The Goods and Services Tax Network (GSTN) has updated a new functionality enabling the taxpayers to claim refund on account of excess payment of tax.
“Facility to claim refund on account of excess payment of tax has been enabled on GST Portal for the taxpayers,” GSTN said in a statement.
Last day, the GSTN has updated two new features such as, the facility to upload statement 4 for Refund and the facility for amendment in Registration of Core fields.
The Statement upload for Refund Taxpayers filing refund application on account of supplies made to SEZ unit/ SEZ Developer, with payment of tax, has now been provided with facility to upload Statement 4, at the time of filing Refund application.
India will continue to be the fastest growing major economy, ahead of China, with 7.3% growth rate in 2018-19 and 7.6% in 2019-20, the Asian Development Bank (ADB) said on Thursday.
The growth in India will be driven by increased public spending, higher capacity utilisation rate and uptick in private investment, said the ADB supplement to the Asian Development Outlook (ADO).
While retaining India’s growth rate for current fiscal and the next, ADO said economic growth in China would decelerate to 6.6% in 2018 and further to 6.4% in 2019. China’s growth rate was 6.9% in 2017.
On India, it said: “In sum, the GDP growth forecast for FY2018 (ending March 2019) is maintained at 7.3%. Growth in FY2019 is expected to rise to 7.6% as measures taken to strengthen the banking system bolster private investment and as benefits kick in from the goods and services tax. Any further increase in oil prices poses a downside risk to growth.”
The ADB said India was the dominant economy in the South Asia sub-region with its growth gaining momentum at 7.7% in the last quarter ended March of 2017-18, the highest rate of growth since first quarter of 2016-17.
This pushed full-year growth to 6.7% (2017-18), a tad higher than estimated in ADO 2018, largely driven by government spending for both consumption and public administration.
“In the first half of 2018-19, the growth rate is expected to benefit from a low base. Other key drivers of growth include an uptick in public consumption, which is typical before elections, and a recovery in exports following shortages of working capital related to a new goods and services tax,” said the ADO supplement.
In India, the private consumption is expected to grow at a healthy rate as disruption caused by demonetisation in 2016 fades. Capacity utilisation rates are at their highest in four years and should provide incentives to firms to invest.
Growth in Asia and the Pacific’s developing economies for 2018 and 2019 will remain solid as it continues apace across the region, despite rising tensions between the US and its trading partners.
“South Asia, meanwhile, continues to be the fastest growing sub-region, led by India, whose economy is on track to meet fiscal year 2018 projected growth of 7.3% and further accelerating to 7.6% in 2019, as measures taken to strengthen the banking system and tax reform boost investment,” it said further.
Developing Asia is largely on track to meet growth expectations as set out in April in Asian Development Outlook 2018 (ADO 2018), said the report. The regional gross domestic product (GDP) is forecast to expand by 6% in 2018 and 5.9% in 2019, the rate envisaged in April, ADO supplement said.
In April, ADO had said that India’s economic growth would rise to 7.3% this fiscal and further to 7.6% in the next financial year, retaining the fastest-growing Asian economy tag, on back of GST and banking reforms.
“Although rising trade tensions remain a concern for the region, protectionist trade measures implemented so far in 2018 have not significantly dented buoyant trade flows to and from developing Asia,” said ADB chief economist Yasuyuki Sawada. “Prudent macroeconomic and fiscal policy-making will help economies across the region prepare to respond to external shocks, ensuring that growth in the region remains robust,” he added.
ADO has also retained the combined growth forecast for the major industrial economies — the US, the Euro zone and Japan — as growth in the US and the Euro area remains robust.
In Japan, though, unanticipated contraction in the first quarter prompts slight revision of the 2018 growth forecast, it added.
However, ADB said that the rise in protectionist trade measures from the US and countermeasures from China and other countries “poses a clear downside risk to the outlook for developing Asia”.
The ADO supplement has factored in the tariffs imposed by July 15.
“The risk of further ratcheting up of protectionist measures could undermine consumer and business confidence and thus developing Asia’s growth prospects,” ADB said.
On price rise front, ADO has raised the South Asia inflation forecast to 5 per cent from 4.7 per cent, mainly to accommodate an increase in the forecast for India, but kept at 5.1 per cent for 2019.
