In adherence to Rule 37A of the CGST Rules, 2017, taxpayers are required to reverse Input Tax Credit (ITC) availed on invoices or debit notes. This pertains to transactions where details have been furnished by the supplier in their GSTR-1/IFF, but the corresponding return in FORM GSTR-3B for the specified period has not been submitted by the supplier until the 30th day of September following the end of the financial year in which the ITC was availed.

Reversal Obligation and Timeline

Taxpayers are obligated to reverse the ITC amount as per Rule 37A while filing the return in FORM GSTR-3B on or before the 30th day of November following the end of the financial year. This reversal is a crucial legal obligation that ensures compliance with GST regulations.

System-Computed ITC for FY 2022-23

To streamline the process for taxpayers, the amount of ITC required to be reversed under Rule 37A for the financial year 2022-23 has been computed by the system. Communication regarding this has been dispatched to the concerned recipients via email. It is imperative for taxpayers to review and acknowledge this communication.

Action Required

Taxpayers are advised to promptly act on the communicated ITC reversal amount. If ITC has been availed, it should be reversed in Table 4(B)(2) of GSTR-3B before the 30th of November, 2023. This ensures comprehensive compliance and avoids any potential penalties or implications.

This compliance notice aims to facilitate a smooth and timely process for taxpayers, emphasizing the importance of adhering to Rule 37A for a seamless GST framework.

Mumbai, [Current Date]: Real estate firm D B Realty announced that its subsidiaries have successfully completed the sale of their entire shareholding in Siddhivinayak Realties Pvt Ltd to Reliance Commercial Finance Ltd (RCFL) for a total consideration of Rs 376.18 crore. This strategic move is aimed at addressing a portion of the group’s liabilities owed to RCFL.

Share Purchase Agreement

The transaction was formalized through a share purchase agreement executed on November 1. The subsidiaries of D B Realty divested their complete shareholding, encompassing equity shares and optionally convertible debentures (OCDs), in Siddhivinayak Realties to RCFL. The Rs 376.18 crore infusion is intended to settle outstanding dues as part of the financial arrangement between RCFL, D B Realty, its subsidiary Goregaon Hotel And Realty Pvt Ltd, and its associate Bamboo Hotel & Global Centre (Delhi) Pvt Ltd.

Financial Settlement for Group Liabilities

The sale of shares and debentures serves as a financial mechanism to meet obligations and underscores a prudent approach to manage group liabilities. The move aligns with the broader financial strategy of D B Realty and contributes to the ongoing financial stability and health of the organization.

This divestment represents a significant step for D B Realty and its subsidiaries as they strategically optimize their portfolio and address financial obligations. The completion of this transaction further positions the company for sustained growth and resilience in the dynamic real estate market.

ISO, or the International Organization for Standardization, was established in 1947 to create global quality standards for businesses. With members from 164 countries, ISO has developed over 22,700 standards, covering quality assurance for diverse industries. Compliance with ISO standards is voluntary, but ISO certification has become a standard for businesses aiming to showcase their commitment to quality.

Benefits of ISO Conformance

ISO conformance brings not only a seal of approval but also tangible benefits like improved quality management, enhanced information security, environmental sustainability, increased customer satisfaction, and better occupational health and safety.

Choosing the Right ISO Standards

ISO offers frameworks for various sectors and industries. The choice of standards depends on the specific needs and sector of each business. Some are industry-specific, while others, like ISO 14001 and ISO 9001, are more general and applicable to a wide range of organizations.

ISO 9001: Quality Management Systems

ISO 9001 focuses on quality management systems. It provides a guide for developing effective processes and is the only ISO standard in its family eligible for certification.

ISO Compliance vs. Certification

ISO compliance means adhering to standards without external audit, while ISO certification involves an external audit by an accredited professional. Both are voluntary, but certification offers international recognition and business advantages.

Pros and Cons of ISO Certification vs. Compliance

Expense:

• Compliance: Saves costs associated with certification audits.
• Certification: Involves audit expenses but enhances business opportunities.

Time:

• Compliance: Takes months to years depending on size and complexity.
• Certification: Requires additional time for audit preparation, especially for ISO 27001.

Marketing:

• Compliance: Lacks marketing advantages of certification.
• Certification: Provides a competitive edge highlighted in marketing materials.

Maintenance:

• Compliance: No ongoing audits or yearly surveillance required.
• Certification: Involves re-certification every three years with annual surveillance audits for continual improvement.

In conclusion, understanding and navigating the world of ISO standards can significantly benefit businesses in various aspects. Whether choosing compliance or certification, the decision should align with organizational goals and resources.

India proudly holds the distinction of having the world’s second-largest MSME base, trailing only behind China. This dynamic sector plays a pivotal role by offering an extensive array of services and contributing to the production of over 6,000 diverse products, ranging from traditional to cutting-edge innovations. Fueled by the Indian government’s emphasis on fostering a self-reliant economy, known as Atmanirbhar Bharat, the MSME sector is on a trajectory of rapid expansion and seeks deeper integration with global value chains.

