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New Indian Express
3 days ago
- Business
- New Indian Express
Trade deal with UK shows world's trust in us: PM Modi
THOOTHUKUDI: The Free Trade Agreement (FTA) signed between India and the United Kingdom will make India the third largest economy, and the trade pact showed the world's trust in our country, Prime Minister Narendra Modi said on Saturday. 'The FTA shows the growing trust of the world and our self-confidence. We will make Viksit (developed) Bharat and Viksit Tamil Nadu with this self-confidence,' the PM said at an event held in Thoothukudi on Saturday. The PM inaugurated, dedicated to the nation, and laid foundation stones for various projects worth Rs 4,900 crore on Saturday. 'The union government has given Rs 3 lakh crore for Tamil Nadu's development which is three times more than the funds given to the state under the United Progressive Alliance (UPA) government. The new projects underscored the NDA government's commitment towards Tamil Nadu's growth,' the PM said. The PM dedicated to the nation multiple rail and road projects worth over Rs 3,600 crore including two strategically significant highway projects — four-laning of 50 km Sethiyathope-Cholapuram stretch of NH-36 developed at a cost Rs 2,350 crore, and six-laning of 5.16 km NH-138 Thoothukudi Port Road built at a cost of Rs 200 crore. The projects inaugurated also included a new terminal building at Thoothukudi airport built at a cost of Rs 450 crore and a cargo handling facility at V O Chidambaranar Port.
The Hindu
3 days ago
- Business
- The Hindu
Central projects will create a ‘developed Tamil Nadu', says Narendra Modi
The Union government-funded infrastructure projects being implemented in Tamil Nadu on an outlay of over ₹3 lakh crore will help the Centre realise its dream of achieving 'Viksit Tamil Nadu', Prime Minister Narendra Modi said on Saturday. Inaugurating the new terminal building at the Thoothukudi airport, he said his government, which had promised a 'Viksit Bharat' (Developed India), was according the highest priority for infrastructure development. Hence, the port, rail and energy sectors were getting an unprecedented facelift nationwide, from Jammu and Kashmir to Tamil Nadu. Mr. Modi said the Centre had released over ₹3 lakh crore since 2014 for strengthening Tamil Nadu's infrastructure to make it 'Developed Tamil Nadu'. This was three times higher than the funding provided by the previous United Progressive Alliance government to the State. He further said the north cargo berth at VOC Port, Thoothukudi; six-lane VOC Port Road; and four-lane Sethiyathope-Chozhapuram Highway would significantly catalyse the trade opportunities and employment generation for the locals. In an apparent reply to Chief Minister M.K. Stalin's recent assertion that the Centre was refusing to allocate funds for Tamil Nadu, he said the thrust being given for infrastructure development in Tamil Nadu by the Centre in energy, road, rail, and port sectors would phenomenally expedite the State's growth while achieving the Centre's goal of 'Viksit Tamil Nadu'. He recalled that the National Democratic Alliance government had sanctioned 11 new medical colleges for Tamil Nadu, and the Centre was also developing harbours to improve their livelihood. Terming India's recent free trade agreement with the United Kingdom (U.K.) as 'historic', Mr. Modi said this agreement would open unprecedented export opportunities for Indian products. 'As more than 99% of the 'Make in India' products will be available in the U.K. at lower prices, the rise in demand will increase production in India and generate more employment in the micro and small industries here. It will enhance the world's faith in India, which will become the third largest economy in the world soon,' Mr. Modi said. He added that home-grown weapon systems, which were used in recent 'Operation Sindhoor', had destroyed the terrorists' hideouts and had given sleepless nights to the sponsors of terror. Governor R.N. Ravi, Union Minister of Civil Aviation Ram Mohan Naidu Kinjarapu, Union Minister of State for Information and Broadcasting L. Murugan, Tamil Nadu Ministers T.R.B. Rajaa, P. Geetha Jeevan, and Anita R. Radhakrishnan and MP Kanimozhi were among those present. State Finance Minister Thangam Thennerasu presented a memento to Mr. Modi on the occasion.
