GST rationalisation to continue in future depending on revenue buoyancy: FM

Tax rate benefits to lower inflation

by Arjit Singh Bhambra

Rationalisation of tax rates under GST would continue in future depending on revenue buoyancy, according to finance minister Arun Jaitley. He added that procedural simplification will continue based on the scope of improvement and as recommended by the GST council and the fitment committee. The minister expects that with the recent lowering of rates on about 200 items [see here], tax rate benefits will be passed on to consumers. This will eventually result in lower inflation. The minister also asserted that while there is an initial reluctance towards GST, businesses are more likely to accept and adapt to the new regime in the medium and long term.

References
1. https://economictimes.indiatimes.com/news/economy/policy/finance-minister-arun-jaitley-hints-at-further-rejig-of-gst/articleshow/61634542.cms
CMIE STATISTICS
Unemployment Rate
Per cent
6.1 -0.1
Consumer Sentiments Index
Base September-December 2015
93.3 -0.2
Consumer Expectations Index
Base September-December 2015
93.6 -0.3
Current Economic Conditions Index
Base September-December 2015
92.8 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.33 1.38 1.24 2.15
Completed projects 0.87 1.21 1.02 1.07
Stalled projects 2.67 0.69 0.93 3.34
Revived projects 0.23 0.34 0.23 0.14
Implementation stalled projects 0.73 0.72 0.58 1.05
Updated on: 26 Apr 2018 4:20PM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 9.2
 Expenses 9.9 9.0 12.9 9.9
 Net profit -19.9 -18.1 -13.9 6.4
 PAT margin (%) 5.3 5.5 4.9 14.3
 Count of Cos. 4,482 4,470 4,431 96
Non-financial Companies
 Income 10.2 8.2 13.2 6.2
 Expenses 10.5 8.2 12.3 7.8
 Net profit -25.1 -6.0 12.7 -1.6
 PAT margin (%) 5.2 6.2 6.4 12.8
 Net fixed assets 9.2 10.4
 Current assets 78.7 6.9
 Current liabilities 11.0 21.5
 Borrowings 10.4 4.9
 Reserves & surplus 5.2 0.0
 Count of Cos. 3,460 3,444 3,428 70
Numbers are net of P&E
Updated on: 26 Apr 2018 4:20PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.5 1.5 5.1 1.6
 Expenses 5.6 1.7 5.1 0.7
 Net profit 0.0 -10.3 23.7 9.2
 PAT margin (%) 3.1 2.8 3.6 8.3
 Assets 9.5 10.0 6.9 3.3
 Net worth 8.5 11.4 6.0 2.8
 RONW (%) 5.8 4.9 5.9 12.7
 Count of Cos. 25,647 23,668 20,755 19
Non-financial Companies
 Income 4.7 0.6 4.7 1.5
 Expenses 4.9 0.0 5.2 0.6
 Net profit -8.6 18.4 18.0 10.7
 PAT margin (%) 2.0 2.5 3.1 7.4
 Net fixed assets 13.3 17.3 5.4 4.4
 Net worth 6.9 12.0 4.4 2.9
 RONW (%) 4.6 5.1 6.0 11.5
 Debt / Equity (times) 1.1 1.1 1.0 0.2
 Interest cover (times) 1.9 1.9 2.1 11.8
 Net working capital cycle (days) 66 65 62 38
 Count of Cos. 20,897 19,807 17,287 17
Numbers are net of P&E
Updated on: 18 Apr 2018 11:50AM

Time series available from 1990 onwards