Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh.
Gujarat has retained the top position in the list of 21 states and UTs with most investment potential, according to a report by economic think-tank NCAER.
Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh.
The ranking of 20 states and one Union Territory of Delhi was based on six pillars — labour, infrastructure, economic climate, governance and political stability, perceptions and land — and 51 sub-indicators.
While Gujarat topped in economic climate and perceptions, Delhi ranked one in infrastructure. While Tamil Nadu topped the chart in labour issues, Madhya Pradesh ranked one in land pillar.
The National Council of Applied Economic Research (NCAER) State Investment Potential Index (N-SIPI 2017) report ranks states on their competitiveness in business and their investment climate.
Compared to 2016, Gujarat and Delhi again top the list of states, while Haryana and Telangana have moved rapidly up the ranks to finish among the top five, it said.
NCAER Director-General Shekhar Shah said: “Investment opportunities are expanding in India in all sectors. The GST will weave India’s states together in ways that has not been possible before”.
Further the report said that although Bihar, Uttar Pradesh and West Bengal are ranked among the least favourable states for investment, they rank higher under individual pillars.
Indira Iyer, the team leader for the 2017 N-SIPI, stated that as per the report, “corruption” continues to be the number one constraint faced by businesses.
However, she said, the 2017 N-SIPI reports a decline in the percentage of respondents citing corruption as a constraint to conducting business from 79 per cent in 2016 to 57 per cent in 2017.
Getting approvals for starting a business is still the second-most pressing constraint faced by businesses in 2017 as was the case in 2016, she added.
Talking about this index, Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said these reports are aiding states in improving the business climate and attracting investors.
Over two weeks into the goods and services tax (GST) regime, Navin Kumar, chairman of GSTN — the IT backbone of the system — speaks to Sumit Jha on how taxpayers have adopted the new system.
Over two weeks into the goods and services tax (GST) regime, Navin Kumar, chairman of GSTN — the IT backbone of the system — speaks to Sumit Jha on how taxpayers have adopted the new system.
What are the latest numbers on migration and new registrations on GSTN platform?
Till June 16, over 70 lakh have migrated to the portal while 7.4 lakh new taxpayers have registered so far. The number of migration has dwindled from 30,000 daily to about 12,000 since we reopened the window on June 25. However, the rate of new registration is still going as strong as it was on June 25 with nearly 35,000 taxpayers registering every day. Our system will remain open for migration till September 25 (3 months).
What explains the large number of new registrations?
A better analysis of why so many new taxpayers have registered can be provided by the tax department, but we are thinking on the lines that businesses realise that it would be harder to do business if they remain outside GST. According to our study, we were expecting a 4-5% growth in new taxpayers yearly. On an 80-lakh existing taxpayer base, this translates into around 4 lakh new registrations. Since June 25, we have had 7.40 lakh new registrations, which is nearly double our expectations. It shows businesses have welcomed GST.
What has been the response for composition scheme?
Till June 16, only 90,000 businesses had opted for composition scheme. I believe many more would want to but the problem is, if you don’t opt for it now, the next opportunity will arise only next year. Though we had collected information on composition scheme from VAT we can’t say off-hand how the registration under GST so far compares with the the figures in the VAT. One of the possible explanation for a subdued number could be that any inter-state supply made by a business makes it ineligible for the scheme.
Has the GSTN been able to deliver the application programming interfaces (APIs) on time?
There are two kinds of APIs: One is government-to-government meant for connecting the tax department with the GSTN, which is already functional. As far as APIs for GST suvidha providers (GSPs) are concerned, we had a meeting with them in June, where we shared a time schedule for releasing APIs. So far, we have stuck to that schedule.
Is there any pilot testing for uploading invoices being carried by GSTN?
The next big thing happening is we are opening the facility for uploading invoices for a closed group of businesses from June 24. Business-to-business people are required to record transactions at the invoice level for filing return. If you are generating 50,000 invoices every day, don’t wait until the last moment. If you have 5,000 invoices in a month, you can upload weekly but it must be done regularly.
A month ago you had questioned the GSPs’ preparedness. What is the status now?
We have asked all GSPs to be prepared, and they have assured us that they are working towards that. The invoice uploading pilot will tell us where they stand.
What is the expected format of filing interim return in August?
This is to be filed in the GSTR3B form where the taxpayer has to indicate his tax liability and input tax credit. So, it would be on self-declaration basis. When they submit the first full return in September for July, we will match their input tax credit submitted through GSTR3B as a form of cross-verification. The final position will be told to them then.
When is the e-way bill likely to come for approval?