Hans India
17-07-2025
- Politics
- Hans India
BJP chief calls upon partymen to adopt booth-centric strategy
Hyderabad: Telangana BJP chief N Ramchander Rao stressed at the concluding session of the mandal and division presidents' workshop held in Ghatkesar, calling upon party workers to adopt a booth-centric strategy to secure electoral victory. Addressing the meeting on Wednesday, he highlighted the indispensable role of party workers and underscored the position of grassroots engagement as the cornerstone of the BJP's political campaign in Telangana. Rao opened by urging every worker to commit wholeheartedly to the mantra, 'Victory is born in the booth,' asserting that the path to securing constituencies—and ultimately, the state—begins at the polling booth level. He emphasized that workers are the lifeblood of the party and must be recognized, respected, and encouraged for their efforts. The workshop served as a strategic forum for reinforcing the party's outreach goals. Rao stressed the importance of addressing local issues across divisions and mandals and holding the incumbent state government accountable for its failures. He stated that BJP leaders must become the voices of the people and actively bring their grievances into public discourse. Turning to achievements at the national level, Rao spotlighted several flagship initiatives under Prime Minister Narendra Modi's leadership. He cited the success of the Pradhan Mantri Jan Dhan Yojana, which has brought 80 crore citizens into the banking system, making them direct participants in the national economy. By leveraging Direct Benefit Transfer (DBT), he explained that beneficiaries now receive financial aid without the interference of middlemen, effectively curbing corruption. Rao drew contrasts between the current central government and the preceding United Progressive Alliance (UPA), accusing the latter of widespread scams and neglecting public welfare. In contrast, he described Modi's tenure as transformative, particularly for marginalized communities. He also highlighted social security schemes such as the Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana, and Pradhan Mantri Jeevan Jyoti Bima. He revealed that Telangana alone has 48 lakh beneficiaries, indirectly impacting 1.5 crore family members, underscoring the tangible reach of these initiatives. Further, Rao praised the Pradhan Mantri Mudra Yojana for empowering youth and entrepreneurs by offering interest-free or low-interest loans. He noted that this scheme has sparked financial independence among lakhs of young individuals and contributed to the growth of small and medium-sized enterprises across the nation. He asked the leaders and party workers to make concerted efforts to win every booth, secure every constituency, and make Telangana a BJP stronghold. For this, he stressed the core BJP vision of grassroots empowerment, transparency in governance, and inclusive development.
The Hindu
14-07-2025
- Business
- The Hindu
GST After 8 Years: Challenges, Gains, and Future Reforms
Published : Jul 11, 2025 17:23 IST - 9 MINS READ The Goods and Services Tax (GST), widely hailed as a good, simple tax, has the best and the worst of all features of the country's indirect tax system at this juncture, over eight years after its rollout. Both the United Progressive Alliance (UPA) government (2004-2014), led by the Congress, and the National Democratic Alliance government (NDA), led by the BJP in its first two tenures (2014-24), have claimed credit for this consumption-based tax, which was launched on July 1, 2017, at a midnight special session of Parliament by the then Finance Minister Arun Jaitley. He used all his lawyerly acumen and persuasiveness to bring on board all the States and Union Territories. Early years Broadly seen as a precursor to a 'one-nation, one tax' in a country where the indirect tax system was riddled with multiple taxes and mind-boggling rates, GST was not instantly endorsed by trade and industry; it had to face a whole host of problems ranging from teething troubles to ground-level glitches that any new tax regime must wrestle with. GST subsumed as many as 17 local levies and taxes and 13 cesses into a five-tier structure, broadly simplifying the tax rates at 5, 12, 18, and 28 per cent. Bullion and jewellery had its own sui generis GST rate. Luxury and demerit goods such as tobacco are taxed at the highest rate of 28 per cent in the name of 'sin tax', while packed food and essential items attract the lowest rate of 5 per cent. The threshold limit of annual turnover for registration under GST for units engaged in supply of goods was raised from Rs.20 lakh initially to Rs.40 lakh effective from April 1, 2019, to ensure that GST compliance was not is required by small units below the threshold turnover and they were exempted from GST. Also Read | GST & federalism Grey areas With the benefit of hindsight, experts have contended that while GST has by and large simplified indirect taxes, many grey areas still linger despite the passing of eight years. They encompass a wide swath of issues, from rate rows to procedural complexities, burdening domestic taxpayers and professionals with compliance hurdles and troubles galore. This is conclusively borne out by the avalanche of GST circulars down the eight years which show