Government Support and Policy Initiatives

MSMEs in India benefit significantly from targeted government policies. Initiatives such as sector-specific Production-Linked Incentives (PLI) programs, region-focused incentives, and schemes promoting technical skills and digital advancements receive consistent backing. Special relief measures are also rolled out in response to unforeseen events like the COVID-19 pandemic, underlining the government’s commitment to the sector’s resilience.

Quantifying the MSME Landscape

Estimates indicate a robust MSME ecosystem, comprising approximately 63.05 million micro-industries, 0.33 million small enterprises, and around 5,000 medium enterprises. Uttar Pradesh claims the largest share at 14.20%, closely trailed by West Bengal at 14%, with Tamil Nadu and Maharashtra contributing 8% each.

Revised Criteria for MSME Qualification

Since July 1, 2020, a revised categorization defines MSMEs in India based on updated criteria. The classification hinges on both investment and turnover for entities operating in manufacturing and services sectors. Micro, small, and medium designations are determined by specific thresholds for plant and machinery/equipment investment, coupled with annual turnover limits, reflecting the government’s commitment to fostering a thriving MSME landscape.

In a recent development, the Goods and Services Tax Network (GSTN) has introduced a crucial functionality on the GST portal to address disparities between Input Tax Credit (ITC) figures in GSTR-2B and those claimed in GSTR-3B. This move aligns with the GST Council’s directive to streamline reporting and ensure accuracy in tax credit utilization.

Intelligent Comparison of ITC Figures

The newly implemented feature systematically compares the ITC declared in GSTR-3B/3BQ with the ITC available in GSTR-2B/2BQ for each return period. If the claimed ITC in GSTR-3B surpasses a predefined limit or the percentage difference exceeds a configurable threshold, taxpayers are promptly notified through an automated intimation in the form of DRC-01C.

Responsive Action with Form DRC-01C Part B

Upon receiving an intimation, impacted taxpayers are required to file a response using Form DRC-01C Part B. They have the flexibility to provide details of the payment made to reconcile the difference using Form DRC-03. Alternatively, they can furnish an explanation for the disparity or opt for a combination of both options.

Consequences of Non-Compliance

It is crucial for impacted taxpayers to file a response in Form DRC-01C Part B within the stipulated timeframe. Failure to do so will result in the inability to file subsequent period GSTR-1/IFF. This emphasizes the importance of prompt and accurate reconciliation to maintain compliance with GST regulations.

In a positive trend, formal job creation witnessed a substantial rebound under the Employees’ Provident Fund Organisation (EPFO) in November 2022. Provisional data released by the labor ministry on Friday revealed a remarkable growth of 25.6%, adding 1.62 million net new subscribers compared to the 1.29 million added in October 2022.

Year-on-Year Comparison

Comparing year-on-year figures, November 2022 showcased a 16.5% increase in net new additions, with 1.62 million subscribers, compared to 1.39 million in November 2021.

October Decline

The rebound in November comes after a dip of 30.2% in net new subscriber additions in October, which saw 1.29 million additions compared to the 1.68 million in September.

Fiscal Year Overview

Cumulatively, the net new subscribers added to EPFO in the current fiscal year are as follows: 1.29 million (April), 1.21 million (May), 1.42 million (June), 1.55 million (July), and 1.53 million (August).

Demographic Insights

Of the total 1.62 million net subscribers added in November, 0.89 million were new members entering the ambit of EPF & MP Act, 1952 for the first time—a notable increase from October’s 0.728 million. Additionally, 1.12 million net subscribers re-joined by transferring their accumulations from previous PF accounts to the current PF account, rather than opting for final withdrawal.

Age Group Dynamics

The data reveals that among the new members, 0.27 million were in the 18-21 age group, followed by 0.23 million in the 22-25 years age bracket. A significant 56.6% of the total new members belonged to the age group of 18-25 years, signaling a trend of youth employment.

The government has issued a warning to MSMEs (Micro, Small, and Medium Enterprises) against a deceptive portal, eudyogaadhaar.org, falsely claiming to be a government-approved consultancy for Udyam registration. Through its PIB Fact Check Twitter handle, the government exposed the fake portal, which charges Rs 2,700 under the pretense of “printing the registration certificate.”

Official Portal Clarification

The official Udyam registration portal, udyamregistration.gov.in, is the sole platform authorized for MSME registration, according to the government. The warning emphasized that no other private online or offline entity is authorized to conduct MSME registration activities. The government portal ensures a free-of-cost, paperless registration process based on self-declaration, with only the Aadhaar number required.

