GST Council to Review 18% GST on Co-lending Services
- The Fitment Committee of the GST Council is going to review the 18% GST on co-lending services, following a report by the SBI-led committee on colending.
- The Department of Financial Services (DFS) has requested to review of the GST on co-lending services.
- The decision will be sent to the GST Council.
The Fitment Committee of the Goods and Services Tax (GST)
The Fitment Committee of the Goods and Services Tax (GST) Council is a committee which is there to examine proposals for revising rates on goods and services and then makes recommendations to the GST Council. The committee primarily deals with issues related to GST rates, exemptions, and clarifications.
Here are some things the Fitment Committee does:
- Reviews proposals: The committee reviews proposals for revising rates on goods and services (GST).
- Makes recommendations: The committee makes recommendations to the GST Council.
- Deals with issues: The committee deals with issues related to GST rates, exemptions, and clarifications.
The recommendations of the Fitment Committee are placed in front of the GST Council for its recommendation.
2
State Bank of India (SBI) Aims to Reach ₹ 100 Trillion Business in Next Financial Year
- SBI Chairman CS Setty predicted that SBI will reach ₹ 100 trillion in total business in the next financial year, provided it maintains a 14-16% loan growth rate and 10% growth in deposits.
- The bank’s loan book was ₹ 39.2 trillion at the end of September, while deposits stood at ₹ 51.17 trillion.
- SBI aims for 10% growth in deposits and maintains an incremental credit deposit (CD) ratio of 100%.
- SBI is opening 65,000 savings accounts daily to facilitate deposit mobilisation.
3. GDP shocker: growth rate dipped to 5.4%
Economic Growth in FY25
- Manufacturing led to a 5.4% GDP growth in Q2 of FY25, compared to 6.7% in April-June and 8.1% in the previous quarter.
- Real Gross Value Added (GVA) grew by 5.6% in Q2 of FY25, compared to 7.7% in Q2 of FY24.
- Nominal GVA saw a exponential growth rate of around 8.1% in Q2 of FY25, compared to 9.3% in Q2 of FY24.
- Despite slow growth in manufacturing and mining & quarrying sectors, real GVA in H1 (April-September) recorded a growth rate of 6.2%.
- Agriculture and allied sector saw a 3.5% growth rate in Q2 of FY25.
- Construction sector saw 7.7% and 9.1% growth rates in Q2 and H1 of FY25.
- Tertiary sector saw a 7.1% growth rate in Q2 of FY25.
- Trade, hotels, transport, communication, and broadcasting services saw a 6% growth rate in Q2 of FY25.