ongoing compliance issues. There are numerous instances where the courts have conclusively ruled that clarifications of the Central Board of Indirect Taxes and Customs (CBIC) circulars could not override the CGST Act, bringing clarity and relief to the taxpayers. According to fiscal experts, because tax authorities are inundated with representations and courts give new interpretations, it is no surprise that the CBIC issues circulars to clear the air, ensure uniformity, and facilitate smooth compliance. But it is certainly not a commendable state of affairs when there are over 8,000 disputes involving the GST system over eight years, even as the long-delayed process of setting up an appellate tribunal has barely begun, with the GST Appellate Tribunal (Procedure) Rules, 2025, coming into force in April this year. GST Council meeting Meanwhile, the the GST Council has not held a meeting for over six months. The Council, which meets every quarter, last held a meeting on December 21, 2024, wherein the States discussed many issues bearing on the fiscal relationship with the Centre in the light of GST revenues not growing at the 14 per cent annual rate as assumed with the advent of the tax. There is also a need for higher allocation from Central taxes to their revenue kitty now that the 16th Finance Commission has completed the process of consultations with the States and is in the midst of getting its report ready by October 2025. Even as the High Courts are neck-deep in disputes, most of which would invariably relate to procedure or method rather than the statute itself, the professional tribunal will hopefully deliver, and to the satisfaction of the stakeholders. Also Read | Time to overhaul or replace GST June collection growth slips Be that as it may, the eighth anniversary of GST on July 1 was coterminous with the dismal tax collection for the month of June, after two resounding performances of of Rs.2 lakh crore each in April and May 2025. GST collections in June grew only 6.2 per cent year-on-year, the slowest since June 2021 and lower than the fantastic run of 12.6 per cent and 16.4 per cent in April and May, respectively. The slide-down stemmed from a dip in collections in domestic transactions and imports. Net GST revenue adjusted for refunds and transfers (input tax credit and after States' share) stood at Rs.1.59 lakh crore, marking am even lower and tepid 3.3 per cent year-on-year rise. As it is a consumption tax, a tangible fall in yields mirrors anaemic economic activity, besides inveterate inefficiencies in the system, which need to be tackled with new processes and procedures to ensure et the cooperation of all the beneficiaries and stakeholders for the overall efficacy of the tax. GST and ease of doing business Undoubtedly, the simplified GST regime has, by degrees, transformed the ease of doing business in the country over the years, as it has resulted in a 33 per cent improvement in transport time, enabling the logistics business to prune drastically the dwelling time in various check-points that had become choke points in the free movement of goods across the States and within States. There has also been a distinct improvement in the number of commercial taxpayers, from 60 lakh to 1.5 crore, with an average monthly collection that is close to Rs.2 lakh crores. E-invoicing and e-way bills have had a tremendous effect in terms of efficiency in operations for business and trade. It is not all hunky-dory in the GST ecosystem, though, as the total number of GST evasion cases detected by the Central government since 2020 has gone up significantly from 12,596 in 2020-21 to 25,397 in the first 10 months of 2024-25, involving a total amount of Rs.6,79,505 crore in a total of 86,711 cases in the period. Of this, Rs.1,23,896 crore has been recorded as voluntary deposits by the defalcators. In input tax credit or refund claims, there were 42,673 cases during this period involving Rs.1,66,241 crore, of which Rs.12,367 crore was accounted for by voluntary deposits, according to Minister of State for Finance Pankaj Chaudhary in a written query in the Lok Sabha on March 10, 2025. Finance Ministry mandarins claim that there are several ways to help in improving compliance and preventing tax evasions such as digitisation through e-invoicing. Operational efficiency Besides, GST analytics such as automated risk assessment based on compliance attributes of taxpayers, highlighting of outliers based on system-flagged mismatches, and providing intelligence inputs with a view to manage GST revenue risks through various tools have gone a long way to bring efficiency in operations. Efficiency has been improved by the ability to generate actionable reports, gleaning inputs about GST non-compliance or evasion on the basis of identified anomalies in taxpayer comport—including potential tax evasion, fraudulent registration, and suspicious e-way bill activity—and selection of returns for scrutiny and taxpayers for audit based on various risk parameters. The GST Amnesty Scheme under Section 128A of the IT Act announced this year is a welcome step to help taxpayers clear old arrears sans excruciating penalties. It is germane to note that a PricewaterhouseCoopers report forwarded to the GST Council, whose Chairperson is the Union Finance Minister and all State Finance Ministers are Members, pitched for the simplification of procedures, lessening of compliance burdens, and reduction in rates to three with a view to broadening the base by bringing petroleum products under the GST ambit. PricewaterhouseCoopers said: 'A transition from a 4-tier to a 3-tier rate structure would reduce interpretational disputes, improve tax certainty, and simplify compliance.'