the end of year.

    According to Rajesh Sinha from financial services firm Bonanza, after its initial public offering (IPO), the stock of Ola Electric Mobility has shown volatility due to challenges the company faces as well as rising competition, concerns of a potential EV slowdown and service-related issues.

  • This Made-In-India Train Is Taking Over The World – Chile, Canada, And Others Want This Technology | Mobility News

    Vande Bharat Trains: Countries like Chile, Canada, and Malaysia have shown keen interest in importing the Vande Bharat Trains from India. It is learned from informed sources that for several reasons external buyers are attracted towards Vande Bharat.

    Sources said cost-effectiveness is the key factor, trains with similar features manufactured in other countries cost in the range of Rs 160-180 crores, whereas India manufactures the Vande Bharat at much less, at a cost ranging from Rs 120 to 130 crores. 

    Vande Bharat also beats competitors when it comes to pick-up speed. Sources say, Vande Bharat takes just 52 seconds to reach from 0 to 100 kmph; this exceeds Japan’s bullet train, which takes 54 seconds to get from 0-100 Kmph. Informed sources also say that Vande Bharat is better designed than foreign competition.

    It has one hundred times less noise experience than an aircraft and its energy consumption is much less. Indian railways are also looking to rapidly expand its track network and increase substantial number of trains. 

    Speaking to reporters in Delhi, Railways Minister Ashwini Vaishnaw said that in the last ten years more than 31000 kilometres of tracks have been added, and the aim is to add 40000 kilometres of additional tracks. 

    Vaishnaw also emphasized that work on the bullet train is on track and progressing at a super-fast speed. Amid safety concerns, Railways is putting special focus on installing its indigenous automatic train protection system, Kavach, across the country.

    This will cover around 40000 kilometres of network and will be installed in 10000 locomotives. Kavach is an effective and low-cost protection system and is Safety Integrity Level 4 (SIL-4) certified. 

    The rail minister told reporters once installed Kavach can bring down accidents by 80 percent and completely take care of human errors. The Minister said that the tender of 10,000 Locos and 9,600 km track is out. 

    Kavach has been commissioned in 632 km in Mathura – Palwal and Mathura – Nagda. Kavach has also been installed in 108 km on Kota – Sawai Madhopur. Courses are being conducted at IRISET for the training of 426 Chief Loco Inspectors on Kavach. 

    Railway Minister Ashwini Vaishnaw recently reviewed a trial of an upgraded ‘Kavach’ between Sawai Madhopur and Indargarh Railway stations in Rajasthan.

    Minister Vaishnaw underlined the measures taken to improve safety standards. He told reporters 97,602 inspections were done by officials, 90,000 signal plans verified, 2,500 km Track renewal done. Ultrasound tests being done for the entire network: In this financial year so far: 1.86 lakh Track km rail + 11.66 lakh no. of welds are also concluded. 

    Vaishnaw further said, “For testing welds: 20 new Phased Array Ultrasound machines introduced 990 railway bridges rehabilitated, 304 flyovers and underpasses constructed, 5,300 Fog safety devices installed Quality checks on Track fittings carried out. Hardship and risk allowance of trackman increased by 25% (2,700 to 3,375 Rs per month) done.

  • China’s PC shipments nosedive 6% Amid Weak Demand | Economy News

    New Delhi: China’s PC shipments (including desktops, notebooks and workstations) fell by 6 per cent (year-on-year) to 9.1 million in the April-June quarter as weak demand continued. The country’s PC shipments declined by 6 per cent in Q2, with the consumer and commercial sectors falling by 3 per cent and 9 per cent, respectively, as per a Canalys report.

    Analyst Emma Xu said that the competitive dynamics of China’s PC market are rapidly increasing in complexity. “Local AI regulations have constrained the full deployment of Microsoft’s Copilot in Mainland China. This is pushing vendors toward localised strategies to develop AI PCs, either by integrating in-house AI assistants or by building their own AI application ecosystems through collaboration with developers,” Xu explained.

    The forecast anticipates 13 per cent penetration of AI-capable PCs in Greater China in 2024. According to the report, vendors will need to make consistent portfolio investments to execute on their AI PC roadmaps and adapt their go-to-market strategies to be flexible and localised to the unique market requirements.

    In contrast, tablet sales increased by 20 per cent to reach 7.8 million units in the April-June quarter, driven by increasing adoption and online promotions. The tablet market is highly competitive, as more smartphone vendors expand their portfolios to include tablets, the report mentioned.

    According to Xu, the AI opportunity is attracting more vendors from the education and Internet sectors into the devices market, driving the development of kids’ tablets with educational content in Mainland China. To drive stronger business outcomes, vendors must focus on market expansion and differentiation to enhance user experiences and outcomes. Leveraging on-device AI models will be particularly beneficial in this regard, according to the report.

