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GST rate cut: Only 35 in top bracket; quarterly filing allowed to businesses

Published

8 years ago

on

GST rate cut: Only 35 in top bracket; quarterly filing allowed to businesses

The GST Council in its 28th meeting on Saturday pruned rates on a number of goods including several daily use appliances such as washing machines, vacuum cleaners, small TV sets and refrigerators.

The Council meeting chaired by Finance Minister Piyush Goyal also brought down to zero the rates on a number of products, including on sanitary pads from 12 per cent to nil. This followed a year-long protests demanding this cut on an item essential for health and hygiene of women.

The Council also gave relief to small businesses and merchants by simplifying procedures and by allowing them to file quarterly rather than monthly returns, which is expected to benefit about 93percentof the over 10 million registered GST payers, said a report in The Hindustan Times (HT).

Items in the highest slab of 28 percent have been drastically reduced as the GST Council cut tax rates on 191 goods over the last one year, leaving just 35 items in the highest tax bracket.

There were around 226 goods in the 28 per cent category when GST was implemented on July 1, 2017, noted an NDTV report.

The 35 goods, which will be left in highest slab once the new GST rates are implemented from July 27, include ACs digital cameras, video recorders, dishwashing machine and automobiles,automobile parts, tyres, automobile equipment, motor vehicles, yachts, aircrafts, aerated drinks, cement,betting and demerit or ‘sin’ items like tobacco, cigarette and pan masala.

Tax rate on ethanol to be used in autofuel blending has been lowered from 12% to 5%. Besides the pruning of the 28% slab, tax rates have been reduced on a host of handicraft items.

Other than this, GST has been brought down on an array of handicraft items from 18 per cent to 12 per cent such as handbags, wooden frames, handcrafted lamps, etc. Also, handicraft items which used to attract 12 per cent of GST such as handmade carpets, lace, hand-woven tapestries and toran have been brought under the 5 per cent GST bracket.

Experts said going forward as the revenues stabilise, the Council may look at further rationalisation of the 28 per cent slab, to restrict the highest tax slab to super luxury and sin goods.

“The rate cuts would lead to a revenue loss of about Rs. 6,000 crore,” the official said. He, however, said that the revenue loss would be only notional as increased consumption and compliance would lead to more revenues to the exchequer.

“The reduction of GST rates from 28 per cent to 18 per cent shows that directionally, the Government seems to be clear that the 28 per cent rate should be restricted to super luxury and sin goods,” EY Partner Abhishek Jain was quoted by NDTV as saying.

The move to cut tax rates on items of mass consumption comes ahead of the next round of assembly elections in the states of Rajasthan, Madhya Pradesh and Chhattisgarh towards the end of the year and national polls in 2019.

Goyal said the focus of the Council was to simplify the tax regime, rationalise tax rates and give relief to small businesses, not merely revenue collection. The minister said that the revenue impact of rate cuts was marginal and better taxpayer compliance and improved consumption in the economy will more than offset the loss.

“I believe when we assess the impact of the revenue forgone and improved compliance and job creation after one year, every state will benefit,” said Goyal.

The next meeting of the Council on 4 August in the capital will exclusively focus on micro, small and medium enterprises (MSME) and on boosting digital payments, reported HT. The idea is to promote employment and entrepreneurship in the MSME sector, the minister said.

Changes in GST rates on goods and what will get cheaper:

  1. Reduced from 28 per cent to 18 per cent

Washing machines

Vacuum cleaners

Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc

Televisions up to the size of 68 cm

Refrigerators, freezers and other refrigerating or freezing equipment including water coolers, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc.

Storage water heaters and immersion heaters, hair dryers, hand dryers, electric smoothing irons etc

Lithium-ion batteries

Paints and varnishes (including enamels and lacquers)

Glaziers’ putty, grafting putty, resin cements

Special purpose motor vehicles. For instance, crane lorries, fire fighting vehicle, concrete mixer lorries, spraying lorries

Works trucks (self-propelled, not fitted with lifting or handling equipment) of the type used in factories, warehouses, dock areas or airports for short transport of goods.

Trailers and semi-trailers

Miscellaneous articles such as scent sprays and similar toilet sprays, powder-puffs and pads for the application of cosmetics or toilet preparations

2.From 28 per cent 12 per cent

Fuel Cell Vehicle(compensation cess will also be exempted)

  1. From 18/12/5 per cent to Zero

Sanitary Napkins

Stone/Marble/Wood Deities

Rakhi (other than that of precious or semi-precious material)

Coir pith compost

Sal Leaves, siali leaves and their products and Sabai Rope

PhoolBhariJhadoo (Raw material for Jhadoo)

Khali dona

Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd (SPMCIL) to Ministry of Finance.

