Improvement in Ease of Doing Business Ranking Inspiring: PHD Chamber

While appreciating the importance in Ease of Doing Business to the rank of 130 by the World Bank, Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said that lot of things at the ground level are becoming visible and the business community is enthusiastic to enhance its growth trajectory going forward.

India is now ranked at 130th among 190 economies by the World Bank.

Implementation of the Insolvency and Bankruptcy code would improve the ranking further.  It is also expected that the goods and services tax will help make significant improvement in India’s ranking next year, he said.

Going ahead, President, PHD Chamber, Dr. Mahesh Gupta suggested that the Government must focus on the reforms in labour laws and decriminalization of businesses as stringent labour laws are a major roadblock to enhance production possibility frontiers and employment generation in the economy.  

GST: November 8 is the date finalised for migration of eight million assesses under Goods and Services Tax Network

The Goods and Services Tax Network (GSTN), which is expected to provide common and shared IT infrastructure for GST implementation, will transfer on-board to its platform the details of about 80 lakh existing assessees of excise, value-added tax, customs and service tax, according to Mr.. Prakash Kumar, Chief Executive Officer, GST Network said. He was speaking at the second series of Interactve Session on GST at the PHD Chamber of Commerce & Industry, here.

“On this date (November 8), we are releasing enrolments. This means getting these existing eight million assessees on to our system. This move will help them do business without any hassle from April 1 next year, which is the likely GST implementation date,” said Mr. Prakash Kumar told the Members of PHDCCI.

Mr. Prakash Kumar noted that with the migration of assessee details onto the GSTN platform, the existing assessees will have clean data. This will sort out inconsistencies and get ready for smooth transition to the implementation date of April 1, he said.

GSTN, a not-for-profit entity incorporated in March 2013, has been set up primarily to provide IT infrastructure and services to the Central and State governments, taxpayers and other stakeholders for implementation of GST. It has also been allowed to partner with other agencies for creating an efficient and user-friendly GST eco-system.

Mr. Prakash Kumar also said that GSTN will in the coming days obtain imports related data (Bill of Entry) from the Central Board of Excise Customs (CBEC). This will be useful for levy of iGST (GST levy on imports).

Other Officers from GSTN who were present on the occasion included  Mr. Nitin Mishra, EVP, Technology, GSTN; Mr. Praveen Kumar, AVP, GSTN; Mr. K P Verma, VP(Services), GSTN & Mr. Shashi Bhushan Singh, VP(Services), GSTN. 

Mr. Gopal S Jiwarajka, Sr. Vice President, PHD Chamber; Mr. Anil Khaitan Vice President, PHD Chamber; Mr. Bimal Jain, Chairman Indirect Taxes, PHD Chamber & Mr. N K Gupta, Co-Chairman, Indirect Taxes Committee, PHD Chamber also presented their views on the subject.

Mr. Nitin Mishra, EVP, Technology, GSTN, presented how GSTN portal will provide for dashboard registration. He discussed the importance of uploading B2B invoice, Amended B2B invoice and B2B invoice for the supplier and receiver. Sh. Mishra elaborated the details of monthly return, turnover details, outward and inward supplies under GSTR-3.

Mr. Bimal Jain, Chairman, Indirect Tax Committee, PHDCCI, shared that GST will facilitate Make in India by making one India. He felt that certain issues need ironing out under GST including whether seamless flow of credit will be available under GST; how the matching of Input Tax Credit will be taken care under GST; how the registrations will be made under GST for service providers having multiple offices located across States within the country; how returns will be simplified under GST. He also emphasised preparedness required for industry to gear up for GST. He felt that the govt. is making all positive efforts for GST and it is expected that GST will turn out to be Good & Simple Tax for the benefit of trade & industry.

Mr. Gopal S Jiwarajka felt that timely GST preparedness is a key to smooth transition for industry. Mr. Anil Khaitan shared that IT processes for every company would have to be customised as per the requirements under GSTN.

PHD Chamber organized an interactive session with GSTN today with the objective of providing an interface between industry and the GSTN

PHD Chamber organized an interactive session with GSTN today with the objective of providing an interface between industry and the GSTN to help the industry align its IT Systems under the GST regime of Indirect Taxation.