“The upgrade in the 2018-19 inflation forecast for India from 4.6 per cent to 5 per cent responds to higher oil prices, significant depreciation of the Indian rupee in the past few months, and generous increases announced on 4 July in minimum support prices for summer crops,” the ADO said.
For developing Asia, it has revised down inflation projections from 2.9 per cent to 2.8 per cent in 2018 and from 2.9 per cent to 2.7 per cent in 2019 citing domestic factors to help contain inflationary pressures.
“As the US monetary policy normalises, central banks in the region act to spare their currencies’ sharp depreciation and to subdue inflation. Further, some governments have reintroduced subsidies to contain the effects of rising food and oil prices.”
The Central Board of Indirect Taxes and Customs (CBIC) has extended the refund fortnight for fast track clearance of pending dues to exporters by two days till June 16.
The central and state tax officials have already cleared refunds worth over Rs 7,500 crore since May 31, when the special drive to clear exporters refund was launched.
“In view of overwhelming response from exporters and pending claims, the period of refund fortnight is being extended by two more days i.e up to June 16, 2018,” a finance ministry statement said.
With about Rs 14,000 crore of exporters refunds stuck due to various mismatches, the CBIC had organised the second phase of the special fortnight to fast track clearances.During the first phase, between March 15 and 29, an amount of Rs 5,350 crore was sanctioned.
The ministry further said, in case of short payment of integrated GST (IGST), small exporters whose aggregate IGST refund amount for the period July 2017 to March 2018 is up to Rs 10 lakhs are required to submit self-certified copies of proof of payment of IGST to the concerned customs office at the port of export.
Others are required to submit a certificate from a Chartered Accountant including the proof of payment.
All GST refund claimants, whose claims are still pending, are being encouraged to approach their jurisdictional tax authority for disposal of their refund claims submitted on or before April 30, the statement said.
“In case of any problem, exporters are advised to approach the Commissioner of Customs /Jurisdictional Tax Authorities. The government is committed to clear all the remaining refund claims filed up to 30.04.2018 are still pending,” it added.
Qatar is looking to Asia for foreign investment in a “new era” for the country, following the blockade by a number of major Arab nations in June last year.
Yousuf Mohamed Al-Jaida, the CEO of the Qatar Financial Center, a business and financial center located in Doha, told CNBC Friday that the country has moved to attract foreign investment by making it easier to get business visas and buy real estate.
“Qatar is looking for new partners, new alliances, so we are moving on,” he said.
“Our presence in Hong Kong speaks a lot. We’re going to be doing a lot of more tours in Asia, Thailand, Vietnam, within the next two months,” he added.
Saudi Arabia, United Arab Emirates, Bahrain, and Egypt imposed trade and travel bans on Qatar in 2017, blaming the country for supporting terrorism.
The Qatar Financial Center, which aims to foster investment in Qatar, has been explaining to foreign investors that, after the deterioration of relations between Qatar and other Arabic countries, the country has been putting forward a slew of reforms to adapt to a “new reality.”
“The appetite is good, I think we have to do a lot more of awareness as to what the blockade means. What we are trying to pitch in terms of the blockade is that this is a new era for Qatar,” Al-Jaida said.
IMF has underscored the significance of reforms in other key sectors like education, health and improving the efficiency of the banking and financial systems.
The Indian economy now seems to be on its way to recovering from disruptions caused by demonetisation and roll-out of goods and services tax, the IMF said today. At the same time, the IMF has underscored the significance of reforms in other key sectors like education, health and improving the efficiency of the banking and financial systems.
India’s economy has expanded strongly in recent years, thanks to macroeconomic policies that emphasise stability and efforts to tackle supply-side bottlenecks and structural reforms. Disruptions from demonetisation and the rollout of the goods and services tax (GST) did slow growth,” Tao Zhang, Deputy Managing Director of IMF, told PTI in an interview.
“However, with the economy expanding by 7.2 per cent in the latest quarter, India has regained the title of the fastest-growing major economy, Zhang said.
Calling this development a “welcome change”, Zhang said the growth prospects remain positive.
“That said, the Indian economy would benefit from further reforms, such as enhancing health and education, encouraging private and public investment, and improving the efficiency of the banking and financial system. This would support durable and inclusive growth and enable India to move toward the income levels of wealthier countries, the top IMF official said ahead of his visit to India.