  1. From 12 per cent to 5 per cent

Chenille fabrics and other fabrics under heading 5801

Handloom dari

Phosphoric acid (fertilizer grade only)

Knitted cap/topi having retail sale value not exceeding Rs 1000

  1. From 18 per cent to 12 per cent

Bamboo flooring

Brass Kerosene Pressure Stove

Hand Operated Rubber Roller

Zip and Slide Fasteners

  1. From 18 per cent to 5 per cent

Ethanol for sale to oil marketing companies for blending with fuel

Solid biofuel pellets

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Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

Published

6 days ago

on

February 1, 2026

By

Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

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Union budget 2026 to be presented on Sunday with special trading session

The Union Budget 2026 will be presented on a Sunday for the first time in over two decades, with NSE and BSE announcing special trading sessions for the day.

Published

7 days ago

on

January 31, 2026

By

Nirmala Sitharaman

For the first time in more than two decades, the Union Budget will be presented on a Sunday. Finance Minister Nirmala Sitharaman is scheduled to table the Union Budget for 2026 in the Lok Sabha on February 1 at 11 am, even as the day is usually observed as a holiday for government offices and financial markets.

February 1 falls on a Sunday this year, raising questions about market operations and investor response. To ensure uninterrupted trading and immediate market reaction to budget announcements, stock exchanges have announced special arrangements for the day.

Markets to remain open on budget day

Both the National Stock Exchange and the Bombay Stock Exchange have confirmed that markets will remain open on February 1. The NSE has announced a special trading session, with the pre-open market scheduled from 9 am to 9:08 am, followed by normal trading hours from 9:15 am to 3:30 pm.

The BSE has also declared the day a special trading day, with regular market hours applicable. Trading is expected to continue across equity, derivatives, and futures and options segments.

What the Sunday budget means for investors

A weekend budget presentation is seen as offering certain advantages for market participants. With trading active on the same day, investors will be able to respond to policy announcements immediately rather than waiting for the next working day.

The Sunday timing also gives investors, analysts, and financial institutions additional time to go through detailed proposals, including tax changes, fiscal deficit targets, and sector-wise allocations. The extended window for analysis may help reduce sharp, headline-driven reactions and encourage more informed decision-making.

With fewer competing developments on a non-working day, budget announcements are also expected to receive more focused attention from markets and stakeholders.

Parliamentary schedule and key milestones

The Economic Survey is expected to be tabled on January 29, ahead of the budget presentation. The Budget Session of Parliament began on January 28 with the President’s address to a joint sitting of the Lok Sabha and Rajya Sabha.

The upcoming budget will mark Nirmala Sitharaman’s ninth consecutive Union Budget. It will also be India’s 80th budget since Independence. Since 2017, Union Budgets have been presented at 11 am on February 1, following a timing change introduced during the tenure of former finance minister Arun Jaitley.

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Modi says right time to invest in Indian shipping sector; meets global CEOs

Published

3 months ago

on

October 29, 2025

By

PM Narendra Modi

Prime Minister Narendra Modi on Wednesday exhorted global investors to take bets on the Indian shipping sector, pointing out that this is the “right time” for such a move.

The Prime Minister also met a select chief executives of global majors, including DP World and APM, at a specially convened meeting on the sidelines of the India Maritime Week 2025 held here.

“For all of you hailing from different countries, this is the right time to work in the Indian shipping sector and also expand (your presence),” Modi said during a public address before the closed-door meeting with CEOs.

Modi listed several targets being chased by India in the maritime sector over the next few years, and underlined the importance of the global community in the same.

“You all are an important partner who will help us achieve all our aims. We welcome your ideas, innovations and investments,” Modi said.

He said that India allows 100 per cent foreign direct investment in the shipping and ports sector, and also provides incentives under the “Make In India, and Make For The World” vision.

Addressing an audience, including leaders of various companies, the Prime Minister affirmed India’s commitment to strengthening the supply chain resilience at a global level.

He also said that India is engaged in creating world-class mega ports, and cited the work undertaken on the Vadhavan Port to the north of the financial capital, which entered the top-10 firms in the world on the first day.

The government is also looking to grow the capacity at 12 major ports by four times and increase India’s share in containerised cargo at the global level.

Later, Modi held a meeting with top CEOs of shipping sector companies from across the world.

As per people in the know, he met AP Moller-Maersk Chairman Robert Maersk Uggla, DP World Group Chairman Sultan Ahmed bin Sulayem, Mediterranean Shipping Company Chief Executive Soren Toft, Adani Ports and SEZ Managing Director Karan Adani and French company CMA-CGM’s Senior Vice President Ludovic Renou.

The participation from over 85 countries in the IMW sends a strong message, Modi said, noting the presence of CEOs of major shipping giants, startups, policymakers, and innovators at the event.

The Prime Minister also thanked Port of Singapore (PSA) for the nearly Rs 8,000 crore investment in the Jawaharlal Nehru Port Authority’s fourth terminal, pointing out that this is also the largest FDI in the port sector in India.

Modi said more than 150 new initiatives have been launched under the ‘Maritime India Vision’, resulting in nearly doubling the capacity of major ports, a substantial reduction in turnaround time, and a new momentum in cruise tourism.

—PTI

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