Officers from GSTN who were present on the occasion included Shri Prakash Kumar, CEO,GSTN; Shri Nitin Mishra, EVP, Technology, GSTN; Shri Praveen Kumar, AVP, GSTN; Shri K P Verma, VP(Services), GSTN & Shri Shashi Bhushan Singh, VP(Services), GSTN. Shri K R Srivats Finance Editor, Hindu Business Line was also present at the Conference. Shri Gopal S Jiwarajka, Sr. Vice President, PHD Chamber; Shri Anil Khaitan Vice President, PHD Chamber; Shri Bimal Jain, Chairman Indirect Taxes, PHD Chamber & Shri N K Gupta, Co-Chairman, Indirect Taxes Committee, PHD Chamber also presented their views on the subject.

Shri Prakash Kumar opined that GSTN is the IT backbone of GST. He discussed the GST IT strategy adopted by the government. He discussed the structure of registration process under GST. He shared that all the taxpayers who have valid PAN will migrate to GST. He discussed about filing of various return GSTR- 1, GSTR- 2and GSTR- 3, etc under GST law.

Shri Nitin Mishra presented how GSTN portal will provide for dashboard registration. He discussed the importance of uploading B2B invoice, Amended B2B invoice and B2B invoice for the supplier and receiver. Mr. Mishra elaborated the details of monthly return, turnover details, outward and inward supplies under GSTR-3.

Mr. Bimal Jain shared that GST will facilitate Make in India by making one India. He felt that certain issues need ironing out under GST including whether seamless flow of credit will be available under GST; how the matching of Input Tax Credit will be taken care under GST; how the registrations will be made under GST for service providers having multiple offices located across States within the country; how returns will be simplified under GST. He also emphasised preparedness required for industry to gear up for GST. He felt that the govt. is making all positive efforts for GST and it is expected that GST will turn out to be Good & Simple Tax for the benefit of trade & industry.

Shri Gopal S Jiwarajka feLt that timely GST preparedness is a key to smooth transition for industry. Shri Anil Khaitan shared that IT processes for every company would have to be customised as per the requirements under GSTN. Shri K R Srivats observed that GST will help industries in reducing cascading effects of taxes and will be beneficial for the industry.

ESIC would provide pan India Healthcare facilities with second generation reforms from March 2017, says it's Insurance Commissioner

Employees’ State Insurance Corporation (ESIC) will shortly launch the second generation reforms as per which it will have Pan India presence covering over 650 districts of the country with its healthcare and community dispensaries facilities, according to its Insurance Commissioner, ESI, Mr. Arun Kumar.

Addressing a Seminar on “Implementation of ESI Act & The Schemes Framed Thereunder” under aegis of PHD Chamber of Commerce and Industry here today, Mr. Kumar also said  that the corporation has decided to take in its fold all construction workers, according them with ESI benefits.

However, the ESIC is likely to propose to charge the financial contribution from construction worker’s employers to give them ESI benefits which would be drawn from the various welfare boards in which the construction companies deposit their construction cesses, indicated Mr. Kumar pointing out that this thinking is on progress at the higher level of bureaucracy within the union labour ministry.

Elaborating on the issue of second generation reforms in ESIC, Mr. Kumar said that currently ESIC has its healthcare and hospital facilities around 300 districts where the workers avail of medical and healthcare facilities.  This facilities would be extended to all districts of the country as the government of the day under Prime Minister Modi has already a scheme to this effect, process of which would begun from March 2017 onwards.

He also informed that ESIC insured persons would be entitled for 26 weeks of maternity benefits from existing 12 weeks for which the corporation would bear the financial burden instead of employers.

Likewise, the wage threshold ceiling of workers for availing of ESI benefits is likely to be enhanced to Rs.21,000 per month from the current wage limit of Rs.15,000 per month for which a notification would come about in next few days although intentional notification to this effect has already been issued.

In the Seminar among others that participated comprised Medical Commissioner, ESI, Dr. R K Kataria; Past President & Chairman, IR & HR Committee, PHD Chamber, Mr. Ravi Wig and Co-Chairman, PHD Chamber & Member, ESI, Mr. Bharat Mehta.

Reforms like land, labour, Capital & Entrepreneurship needs push for over 7.6% growth: PHD Chamber

PHD Chamber of Commerce and Industry on Monday recommended four major reforms such as land, labour, capital and entrepreneurship for accelerated growth, exceeding 7.6% per annum to fulfil India’s aspiration to emerge a leading economy in the world.

