Business
Delhi’s Economy Gets A Push! GST 2.0 Rate Cuts To Aid MSMEs, Trade And Hospitality
New Delhi: The rollout of GST 2.0 rate cuts is set to bring direct relief to Delhi households by lowering their day-to-day expenses. At the same time, the move is expected to boost the city’s economy, as MSMEs, traders, and the hospitality sector gain from reduced input costs, stronger demand, and improved competitiveness.
Widespread Impact Across Delhi Markets
From Karol Bagh’s automobile and apparel shops to the wholesale trade in Sadar Bazar and Khari Baoli, and from Chawri Bazar’s paper hub to the busy streets of Chandni Chowk, the effects of GST 2.0 will be felt everywhere. Alongside this, lower rates on everyday goods and essential services will ease expenses for households across the city.
Delhi’s Auto Hubs Powering North India’s Trade
Delhi has long been a key centre for automotive component trading, with markets like Karol Bagh and Kashmere Gate well-known for their wholesale and retail networks. These family-run businesses and MSMEs not only cater to the city’s massive vehicle population but also supply parts across north India and even export to neighbouring countries. In fact, Delhi’s auto hubs alone trade components worth nearly Rs 1,000 crore every month with Bangladesh. As a result, the city plays a crucial role in India’s auto components industry, which recorded a turnover of Rs 6.14 lakh crore in FY24.
GST Cuts to Make Vehicle Maintenance Cheaper
With GST on auto parts reduced from 28 per cent to 18 per cent, the cost of vehicle maintenance for both consumers and mechanics is expected to drop by nearly 7.8 per cent. Lower prices for spare parts will mean smaller service bills, encouraging vehicle owners to replace worn-out components more regularly. This not only saves money but also helps improve safety and efficiency on Delhi’s roads.
As the national capital, Delhi is a major destination for tourists, business travellers and medical tourism. It offers everything from luxury properties to budget stays in Paharganj and Karol Bagh. In 2024, Delhi’s hotel market recorded about 72.9 per cent average occupancy with an average daily rate (ADR) of nearly Rs 10,273.
The new GST rate of 5 per cent for rooms below Rs 7,500 per night directly reduces the cost of staying in Delhi’s hotels. For example, booking a room at Rs 5,000 per night would now attract an additional tax of only Rs 250 (5 per cent). This makes hotel stays around 6.25 per cent cheaper. These savings accumulate over a multiple-night stay, which will result in higher occupancy rates.
To complement room-rate relief, key kitchen inputs used by hotels, restaurants, cafes, and caterers have also been cut from 18 per cent to 5 per cent. The 13-percentage-point tax reduction on these crucial kitchen supplies will directly lower the input costs for restaurants and hotels.
Delhi-NCR is the top city for hospitality job opportunities, with a 20.37 per cent increase in job postings in 2022-23. A sustained boost in the sector would translate into increased job creation and better earnings for the large workforce employed in Delhi’s hotels and restaurants.
Delhi is also a massive consumer of milk and dairy products. The city is served by an extensive supply network from cooperatives like Mother Dairy and Amul. Delhi employs thousands of workers in milk processing plants (like the Mother Dairy plant in Patparganj) and as delivery agents or vendors in local markets.
Footwear, eco-friendly furniture, beauty and wellness services, and printing-paper packaging all sit in Delhi’s consumer basket while powering its MSME engine. The GST cut on affordable footwear and finished leather, along with furniture, printing & stationery items, will lower final prices and ease working-capital strain for small traders.
GST on items like bamboo, cane, and rattan furniture is now 5 per cent, improving affordability for households and demand certainty for artisans and small retailers. The furniture sector provides employment to thousands in both formal showrooms and informal workshops across Delhi, with major markets in Kirti Nagar and Panchkuian Road. (With IANS Inputs)
Last Updated:
Taxpayers facing refund holds due to mismatches must act before December 31.
