The much waited Goods and Services Tax (GST) is finally launched on 1 July 2017 merging a large number of taxes and duties into a single tax. The registration process will continue till the end of July. There has not been major technological bottleneck so far in implementation of such a huge pan-India regulation. But there are issues with the format of GST-compliant invoice and returns. There are confusions, quite naturally, on the applicability of rates of GST. One possible reason for such confusion is multiple rates of tax. Singapore has a uniform GST rate of 7%. UK has two rates. Also the highest GST rate of 28% in India is too prohibitive according to some experts. Such a punitive tax (normally levied on sin goods) is levied on certain daily necessities like hair shampoo and ATM. We hear mixed reactions in different sectors in the early days of GST. Where the consumer off-takes and footfalls in retail stores have returned to normal levels within a fortnight, the real estate sector is hit hard. According to Bloomberg, new residential real estate project launches and sales in seven major cities of India were down last quarter to nine-year lows. One must not rush to conclude the success or failure of the implementation of GST in India. Let us reserve our comments for at least six months.
In the first article, the author construct a systemic financial distress prediction process based on the tone of corporate annual report text information and proposed a measure to quantify both positive and negative sentiments in the annual report’s language without using any accounting information. The second piece argues a case for introduction of Wholesale and Long-Term Finance (WLTF) Banks in India given an experience with Development Institutions. . The third article deals with India’s NPA problems and resolution. In the fourth article, the author analyses the investment decisions of an ordinary investor based on over simplistic understanding of past returns of Indian equity markets which fails to highlight the market risks associated with such returns and thus exposing the investor to possible adverse surprise.
The Market Watch section in this issue highlights what happened on 10 July when NSE halted trade for several hours (Manic Monday) and the weakening position of the US dollar.
You may send your comments and feedback on this issue to firstname.lastname@example.org