1. GST Collection Slips Below Rs 1 Trillion in March After 4 Months
Goods and services tax (GST) collection fell below the Rs 1-trillion mark in March after a gap of four months, even as disruptions caused by the coronavirus-induced lockdown will get captured only in the coming months.
The numbers pertain to GST paid in February but collected in March, suggesting that collections might turn grimmer going forward.
The GST mop-up in March stood at Rs 97,597 crore, down 8.4 percent on a year-on-year basis, the data released by the Ministry of Finance showed on Wednesday. The government had targeted a collection of Rs 1.25 trillion in March. GST collection grew by a meagre 3.7 per cent in the full fiscal year 2019-20.
(Source: Business Standard)
2. Sales of Top Auto Makers Decline 64% in March
A nationwide lockdown to prevent the spread of coronavirus has brought an already struggling auto industry to its knees. The country’s automobile sales are down by an average 64 percent as all manufacturing plants have been shut since the lockdown announced on 24 March.
The March auto sales numbers, a measure of the country’s economic health, are a pointer that a series of measures would be required to restart the economic engine post the pandemic, according to analysts.
Maruti, which sells one in every two cars in India, said it had sold 83,792 in March, down 47 percent from a year earlier. But the company said the number was not comparable with 2019 due to the suspension of operations from 22 March.
(Source: Business Standard)
3. RBI Announces 3 More Measures to Fight COVID-19
The Reserve Bank of India (RBI) on Wednesday, 1 April, unveiled three fresh measures to ease conditions for exporters, state governments and banks amid the lockdown. This is the second set of measures announced by the central bank since Friday.
In view of the disruption caused by the pandemic, the time period for realisation and repatriation of export proceeds for exports made up to or on 31 July 2020, has been extended to 15 months from the date of export. At present, the value of goods or software exports made by exporters is required to be realised fully and repatriated to the country within a period of nine months from the date of export.
“The measure will enable the exporters to realise their receipts, especially from the COVID-19 affected countries within the extended period and also provide greater flexibility to the exporters to negotiate future export contracts with buyers abroad,” RBI said in a circular.
(Source: The Financial Express)
4. Revenues of IT Companies May Take a Big Hit in FY21
Revenues of information technology (IT) services firms are likely to a take a big hit in financial year 2020-21 (FY21) as the coronavirus disease (COVID-19) is expected to pull down clients’ spend significantly.
According to brokerage firms, dollar revenues are likely to fall by about three percentage points as a result. Though a weak dollar will lend some support to revenues and margins in FY21, the demand environment will outweigh any gain, they said.
“In terms of dollar revenue, we estimate the impact of COVID-19 on Indian IT companies in FY21 at around three percentage points.
(Source: Business Standard)
5. Customers Fret as Public, Private Banks Differ on Moratorium
The Reserve Bank of India’s (RBI’s) three-month loan repayment moratorium will not work the same way for all – while customers of some banks must opt in for the relief, others will be automatically eligible for it.
Following the RBI directive to banks on 27 March, different banks have announced their policies. State Bank of India, the country’s biggest lender, tweeted: “In terms of RBI COVID-19 regulatory package, SBI has initiated steps to defer the installments and interest/EMIs on term loans falling due between 1 March 2020 to 31 May 2020 and extended the repayment period by three months."
Other state-run banks such as Bank of Baroda, Punjab National bank, IDBI Bank and Canara Bank too have informed their customers about the moratorium. Most banks have come out with detailed FAQs for clarity.
(Source: Mint)
6. Tata-Mistry Rivalry Continues, Share Pledges Latest Flashpoint
Tata Sons Ltd will challenge the Shapoorji Pallonji Group’s plan to raise funds by pledging shares in the Tata group holding company, a person aware of the matter said, sparking a new flashpoint in their simmering corporate rivalry.
Article 75 of Tata Sons’ Articles of Association says the privately held company has the first right to buy if any shareholder decides to sell shares. The article also empowers it to direct its shareholders to sell their holdings by passing a special resolution.
“It is clear that Tata Sons wants to be a closely held company; so if at any given time, pledged shares are invoked and a bank takes ownership of those shares or shares are sold to another third party, then the entire purpose of restricting transfer of shares is defeated," the person said on condition of anonymity.
(Source: Mint)
7. LPG Cylinder Prices Become Cheaper Amid Lockdown
Amid the nationwide coronavirus lockdown, the price of non-subsidised LPG cylinders were cut today. This is the second consecutive fall in cylinder prices in last two months. In Delhi, a 14.2 kg non-subsidised LPG will now cost ₹744. This is a reduction of ₹61 per cylinder from the previous revision done on 1 March. In Mumbai, a non-subsidised LPG cylinder will now be available at ₹714.50 as compared to ₹776.50 earlier.
After the today's price revision, the LPG cylinder will cost ₹774.5 in Kolkata and ₹761.5 in Chennai as compared to ₹839.50 and ₹776.50 earlier.
(Source: Mint)
8. Companies Want Interim Dividend Rule Relaxed
The ministry of corporate affairs (MCA) has received representations from industry bodies and companies for relaxation in Section 123 of the Companies Act, which deals with the declaration and payment of dividend to the shareholders, officials said.
Sources said citing the COVID-19 outbreak, companies also urged the government that the report of the board of directors should be allowed to include the pandemic’s impact on businesses and also whether the “going concern” position of a company is sustainable due to this pandemic.
(Source: The Financial Express)
9. SBI Clarifies Loan Payment Deferral Will Come at a Cost
State Bank of India (SBI) on Wednesday, 1 April, clarified that the rescheduling of term loan payments will come at some additional cost and those with the ability to make payments should continue to do so.
The clarification came after the central bank last week directed banks to provide a three-month moratorium on term loan repayments to help borrowers mitigate the impact of the COVID-19 outbreak. The payments deferral will apply on payments due between 1 March and 31 May .
The bank’s management clarified that the facility would be a deferral of payments, rather than a waiver, and would consequently come at a cost. However, the additional cost accrued will be back-ended during the repayment period.
(Source: The Financial Express)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)