The National Informatics Centre (NIC) is working on the e-way bill, and they are supposed to bring it for consideration by October 1. Currently, the removal of check posts at state borders is due to the nature of GST. Earlier you had tax arbitrage between VAT and CST which is gone now. However, state governments are concerned about movement of goods without paying taxes, which would be resolved once e-way bill is introduced.
Can businesses make amends in their information now?
We started the facility to amend registration data from June 18. Many people are coming and saying they need to change some data, including bank account number or phone number. Registration of non-residents and casual taxpayers will also open on June 18. This is for the people who come over in the country for a fair or exhibition for a few days or a month.
Tough stance taken by govt, RBI makes borrowers cautious
Indian banks are beginning to spot a welcome change in their customers’ behaviour: borrowers who have seen their accounts classified as stressed or non-performing are approaching the lenders with proposals to resolve such accounts in a time-bound manner.
The tough stance taken by the central government and the Reserve Bank of India to end the festering bad loan crisis in the Indian banking sector has caught many borrowers by surprise and they are scrambling to put together resolution plans to avoid harsher penalties including insolvency proceedings, bankers said. Even a couple of months ago, it was difficult to get these clients to the negotiation table.
“I can definitely say that we are in a much better position than even six months ago. We are seeing traction from a section of our borrowers to come up with proposals for resolution of stressed accounts,” said Rajkiran Rai G, managing director and CEO, Union Bank of India. “However, it is too early to say if this is the end of the problem. We will have to see how the discussions shape up,” he added.
Borrowers with outstanding amounts between Rs 500-1,500 crore are the most active in trying to resolve their stressed accounts, and they are looking at various options including scouting for investors and sale of non-core assets, two senior bankers with state-run banks said on conditions of anonymity. A large number of these borrowers are from the steel, power and telecom sectors. Some of the larger corporates with outstanding amounts between Rs 1,500-5,000 crore have also taken initiative to resolve their stressed accounts. On an average, these account for about 50% of the current gross non-performing assets of the banking system, the bankers said.
In June, the RBI’s Internal Advisory Committee (IAC) had said 12 accounts totaling about 25% of the current gross NPA of the banking system would qualify for immediate reference under the Insolvency and Bankruptcy Code (IBC). At present, proceedings against all the 12 accounts are on in various benches of the National Company Law Tribunal across the country. For accounts that do not qualify under the above criterion, IAC had recommended that banks should finalise a resolution plan within six months. “In cases where a viable resolution is not agreed upon within six months, banks should be required to file for insolvency proceedings under IBC,” the RBI had said.
Businesses can start uploading their sale and purchase invoices generated post-July 1 on the GSTN portal from July 24, a top company official said today.
The Goods and Services Tax has kicked in from July 1 and so far, the GST Network, the company handling the IT backbone for the new tax regime, has been facilitating registration of businesses.
“We plan to launch the invoice upload utility on the portal on July 24 so that businesses can come forward and start uploading the invoices on a daily or weekly basis to avoid a month-end rush,” GSTN Chairman Navin Kumar told PTI.
Generating invoices for dealings above Rs. 200 and keeping invoice records in serial number even if maintained manually, are pre-requisites for claiming input tax credit under the GST regime.
The GSTN had last month launched an offline Excel format for businesses to keep their invoice records and from July 24 this Excel sheet can be uploaded on the portal.
Kumar said GSTN would put up a video on its portal to assist businesses in uploading invoices.
Besides, a call centre help desk has been set up to assist taxpayers regarding any query they might have about the new tax regime.
“We have been reaching out to trade and industry associations telling them that those who have about 10,000 invoices a day, they should upload it on GSTN portal on a daily/ weekly basis to avoid last moment rush,” Kumar said.
So far, over 69 lakh excise, VAT and Service Tax assessees have migrated to the GSTN portal and nearly five lakh new registrations have happened under GST.
Under GST, which is a single tax in place of multiple central and state levies such as excise, service tax and VAT, businesses are required to upload on GSTN portal invoices of their trade every month.
Kumar had earlier said the offline Excel tool can upload 19,000 invoices data on the GSTN portal at one go and the process takes just half-a-minute.
So, if businesses which generate about 10,000 invoices a day upload the data on a daily or weekly basis, it would be less cumbersome for them.
While uploading invoices on the GSTN portal, a business would need to mention the invoice number and date, customer name, shipping and billing address, customer and taxpayer’s GSTIN, place of supply and HSN code.
Also, the taxable value and discounts and rates of CGST, SGST and IGST would have to be filled, along with item wise details including description, quantity and price.
Union Minister for Finance, Arun Jaitley administering the oath to Madhusudan Sahoo as the Chairperson of the Insolvency and Bankruptcy Board of India (IBBI), in New Delhi.
