6 Nasik Mandis Shut Due To Sudden Fall In Onion Prices

Six out of 16 wholesale mandis here have been shut for onion trading after a sudden steep fall in prices to Rs 11/kg, the district administration said on Friday.

 

The average wholesale price of onion in Nasik, which was ruling at Rs 20/kg early this month, has now declined to Rs 11/kg, as per official data. Wholesale rates in other onion markets in Maharashtra have also fallen.

 

In Lasalgaon, Asian's biggest wholesale market for onion, rates were ruling at Rs 15/kg on Friday. "We have closed trading in six mandis since yesterday and they will open on Monday.

 

Other 10 mandis are open. The mandis are closed due to sudden onion price fall," Deputy District Registrar of Cooperative Society Nilkanth Kare told PTI. Onion prices started falling sharply since yesterday.

 

"The exact reasons are still not known. It is believed the prices fell on reports of income tax raids on onion traders and also because of rise in onion imports," he said.

 

On a daily basis, onion arrival in mandis is about 20,000 tonnes. Onion prices had touched the peak of Rs 25/kg few weeks back and now have come down to Rs 10-11/kg, he added.

 

Kare mentioned that the onion being sold in Nasik mandis at present are of stored ones of last year's crop. The new kharif crop is yet to arrive.

 

The cooperative society regulates wholesale mandis in the district.

 

It may be noted that wholesale onion prices in Maharashtra, the biggest growing state in the country, had shot up sharply in the last one month due to speculation despite new crop expected to be good. Due to which, the retail price had also gone up in most parts of the country.

 

To control consumer price, the government asked private traders to undertake onion import and so far 11,400 tonnes have been shipped.

 

 

 

Soures : moneycontrol.com

Indian Exports Rise For 12Th Straight Month, Grow 10.29% In August

NEW DELHI: Recovery in global demand helped India's exports to rebound in August after slowing in July. India's exports grew 10.3% in August to $23.8 billion. However, imports outpaced exports and grew 21%, widening the trade deficit to $11.6 billion from $7.7 billion in the year ago period.

 

Traditional sectors like leather, spices, drugs and pharmaceuticals, engineering goods and textiles registered a rise in outward shipments.

 

India’s exports growth slowed to an eight-month low in July, weighed down by appreciation in the rupee and goods and services tax (GST) regime-related disruptions.

 

“A pick up in exports during August augurs well for the Indian exporters who seem to be benefiting from recovery in major global markets, including the key economies of the US and Europe,” said EEPC India Chairman T S Bhasin.

 

Merchandise imports recorded a fairly broad-based upsurge in August 2017, led by fuels such as crude oil and coal, electronic goods, precious metals and stones, iron and steel, and machinery.

 

India’s healthy exports growth has come at a time when China’s outward shipments grew 5.5% in August.

 

“Higher crude oil prices boosted both imports and exports in August,” said Aditi Nayar, principal economist at ICRA.

 

Gold imports rose 68.9% to $1.8 billion from $1.1 billion a year ago while gems and jewellery exports declined 25.78%.

 

“With substantial restocking having taken place ahead of the festive season, and the recent monsoon and sowing trends suggestive of modest rural demand, gold imports may moderate in the months ahead,” Nayar added.

 

 

 

Soures : economictimes.indiatimes.com

 

Us Senators Seek Reduction On India's 'High Tariff' On Pecans

WASHINGTON: A bipartisan group of nine top American Senators has urged the Trump administration to take action on removing barriers to the export of tree nuts especially pecans from the US to India.

 

India's current high tariffs on pecans are affecting American pecan farmers, and have created a disparate trade barrier compared to some other tree nut producers, the Senators wrote in a letter to US Trade Representative (USTR) Robert Lighthizer.

 

The letter is also signed by Senators Ted Cruz, John Cornyn, James Inhofe, Johnny Isakson, Tom Udall, Martin Heinrich, David Perdue, Luther Strange and John McCain.

 

"There are fewer nations in the world that hold greater potential for economic cooperation and trade partnership with the US than India. Our shared democratic values and common commitment to free markets present American businesses with tremendous possibilities in South Asia," the Senators wrote in the letter dated September 12, which was released to the press yesterday.

 

"As you and the administration continue to explore new opportunities to grow the economy through trade and promote American agriculture, it is imperative that a key part of strengthening our trade relationship with India is reducing the tariffs that are impeding US agricultural exports," the Senators told Lighthizer.

