“STATES' REVENUE GROWTH TO RISE 8%-10% IN FY 2024-25: CRISIL”

Why in the news?

CRISIL projects a revenue growth of 8%-10% for India’s top 18 States in 2024-25.
Growth driven by higher GST collections and central tax devolutions, accounting for 50% of State revenues.

source:quora

About Goods and Services Tax (GST):

GST was introduced through the 101st Constitution Amendment Act, 2016.
The GST has subsumed indirect taxes like excise duty, Value Added Tax (VAT), service tax, luxury tax etc.
Destination-based Taxation: It follows a consumption-based taxation principle rather than origin-based.
Import Treatment: Imports are treated as interstate supplies, subject to Integrated Goods & Services Tax (IGST) and applicable customs duties.
Mutually Decided Rates: GST rates (CGST, SGST, IGST) are decided jointly by the Centre and States through the GST Council.
Multiple Rates: Initially, GST had four rates: 5%, 12%, 16%, and 28%, determined based on item classifications by the GST Council.

About CRISIL:

Full Form: Credit Rating Information Services of India Limited
Founded: 1987 by ICICI and UTI
Parent Company: S&P Global, an American corporation
Nature: Indian consulting firm offering ratings, analysis, risk, and policy advice.
First Credit Rating Body: In India, established in 1988.
Services:Helps creditors, borrowers, lenders, and authorities make informed financial decisions.
Mission: Provide critical views, actionable insights, and positive solutions.

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