Proliferation of Fraudulent Portals

Despite the official portal’s prominence, various deceptive MSME registration portals such as udyamregister.org, udyogadharcertificate.in, udyamregistration.co, udyam-registration.co.in, etc., continue to operate, offering registration support and potentially misleading businesses.

Statistics and Continued Vigilance

The official Udyam portal achieved over 1 crore MSME registrations in August, marking a significant milestone since its launch in July 2020. While a small percentage of enterprises have withdrawn their registrations, the government remains vigilant against fraudulent activities. As of July 15, 2022, 35,501 enterprises withdrew their Udyam registrations, constituting 0.35% of the total registrations on the portal. The government encourages MSMEs to exercise caution and utilize the official portal for authentic registration processes.

In the ever-evolving landscape of insurance, customer-centricity takes center stage, ushering in a new era of convenience and adaptability. The once obligatory realm of motor insurance has undergone a profound shift, embracing a proactive customer-first approach, akin to health and life insurance.

Technology’s Impact After the Pandemic

The global shift triggered by the pandemic prompted regulatory authorities to reshape motor insurance, infusing inclusivity and user-friendliness. Technological advancements and shifting consumer expectations played pivotal roles, prompting the industry to discard unnecessary costs for personalized, transparent experiences.

Innovative Initiatives Driving Change

1. Pay as You Drive (PAYD): A groundbreaking innovation emerged with the introduction of PAYD policies. Leveraging telematics, these policies assess individual vehicle usage, ensuring customers only pay for the coverage they require. This approach gained prominence during the pandemic, addressing the incongruity of full premiums amid limited vehicle usage.

2. Digitized Solutions: The digitalization of motor insurance offers seamless access and operational efficiency across various touchpoints. From policy discovery to management, claims processing, and post-sales service, customers navigate a digital realm that provides convenience, safety, and prompt assistance through apps and portals.

Embracing a Customer-Centric Future

As motor insurance continues its transformation, these initiatives underscore a shift from rigid and costly structures to adaptive, customer-centric models. The integration of technology not only simplifies processes but also empowers customers, marking a significant leap forward in the insurance landscape.

Finance Minister Nirmala Sitharaman asserted the Union government’s desire to bring petrol and diesel within the ambit of Goods and Services Tax (GST), criticizing the Congress for what she deemed “double standards” on the issue. The Bharatiya Janata Party (BJP) and the central government have consistently supported bringing petroleum products under the GST, emphasizing the potential benefits for the public.

Call for Consistent Support

Sitharaman called attention to the BJP’s ongoing advocacy for including petrol and diesel in the GST regime, highlighting its positive implications for the people. She urged Congress general secretary Priyanka Gandhi Vadra, who has expressed a similar viewpoint, to align the state governments of Congress with this stance in the GST Council.

Challenging Congress’s Stance

The Finance Minister urged the media to scrutinize the Congress’s stance, emphasizing the need for consistency in its position on bringing petrol and diesel under GST. She questioned the party’s commitment to the cause and suggested that if Priyanka Gandhi Vadra supports the move, she should actively pursue agreement from Congress-led state governments.

Global Conflicts and Economic Impact

Addressing concerns about the Israel-Hamas conflict’s impact on the country’s economy, Sitharaman acknowledged the potential influence of global conflicts on crude oil prices. She assured that the government has been vigilant in monitoring the situation, pointing out that India has imported cost-effective crude oil from Russia amid the Russia-Ukraine war.

Government’s Measures Against Inflation

Sitharaman highlighted the government’s proactive measures to control inflation, citing ongoing efforts to manage prices of essential commodities like tomatoes, flour, and pulses. She contrasted this with the previous Congress government’s record, stating that food inflation remained above 10% for 22 months without effective control measures.

In a recent event inaugurating 12 GST Suvidha Kendras in Gujarat, Finance Minister Nirmala Sitharaman emphasized the Finance Ministry’s commitment to not only bolstering GST revenue but also ensuring the inclusion of all business establishments under its ambit. The Suvidha Kendras aim to facilitate seamless GST registration and address concerns for businesses.

GST’s Positive Impact and Revenue Growth

Sitharaman highlighted the success of GST in the “one nation one tax” framework, noting a consistent increase in GST revenue annually and monthly. She credited GST for reducing tax rates on various items, providing relief to businesses. The elimination of double taxation has contributed to the upward trajectory of GST collections.

Challenges in Comprehensive Adoption

Despite the positive trends, Sitharaman acknowledged that certain establishments choose to stay outside the GST framework, remaining informal entities. She expressed the need for all businesses to come under the tax net, not just for immediate tax contributions but for the holistic benefit of the economy.

Formalizing the Economy for Collective Growth

Sitharaman stressed that staying outside the formal economy is detrimental to both the country and individuals. Formalization, she argued, is essential for capturing the true strength of the economy. The Finance Ministry aims to encourage businesses to join the formal economy, promoting transparency and contributing to the overall growth and development of the nation.