Parliament Watch: Rupee hit, GST recast losses, NPA study loans, ratings improvement

The rupee's depreciation against the dollar this fiscal has been influenced by the increase in trade deficit and "ongoing developments in India's trade agreement with the US", amid relatively weak support from the capital account, the Lok Sabha was informed Monday. In a written reply, MoS for finance Pankaj Chaudhary said various domestic and global factors influence the exchange rate. These include the movement of the Dollar Index, trend in capital flows, level of interest rates, movement in crude prices and the current account deficit.

GST Recast may Lead to ₹47,700 cr Loss

The Centre told parliament Monday that it expects to lose ₹47,700 crore on account of rate rationalisation under goods and services tax (GST), but this will lead to improved compliance and lesser disputes. The projection is based on the data of consumption patterns and entire value chain for the period 2023-24, MoS for finance Pankaj Chaudhary said in a written reply to the Lok Sabha. The overall revenue implication of the move is ₹93,300 crore. However, the items that moved from the 28% to the 40% tax bracket are projected to account for additional revenue of ₹45,570 crore, he added. "However these figures should not be viewed as definitive since tax collection is not static and there is buoyancy," the minister added.

489 Fraudulent GST Registrations

The Centre has detected a total of 489 cases of fraudulent registrations using forged PAN and Aadhaar credentials in the current fiscal year, as on October 31, causing estimated tax evasion of ₹3,013 crore. In the previous financial year (2024-25) it detected a total of 3,977 fraudulent GST registrations, with an estimated tax evasion of ₹13,109 crore, MoS for finance Pankaj Chaudhary said in a written reply to the Lok Sabha Monday.

5% GST Rate for all Handmade Shawls

The Centre on Monday clarified that all handmade and hand-embroidered shawls will attract GST rate of 5%, even when it is priced above ₹2,500. "The GST rate on handmade/ hand-embroidered shawls has been retained at 5% and the threshold value limit for the same has been removed," MoS for finance Pankaj Chaudhary said in a written reply to the Lok Sabha.

Edu Loans: PSBs' Gross NPAs Down to 2%

MoS for finance Pankaj Chaudhary informed the Lok Sabha that as per Reserve Bank of India (RBI), in terms of outstanding education loans, the gross non-performing assets (NPAs) of public sector banks (PSBs) reduced from 7% in FY21 to 2% in FY25, thereby showing the significant improvement in asset quality of education loans over the years.

Tax Reforms Helped Improve Ratings

Finance Ministry Monday told parliament that government's tax administration reforms, including GST automation, faceless income-tax assessments and e-invoicing-have significantly reinforced India's macroeconomic fundamentals and helped in getting a more favourable sovereign rating recently. "These measures have enhanced revenue buoyancy, improved predictability of collections, and widened the tax base, thereby supporting medium-term fiscal discipline," MoS for finance Pankaj Chaudhary said in a written reply to the Lok Sabha.