Modi govt introduces four Bills in the Lok Sabha to simplify GST returns

The government on Tuesday introduced four Bills in the Lok Sabha to amend the goods and services tax (GST) laws, to provide for simplified returns and raise a threshold for the composition scheme under the indirect tax system. A draft framework for the simplified return was put in the public domain recently.

Micro, small, and medium enterprises (MSMEs) that have annual turnaround of up to Rs 50 million will be able to file quarterly returns once the Bills are passed.

The Central GST (Amendment) Bill, the Integrated GST (Amendment) Bill, the GST (Compensation to States) Amendment Bill, and the Union Territory GST (Amendment) Bill are likely to be passed in the current session of Parliament.

Also, those with annual turnover of up to Rs 15 million will be allowed to opt for the composition scheme. Now, the threshold is Rs 10 million. The scheme provides for a flat and concessional GST rate, but does not give input tax credit.

With interest rates hardening, Carlsberg should pour that Indian IPO now

Probably the best beer in the world may just be the coolest Indian IPO this summer. But if Carlsberg A/S wants to maximize the valuation of its planned stock offer, it had better rush it across the counter. Happy hour could be over soon. With the US Federal Reserve signalling two more interest-rate hikes this year, the Indian market’s thirst for new paper – up 77 per cent so far in 2018 from last year – could dry up. 

Pedigreed consumer stocks, such as the country’s third-largest-selling beer, are still likely to see buyers, but capturing anywhere near the 73 times price-earnings multiple of United Breweries Ltd., which makes India’s most-popular Kingfisher brand, will need all the froth the Danish brewer can muster. That’s largely a question of timing. But Carlsberg doesn’t appear to be fully ready. Bloomberg News has reported that it’s still meeting arrangers, and a transaction isn’t certain.

From ITC to Dabur, plastic waste control top priority for FMCG firms

If demonetisation and goods and services tax (GST) gave sleepless nights to consumer goods makers till early-2018, for the past few months it has been plastic packaging materials that are ringing alarm bells for these firms. 

The issue of pollution caused due to the non-degradable material is keeping consumer goods majors — from ITC and Dabur to Nestlé and PepsiCo — on their toes. While the matter had been flagged by environmentalists years ago, the Centre is now scurrying to put curbs on untreated plastic waste — most of which is produced by organised fast moving consumer good players (FMCGs). 

The governments in at least five states — Tamil Nadu, Maharashtra, Uttarakhand, Punjab and Gujarat — have declared a ban on single-use plastic materials with varying timelines. And at the central level, a joint body — comprising the urban development ministry and ministry of environment and forest — is acting fast to finalise the extent of responsibility manufacturers would have to take based on the extent of plastic they use in packaging. 

Discoms in southern states, Rajasthan to get Rs 15.23-bn benefits from NLC

Power distribution companies in southern states and Rajasthan will get benefits to the tune of Rs 15.23 billion from NLC Ltd, formerly known as Neyveli Lignite Corporation, a Navaratna company, with a transfer price cut resulting in a total reduction in power tariff. 

The reduction has been to the tune of Rs.0.80 to Rs 1.33 per Kwhr resulting in a huge benefit to consumers. This comes against the backdrop of gains from goods and services tax (GST) rollout and the company's new efficiencies in mining activities. NLC officials said that through technical expertise and efficient mining operations, combined with prudent cost management, the Navratna company had been able to reduce its lignite transfer price for captive use by around Rs 300 a tonne in the current financial year, leading to a lowering of power tariff in the range of Rs 0.35 to Rs 0.58 per Kwhr of electricity from its power plants from April-May 2018. On account of the reduction in transfer price, around Rs 6.83 billion will be passed on by the company to the beneficiary power distribution companies in the southern region.

News digest: Bank branch additions, Sebi on MCX insider trading, and more

Branch additions drop as Modi govt's digital push changes banking sector

The government’s digital push, the rising use of technology in back-end processes, and the growing market for financial technology products have changed the banking landscape.

The Reserve Bank of India’s (RBI’s) May 2017 guidelines shifted the focus from branches to banking outlets, which include banking correspondents along with branches. The revised guidelines work well with the banking sector’s tilt towards partnerships.

After 'hiatus', Arun Jaitley sees green shoots of economic recovery

Finance Minister Arun Jaitley said on Saturday that structural changes brought in by measures such as the introduction of the goods and services tax (GST) had created a “hiatus” in the economy. But the economy was already showing signs of revival, he added. The FM also sent out a strong message to the banks asking them to perform after the Union government pumps in money to recapitalise them. “Resilience of the banking system is under test,’’ he said.
Sebi revokes penal order against 7 in MCX insider trading case

The Securities and Exchange Board of India (Sebi) has revoked its last year’s interim order against seven individuals in an insider trading case pertaining to share trading of the Multi Commodity Exchange of India (MCX).

