Business
October GST collection up 4.6% to Rs 2 Lakh-crore despite tax cuts – The Times of India
NEW DELHI: The impact of pre-GST revamp pause in sale of several products, such as automobiles and white goods, and the lower rates rolled out from Sept 22 slowed down the growth in gross GST receipts but the mop up remained close to the Rs 2 lakh crore-level, data for October showed. Official numbers released on Saturday showed GST collections in Oct for transactions in Sept totalled 1.96 lakh crore, an increase of 4.6% compared to Rs 1.87 lakh crore in October last year.This was the slowest pace of increase this fiscal. In Aug and Sept, GST collection rose 6.5% to Rs 1.86 lakh crore and at 9.1% to Rs 1.89 lakh crore. Gross domestic revenue grew 2% to Rs 1.45 lakh crore, while tax from imports rose nearly 13% to Rs 50,884 crore in October. The data showed GST refunds rose 39.6% year-on-year in Oct to Rs 26,934 crore.In Sept, GST Council had unveiled reforms to GST rate structure, which led to a sharp reduction in rates on a raft of items, bringing relief to consumers, and the latest data showed apprehensions of decline in collections have been negated.The rate cuts, effective September 22, have revived consumption demand, and experts said GST revenues for Nov are likely to show a sharp rebound.“Despite massive rate cuts effective from September 22, a slight increase in domestic GST collection is very encouraging and shows that demand is steadily increasing,” said Pratik Jain, Partner at consulting firm Price Waterhouse & Co LLP.“Consistent increase in GST refunds (domestic as well as exports) shows confidence of tax administration that GST collections would show positive trend in future as well. Next month’s data would have the full impact of GST cuts and would be keenly awaited,” added Jain.On the back of a fillip provided by a reduction in GST on 375 items, consumers had flocked to stores and car dealerships resulting in highest Navratri sales in over a decade, government officials had earlier said, citing industry data.“The GST collections, while aligning with immediate expectations, reflect a muted momentum in Sept primarily due to rate rationalisation effect in the majority part of the Sept month and the deferred consumer spending ahead of the upcoming festive season. This anticipated lag is likely to be compensated by more robust numbers in the next month, driven by seasonal buoyancy,” said Saurabh Agarwal, Tax Partner at EY India. “The impressive, high percentage growth in collections from states and UTs like Arunachal Pradesh, Nagaland, Lakshadweep and Ladakh is a tangible indicator of holistic economic development across India,” he said.
The annual tradition of “Dry January” turned into “Damp Monday” at one supermarket, with shoppers returning to alcohol consumption in the middle of the month.
Waitrose said that the month was “not so dry after all,” identifying January 12 as “Damp Monday” after sales of wines, beers, and spirits surged by 11 per cent compared to the week before.
The grocer noted a “significant softening” of the Dry January trend over the past five years, suggesting a more balanced “Damp January” approach is now prevalent.
While alcohol sales in January 2022 were 42 per cent lower than other months, this year saw a reduced drop of just 25 per cent.
Notably, Argentinian and Chilean wine sales experienced a considerable boost last month, rising by 25 per cent and 27 per cent respectively compared to the previous year.
Compared to this time last year, searches on Waitrose.com for “Argentinian wine”, “red wine” and “Chilean wine” were up 300%, 63% and 18% respectively.
Pierpaolo Petrassi, head of beers, wines and spirits at Waitrose, said: “Damp is the new dry, as we’re seeing customers move away from the ‘all-or-nothing’ mentality and instead look towards more mindful, ‘damp’ moderation rather than quit entirely.
“This shift sees the likes of a luxury Argentinian Cabernet sitting comfortably alongside premium non-alcoholic spirits as sophisticated sips, proving that the modern palate values flavour profiles and social connection over the buzz alone.
“No doubt the no and low trend skyrocketed in 2022 as the result of the ‘pandemic reset’ transitioning out of the final lockdowns, as well as the ‘sober curious’ movement going mainstream on social media.
“Now, 2026 is the ‘lifestyle’ year, with customers finding balance as part of a more tempered, year-round approach to drinking.”
Data reported by The Spirits Business trade publication from early this year suggested that while 58% of the UK public aimed to cut back, a significant portion – roughly 31% – had opted for a “damp January” – reducing intake rather than cutting it out entirely.
Business
Budget eases PF, ESI deduction rules for employers, allows relief for delayed deposits – The Times of India
In a move expected to bring relief to employers and reduce routine tax disallowances, the finance bill has proposed a key change to the treatment of employees’ provident fund (PF), ESI and similar contributions, allowing deductions even where there is a delay in deposit, provided the amount is deposited by the employer entity with the relevant welfare fund authorities before the due date of its Income-tax return.At present, employers can claim deduction for employees’ PF and ESI contributions only if the amounts are deposited within the strict timelines prescribed under the respective welfare laws. Even a minor delay permanently disqualifies the expense for tax purposes, a position that had been settled by the Supreme Court (SC) after years of litigationUnder the proposed amendment to Section 29 of the Income-tax Act, 2025, the definition of “due date” for claiming deduction of employees’ contributions is set to be aligned with the due date for filing the income-tax return by the employer entity.Explaining the shift, Deepak Joshi, a SC advocate said employers are currently held to a rigid standard. “The law, as interpreted by the SC, meant that if employee contributions were not deposited within the due date under the relevant welfare fund laws, no deduction was allowed — even if the payment was made before filing the income-tax return,” he said.“The proposed amendment substitutes the definition of ‘due date’ to mean the due date of filing the income-tax return. The positive impact is that even if there is a slight delay in depositing employees’ contributions, so long as the amount is deposited before the return-filing deadline, the employer will be allowed the deduction,” Joshi added. Experts view the move as part of the government’s broader effort to soften compliance rigidities and reduce avoidable litigation.
Baby boxes are being delivered to expectant families in some of Wales’ most deprived areas.
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