Given the dominance of cash in everyday transactions in the Indian economy it was inevitable that demonetization would temporarily affect economic activity, said Zhang who is travelling to India and Bhutan from March 12 until March 20.
The rollout of the GST last year was a landmark accomplishment that can be expected to enhance the efficiency of intra-Indian movement of goods and services, create a common national market, enhance tax buoyancy, and boost GDP growth and job creation, he said.
Yet the complexities and glitches in GST implementation also resulted in short-term disruptions. As I mentioned earlier, the economy now seems to be on its way to recovering from those disruptions, Zhang said in response to a question.
When asked about the latest Indian budget, which many critics say is protectionist in nature, Zhang said IMF research indicates that tariffs are broadly contractionary, reducing output, investment, and employment.
Trade tariffs may give limited relief to industries and workers that directly compete with affected imports. However, they can raise costs to consumers and other businesses that use the protected products. Tariffs also would reduce incentives for businesses to compete and improve efficiency, he cautioned.
Since the opening of the economy starting in the early-1990s, India has benefitted from trade liberalization, he observed.
Further supply-side reforms aimed at improving the business climate could enhance these benefits, the top IMF official asserted.
Noting that the IMF and India have close relations, and the two have always been good partners, Zhang said his visit is a reflection of this partnership, as is the newest regional capacity development center, SARTTAC, based in New Delhi.
The center partners with India and its South Asian neighbors to build strong institutions and implement policies that promote growth and poverty reduction in the region, he said.
My visit is an opportunity to exchange views with the Indian authorities, senior RBI officials, and representatives from the Indian business community, civil society, and others, he said.
Zhang will also have a presentation on financial technology that will take place on Monday at the National Stock Exchange of India.
We will go over the latest trends in financial technology and their effects on the global economy and India, said the top IMF official.
Private equity (PE) investors announced deals worth $983 million in January, a 23 per cent rise in value terms over last year, driven by big ticket transactions, says a Grant Thornton report.
According to the assurance, tax and advisory firm, in January, there were 84 PE deals worth $983 million, against 81 such transactions worth $796 million in January 2017.
“Private equity deals recorded 4 per cent increase in deal volumes and 23 per cent increase in deal value in January 2018 as compared to January 2017,” said Pankaj Chopda Director at Grant Thornton India LLP.
January was dominated by investments in start-ups which contributed to 52 per cent of total investment volumes. On the other hand, energy & natural resources and real estate sectors witnessed big-ticket PE investment over $100 million together capturing 39 per cent of total PE deal values.
Altico Capital’s investment of $195 million across five realty projects in Hyderabad and Pune was the top PE deal in January.
Other major transactions include Canada Pension Plan Investment Board’s 6 per cent stake acquisition in ReNew Power Ventures for $144 million and Warburg Pincus and SAIF Partners’ $50 million investment in Rivigo Services.
Going forward, the PE deal outlook looks bullish especially for the start-up sector.
“Increasing customer penetration in online transactions and increasing solutions to simplify online transactions offered by start-ups will attract interest in start-ups engaged in retail, fintech, foodtech, on demand services and travel and logistics,” Chopda said.
“Government reforms such as RERA, focus on cleantech and on increasing digital financial transactions will drive the momentum in banking and financial, real estate and energy and natural resources.
India-specific strategies by global and already present PE firms and funds raised by new players will act as catalyst for PE transactions,” he added.
India’s foreign exchange reserves rose by $1.96 billion to $421.72 billion on February 16, compared to the previous week. Foreign currency assets (FCAs), which form a key component of reserves, rose by $1.925 billion from the previous week to $396.572 billion.
India’s foreign exchange reserves rose by $1.96 billion to $421.72 billion on February 16, compared to the previous week.
Foreign currency assets (FCAs), which form a key component of reserves, rose by $1.925 billion from the previous week to $396.572 billion.
FCAs are maintained in major currencies like US dollar, euro, pound sterling and Japanese yen.
Movement in the FCAs occur mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets.
Gold reserves remained stable at $21.514 billion.
Special drawing rights (SDR) from the International Monetary Fund rose by $13 million from the previous week to $1.546 billion.
SDR is an international reserve asset created by the IMF and allocated to its members in proportion of their quota at the IMF.
The Reserve Position in the IMF rose by $21.7 million to $2.087 billion.