In addition, the Chamber also emphasized reforms in agriculture and construction sector to enable it come out of on-going slowdown mode of economic activities to spur up demand for India’s industrial produce.

The aforesaid suggestions emerged at a Seminar on Growth Prospects of the Indian Economy under aegis of the PHD Chamber of Commerce and Industry here today which also sought a fair playground for overseas MSMEs to be operational on Indian soil with relaxed labour laws and relaxed regulations for ease of doing business.

The Seminar had a consensus on the issues identified above with participants such as former Secretary, Ministry of Commerce and Industry, Mr. Ajay Dua; National Institute of Public Finance and Policy, Prof. N R Bhanumurthy; Professor, Research & Information System, Ministry of External Affairs, Dr. Ram Upendra Das; Principal Director, Comptroller and Auditor General, Dr. Nilotpal Goswami; Former Vice Chancellor, JNU, Dr. B B Bhattacharya; Director, KPMG, Mr. Himanshu Rattan; Vice President, PHD Chamber, Mr. Anil Khaitan and its Secretary General, Mr. Saurabh Sanyal.

It was emphasized that land reforms has become imperative as it is a major ingredient in the four factors of production because of its availability factor with creation of land banks for utilization of industry.

Labour reforms, according to the suggestions of the Seminar is another ingredient of the four factors of production and amendment to the prototype land laws would be key for enhanced IIP with softening rate of interests and strengthening of micro financing institutions as part of proposed capital reforms.

As regards to entrepreneurship reforms, the Chamber is of the view that removal of administrative bottlenecks, improvement in infrastructure utilities and simplification of taxes would go a long way in promoting the spirit of entrepreneurship.

Reforms in construction sector, as per PHD Chamber is not performing well because of reasons such as high interest rate and slowdown in demand as the growth of construction sector in Q1 of 2016-17 stood at 1.5 per cent.

Agricultural sector reforms are also crucial in enhancing demand with focus on irrigation, soil improvement and productivity, crop protection and organic farming, the economy would achieve higher growth and development in the future, concluded the Seminar.

Rs.2,000 Crores Credit Guarantee fund for Startups in offing : Secretary , DIPP

In addition to softening regulations for Start-Ups to further motivate their entrepreneurship, the government would shortly set up a Credit Guarantee Fund with a corpus of Rs.2000 crores to support their ventures and risk taking abilities, says the Secretary, DIPP, Mr. Ramesh Abhishek.

Addressing a Conference on Start Up India, Challenges and Sustainability  organized by PHD Chamber of Commerce and Industry here today and which was presided over by Minister of State for HRD, Dr. Mahendra Nath Pandey, the Secretary added that with this corpus of Rs.2,000 crores in place, the Start-Ups would receive financial support from banks and financial institutions with collateral free guarantee.

Without prescribing any time limit as to when the Credit Guarantee Fund would come about, Mr. Abhishek, however, added that with this fund being operational in near future, the Start-Ups could look up for financial assistance for their ventures that would be available easily.

Elaborating on the issue of softening existing regulations for Start-Ups, Mr. Abhishek pointed out that DIPP would take up this issue with entities such as RBI, SEBI and Department of Corporate Affairs among others.

Responding to a suggestion mooted by the President, PHD Chamber, Dr. Mahesh Gupta seeking relaxations on existing taxes for Start-Ups, the Secretary, DIPP said that this issue was also being perused by the government among the various concerned stakeholders since the Start-Ups venture is one of the top priorities of the Modi government as it would not only create wealth for promoter of such ventures but also facilitate employment creation.

Speaking on the occasion, the Minister of State for HRD, Dr. Pandey also felt that sufficient incentives and motivations should be given to those that wish to set up their venture with the spirit of innovations and also suggested that the spirit of innovations need to be promoted at the basic levels of Indian education system through vernacular mode of communications.

Among others who spoke on the occasion demanding sufficient and adequate supportive policies to promote Start-Up ventures in India comprised Secretary, Department of Science and Technology, Prof. Ashutosh Sharma; Additional Secretary, DIPP, Mr. Sanjeev Gupta; Secretary, Department of Biotechnology, Prof. K Vijay Raghvan and President, Alumni Association, IIT Kanpur Outer Delhi Chapter, Mr. Anurag Goel.

India-Germany trade to touch USD 25 billion by 2018: PHD Chamber

India and Germany are bound by tremendous business opportunities and close economic links based on the fundamentals of understanding and support, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry in a press statement issued here today.