 

The current tariff on US pecans entering India is approximately 36 per cent, while the tariff for other similar products, such as pistachios and almonds, is much lower at 10 per cent, the letter said.

 

"Reducing the tariff on all tree nuts will encourage increased imports of a type of commodity that enjoys popularity in India and will generate greater revenue for the country," it said.

 

For pecans in particular, any increase in imports from the US would not impact domestic pecan production in India because the country currently produces very little, if any, pecans, they argued.

 

Additionally, increasing US pecans imports to India presents an opportunity to advance issues important to rural America.

 

The pecan industry contributes over USD 3.75 billion to the rural economies of the 15 pecan-producing southern states stretching from the Carolinas to California, and exports alone over the last 10 years added an additional USD 1.25 billion in economic activity in rural America.

 

 

Soures : economictimes.indiatimes.com

Delhi Hc Allows Exporter To Import Without Paying Igst

NEW DELHI: The Delhi High Court has granted interim relief to an exporter, allowing him to import goods without payment of the integrated goods and services tax (IGST) to the extent allowed by advance authorisations received by him prior to July 1, when GST was enforced.

 

Advance authorisation is issued for exporters to allow duty-free import of inputs which are physically incorporated in export products. The relief given relates to export orders placed on the petitioner, an exporter of plastic products, before July 1. The next hearing in this case is on February 22.

 

Prior to GST, import under the Advance Authorisation Scheme (ASS) was exempt from payment of taxes like basic customs duty, additional customs duty, and education cess. A major change since July 1 is additional levy of IGST. While upfront exemption is extended to basic customs duty, exporters are required to pay IGST on import and Central, State or Union Territory GST (as the case applicable) on domestic procurement; thereafter, they may claim a refund.

 

The petitioner in this case had contended that such a mechanism adversely affected his working capital, impacting export orders got prior to July 1, for the fulfilment of which he had to undertake import of inputs. One such export order placed on the petitioner by Walmart Inc, USA, was cited. The petitioner said with the change brought about by the GST regime, he would have no option but to pay IGST out of own sources, causing a working capital blockage. As the petitioner had already used up the overdraft limit with banks, borrowing would have to be done.

 

Counsel for the Customs Department said the petitioner could seek refund of the IGST after completion of the export obligation. Hence, there was no ground for a real grievance. The petitioner replied that the prospect of IGST being ultimately refunded was little consolation, he required liquidity to discharge the additional levy of IGST, failing which the import would get blocked.

 

Abhishek Rastogi of Khaitan & Co, the petitioner's counsel, said while the order was specific to the petitioner, it did lay down the foundation for benefits that should go to exporters. After GST implementation, he said, the Commerce Ministry had asked the Finance Ministry to ensure export benefits continued as these were prior to GST. The Finance Ministry had not acted on this representation, resulting in exporters loss of working capital on a large scale.

 

 

Soures : dailyshippingtimes.com

Exporters Seek Clarity On Incentives Under Gst

MUMBAI: Exporters say they're facing difficulties owing to ambiguity about benefits continuing under goods and services tax (GST) from the previous tax regime and queries over accessing input credit, further clouding their prospects amid a dull global market and an appreciating rupee. Some of them have sought clarity on the matter from the Government ahead of the peak export season, said people in the know.

 

The development has led to exporters being unsure about pricing products set for the European Union (EU) and the US and warnings that overseas sales could suffer a setback in the upcoming quarter. The Foreign Trade Policy, FTP 2015-2020, has several incentives based on the earlier levies such as excise duty and service tax. It had been expected that these incentives would be recalibrated under GST but that hasn't happened, exporters said.

 

"There is an urgent need for the Government to clarify on the incentives available to exporters as their tax outgo has changed in GST," said MS Mani, partner, Deloitte India, adviser to some top exporters. "It is expected that the newly constituted committee headed by the Revenue Secretary Mr. Hasmukh Adhia would fast track its recommendations so that exporters get much needed clarity ahead of the peak export season and are able to plan accordingly."

 

While one option would have been to provide an exemption in the GST legislation to procurements made by exporters, the Government has provided a mechanism under which exporters pay the applicable tax to vendors and claim a refund on input taxes. "There are very stringent timelines provided for grant of refunds to exporters in the GST law," admitted the person cited above. But exporters aren't sure whether these would actually be followed, based on their past experience with refunds, the person added.