. Even as these crucial reforms are underscored to render this important tax to improve its operational efficiency, it is not altogether out of place to highlight the overwhelming urgency on GST reforms recommended by the Public Accounts Committee (PAC) of Parliament. The 19th report of the PAC, tabled in the Budget session of Parliament, sought a comprehensive review of the GST framework to preclude 'unnecessary procedures and requirements' and advocated a a 'revamped GST 2.0', with due consultations of all the stakeholders. Also Read | GST: For a fair share for the States Room for improvement In its scathing review of the extant GST, the PAC noted that the failure to put in place the mandatory Comptroller and Auditor General (CAG) audit of the Compensation Fund Account for more than six years had 'adversely affected' release of compensation to States. It may be noted that GST's advent in 2017 had led to apprehensions among States about loss of fiscal autonomy and centralisation of all collections to the Union. The GST (Compensation to States) Act, 2017, came into force to compensate for this loss of revenue and promised States a 14 per cent annual revenue growth for five years (2017-22). But many States have bemoaned either non-receipt of funds or undue delays which they said negatively impacted governance. Alluding to filing and refunds by GST payers, the PAC lamented the extant mechanisms as inadequate, pointing at unconscionable waiting periods for refunds which could result in potential cash flow problems to businesses operating on wafer-thin margins in a high-cost economy. It said that the refund processing system ought to provide clearer timelines for processing claims and regular updates on their status. According to fiscal experts, the time is ripe for the Finance Ministry to strongly consider the growing concerns of the States regarding their financial requirements and the revenue share they get not only through this indirect tax but also in the overall devolution of taxes, and reduce the Centre's recourse to cess, as it is not not shareable with States. Alongside, other overriding concerns voiced by trade and industry also need to be factored in by the GST Council in its forthcoming meeting so that the beneficiaries bear this tax with less pain and more gain to the treasury in a mutual win-win game, going forward. G. Srinivasan is a freelance journalist based in Delhi who previously worked with The Hindu Group.
The Hindu
01-07-2025
- Business
- The Hindu
GST is a brutal tool of economic injustice: Rahul Gandhi
Goods and Services Tax (GST) is a 'brutal tool of economic injustice and corporate cronyism', Leader of Opposition in Lok Sabha Rahul Gandhi said on Tuesday (July 1, 2025). His remarks come on the eighth anniversary of GST. The Congress leader said India deserves a tax system that works for all, not just the privileged few, so that every Indian, from the small shopkeeper to the farmer, can be a stakeholder in the nation's progress. 'Eight years on, the Modi government's GST is not a tax reform — it's a brutal tool of economic injustice and corporate cronyism. It was designed to punish the poor, crush MSMEs, undermine states, and benefit a few billionaire friends of the Prime Minister,' he said in a post on X. A 'Good and Simple Tax' was promised, he said, but instead we got a compliance nightmare and a five-slab tax regime that has been amended over 900 times. 'Even caramel popcorn and cream buns are caught in its web of confusion,' Mr. Gandhi said. This bureaucratic maze favours big corporates who can navigate its loopholes with armies of accountants, while the small shopkeepers, MSMEs, and ordinary traders, Mr. Gandhi said, drown in red tape. 'MSMEs - India's largest job creators have suffered the most. Over 18 lakh enterprises have shut down since the rollout of GST eight years ago. Citizens now pay GST on everything from tea to health insurance, while corporates enjoy over ₹1 lakh crore in tax breaks annually,' he said. 8 years on, the Modi government's GST is not a tax reform - it's a brutal tool of economic injustice and corporate cronyism. It was designed to punish the poor, crush MSMEs, undermine states, and benefit a few billionaire friends of the Prime Minister. A "Good and Simple Tax"… — Rahul Gandhi (@RahulGandhi) July 1, 2025 Petrol and diesel have been deliberately kept outside the GST framework, hurting farmers, transporters, and ordinary people, he said. 'GST dues are also weaponised to punish non-BJP ruled states - clear proof of the Modi government's anti-federal agenda,' Mr. Gandhi alleged. He said the GST was a visionary idea by the United Progressive Alliance (UPA), meant to unify India's markets and simplify taxation. 'But its promise has been betrayed by poor implementation, political bias, and bureaucratic overreach. A reformed GST must be people-first, business-friendly, and truly federal in spirit,' Mr. Gandhi said.