Knowing revised and belated ITRs can help avoid penalties. (representative image)
The Income Tax Department has recently sent messages and emails to many taxpayers saying their refunds are on hold. The reason given is a mismatch in the income tax return (ITR) details. In these alerts, taxpayers have been asked to take action before December 31, this year, to fix the issue.
This has caused confusion, especially among those who believed they had filed their returns correctly. The department has also stepped up checks on cases where it feels excess refunds may have been claimed. As a result, many taxpayers are now unsure about the right way to respond.
In its email, the department reportedly stated, “As the time limit for filing of revised ITR for A.Y. 2025-26 will expire on 31 December 2025, you are requested to avail this opportunity to file Revised Return within the due date if so required. Alternatively, you may file an updated return w.e.f. 1 January 2026, however, subject to an additional tax liability.”
With the deadline nearing, it is important to understand the options available after the original ITR due date has passed.
What Is A Revised ITR?
A revised ITR allows taxpayers to fix mistakes made in the original return. These errors could include missing income details, wrong deductions, calculation errors, or choosing the wrong ITR form. Under Section 139(5) of the Income Tax Act, 1961, taxpayers can submit a revised return to correct such issues.
A revised ITR can also be filed if the refund amount needs to be increased or reduced based on corrected information.
What Is A Belated ITR?
A belated ITR is filed when a taxpayer misses the original filing deadline. As per Section 139(1) of the Income Tax Act, this return can be submitted until December 31 of the assessment year. However, filing late usually means paying a penalty.
Taxpayers who miss the deadline are advised to file a belated return instead of not filing at all, as non-filing can lead to further trouble.
Why File A Revised ITR?
A revised return is useful when the original ITR has errors. These may include underreported or overstated income, wrong deductions, incorrect refund claims, or other filing mistakes.
As quoted by Livemint, CA, Shefali Mundra, tax expert at ClearTax, says, “There is no penalty for filing a revised return within the prescribed timeframe.”
Revised ITR vs Belated ITR Explained
“A revised return is filed to correct errors or omissions in a previously filed return (either original or belated). It can be filed before 31 December of the relevant assessment year or before the department completes the assessment. The revised return is linked to the original filing, and the taxpayer can make corrections without any penalties, apart from paying any additional taxes and interest,” CA Mundra told Livemint.
She added that a belated ITR is treated differently.
“A belated return is filed after the original due date for submitting the return, which is typically 31 July for individual taxpayers. A belated return is still considered an original return, and it is subject to a late filing fee under Section 234F (up to Rs 5,000, depending on the income) and interest on unpaid tax. Additionally, certain benefits, such as carrying forward losses, may not be available when filing a belated return,” CA Mundra also stated.
Click here to add News18 as your preferred news source on Google.
Delhi, India, India
December 27, 2025, 10:31 IST
Read More
Last Updated:
A rejected critical illness claim may not be the final word if the policy clearly covers the condition.
Policyholders can successfully challenge unfair decisions.(Representative Image)
A policyholder recently faced trouble after his/her spouse was diagnosed with a serious brain-related illness. The condition was identified as bacterial meningitis with encephalitis. Believing the illness was covered, the family filed a critical illness claim with their insurer.
However, the insurance company turned down the request. The reason given was that the illness did not fall under the list of covered conditions. This left the family confused and unsure about the next step, especially at a time when medical stress and costs were already high.
Why A Rejected Claim May Still Be Valid
A claim rejection does not always mean the insurer is right. The first step is to read the policy document carefully. Most critical illness plans clearly list the illnesses they cover. In many policies, bacterial meningitis is included, but only if certain medical conditions are met.
In a similar case, a close review of the policy showed that the illness was listed among 32 covered conditions. The medical records also clearly confirmed the diagnosis and seriousness of the disease. When both the policy terms and medical proof match, the rejection can be questioned.