 

Many exporter groups have raised the matter with the Government in the past few months. The Adhia committee is set to evaluate the problems faced by exporters. "Since the export incentives/schemes are regulated by the Commerce Ministry, it's expected that the committee headed by Adhia would also have representatives from the Commerce Ministry in order to fast track the recommendations and to avoid inter-Ministerial roadblocks," said another person close to the development.

 

Sachin Menon, National Head of Indirect Tax at KPMG, said, "There seems to be no harmony between HSN codes in the GST portal and ICEGATE (portal run by the CBEC) for a few products. This means that some of the exporters may not be able to take input credit for the exports and would directly impact their cash flows till this issue is resolved."

 

 

Soures : dailyshippingtimes.com

Soybean Prices To Trade Sideways To Higher: Angel Commodities

NCDEX Soybean Oct futures closed with a steep fall yesterday  on  reports of arrival of new season crops, lower soymeal exports  order and higher  carryover stocks. As per SOPA, India's soymeal exports in 201 7 - 18 (Oct - Sep) are seen falling 1 7% on - year to 15 lakh tn due to uncompetitive prices in global markets. Moreover, India's soybean stocks are is expected to be reported at record high of 17.5 lakh tonnes. As per the agri ministry data, India's soybean acreage was at 10.5 million ha as on last week, down 8.2% from a year ago. The fall in overall acreage has been led by a decline in area under the crop in Madhya Pradesh -- the largest producer -- because of poor rains in the state so far this monsoon season. CBOT November futures closed higher on Thursday, posting a one - month peak on export demand, short - covering and strength in soymeal. The USDA reported export  The Export Sales  report showed 17/18 soybean sales of 1.6 mt for the week of  September 7, exceeding most expectations. China proved to be the largest purchaser of US beans for that week, buying 1.2 mt. Shipments were reported at 1.15 mt, 60.7% large r than a week ago.

 

Outlook

 

Soybean futures are expected to trade on sideways to higher on improved physical demand from oil mills and lower acreage in the country but expectation of new season arrivals may pressure prices.

 

 

 

Soures : moneycontrol.com

India, China To Set Up Working Groups To Promote Exports

NEW DELHI : India and China have agreed to set up industry specific working groups for increasing exports with a view to bridge trade deficit with Beijing, Commerce Minister Suresh Prabhu said. "Concerned about growing trade deficit with China, we agreed to set up industry specific working groups, to promote more exports from India," Prabhu said in a tweet.

 

He is in Manila, the Philippines to attend the fifth East Asia Summit (EAS) Economic Ministers' Meeting. The Minister would also participate in the Trade Ministers' meeting of 16 RCEP member countries.

 

Regional Comprehensive Economic Partnership (RCEP) is a mega trade pact among 16 countries which aims to cover goods, services, investments, economic and technical cooperation, competition and intellectual property rights.

 

India's trade deficit with China narrowed marginally to USD 51.08 billion in 2016-17 from USD 52.69 billion in 15- 16.

 

India wants greater market access in China for its goods and services like IT and pharma products. The Country has also insisted upon China to increase investments.

 

 

 

Soures : dailyshippingtimes.com

Korea Wants More Exports From India To Increase Bilateral Trade : Fieo

CHENNAI : FIEO hosted a high profile Importers Delegation from Korea at Chennai. The Delegation Members comprise multi product importers including Rubber, Adhesives, pigment, dyes Cotton yarn, Natural colour, manmade fiber lighting products, food additives, chemicals and minerals

 

While welcoming the participants Dr. A. Sakthivel, Regional Chairman, FIEO Southern Region said that presently export from India is stagnant for more than 5 years and product profile is also narrow by 50 per cent of value of export from India is of mineral fuels / oil distillates (mainly naphtha). 

 

There is huge opportunity to export wide range of products from India including pharmaceuticals, chemicals, rubber products, textiles, leather etc.  He urged exporters to focus growing Korean market.

 

Mr. M. Rafeeque Ahmed, Vice President, FIEO while addressing the participants said Korea is a developed market and they are conscious on quality as well as timely delivery commitments.

 

He also informed that Korea is providing very low duty for Indian products under CEPA compared to any other countries and exporters need to utilize emerging opportunities for non-traditional products in Korea.

