Automakers and Retailers Announced Price Cuts, Welcomes GST

Some of India’s biggest automakers and retailers announced price cuts on Saturday as Asia’s third-largest economy switched to a new nationwide sales tax at the stroke of midnight, replacing a host of provincial and national levies.

The Goods and Services Tax (GST), India’s biggest tax reform in the 70 years since Independence, unifies the $2 trillion economy and 1.3 billion people into one of the world’s biggest common markets.

Maruti Suzuki Ltd, India’s biggest carmaker by sales, dropped prices on some models by up to 3 per cent, passing the “entire benefit of GST rates” to customers.

Maruti, however, said prices of two mild hybrid models had increased under the GST regime, following withdrawal of tax concessions.

Tata Motors’ luxury British arm, Jaguar Land Rover (JLR), has reduced prices for all cars manufactured in India by up to 7 per cent, a spokeswoman for the company said.

Hypermarket Big Bazaar, owned by Future Retail Ltd , announced discounts of 2 per cent to 22 per cent on groceries and household supplies across its stores in 26 states.

Fashion portal Myntra, part of India’s biggest online retailer Flipkart, was also offering GST discounts.

In Bhubaneswar, the capital of Odisha, customers queued up outside shops and malls, which remained open till late Friday night to clear stocks of watches, electronic gadgets, cosmetics and gold at discounted rates before the GST regime kicked off at midnight.BJP workers were seen celebrating the launch of the GST with firecrackers on Friday evening and by painting “Welcome GST” slogans on roads.

The Union government is encouraging all business to migrate to the new GST system but its complexity – four rates and several exemptions – has still kept many at bay.”We will continue as usual unless we see trouble,” said a 35-year-old grocer in Bhubaneswar who has not yet registered for the GST.


60% Of The Banned Currency That Is 9.2 Lakh Cr Replaced: RBI

The Reserve Bank of India has restored 60 percent of banned currency notes after demonetization. The Governor of reserve bank of India Urjit Patel informed a parliamentary standing committee on finance on Wednesday that the central inculcated new currency notes valued about 9.2 lakh crore Rupees into the system. Currency notes have been anticipated around Rs 15.4 lakh crore were reserved when the centre has declared demonetization on 8th November 2016. The majority members of the finance committee which includes former Prime Minister Manmohan Singh and the panel chairman M Veerappa Molly spoke in support of shielding the autonomy of RBI as an institution but also alleged that accountability from its governor must be required as the note ban had crashed a large number of people.

Despite the fact that the members established Patel’s elucidation coherent, they were annoyed that he did not answer doubts such as how much money had been placed in banks after demonetisation or by when the cash supply situation would ease across the country. Opposition member said ‘Patel came across as a professional in his brief..but he had a lot of issues to raise ‘.

The finance committee conference was essential as chief finance ministry officials comprising Economic Affairs Secretary Shaktikanta Das and revenue secretary Hasmukh Adhia concise the board. Representatives of Indian banks association has also briefed the team, with the financial Services secretary Anjuly Chib Duggal has also succinct the board regarding the monetary policy comprising the note ban. As the members required to be acquainted with if the government enforced the Reserve Bank of India to propose the note ban, Das and Patel together responded that the government has been discussing the matter with the central bank ever since early 2016.

On the other hand, Das alleged such talks initiated in may and Patel said that these deliberations have been initiated in January. While the members inquired why a joint secretary of finance ministry has been organized at the RBI to supervise the currency circumstances after demonetisation, Mr. Patel had no respond to give. As per the sources together the consultations were full of loopholes and would recommence after the first half of the budget session of parliament ended on 9th February.

An opposition lawmaker said’ Patel could not answer how much money had come back into the system and by when the bank’s operations would be normal RBI officials were defensive on demonetisation.’

Sources also enquired that opposition members asked numerous questions regarding the suffering of the population, the economy and job losses and almost over hundred deaths ascribed to the note ban. In the rejoinder to queries connected to the attentiveness of the banking system to covenant with the bang of the note ban, Deputy Governor of Reserve Bank of India Mr. S S Mundra said all the automated teller machines approximately around 200000 were serviceable currently.

Former Prime Minister Manmohan Singh came to the Reserve bank of India to help Urjit Patel when he countenances a tricky inquiry from members of the standing committee on finance. When member asked Patel about if there would be confusion if existing limitations on withdrawals are removed, at this query Manmohan Singh told Patel ‘ You should not reply to this query’, as Manmohan Singh has served as the RBI governor before . In November Mr. Manmohan Singh has criticized the government on demonetisation phrasing it as ‘organised loot and legalised plunder’ of India.