How To Raise The Issue With The Insurer
The next step is to approach the insurer’s grievance team. This means sending a clear written request that explains why the claim should be accepted. It is important to point out the exact policy clauses and attach all medical reports.
In the case mentioned, the policyholder shared hospital records, diagnosis details, and proof of treatment. Despite this, the insurer stuck to its earlier decision and did not provide any new explanation. This is when many people give up, but there is still another option available.
When The Insurance Ombudsman Can Help
If the insurer does not resolve the issue, the policyholder can approach the insurance ombudsman. Filing a complaint here does not cost anything. The ombudsman reviews both the policy terms and the medical evidence.
During the hearing in this case, the policyholder submitted hospital documents and a doctor’s certificate. The records confirmed that the patient had a lasting brain-related problem for over six weeks, which is an important requirement in many critical illness policies. The insurer failed to provide proof to challenge these findings.
What This Case Teaches Policyholders
After reviewing all details, the ombudsman ruled in favour of the policyholder and asked the insurer to pay the claim amount to the nominee. This shows that unfair claim rejections can be overturned if the policy terms are clear and the documents are in order.
It is always wise to read your policy closely, keep complete medical records, and use the grievance and ombudsman process when needed. Many rejected claims can be resolved because the facts and the policy are on the customer’s side.
Click here to add News18 as your preferred news source on Google.
December 27, 2025, 09:33 IST
Read More
Business
India’s Forex Reserves Surge $4.36 Billion To $693 Billion, Gold Holding Rises $2.6 Billion
Last Updated:
India’s Latest Forex Reserves: The value of the gold reserves jumps $2.623 billion to $110.365 billion during the week ended December 19.
India’s Latest Forex Reserves.
India’s foreign exchange (forex) reserves surged $4.368 billion to $693.318 billion during the week ended December 19, according to the latest data from the Reserve Bank of India (RBI). The value of the gold reserves jumped $2.623 billion to $110.365 billion during the week.
The overall kitty had increased by $1.689 billion to $688.949 billion in the previous week.
For the week ended December 19, foreign currency assets, a major component of the reserves, increased by $1.641 billion to $559.428 billion, according to the Reserve Bank of India’s latest ‘Weekly Statistical Supplement’ data.
Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
The special drawing rights (SDRs) were up by $8 million to $18.744 billion.
India’s reserve position with the IMF was up by $95 million to $4.782 billion in the week, according to the RBI data.
The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand.
After the last monetary policy review meeting, the RBI had said that the country’s foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. Overall, India’s external sector remains resilient, and the RBI is confident it can comfortably meet external financing requirements.
In 2023, India added around $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $71 billion in 2022. In 2024, reserves rose by just over $20 billion. So far in 2025, the forex kitty has increased by about $47-48 billion, according to data.
Foreign exchange reserves, or FX reserves, are assets held by a nation’s central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.
Click here to add News18 as your preferred news source on Google.
December 27, 2025, 08:17 IST
Read More
China’s electricity demand remains robust in November
Dua Lipa celebrates Christmas with Callum Turner and both families
Climate change may hit RMG export earnings of 4 nations by 2030: Study
-
Sports1 week agoPKF summons meeting after Pakistani player represents India in kabaddi tournament
-
Sports1 week agoUWCL grades for all 18 teams: Leuven get A+; Barça an A-, PSG fail
-
Sports7 days ago
Alabama turned Oklahoma’s College Football Playoff dream into a nightmare
-
Entertainment1 week agoRadiation fears rise after cracks found in $2 billion Chernobyl shield
-
Business1 week agoGold prices in Pakistan Today – December 20, 2025 | The Express Tribune
-
Entertainment7 days agoRare look inside the secret LEGO Museum reveals the system behind a toy giant’s remarkable longevity
-
Entertainment1 week agoMark Hamill reveals how Walt Disney inspired him to pursue career in movies
-
Tech1 week agoThe Lovense Spinel Is the Mini Sex Machine to Get