 

Mr Mangat Ram Sharma, Principal Secretary, MSME, Govt. of Tamilnadu in his address said that even though India has signed Comprehensive Economic Partnership Agreement with Korea, due to various reasons our exports as well as investment from Korea have not increased.  He urged the Korean business community to invest in Tamil Nadu which is having huge potential on infrastructure and manufacturing.

 

Mr. Hyung Tae Kim, Consul General of Consulate General of the Republic of Korea in Chennai said that, Korea is looking forward for continuous closer relationship with India not only on trade but also other areas including defence, culture and tourism.

 

Mr. Myoung-Jin Shin, Chairman, Korea Importers Association, Seoul, Korea  in his address said that there is huge opportunity for Indian exporters especially MSMEs to sell their products in Korea. Since Korea lacks natural resources, the import of raw materials and semi-finished goods is essential to the country’s industrial development and economic growth.

 

Korea import market is rapidly growing with 450 billion USD during the year 2016 with double digit growth.  Korea is having FTA with 53 countries including India, US, China, EU, Australia etc. and very active in RCEP negotiations.  He urged Indian exporters to utilize low import tariff offered by Korea, 1.5 per cent without imposing any NTBs.

 

 

 

Soures : dailyshippingtimes.com

China Industrial Output Drops Again In August

China's economy revealed fresh signs of headwinds in August as data showed today that industrial output and retail sales unexpectedly slowed for a second consecutive month.

 

The readings follow disappointing export figures released last week, a one-two punch for the Asian giant, as an official pointed to weak overseas demand and warned the domestic economy still faces "many hidden concerns".

 

Output at factories and workshops expanded six percent last month, the lowest recorded this year and well below the 6.6 percent forecast in a Bloomberg News survey.

 

Retails sales slowed slightly to 10.1 percent while fixed asset investment increased 7.8 percent in the January-August period -- both well below expectations.

 

"In general, the national economy in August kept the momentum of steady increase," national statistics bureau spokeswoman Liu Aihua said at a news conference.

 

"But we should also see that there are still many instabilities and uncertainties in the international circumstance, and the domestic economy ... still faces many hidden concerns."

 

The data comes as the government seeks to rein in huge debt and excess capacity left over from massive government- backed infrastructure spending at the height of the global financial crisis.

 

The Chinese economy enjoyed better-than-expected growth in the first two quarters of the year thanks to debt-fuelled investment in infrastructure and real estate, although warnings of a potential financial crisis have spurred Beijing to clamp down.

 

"The main culprit was a slowdown in infrastructure investment, which also weighed on industrial output," Julian Evans-Pritchard, China economist at Capital Economics, said in a research note.

 

"In particular, infrastructure spending has now begun to cool as the front-loading of fiscal spending this year ahead of the Party Congress means that local governments are now having to pair back their outlays," Evans-Pritchard wrote, referring to the twice-a-decade gathering of the ruling Communist Party in October at which President Xi Jinping is expected to be given a second term.

 

The long-term outlook remains clouded by geopolitical tensions linked to the North Korea nuclear crisis as well as US President Donald Trump's anti-globalisation rhetoric and threats to slap China with tariffs.

 

 

Soures : moneycontrol.com

Hike In Coal Output Saved Rs 25,900 Cr Forex In 3 Years: Coal India

Hike in coal production in the last three years has helped mining major Coal India Ltd save Rs 25,900 crore in foreign exchange, interim Chairman and Managing Director Gopal Singh said today.

 

"Coal production has increased substantially in the last three years (fiscals), resulting in savings of Rs 25,900 crore in imports," Singh said in his address to shareholders at the company's annual general meeting here.

 

Singh said coal imports accounted for 25 per cent of the country's total consumption in 2015-16, and 23 per cent in 2016-17.

 

Coal stock in at least over a dozen thermal power plants in the country turned critical, the Central Electricity Regulatory Commission had said in a recent report.

 

Singh emphasised on swift exploitation of domestic fossil fuel reserves in order to meet future demand and reduce imports.

 

"The large planned new coal-based thermal capacity is likely to put pressure on coal resources. Coal-based power generation capacity of 125 gigawatt in 2012 is likely to go up to more than 330-441 GW by 2040 (192 GW in FY2017). The demand for these plants is likely to be first met by domestic coal, which will require quick exploitation of our reserves. "Import dependence in oil and gas is understandable given our poor reserves we have, but import dependence on coal particularly non-coking coal is something that can be addressed by swift exploitation of domestic coal reserves," he said.

