Business, Economy & Banking Current Affairs - 2019
Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.
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Goods and Services Tax (GST) report was finalized by the Parliamentary Standing Committee (PSC) on Finance which will be tabled in Lok Sabha in August 2013 session. The GST Bill introduced in Parliament in 2010 is being examined by the Standing Committee on Finance. The states and the Centre now jointly would finalize the draft and bring it back to Parliament.
What is the issue over GST?
- The GST roll-out missed many deadlines due to differences between the states and the Centre over controversial issues of central sales tax, compensation to states and design of GST structure.
What are the suggestions about Goods and Services Tax (GST) from the panel of Parliamentary Standing Committee (PSC) on Finance?
- The panel has suggested that the government should look into the issue in case of higher resource mobilizing states bearing revenue loss due to implementation of GST regime.
- It also suggested that the Centre should prepare a framework for the GST regime in which the revenue generating states should be adequately compensated.
Goods and Service Tax is a tax on goods and services, which will be levied at each point of sale or provision of service, in which at the time of sale of goods or providing the services the seller or service provider can claim the input credit of tax which he has paid while purchasing the goods or procuring the service.
On most of the goods and services the rate of tax remains the same but as per the necessity of the nation some goods or services can be declared as “exempted” or “Zero rated”. The whole system is developed in such a way that it avoids the cascading effect and the final consumer bears the burden of all the tax.
Generally, in such a system Exports are zero rated and all the taxes paid while purchasing and manufacturing the goods including the taxes paid on raw material and services are returned to the exporter to make the exports competitive.
The sellers or service providers collect the tax from their customer, who may or may not be the ultimate customer, and before depositing the same to the exchequer, they deduct the tax they have already paid.
This is simply very similar to VAT which is at present applicable in most of the states and can be termed as National level VAT on Goods and Services with only one difference that in this system not only goods but also services are involved and the rate of tax on goods and services are generally the same.
Key advantages of GST
- It is proposed to bring in a common tax rule for goods and services by considering most indirect taxes.
- It will also help to increase the revenue collections.
With the rapid growing electricity demand, and increasing reliance on imported sources of fossil fuel the Government of India and the Asian Development Bank (ADB) signed an agreement for a $100 million ADB loan (A LIBOR based loan from ADB’s Ordinary Capital Resources which has a term of 25 years including 5 years of grace period) to develop a transmission system that will distribute 500 megawatts of solar power from the Charanka Solar Park in Gujarat.
ADB is committed to generating 3,000 MW of solar power by 2013 under its Asia Solar Energy Initiative.
Key Objectives of the Project:
- Using an inventive Public Private Partnership (PPP) model, the project will create job opportunities, improve social services and contribute to poverty reduction locally.
- It will also support power distribution companies in Gujarat and other Indian power utilities to meet part of their energy needs through solar energy.
- It will not only benefit Gujarat, but will also help develop the PPP solar park model under the Jawaharlal Nehru National Solar Mission.
- An associated Technical Assistance (TA) funded by the Department for International Development of the United Kingdom and administered by ADB will provide professional training in energy-related skills and livelihood opportunities to local people. At least half of the participants will be women.
Note: The Indian Government is aiming to generate 20,000 MW of solar power by 2022. It has launched the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010, which is expected to generate 1,000 MW by 2013 by expanding grid-connected solar power generation.