The markets regulator found no violation of insider trading guidelines by the “seven notices”. A few of them were also denied cross-examination opportunities, it observed.
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News digest: GST e-way Bill, Rahul Gandhi's elevation, and more

GST Council firm on e-way Bill despite traders' concern

An electronic system to track movement of products under the goods and services tax (GST) system will be put in place across the country (inter-city as well as intra-city) by June 1, 2018. Read More...

More traders paying taxes on GSTN: Sushil Kumar Modi

The proportion of tax-paying traders has increased to 70 per cent of those registered on the Goods and Services Tax Network (GSTN) as the technology backbone built by Infosys has begun to stabilise and make it easier for them to file returns, said Bihar Finance Minister Sushil Kumar Modi on Saturday. Read More...

Rahul Gandhi takes charge of the grand old party

Rahul Gandhi on Saturday took charge as president of the Congress in the presence of the 132-year-old party’s brass and his family members. Read More...

UIDAI suspends Airtel, Airtel Payments Bank's e-KYC licence

In its strongest action yet, the UIDAI has temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using the eKYC process as well as e-KYC of payments bank clients. Read More...

US may stop spouses of H1B visa holders from working

The Trump administration is considering revoking an Obama-era rule that extends work authorisation to the spouses of H1B visa holders, a move that could affect thousands of Indian workers and their families. Read More...
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News digest: Exports rise 30%, Adani to build highways, and more

Exports jump 30%, trade deficit high at $13.8 bn

The GST Council's efforts to resolve exporters' woes on refunds seem to have started yielding results. Exports grew 30.55 per cent in November, a month after it contracted 1.1 per cent, also due to the low base effect and rising petroleum prices. In fact, petroleum products, along with engineering goods, gems and jewellery, and chemicals, drove nearly 80 per cent of the rise in merchandise exports. Read more


Govt okays sops for leather sector, waives fee for small digital payments

The Cabinet on Friday cleared a Rs 2,600-crore proposal to boost job creation in the leather industry, lowered the merchant discount rate (MDR) on transactions up to Rs 2,000 through debit cards, BHIM UPI or Aadhaar-enabled payment systems to promote digital transactions, and approved a series of Bills, including one amending the Specific Relief Act to smoothen enforcement of contracts. Read more

Growth slowdown bottoming out, says RBI governor

While expectations on price rise remain stable for the moment, “considerable caution and vigilance is warranted on the inflation front” but the slowing in growth could be over, said Reserve Bank of India (RBI) Governor Urjit Patel. Read more

Adani group to foray into highway construction sector

The Adani group, which has a presence in the power, coal and maritime sectors, would soon foray into the highway construction sector. Read more
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Cong to take on Modi over charges against Manmohan as Winter Session begins

The government is ready to discuss all the issues, including those to be raised by the Opposition, Parliamentary Affairs Minister Ananth Kumar said here on Thursday, adding that he would request all the MPs to work "full time" to dispose of the business. 

"The government is ready to discuss and debate any issue. Several issues would be raised by the opposition and the government would obviously give its response," he said when asked if Prime Minister Narendra Modi's allegations against his predecessor Manmohan Singh and others vis-a-vis their meeting with Pakistani diplomats would disrupt the Houses.

"It is also the opposition's responsibility to run Parliament. The Prime Minister has sought opposition's cooperation for smooth functioning of Parliament," he said.

Ananth Kumar said 25 Bills are listed in the Lok Sabha and 39 Bills are pending in the Rajya Sabha which would be taken up and disposed of "according to priority".

The most important business would be the Supplementary Demands for Grants, which is the first one after the implementation of GST; the 123rd Constitutional Amendment for setting up of National Commission for Backward Classes as a constitutional body; and the Bill against triple talaaq, he said.
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News digest: GST Council meet, IIP growth slows to 3.8%, and more

Big GST reset: Only 50 items stay in 28% slab, eating out to get cheaper

Consumers will be paying less for a wide range of items from shampoo to furniture from November 15 as the GST (goods and services tax) Council on Friday decided to cut the indirect tax from 28 per cent to 18 per cent on these and further down to 12 per cent on another two (wet grinders, and tanks and armoured vehicles), leaving only 50 items in the peak rate category. Read more

Axis Bank to raise Rs 11,600 cr from Bain Capital, LIC

Mumbai-based lender Axis Bank is set to raise Rs 11,626 crore ($1.8 billion) to further strengthen its capital base by selling shares and warrants to a group of investors, including Bain Capital and top Indian insurer Life Insurance Corp (LIC). Read more