 

Singh said the share of coal in India's commercial primary energy supply was 55 per cent in 2015-16, and is expected to remain high at 48-54 per cent, even in 2040.

 

He pointed out that the state-owned miner needs to achieve double-digit growth rate in order to meet the production targets.

 

CIL has maintained its projection of one billion tonne coal production target by 2022.

 

The company produced 554.14 million tonne of coal in 2016-17, while coal off-take was 543.32 million tonne during the same period.

 

 

 

Soures : moneycontrol.com

India Well On Path To Produce 50 Cr Mobile Phones By 2020: Official

'Made in India' phones have seen significant growth, with the number of such devices poised to touch the 50 crore mark by 2019-20, an official said.

 

"In 2014, we produced 6 crore mobile phones. In 2016-17, we produced 17.5 crore mobile phones and we are well on path to producing 50 crore mobile phones by 2019-20," IT Ministry Additional Secretary Ajay Kumar said at an event here.

 

He added that the value addition in these indigenously made phones has also grown significantly over the years.

 

"It was 10 per cent or so and now, it is 20 per cent and hopefully by 2020, it will be 35 per cent or so," he said.

 

Kumar was speaking at an event to mark the 50th anniversary of setting up of ELCINA, an industry body representing electronics manufacturers.

 

Minister of State for Home Affairs Kiren Rijiju lauded the role played by the electronics sector in empowering the country.

 

"The first thing I always stress is it must be Made in India... you can acquire technology by collaboration, by signing MoU... we keep national interest on top of the mind... we will acquire the perfection of the particular item or instrument but in long term, we must ensure that it must be Made in India," he said.

 

He also called on the industry to come forward with their views and suggestions on promoting Indian companies in areas of defence technology.

 

"I seek your opinion and suggestion. Please come up as industry as a whole. You must come up with a clear-cut suggestion, please identify that these are the bottlenecks, please suggest that government adopt this policy so that we become a manufacturing hub," he added.

 

 

 

Soures : moneycontrol.com

Domestic Cargo Registers 8% Growth During Fy07-17, While International Cargo Growth At 6.2%: Assocham

NEW DELHI: Domestic cargo has registered a growth of 8.0% at a CAGR during FY07-17, whereas international cargo grew at 6.2% annually during the same period, according to an ASSOCHAM-Yes Bank joint study.

 

In India, Air Trade to GDP ratio has doubled from 4% to 8% in the last twenty years. Air Cargo contributes about 20% of airlines revenue. Air Cargo industry involves a wide variety of service providers and employs nearly 70,000 thousand persons in the Country, reveals the joint study on ‘Civil Aviation’ released recently at New Delhi.

 

Air Cargo should be treated at par with other Logistics sector like Roads which is subject to 5% tax rate. It is recommended that air cargo tax rate may be reduced from 18.0% and considered for a lower tax bracket.

 

Indian express cargo industry provides fast, reliable, on demand, integrated and door to door (including customs clearance and duty and tax payments) is likely to grow manifold in the coming years. The growth of the industry will be driven by the current major customer segments, namely auto components, banking & finance, garments, pharmaceuticals, IT hardware and mobile phones, e-commerce etc.

 

As per IMF forecast, GDP growth in India is forecast to grow at an average of 7.5 precent-8.2 percent during FY18-21 and thus Air Cargo could be at the centre of supply.

 

In order to promote growth in air cargo by way of cost reduction, efficiency improvement and better inter-ministerial coordination, Air Cargo Logistics Promotion Board (ACLPB) and AAI Cargo Logistics & Allied Services (AAICLAS) have been formed. AAICLAS focus is on three verticals (a) air cargo handling and allied services, (b) warehousing and contract logistics and (c) air cargo road feeder and air freight stations. Creating AAICLAS would bring multiple advantages as there is lot of activities on the cargo front.

 

 

 

Soures : dailyshippingtimes.com

Subsidy On Export Goods May Be Scrapped; Merchandise Export From India Scheme Under Scanner: Report

A recent notification from the World Trade Centre (WTO) said that the country can no longer propose export subsidies, as its per capita gross national income (GNI) has crossed USD 1000 for the third year in a row, as reported by Hindu Business Line.