Based on strong complementarily and growth prospects going forward the trade between two nations is expected to touch USD 25 billion by 2018. Currently, India-Germany trade is valued at USD 18.9 billion.

Among various products, India’s thrust products in Germany included organic chemicals (9.57%), non-knitted apparels (8.46%), nuclear reactors and boilers (8.37%), knitted articles (8.16%), electrical equipments (5.76%) of total exports.

Germany’s thrust products in India included nuclear reactors and boilers (29.91%), electrical equipments (10.68%), optical, measuring, photographic, medical or surgical equipments (8.14%), vehicles (7.44%), organic chemicals (5.49%) of total exports.

Dr. Mahesh Gupta also added that Indian exports into Germany were mainly focused on Consumer Goods, viz. nearly 54% of the total exports. On the other hand, nearly 61% of the total imports from Germany were focused on Capital Goods.

This clearly describes the characteristics of Germany being heavily endowed with capital-intensive goods is exporting India. On the other hand, India a relatively more labour-intensive nation is exporting more consumer goods to Germany, he said.

It was also highlighted by Dr. Mahesh Gupta that India’s export pattern has become more and more aligned with the import pattern of Germany over time. Both nations witnessed a favourable complementarity scenario.

Also, the basket of exportable products from India remained opulently diversified over the years, thereby rendering Indian exporters relatively less susceptible to volatility in a turbulent trade scenario.

Also, both nation registered satisfactory intra-industry trade numbers with substantial contribution in each other’s value chain, which is expected to grow further in the coming times, further added Dr. Mahesh Gupta.

Dr. Mahesh Gupta presumes that with further liberalization of FDI policy in different segments and the advent of GST next year, FDI from Germany is expected to touch a new growth trajectory.

Going ahead, it is essential for both the parts to become proactive and adopt deem policies to rejuvenate the falling trend in trade. Both nations should continuously meet and engage in discussions related to mitigating bilateral trade issues, defence ties, renewable energy, skill development and other vital areas.

As India is moving ahead as the front runner in growth of its economy, it needs extrinsic support from all the countries and Germany is one such nation which can truly transform into a sustainable partner for trade and economic growth.

India’s inordinate and skilled human capital highly aligns with the technological capabilities of Germany whereas German companies are competent in rendering infrastructural necessities to India, especially in logistics and construction sectors, added Dr. Mahesh Gupta.

Going ahead, growth prospects for trade and development between two countries are very promising and sustainable, not only for the coming years but for the coming decades, said Dr. Mahesh Gupta.

PHD CHAMBER ORGANISES SERIES OF EDUCATIONAL WORKSHOPS ON GOODS & SERVICES TAX

With the objective of analyzing in detail the GST provisions vis-à-vis the present indirect tax provisions and understanding the GST Impact on different industry sectors, PHD Chamber is conducting a Knowledge Series on Goods & Services Tax.  The Knowledge Series is the second series of GST Workshops conducted by PHD Chamber on Draft Model GST Law, wherein the entire GST law was deliberated in detail.

The first workshop in the above series held here today acknowledged that the Centre is completely geared up and prepared to implement GST whereas the adequate preparations for its execution by assesses is half way through and thus called upon them to gain in pace for this unprecedented indirect reform.The Workshop deliberated in detail the recently released Draft GST Rules & Formats on Registration, Payment, Invoice, Return and Refund, Supply and Time/Place of Supply & Valuation of Goods & Services.

Eminent faculty who addressed and interacted with the participants included Mr. Bimal Jain, Chairman, Indirect Taxes Committee, PHD Chamber; Mr. N K Gupta, Co-Chairman, Indirect Taxes Committee, PHD Chamber; CMA Ashok Nawal, The Institute of Cost Accountants of India; Mr. B L Narasimhan, Lakshmikumaran & Sridharan; Mr. Sudipta Bhattacharjee, Advaita Legal, CA Atul Gupta, ICAI and CA Jayesh Gogri, GSC Intime Services Pvt. Ltd.

Mr. Bimal Jain, Chairman, Indirect Taxes Committee shared certain contentious issues that may arise under the GST. He observed that supply is a taxable event under GST. Even FOC supplies and stock transfer have been made chargeable to GST. This will be a game changer for the industry which at present is not paying any tax on such mechanisms.