September IIP shows a slowing at 3.8% growth

The country’s Index of Industrial Production rose 3.8 per cent in September, compared with the revised 4.5 per cent in August (a nine-month high) and 5.7 per cent in September last year. Read more

Most names on RBI's second list to land in NCLT: SBI chief Rajnish Kumar

Most companies in the Reserve Bank of India’s (RBI’s) second list of stressed accounts will land up in the National Company Law Tribunal (NCLT) for resolution, according to State Bank of India (SBI) Chairman Rajnish Kumar. Read more

'M' goes off the menu at McDonald's

The golden arches, the most striking symbol of the McDonald’s brand, have gone missing from its products in a few markets. For about a week now, most of the fast-food chain’s restaurants in the National Capital Region have been selling burgers, beverages, wraps, and nuggets without the signature ‘M’ on their wrappers.
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Are you a coffee lover? Grab any Starbucks drink for just Rs 100 today

Want to get caffeinated this Saturday? Here's the deal all coffee lovers might have been waiting for. If you thought Starbucks was a bit too royal for your taste, you can grab tomorrow’s offer with only Rs 100.

Starbucks across India will be offering coffee for just Rs 100 for a day to celebrate the launch of its 100th outlet and five years in India

Here's what you must know about this offer

— All the beverages (caffeinated or not) will be charged at Rs 100 inclusive of all taxes including GST

— The offer is valid only for today at all Starbucks India outlets

— It will not be valid on food items

— Starbucks opens at 8 am in the morning and will close as per the usual timings. However, the timings may differ with different outlets.

— The offer does not include home deliveries at the same cost

— My Starbucks Rewards GOLD members can get any size of beverage (Short / Tall / Grande / Venti) at Rs 100.
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News digest: INS Kiltan joins Navy, wholesale inflation falls, and more

Markets sparkle ahead of Diwali as Sensex, Nifty gain 0.6% each

The Diwali week started on a positive note with the benchmark Sensex and Nifty indices ending at new record highs. Positive global markets and the ebbing of foreign investor selling saw the benchmark indices gain 0.6 per cent and the rupee appreciate 0.3 per cent against the dollar. Read more

Like all its predecessors, INS Kiltan joins Navy with major vulnerabilities

Like numerous Indian warships before it, the navy’s newest anti-submarine warfare (ASW) corvette, INS Kiltan, joined the fleet on Monday without equipment crucial for discharging its primary role – detecting and destroying enemy submarines. Read more

Wholesale inflation falls to 2.6% in September

The Wholesale Price Index (WPI)-based inflation data released on Monday provided yet another indicator of improving macroeconomic parameters.
 Wholesale inflation fell to 2.60 per cent in September from 3.24 per cent in August due to a subdued rate of price rise in food items, particularly vegetables.  Read more

RBI governor calls for better access to currency swap lines

The governor of the Reserve Bank of India on Sunday called on major central banks to extend their network of currency swap lines deep into emerging markets, saying a type of “virtual apartheid” in the provision of foreign currencies hampers efforts to fight financial instability

Large companies disappointed with key GST issues, await clarity

Large companies are disappointed that many key issues following the rollout of Goods and Service Tax such as anti-profiteering laws, transition credit issues, and denial of certain input credit was not addressed by the GST Council in its meeting yesterday. Large corporates, who pay 90 per cent of the total tax revenues, now hope that their concerns will now be addressed in the next council meeting in November.

“The government has addressed the immediate concerns of 90 per cent of tax payers who contribute approximately 10 per cent of the tax collection by relaxing the compliance norms. But the concerns of minority taxpayers who pay 90 per cent of the tax revenues, will hopefully be addressed in next council meeting,” said Sachin Menon – Partner and Head of Indirect Tax at KPMG in India. Citing an example, Menon said the 35 per cent abatement on GST payable on existing car leases is indeed welcome but is not good enough as still the lessee will end up paying 28-30 per cent GST as against 15 per cent service tax in the earlier regime. 

The corporates are also grappling with other issues such as how to comply with the anti-profiteering provisions which has the potential of litigation, and restrictions on single credit note against multiple invoices.
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News digest: M&M-Ford pact, PM to review economic situation today, and more

M&M partners Ford in drive for e-cars

Homegrown utility vehicle major Mahindra & Mahindra (M&M) and Ford have decided to collaborate again, after a 1995 tie-up to facilitate the American carmaker’s entry into India ended in 2005. This time, the firms would explore joint development of products, especially electric and connected vehicles. The partnership will look to expand Ford’s reach in the fast-growing Indian market and improve M&M’s access to global markets. At present, both have a single-digit share in a market dominated by Maruti Suzuki and Hyundai Motor.
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Income-tax department identifies 30,000 cases for scrutiny

The government will scrutinise 30,000 cases among taxpayers, individual and non-individual, who tried regularising their unaccounted incomes by filing returns in response to the note ban in November last year.

