In succession to the ongoing Government drive to strike off defunct companies, it'™s the central bank of the nation which has come to the crease '” resulting in cancellation of approximately 1330 NBFC registrations so far in 2018. The innings of Reserve Bank of India ("RBI") are on rally with 751 cancellations within last one and half month.
The move comes as a punitive measure against all the NBFCs (running in thousands) which have lagged behind/failed to meet the revised net owned fund threshold of Indian Rupees Two Hundred Lacs prescribed by the RBI vide Notification No. DNBR.007/CGM(CDS)-2015 dated 27.03.2015 ('˜the Notification'™) before 01.04.2017. The genesis of the RBI'™s ongoing drive, finds root in the Notification allowing existing NBFCs to carry on the business of non-banking financial institution, if such company achieves 50% of the above-said net owned fund before 01.04.2016 and remaining 50% before 01.04.2017. Though the Notification provided for a timeline to comply with the revised net owned fund requirement, it certainly lacks a provision calling for automatic cancellation of NBFC registrations, in case of delays/ lags. However, in the extant RBI drive, instances have been noticed wherein licenses are cancelled even though the NBFCs had complied (though with a delay) with the revised net owned fund requirements even before the issuance of show cause notices and had supplied corroborative evidences to that effect, to the RBI.
The '˜micro, small and medium enterprise (MSME) support and outreach'™ programme seeks to grant quick access to credit at attractive terms. Loan requests for up to Rs 1 crore from small businesses will be approved in principle in 59 minutes. Those businesses which are registered for goods and services tax (GST) will get a 2% subsidy on interest. Exporters will get a 5% interest rate subvention, up from 3% now, on pre- and post-shipment credit.
Tightening the norms for issuance of e-way bill, the GST Network has made it mandatory for businesses and transporters to mention PIN codes of places of loading and unloading of consignments.
Quoting of PIN codes, according to officials, will help in calculating the correct distance and determine the validity of the electronic way or e-way bill, which is used by businesses to transport goods worth over Rs 50,000 both within and outside a state.
So far, businesses and transporters are required to broadly mention the distance and place of loading and unloading of consignments for generating e-way bill. As the validity of the e-way bill depends upon the distance mentioned by the businesses, it was feared that this could lead to tax evasion by transporters making multiple trips on the basis of same e-way bill.
The validity of the e-way bill is one day if the distance to be covered is less than 100 km. For every additional 100 kms or part thereof, the validity of the bill goes up by one day. Under the revised procedures for obtaining e-way bill, the GSTN has introduced the facility of auto population of state name based on the PIN code entered at consignor or consignee addresses, an official statement said Wednesday.
The move would further smoothen the experience of users generating e- way bill, the Goods and Services Network (GSTN) said. Another new feature now available on the e-way bill portal now alerts the generator of the e-way bill through a pop up and SMS message, in case the total invoice value entered by them is very high, to avoid making mistake, GSTN said.
Provisions for Invoice Matching under the New GST Return Scheme
The new GST return scheme will be based on a new system called '˜uni-directional flow of invoices'˜.
The new uni-directional invoice scheme would require every supplier to upload their transaction-wise invoices to the GSTN portal. This is a one-directional scheme that means all the invoices would be uploaded only by the supplier.
Regardless of the size of your organization, as well as the type of industry in which your company specializes, an internal audit offers you crucial insights into your computing system'™s overall functionality, potential security risks and various possible solutions available. As you probably know, complacency in today'™s world of ever-evolving technology '” where cyber criminals seem to adapt in lock-step '” can result in damaging consequences that include employee fraud, wasted resources and government fines leveled against your company. So, you might need to ignore your intuition telling you that your organization is safe because it is smaller or not well-known in your industry, which makes sense on the surface, the truth is that all businesses are susceptible to risks thanks to inhabiting the same digital world as motivated and unscrupulous cyber criminals.
In case of transportation of goods by railways, whether goods can be delivered even if the e-way bill is not produced at the time of delivery?
As per proviso to rule 138(2A) of the Central Goods and Services Tax Rules, 2017 (CGST Rules for short), the railways shall not deliver the goods unless the e-way bill is produced at the time of delivery.
Whether e-way bill is required in the following cases-
(i) Where goods transit through another State while moving from
one area in a State to another area in the same State.
(i) It may be noted that e-way bill generation is not dependent on whether a supply is inter- State or not, but on whether the movement of goods is inter-State or not. Therefore, if the goods transit through a second State while moving from one place in a State to another place in the same State, an e-way bill is required to be generated.
E Way Bill Simplification
There is some good news for the Rs 8.5 lakh crore transport industry - the Electronic-way (E-way) bill operations could see further simplification.
The E-way bill is a document that is required for movement of goods that are valued above Rs 50,000, from one place to another under the goods and services tax (GST) regime. The process has been facing practical difficulties including time taken for bill verification during transit and the number of times it is verified.
GST collections up
As far as collections under GST are concerned, while there were fluctuations post the July 1 implementation of the tax regime, it has now stabilised.
Menon added that collections are going up. "We have seen about Rs 96,000 crore as of end of March 2018. This increase could be partly due to the input credit carry forward, close of financial year and also due to the anticipation of the e-way bill coming in."
Under GST, anti-profiteering has been an area of concern as well. While authorities do not want companies to pocket the profits arising from a reduction in taxes, implementation challenges have remained.
"It has been sought that increased input credit and reduced GST has to be passed on to the end customers. However, at present, a complainant may not be able to cannot find out whether input credit has passed on," Menon said.
Currently, there are no guidelines on anti-profiteering norms under GST. However, adjudication has already started.
Honda dealer case
In March, the the National Anti-Profiteering Authority (NAA) had dismissed a complaint against a Bareilly-based Honda car dealer related to tax reduction benefits not being passed on.
"Nearly 73 complaints have been filed under the anti-profiteering rules, but only one has been adjudicated. This process takes time and 8-10 months for an outcome to be reached," said Menon.
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