The Insolvency and Bankruptcy Board of India (IBBI) has powers to start probe against service providers registered with it without intimating them, according to new regulations.
IBBI, which is implementing the Insolvency and Bankruptcy Code (IBC), has notified the regulations for inspection and investigation of service providers registered with it.
Insolvency professional agencies, professionals, entities and information utility are considered as service providers under the Code.
The Code, which provides for a market-determined and time-bound resolution of insolvency proceedings, became operational in December 2016.
As per the regulations, the investigation authority has to serve a notice intimating the entity concerned about the probe at least ten days in advance.
However, the requirement could be done away with on grounds such as apprehensions that the records of the particular service provider might be destroyed before the probe starts.
The data analytics and processing coupled with intelligence inputs would inter-alia provide CBEC national and sub-national perspective for policy formulation
The government has set up a new wing under the indirect taxes body to provide intelligence inputs and carry out big data analytics for taxmen for better policy formulation and nabbing evaders.
The Directorate General of Analytics and Risk Management (DGARM) will be under the Central Board of Excise and Customs (CBEC), mainly to use internal and external sources for detailed data mining to generate actionable inputs, the revenue department said in an office memorandum. The DGARM, set up on July 1, coinciding with the roll-out of the GST regime, has four verticals headed by an official of rank of additional director general or principal ADG. It will function as an apex body of CBEC for data analytics and risk management, and report to the CBEC chairman.
Incidentally, the CBEC is to be renamed as the Central Board of Indirect Taxes and Customs (CBIC) after excise duty along with service tax and a dozen other central and state levies were subsumed into GST.
“The data analytics and processing coupled with intelligence inputs would inter-alia provide CBEC national and sub-national perspective for policy formulation. The field formations of CBEC are expected to gainfully and effectively utilise the data and other inputs shared by the DGARM,” the memorandum said.
As part of the DGARM, a National Targeting Centre has been set up, which is responsible for application of a nationally coordinated approach to risk analysis and targeting of risky goods and passengers crossing the borders of the country. “It shall provide 24×7 operational risk interdiction supports to field formations of the CBIC,” it said.
The centre in question will institutionalise coordination with other government departments and other stakeholders for sharing databases, information, intelligence and reports to build risk profile of entities. A Centre for Business Intelligence and Analytics has also been set up and will be responsible for identification of information requirements of the CBEC. It will utilise data feeds from internal sources.
It shall be responsible for providing analytical inputs to support identification, targeting and risk management functions of the National Targeting Centre, the Risk Management Centre for Goods and Services Tax, and the Risk Management Centre for Customs.
The third vertical of the DGARM is the Risk Management Centre for Goods and Services Tax, which will institutionalise mechanism to collect necessary inputs, adopt coordinated approach and share the outcome for risk-based identification for the purpose of scrutiny, audit and enforcement functions.
Besides, the Risk Management Centre for Customs will be responsible for assessment and targeting of risky cargo crossing the borders through sea, air and land. The DGARM will do detailed data mining and analysis to generate outputs for focused and targeted action by field formations and investigation wings of the CBEC.
YES Bank has teamed up with the Overseas Private Investment Corporation (OPIC) and Wells Fargo on an agreement to lend up to $150 million to small and medium enterprises (SMEs) in India.
Under the agreement, OPIC will provide $75 million in financing and up to $75 million in syndicated financing jointly with Wells Fargo to YES Bank.
Specifically, $50 million of the financing will be used to expand support to women-owned businesses, while another $50 million will be used for financing SME businesses in low-income States, YES Bank said in a statement.
It added that this will ensure access to funding for women-owned businesses and SMEs in India.
OPIC is the US government’s development finance institution. San Francisco-headquartered Wells Fargo is a diversified, community-based financial services company with $2 trillion in assets.
Rana Kapoor, Managing Director and CEO, YES Bank, said: “This facility will support financing to women entrepreneurs in India for driving future economic growth and job creation.”
Dev Jagadesan, OPIC’s Acting President and CEO, said, “OPIC’s facility will help YES Bank expand its SME lending capacity, specifically enabling them to reach both women and entrepreneurs in low-income States who have much to contribute to India’s economic activity.”
According to the statement, this is the third transaction between OPIC and YES Bank and comes close on the heels of last year’s $265-million OPIC facility, which the bank will use to extend SME financing in India.
The private sector bank said it has also partnered with International Finance Corporation and Women Entrepreneurs Opportunity Facility by drawing a $50-million loan in March 2016 for mobilising capital for women entrepreneurs.
