1. Initial Reports Say GST Rollout Has Been Hassle-Free
The rollout of the country's most comprehensive indirect tax reform – the Goods and Services Tax (GST) – has been positive and largely hassle-free, with no checks on state borders, smooth customs operations and no major problems reported, the government said.
Government officials are keeping a close watch on implementation and not taking any chances.
"Initial reports are positive… There have not been any hassles," Revenue Secretary Hasmukh Adhia told ET.
The government is now looking at a massive outreach to consumers as well as industry to clarify all issues and highlight the benefits of the tax regime, which came into effect on 1 July.
Source: The Economic Times
2. GST to Boost GDP; Positive for Rating: Moody's
Implementation of the GST will be positive for India's rating as it will lead to higher GDP growth and increased tax revenues, Moody's Investors Service said in a report.
"Over the medium term, we expect that the GST will contribute to productivity gains and higher GDP growth by improving the ease of doing business, unifying the national market and enhancing India's attractiveness as a foreign investment destination," Moody's Vice President (Sovereign Risk Group) William Foster said.
The GST will also support higher government revenue generation through improved tax compliance and administration.
"Both will be positive for India's credit profile, which is constrained by a relatively low revenue base," Foster said.
Moody's has a 'Baa3' rating on India with a positive outlook.
Source: PTI
3. Cash Still King as Circulation Nears Pre-Demonetisation Level: Report
Financial regulators seem to have acknowledged that in India, cash is king. A little over seven months after demonetisation, as on 16 June, the currency in circulation stood at Rs 15.29 lakh crore, or 86.2 percent of the pre-demonetisation level of Rs 17.74 lakh crore.
The currency with the public will continue to rise as more notes get printed, and so will cash transactions, which State Bank of India (SBI) Chairman Arundhati Bhattacharya termed as a “bad habit”.
“In the wake of demonetisation, digital transactions have got a substantial push. While the period of observation is not sufficiently long to derive definitive conclusions, normalisation of notes in circulation appears to be dampening the growth of digital transactions,” said the latest financial stability report, which is published by the Reserve Bank of India on behalf of all financial regulators.
Source: Business Standard
4. India May Get Intellectual Property Exchange Soon
India will soon have an Intellectual Property (IP) Exchange, joining the league of countries like Hong Kong and United Kingdom, where individuals and commercial entities both in India and overseas will be able to buy and sell intellectual property rights across various sectors.
The exchange will be developed under the Ministry of Science and Technology through the National Research Development Corporation (NRDC). The idea of setting up a patent exchange similar to those in Hong Kong and the UK was floated in the ministry around two months ago. The project has already got in-principle approval from the Science and Technology Ministry.
Source: Livemint
5. 2nd Day of GST Regime Sees Automobile Companies Cut Prices
Some car and two-wheeler prices fell on Day 2 of the unified indirect tax regime on Sunday and consumer companies promised more cuts in the days and weeks to come as goods produced after 1 July hit the market.
Japanese automotive giant Toyota slashed prices of its cars by up to 13 per cent, while New Delhi-based Hero MotoCorp reduced prices of two-wheelers by Rs 400-4,000. Hyundai Motors, Tata Motors and Ford India are expected to unveil price cuts in the next few days taking the cue from market leader Maruti Suzuki.
Key consumer goods companies on Sunday also promised price cuts in the weeks ahead on new stocks made after 1 July, a day after the country's biggest consumer goods firm Hindustan Unilever increased the weight and reduced prices of some products.
Source: The Economic Times
6. Air India Employees' Union to Meet, Plans Stir Against Privatisation
Air India's largest employees' union will hold its general body meeting in New Delhi this week to "organise its members for a movement" against the government's decision to privatise the debt-ridden national carrier.
The Air Corporations Employees' Union (ACEU) is also planning to meet a group of ministers to be set up by the government to look into the disinvestment of its stake in the airline.
The ACEU is a grouping of Air India's non-technical staff and comprises nearly 8,000 of the total 21,137 employees.
Source: PTI
7. Airtel Blames Jio ‘Disruption’ For Industry’s Financial Woes
Bharti Airtel Chairman Sunil Mittal has blamed 'unprecedented market disruption’ following the entry of Reliance Jio for the industry’s financial woes, but said his company had countered the challenge well.
In Bharti Airtel’s annual report for the financial year ended 31 March, Mittal said the disruption caused by “the entry of an extremely well-capitalised and aggressive new operator” through “prolonged free trial offers created massive pressure on industry revenues and margins”.
Mittal, who received a hike above 8 per cent to get a salary of Rs 30.1 crore for 2016-17, however, said Airtel, India’s number 1 telco, had met “this extraordinary challenge with a well thought out strategic action plan and of course, sheer resilience”. The firm’s net profit of Rs. 373 crore for the three months ended March was its smallest in four years.
Source: The Economic Times
8. UrbanClap Raises $21 Million to Fund Expansion Plans
Home services start-up firm UrbanClap on Sunday said it has raised 21 million dollars in a series C funding round led by Internet investment fund Vy Capital.
Early investors SAIF Partners, Accel Partners and series B investor Bessemer Venture Partners also participated in the round, the company said.
Vy Capital also spent approximately 1 million dollars more to buy shares held by some employees and a part of stakes of angel investors Kunal Bahl and Rohit Bansal, the founders of Snapdeal, UrbanClap co-founder Abhiraj Bhal said over the phone.
UrbanClap, launched in 2014, allows users to hire professionals for in-house beauty services, house cleaning and repair, yoga and fitness, and similar services in eight cities.
UrbanClap founder Abhiraj Bhal said the funds will be used to expand to more cities, invest in technology and add new vendors.
Source: Livemint
9. CMS Info Systems Prepares For IPO, May Raise up to Rs 800 Crore
Baring Private Equity Asia-owned cash management company CMS Info Systems Ltd has started work on an initial public offering (IPO) aiming to raise around Rs 700-800 crore, two people aware of the development said.
CMS, the largest cash management company in India, manages the entire flow and management of money for around 100,000 ATMs and retail points, including cash processing, cash-in-transit, cards, ATM network management and retail management.
“They recently appointed investment banks Axis Capital, Kotak Mahindra Capital and UBS to manage the share sale. They are looking at raising around Rs 700-800 crore,” said one of the two persons cited above, requesting anonymity as he is not authorized to speak to reporters.
Source: Livemint
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)