Today’s Latest Business News, Finance and Share Market News at 9:30 am on 26th September 2022
Today’s Latest Business News, Finance and Share Market News at 9:30 am on 26th September 2022
Today’s Latest Business News at 9:30 am on 26th September 2022
“You are listening to the Expresso Business Update. Here is the latest news from the world of Indian and International business brought to you by The Indian Express and The Financial Express.
“The finance ministry will soon make a strong pitch for imposing a ceiling on annual food subsidy expenses, the relentless rise of which has become an unsustainable fiscal obligation over the last few years. According to official sources, a Cabinet note being prepared by the ministry with this intent will suggest ending the open-ended nature of heavily subsidised grain supplies under the National Food Security Act, 2013, and ways to bring down the rising economic costs of rice and wheat as incurred by the Food Corporation of India. The ministry’s note, the sources said, will also point out that though the NFSA has a provision empowering the government to revise the issue prices of grains under NFSA starting July 2016 “from time to time, but not exceeding the minimum support price”, it has never been exercised.
Moving on – The Directorate General of GST Intelligence has slapped a tax demand of Rs 21,000 crore on Bengaluru-based online gaming company Gameskraft Technology, exposing the massive scale of tax evasion in the thriving betting and gaming industry. This is the largest single indirect tax demand on any evader till date.
In a show-cause notice issued to Gameskraft, known for popular card and fantasy games such as Rummyculture and Gamezy, the DGGI asked the firm to pay GST at 28% on aggregate betting amount of about Rs 77,000 crore for the period between 2017 and June 30, 2022. The move follows forensic examination by the probe agency revealing that Gameskraft was not issuing any invoices to its customers and was submitting fake/back dates invoices to the taxman.
In a separate development – The government will likely relax two of the most critical criteria when it launches the second production-linked incentive scheme for the labour-intensive textiles and garment sector, acceding to industry requests. It could allow cotton-based players to take advantage of the scheme, and drastically reduce the turnover and investment limits to enable even medium enterprises to set up units under it, sources told FE. The Centre had launched the first PLI scheme for only technical textiles and man-made fibre-based players who were willing to commit large-scale investment of at least Rs 100 crore and annual turnover of Rs 200 crore each.
In another development – Half a dozen states, mostly Opposition-ruled ones, may lose out on the 50-year interest-free loans for capital expenditure in FY23 if they don’t meet the Centre’s norm that they can’t change the original name of centrally sponsored schemes being funded. So far in the current fiscal, the Centre has sanctioned about Rs 40,000 crore, or about 50% of the untied (unspecified projects or reforms) component of the interest-free capex loan, to 16 states.
The schemes being renamed by some states include PM Awas Yojana, for rural housing and health and life insurance schemes. The Centre’s view is that even though it spends annually over Rs 4 trillion under the centrally sponsored schemes, many states, especially those ruled by non-BJP parties, have changed many schemes’ names to deny credit to it.
Now some news related to industry – Maharashtra deputy chief minister Devendra Fadnavis on Sunday defended his government against attacks for not being able to retain the Vedanta Foxconn semiconductor project in Talegaon, Pune, and said Vedanta Foxconn had already made up its mind to set up the plant in Gujarat.Fadnavis said they tried their best in the last one month to get Vedanta Foxconn to invest in the state, but it was too late to do anything. He also refuted allegations of letting go of the proposed medical devices park from Maharashtra to Gujarat. He said there was no progress on the ground in this project.
Now some market news- Wind energy player Suzlon said on Sunday it was offering existing investors in the company five shares for 21 fully paid-up shares in bid to raise Rs 1,200 crore via a rights issue. The decision was taken at a board meeting, the company said in a release to the exchanges. The Suzlon stock closed at Rs 9.15 on Friday on the National Stock Exchange, down 4.69% over the previous close. The stock hit a 52-week low of Rs 5.90 on July 28.
Lastly- Indian benchmark indices BSE Sensex, NSE Nifty 50 are likely to extend losses on Monday as SGX Nifty was in red ahead of the session, hinting at a negative start for domestic equities. Global cues were weak as US Stocks fell on Friday, and Asian shares were trading lower in morning trade today. Japan’s Nikkei 225 dropped 2.19%, and the Topix slipped 2%. South Korea’s Kospi lost 2.3% and the Kosdaq shed 2.97%. Meanwhile, Wall Street’s main indices slumped as the Dow Jones Industrial Average fell 1.62%, the S&P 1.72%, and the Nasdaq Composite dropped 1.8%.
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