The timing of supply of Goods & Services will assume a lot of significance under GST as GST will be chargeable on the advance money collected for supply of goods & services. It is a normal practice in any business to collect advance money from customers for supply/ sale of any goods.  Collection of advance is the timing of supply of goods, resulting in payment of GST on advances.

Also, at present inter-State supply of goods attract Central Sales Tax. The GST Law provides that an inter-State supply of goods and/ or services will attract IGST ((i.e. CGST plus SGST). Thus, it would be crucial to determine whether a transaction is ‘intra-State’ or ‘Inter-State’ as the applicability of GST will be determined on the basis of place of supply.

The Govt. has recently released the Draft GST Rules & Formats on Registration, Payment, Invoice, Return and Refund and sought suggestions from the industry in a day’s time. It is practically difficult for the industry to understand and comprehend the Rules in such a short time and give inputs. PHD Chamber will be shortly sending a detailed Memorandum with a set of suggestions on the new Rules released.  The Chamber has earlier submitted a detailed Memorandum of suggestions on the Draft Model GST Law.

FERRY VESSELS OPERATIONS IN RIVER YAMUNA LIKELY FROM DECEMBER 2016: IWAI

Ferry vessels operations into the 16 km length of river Yamuna from Delhi   could be a reality from December 2016 as Inland Waterways Authority of India (IWAI) has submitted all necessary details to National Green Tribunal (NGT) for obtaining its green signal for the job, disclosed its Chairman, Mr. Amitabh Verma.

Speaking at Infrastructure Conclave-2016-Accelerating Growth with Inclusion & Equity organized by the PHD Chamber of Commerce and Industry here today, Mr. Verma also announced that tenders for seven waterways would be floated in next 3-4 months. 

The government, according to Mr. Verma has already notified 106 inland waterways  out of which 30 are highly doable among which tender for one such inland waterways has already been floated and the tender for remaining 22 waterways would follow in due course.

Mr. Verma also announced that new Inland Vessel Act is likely to be passed in the forthcoming winter session of the Parliament, replacing it with the prototype Vessel Act of 1917 as also a new legislation relating to dredging would come about in the same session.

Ferry vessels operations in river Yamuna are likely by December 2016 as the IWAI have cleared off the misgivings of NGT and a fresh report to this effect has already been submitted to the tribunal which is likely to be cleared off before the IWAI resumes the ferry vessels operations in December 2016.

Chairman, National Highways Authority of India (NHAI), Mr. Raghav Chandra who was also present on the occasion said that in the current fiscal the  NHAI would tender out roads and highways projects measuring 7,000 km at various part of the country.

According to him, the approach of the government towards improving the road and highways connectivity is to bring about efficiency and competitiveness in the Indian economy for which all out efforts are being made with awards of new projects, the focus of which is not to broaden the existing road infrastructure but to develop it in the green field sector also.

Among others who spoke on the occasion consisted of President, PHD Chamber, Dr. Mahesh Gupta, Chairman-Roads, Ports & Other Infrastructure Committee, PHD Chamber, Mr. Ashish Mohan Wig its Secretary General and Director Mr. Saurabh Sanyal and Dr. Ranjeet Mehta. 

Repo rate cut to induce demand, stoke up manufacturing and overall economic growth : PHD Chamber

While welcoming the fourth Bi-monthly Monetary Policy Statement for 2016-17 by RBI, Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said that reduction in repo rate was much needed at this juncture on account of good monsoon scenario and comfortable inflationary scenarios.

Monetary Policy Committee (MPC), RBI has reduced the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.5% to 6.25% with immediate effect. Consequently, the reverse repo rate under the LAF stands adjusted to 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75%.

Dr. Gupta added that the move to reduce repo rate by Monetary Policy Committee of Reserve Bank of India is going to rejuvenate demand and re-capture industrial growth and boost overall economic growth in the coming times.

The negative growth of IIP at (-) 2.4% for the month of July 2016 is a major cause of concern as growth of Capital goods has decelerated significantly by (-) 29% in July 2016 which is indicative of subdued pace of investments in the economy, said Dr. Mahesh Gupta.

However, the growth of consumer durables at 5.9% in July 2016 is encouraging in anticipation of bumper kharif crops vis-à-vis good monsoon scenario. We believe there is a need to push domestic demand particularly the rural demand in the economy, said Dr. Gupta.