Meanwhile, there has been 21 per cent growth in the online filing of tax returns as of August 1, with 23.3 million individuals filing returns for the financial year 2016-17, against 19.2 million in the corresponding period last year, when growth was 10 per cent.

The jump could be owing to demonetisation, the introduction of the goods and services tax (GST), and other back money-deterrent measures announced by the government.

“We have selected 30,000 cases for partial scrutiny and full scrutiny of entities and individuals who tried to regularise their unaccounted income during demonetisation,” said a senior official in the Central Board of Direct Taxes (CBDT).

The income-tax (I-T) department has identified people who either showed a significant jump in ‘cash in hand’, or filed a return for the first time, reporting a big sum.
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GST Council may finalise e-way rules today

The Goods and Services Tax (GST) Council is likely to lower tax rate on Saturday on job works making fabric to garments to 5 per cent and put in place a mechanism for online registration of goods above a certain value before they can be transported. The Council, headed by Finance Minister Arun Jaitley, will also review at its meeting the implementation of the GST regime since July 1 and may finalise a mechanism to operationalise anti-profiteering provision to protect consumer interest.

Central Board of Excise and Customs (CBEC) Chairperson Vanaja Sarna said the movement of goods between states has smoothened with 25 out of 29 states abolishing check posts.

"About 25 states have removed those check posts. So far, it has been going all right," she told PTI.

This would further smoothen after e-way bill in GST that requires any goods more than Rs 50,000 in value to be pre- registered online before it can be moved is implemented.

"As the e-way bill process for the whole of India gets panned out, we should be able to do something which will be better," Sarna said.
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G20: Protestors, police clash in Hamburg for third day; cars set ablaze

Fresh clashes erupted early on Sunday in the streets of Hamburg following the end of the G20 summit, with protesters setting fire to a number of vehicles, the police said.

The protesters gathered after the close of the summit in the Schanzen district, a stronghold for extreme left radicals which has been the site of multiple confrontations since Thursday.

Armed with glass bottles and targeting vehicles, many of which they set on fire, the protesters were pushed back by the police, using water cannon and tear gas, the police said on Twitter.

The police said more officers had been injured, and more people arrested.

According to the most recent figures given by the police yesterday, some 213 police officers have been injured since Thursday, and 143 people have been detained. No accurate number for protestors injured is available.

On Thursday, a planned peaceful march by around 12,000 people protesting against globalisation turned violent.

Friday's clashes occurred as leaders from the world's 20 biggest developed and emerging economies began the two-day meeting focusing on trade, terrorism, climate change and other key global issues.

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Indian IT eyes crores of rupees in revenue as firms rush to get GST-ready

India's information technology (IT) industry is likely to benefit in a big way as the goods and services tax (GST) roll-out leads to companies spending a few thousand crores of rupees in becoming GST-ready.

While many large businesses, with thousands of partners and customers spread across the country, are spending “significantly” to upgrade their IT infrastructure, the Union government will also invest in setting up the technology infrastructure for GST and its maintenance.

GST is slated to be rolled out from July 1 and will replace the existing tax compliance system for businesses.

“For the GST regime, businesses and organisations will have to upgrade the enterprise resource planning (ERP) and billing systems. It will be a very large and complex transformation and, therefore, it will create a huge opportunity for the IT services companies,” said Sanchit Vir Gogia, chief executive, Greyhound Research.

Gogia believes that it would not only bring in opportunities for technology services, but also for professional services to simplify the taxation and compliance processes for various organisations. In fact, technology services, professional services and necessary hardware upgradation put together, businesses may spend, Gogia added, few thousand crore rupees.

Infosys, India’s second largest IT services firm, bagged a five-year contract worth Rs 1,380 crore in 2015 to implement the GST Network — the nodal agency that will implement the technology and the IT backbone for the unified tax regime, along with the maintenance for it.
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Pharma industry wants Budget to offer clarity on tax structure

Latest News - The pharmaceutical industry has asked the government to bring in more clarity in terms of tax structure and provide incentives on research and development (R&D) as part of its budget wish-list.

The industry players also want the government to provide a road map towards bringing down corporate income tax down to 25 per cent.

The Indian Drug Manufacturers Association (IDMA), a body comprising mostly home-grown pharma firms, said all excisable goods used for R&D purposes should be exempted from central excise duty.

"Introduce parity in the input (12 per cent) and output (6 per cent) rate of excise duty for pharmaceutical products," it said.