  • Stock Market Holidays 2024: Sensex, Nifty To Remain Closed On This Date In October–Check Full List Here | Economy News

    New Delhi: As we step into October, stock market traders and investors should take note of the upcoming holidays. Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will remain closed on 2nd October in observance of Mahatma Gandhi’s birth anniversary.

    Trading across various segments, including equity, equity derivatives, currency, SLB, commodity and Electronic Gold Receipts (EGR) will be closed on 2nd October, as per the Bombay Stock Exchange’s website. Similarly, the National Stock Exchange has also marked 2nd October as a holiday for equity trading, according to its holiday calendar.

    Here’s the updated list of stock market holidays in 2024:

    – 2 October 2024 – Gandhi Jayanti

    – 1 November 2024 – Diwali

    – 15 November 2024 – Guru Nanak Jayanti

    – 25 December 2024 – Christmas

    Performance of the Stock Market on September 27

    On September 27, the Nifty 50 hit a new all-time high of 26,277, but later ended the day 37 points lower, closing at 26,179, a 0.14 per cent drop. Meanwhile, the Sensex also reached a record high of 85,978.25 during trading hours before slipping by 264.27 points, finishing at 85,571.85, down 0.31 per cent.

  • Retail Loans By Banks, Finance Companies In India May Triple By 2030 | Economy News

    Mumbai: Retail loans by banks and finance companies in India could triple by 2030, driving household leverage to 34 per cent by fiscal year 2031 from about 23 per cent at the end of 2024, according to a new report. Finance companies will sustain loan growth stronger than the banking sector, which is expected to grow at 14 per cent, according to the Global Ratings report.

    The finance companies’ loan book is unseasoned. Strong economic growth has supported retail repayment capacity. “We see the strength in retail lending as a competitive edge, with finance companies dominating in some retail products,” said Geeta Chugh, credit analyst. 

    Generally, upper-layer finance companies have strong capital levels, which will support credit growth over the next two years and provide downside buffers. Chugh added the recent actions by the Reserve Bank of India (RBI) will curtail lenders’ overexuberance, enhance compliance and safeguard customers.

    Indian lenders’ strong underwriting will support asset quality. This is reflected in their focus on lending primarily to low-risk customers and generally low loan approval rates, the report noted.

    Funding for finance companies remains sensitive to confidence levels, but companies with strong parentage have better access to competitive rates. Emerging co-lending models are easing funding pressure.

    Rated and unrated finance companies have strong capital levels to support high loan growth, according to the report. As per the Reserve Bank of India (RBI), the Indian financial system remains resilient and is gaining strength from broader macroeconomic stability.

    The banking sector’s well-capitalised and unclogged balance sheet is reflective of higher risk absorption capacity while the NBFC sector and the Urban Cooperative Banks also continue to show improvements.

    However, amid the stable financial sector conditions, the emphasis cannot shift away from proactive identification of potential risks and challenges, if any, according to the Central Bank.

  • India Aims To Become $3 Trillion Tourism Economy By 2047 | Economy News

    New Delhi: As India aims to become a $3 trillion tourism economy by 2047, it is fast becoming one of the world’s most sought-after travel destinations with 14.3 million international tourists in 2022 and $17.6 billion in revenue. The country saw 9.2 million foreign tourist arrivals in 2023, signifying a positive post-pandemic revival. The tourism industry showed positive signs of revival post-pandemic with a year-on-year increase of 43.5 per cent.

    This year, foreign tourist arrivals (FTAs) stood at nearly 47.8 lakh from January to June. In the month of June, foreign tourist arrivals stood at 7,06,045 compared to 6,48,008 in June 2023, registering a growth of 9 per cent. According to the government, despite facing certain challenges along the way, the sector continues to flourish, fueled by various strategic initiatives aimed at enhancing infrastructure, promoting sustainable practices, and enriching the overall visitor experience.

    With a commitment to overcoming obstacles and leveraging opportunities, India is well on its way to becoming a leading global travel destination. According to the Ministry of Tourism, as part of the ‘Chalo India’ campaign, the first 1,00,000 foreigners coming to India will get their visa on a gratis basis and the government will waive off the visa fee.

    The ministry has also launched the Incredible India Content Hub on the revamped Incredible India digital portal, intended for the use of a diverse range of stakeholders, including tour operators, journalists, students, researchers, film makers, authors, influencers, content creators, government officials, and ambassadors.

    In a bid to engage and involve citizens in tourism development and growth, the government is also introducing mechanisms at airports and railway stations across the country, for tourists to provide their feedback on their visits to tourist attractions and destinations in the country.

    To support efforts of States/UTs in granting and implementing ‘industry status’ for the tourism and hospitality sector, the ministry has also launched a handbook which aims to serve as a guide to states and UTs.