 

“The consequence of India graduating out of the list of poorer countries eligible to give export subsidies is serious. It will be open to penal action from other countries, including the imposition of countervailing duties on its exports if it does not do away with its incentives soon,” an official was quoted as saying.

 

This development could hurt the country’s exports, which showed a frail growth last year after due to low demand.

 

“The first scheme that could come under the WTO scanner is the popular Merchandise Export from India Scheme (MEIS), which provides a direct subsidy to exporters based on the value of exports,” the official added.

 

How will this impact the country?

 

Most of the exports in India may be affected as the scheme covers more than 7,000 items and will cost the national treasury around Rs 23,500 crore a year, according to the report.

 

A meeting to discuss how the situation could be tackled was held. A team of officials from the Permanent Mission of India at the WTO held discussions with Commerce and Industry Minister Suresh Prabhu, Commerce Secretary Rita Teaotia and officials from the Trade Policy Division.

 

The Ministry of Commerce will announce the mid-term review of the Foreign Trade policy this month, to discuss the MEIS scheme.

 

 

 

Soures : moneycontrol.com

Onion Exports Decline 14% In April-June

Onion exports fell 14 per cent to 9.45 lakh tonnes during April-June of this fiscal, as against 10.98 lakh tonnes in the year-ago period, official data showed.

 

Realisation from exports stood at Rs 11,621.97 per tonne in the said period. The total value of exports stood at Rs 1,098.58 crore and the volumes 9.45 lakh tonnes in April-June of 2017-18, according to the data maintained by the National Horticultural Research and Development Foundation (NHRDF).

 

On an average, 2.5-3 lakh tonnes of onions are shipped on a monthly basis. Onion prices are ruling firm in the domestic market driven by speculations and the government is considering restricting exports by imposing minimum export price.

 

The new onion crop from the 2017-18 kharif season has started arriving in the market and the crop is projected to be better despite poor rains in some growing states.

Gst Council To Meet On Oct 24; Rates Of 60 Items Likely To Be Cut

The all-powerful GST Council headed by Finance Minister Arun Jaitley is likely to discuss reducing rates of close to 60 items in its next meeting on October 24 in New Delhi.

 

“Around 100 items was there in the Council meeting's agenda on Saturday. Only 40 items could be taken up for discussion as we were running out of time. Remaining items will be considered in the next meeting on October 24,” a senior government official told Moneycontrol.

 

“Most of the remaining items are demands of individual states now,” the official said.

 

After brainstorming for more than eight hours, the goods and services tax (GST) Council –a body comprising state finance ministers and senior government officials—on Saturday took several crucial decisions that had affected taxpayers since the implementation of the new indirect tax system.

 

The Council, which met in Hyderabad, extended the deadline for filing the first set of returns, a move that will benefit millions of traders who have been struggling to upload invoices in the new tax system’s portal. Apart from discussing the liquidity crunch that the states are going through, the team also discussed the way out for technical glitches on the tax return filing portal GST Network (GSTN).

 

The Council also decided to constitute a group of ministers (GoM) that would look into the problems traders and taxpayers while using the GSTN portal, the information technology (I-T) backbone of the new tax system.

 

GSTN is a portal-driven IT backbone created to enable real-time taxpayer registration, filing returns, handle invoices, execute inter-state tax settlements, and connect states for two-way data flow.

 

Along with these decisions, GST rates of 40 items were brought down keeping in mind the changing time and needs for these products, which included goods such as tamarind, roasted gram, custard powder, dhoop, agarbatti, raincoats and rubber band.

 

“These (the rates) were in some higher category. In some cases the rates have been brought down to from 28 to 18 percent, in some cases from 18 to 12 percent and in some cases from 12 to five percent,” Jaitley had said. “Reduction in rates were required,” he had said.

 

According to another official, the government is mulling rate revision for items that fall in the highest tax bracket of 28 percent. “A decision towards this is yet to be taken as it would require Council's approval,” the official said.

 

GST has four broad slab structure – 5, 12, 18 and 28 percent – along with a cess on luxury and demerit goods such as tobacco, pan masala and aerated drinks. The states would receive provisional compensation from Centre for loss of revenue due to abolition of taxes such as VAT (value added tax), octroi and implementation of new tax system. The compensation would be met through levy of a 'GST Compensation Cess' on luxury items and sin goods like tobacco, for the first five years.

 

 

Soures : moneycontrol.com