Economy News ( English version)

The GST Council declared that voucher transactions will not be subject to GST, providing relief to retailers. This decision clarifies that vouchers are not considered goods or services, resolving previous disputes and aligning with RBI's classification of vouchers as prepaid instruments. The council also discussed potential tax adjustments on various it […]

The Reserve Bank of India (RBI) warns that populist measures like free electricity and transport, while offering immediate relief, are straining state finances. These schemes hinder investment in crucial infrastructure, impacting long-term economic stability. High debt levels and growing subsidy burdens exacerbate the problem, with some states spending ten t […]

The GST Council postponed a decision on lowering GST rates for life and health insurance premiums during its 55th meeting. The Group of Ministers (GoM) will reconvene in January to address technicalities concerning the taxation of various insurance policies. A proposal to exempt certain premiums from GST was discussed, but a final decision is pending further […]

The GST Council, meeting in Jaisalmer, decided to lower the GST rate on AAC blocks with high fly ash content to 12%. Fortified rice kernels will now attract a 5% GST rate regardless of use. Ready-to-eat popcorn's GST rate will vary based on ingredients and packaging, while the rate for used cars, including EVs, has been increased to 18%.

The Reserve Bank of India reported that DISCOM losses reached Rs 6.5 lakh crore, impacting state finances. The RBI recommends improving efficiency, reducing losses, and aligning tariffs with costs. Privatization and unbundling are also suggested. States are showing fiscal discipline, with a gross fiscal deficit contained at 2.91 percent of GDP. Capital outla […]