New GST rates to lower consumer inflation by 20bps: Nomura
Improving rural living standards drive demand for higher quality goods and services: SBI
Decision to lower GST (goods and services tax) rates on over 200 items could help pull down retail inflation by 20 basis points from the current levels driven by lower food and beverage prices, says a report. Retail or CPI inflation rose to 7-month high of 3.58 per cent in October, driven up by costlier food items, particularly vegetables. According to global financial services major Nomura, recent decision by the central government to lower tax rates for 213 items including 178 items of daily consumer use is likely to lower CPI inflation by about 20 basis points (0.2 per cent). “The government expects these (GST) measures to be disinflationary. Our quantitative analysis suggests that if (a big if) the GST tax changes are fully passed on to consumers, they would lower CPI inflation by estimated 20 basis points,” Nomura said.
GSTN utility for exporters to claim refunds to go live tonight
The demand for quality goods and services is increasing in rural India reflecting improvement in living standards, an SBI report said today. “The good thing is that prices of discretionary consumption in rural areas has been on a declining trend since 2015-16. “One possible reason for such is that big manufacturing / FMCG companies have significantly revved up their distribution channels in rural areas,” SBI said in its ‘Ecowrap’. The SBI has factored in items of discretionary consumption as soft drinks, prepared meals, snacks, recreational and amusement, and personal care, among other things in the report. In India, it said the consumption pattern of the people has been continuously changing with the change in their livelihood, mostly in rural areas.
India services export flat at $14 bn in September, import grows
Merchant exporters can start claiming tax refunds using the new utility that will be activated on the GST Network portal tonight, GSTN CEO Prakash Kumar said. With the new utility RFD-1A, a merchant exporter can claim refund of GST paid at the time of buying goods which he has exported in the relevant month. “GST RFD-1A for refund of input tax credit on export of goods and services and additional amount in cash ledger would go live on GSTN portal tonight,” Kumar told PTI. The refund claims can be filled for July-September and that would be matched with the corresponding GSTR-3B filed by the exporter. Earlier, GSTN had launched the utility for processing refund claims by manufacturing exporters who had paid Integrated GST (IGST) while exporting goods.
Services export of India remained flat at USD 13.73 billion in September year-on-year while import slightly picked up to USD 8.45 billion, showed RBI data. In September 2016, India had exported services worth USD 13.77 billion. The import grew 1.7 per cent from USD 8.30 billion last year. In August 2017, the services export was USD 13.7 billion while the import came in at USD 8.66 billion.
Cumulatively, the services export during April-September read USD 80.33 billion. Import of services was valued at USD 46.74 billion in the first half of the fiscal, showed the data on India’s International Trade in Services released by the Reserve Bank of India (RBI). India is one of the major economies contributing to the world services export industry.
India's trade composition for H1 2017-18:
Merchandise exports: $147 billion
Merchandise imports (incl oil): $219 billion
Total merchandise trade volume: $366 billion
Merchandise trade surplus/-deficit: -$72 billion
Services exports: $80 billion
Services imports: $46 billion
Total services trade volume: $126 billion
Services trade surplus/-deficit: $34 billion
Total exports: $227 billion
Total imports: $265 billion
Total trade volume: $492 billion
Total trade surplus/-deficit: -$38 billion
We should hit $1 trillion in total trade volume for the full year this year, for the first time.