During the 55th GST Council meeting, Union Finance Minister Nirmala Sitharaman announced that the Goods and Services Tax on rice kernels has been reduced from 18% to 5%, while life-saving gene therapy will now be exempt from tax. Additionally, parts used in manufacturing surface-to-air missiles will continue to be exempt from GST. However, the tax rate on caramelised popcorn has been increased to 18%, citing its harmful effects on health. The Finance Minister also clarified that payment aggregators will be eligible for exemptions, but this does not apply to payment gateways and fintech services.
Background:
The Goods and Services Tax (GST) is a comprehensive indirect tax system introduced in India in 2017. It replaced multiple indirect taxes levied by the central and state governments. GST rates vary based on the categorisation of goods and services.
Latest GST Council Decisions:
During the 55th GST Council meeting, several revisions to the GST rates were announced. Key highlights include:
Rationale for Changes:
The GST Council's decisions aim to balance revenue generation with the promotion of essential services and economic growth.
Top 5 FAQs and Answers:
Q: Why was the GST rate on caramelised popcorn increased? A: The GST Council cited concerns about its harmful effects on health, particularly for children.
Q: What is the impact of the GST exemption for life-saving gene therapy? A: It will make these essential treatments more affordable for patients.
Q: How do the GST updates affect rice farmers? A: The reduced GST rate on rice kernels is expected to benefit farmers by increasing the market demand for their produce.
Q: What is the difference between payment aggregators and payment gateways in terms of GST? A: Payment aggregators are eligible for GST exemptions, while payment gateways and fintech services are not.
Q: How has GST affected the healthcare industry? A: GST has simplified the tax regime for healthcare services, making it more efficient and reducing complexities for hospitals and clinics.
Union Minister for Food Processing Industries, Chirag Paswan, announced at the World Economic Forum (WEF) that India has secured a significant investment of USD 250 million from Belgium-based AB InBev for the country's beverage sector. The investment will span over the next two to three years and the company will sign a Memorandum of Understanding (MoU) at a later time. This announcement is a testament to India's commitment towards fostering global collaboration and creating a dynamic international market.
The initial public offer of water and infrastructure solutions company Denta Water and Infra Solutions has already been subscribed 17 times on its opening day. This indicates strong investor interest in the company's IPO, which is set to close on January 24. The IPO is expected to result in a strong listing gain for investors, with the grey market premium currently at 51.02% over the upper IPO price of Rs 165. With a focus on water management projects and construction in the railway and highway sectors, Denta Water and Infra Solutions' revenue and profits have shown a strong growth trajectory, making it an attractive investment opportunity.
The Indian state of Maharashtra made a statement at the World Economic Forum in Davos by securing investment deals worth an unprecedented Rs 6.25 lakh crore. Chief Minister Devendra Fadnavis, along with top officials, met with prominent business leaders to solidify the state's position as a global investment destination. The committed investments span across multiple sectors including technology, renewable energy, retail, and more, promising a boost to Maharashtra's economic growth and job creation.
Aditya Yellepeddi, head of an Indo-Swiss industry initiative, highlights the increasing interest in India from SMEs and cultural richness as key factors. He also discusses the potential for further growth in bilateral trade and investment, especially after the signing of the Trade and Economic Partnership Agreement in 2024. As a member of the Indian diaspora in Switzerland, Yellepeddi shares his perspectives on the changing dynamics and opportunities in both countries.
Le Monde, France's newspaper of record, has announced its decision to leave the controversial social media platform X, due to concerns over its founders' political alliances with US President Donald Trump. In an editorial, Le Monde's editor-in-chief Jérôme Fenoglio explains that the move is a response to "a global threat to free access to reliable information" posed by social media behemoths such as X and Meta. The newspaper, which boasts 11 million followers on its French language account, will now focus on fast-growing rival Bluesky and increase vigilance on other platforms like TikTok and Meta, following Mark Zuckerberg's "worrying statements."
US President Donald Trump has expressed his willingness for billionaire Elon Musk to buy the popular social media app TikTok, amidst concerns over its Chinese ownership and potential data misuse. The app, which has 170 million American users, was temporarily taken offline in anticipation of a law that would require it to be sold or banned. Trump has met with TikTok's owners and proposed the idea of splitting ownership with the US. However, free speech advocates oppose the ban and TikTok argues that its recommendations and data are stored and moderated in the US.
A TikTok user shared three helpful tips for saving money while traveling through an airport, including bringing a reusable water bottle to avoid overpriced airport water, using the latch under the aisle seat handlebar for easy access and avoiding currency exchange at the airport to get a better rate. These tips can help budget-conscious travelers avoid unnecessary expenses and make their airport experience more affordable.
Susanna Reid, host of Good Morning Britain, interrupted the show to announce the latest figures from the Office for National Statistics showing a drop in inflation rates to 2.5%, although it remains above the Bank of England's target. This comes at a time of increasing pressure on the public finances due to rising government borrowing costs. Correspondent Jonathan Swain joins from a butcher's in Staffordshire, revealing the impact of high food prices on inflation.
Adani Group chairman Gautam Adani visited the ongoing Maha Kumbh Mela and participated in various activities like offering prayers, cooking and serving Mahaprasad to pilgrims. The industrialist also announced the collaboration between Adani Group and ISKCON to provide free meals to devotees for the entire duration of the Kumbh Mela. This move is seen as a gesture of gratitude towards PM Modi and CM Yogi Adityanath for their management of the religious gathering.
In a scathing report published by Capybara Research, it has been revealed that Quantum Computing (QUBT) has been engaging in fraudulent practices, including faking sales and partnerships and issuing false press releases. The report claims that shareholders are at risk of losing their investments as the company has a history of deceiving investors and fabricating revenue. This news has sent shockwaves through the market, with investors and analysts closely monitoring the situation.