For every business, staying up-to-date with the latest developments in the Goods and Services Tax (GST) landscape is crucial. The GST Council, Central Board of Indirect Taxes and Customs (CBIC), and the GST Network/portal frequently release updates that can impact your GST returns and compliance.
Timely Compliance: Your Key to Success
Ensuring 100% compliance with GST regulations is not just a good practice; it’s a necessity. To achieve this, businesses need to closely monitor the evolving GST guidelines. Compliance helps avoid penalties, audits, and other legal hassles.
E-Way Bills: Simplifying Transportation
E-way bills are an integral part of GST compliance, especially for businesses involved in transportation. Staying informed about the latest e-way bill requirements and regulations is essential to keep your supply chain running smoothly.
E-Invoicing Systems: Embracing Digital Efficiency
The adoption of e-invoicing has transformed the way businesses generate and manage invoices. Being well-informed about updates in the e-invoicing system is crucial for efficiency, accuracy, and compliance.
In conclusion, businesses that proactively track and adapt to GST updates issued by the CBIC, GST Council, and GST Network/portal are better positioned to navigate the complex world of GST compliance. Stay tuned to remain compliant and seize opportunities in the ever-evolving GST landscape.
The Government e-Market (GeM), an online platform for government procurement, is witnessing a substantial surge in the procurement of services, with expectations of reaching Rs 1.5 lakh crore in the fiscal year 2023-24. This impressive increase, as noted by GeM CEO P K Singh, reflects a significant expansion from the Rs 65,957 crore spent in 2022-23.
Top Buyers and Contributors: Various prominent entities, including Coal India, NTPC Ltd, ONGC, states like Gujarat, Uttar Pradesh, Delhi, Uttarakhand, Punjab, Nagaland, and ministries such as coal, power, defence, and finance, have emerged as leading buyers of services through GeM.
Historical Growth: Services procurement through GeM has shown remarkable growth in recent years. Starting at just Rs 3,069 crore in 2019-20, it surged to Rs 65,957 crore in FY23. The current fiscal year is anticipated to see services procurement skyrocket to Rs 1.5 lakh crore.
Key Service Categories: The services in high demand encompass a range of sectors such as manpower outsourcing, vehicle hiring, mine development and operations, handling, transport, insurance, IT, and medical services. Notably, GeM offers about 10 types of insurance services, including group mediclaim, assets, liability, motor, livestock, crop, and medical. The platform has facilitated direct engagement with insurance companies, eliminating the need for intermediaries.
Unique Services and Contributions: In addition to conventional services, GeM also witnesses growing interest in unique offerings such as leasing high-value medical equipment, market research/surveys, hiring chartered aircraft, examination services, and international logistics services.
Procurement Overview: Overall, GeM’s procurement statistics are impressive, with goods procurement reaching Rs 1.10 lakh crore and services procurement at Rs 90,000 crore. GeM caters to a vast network of government buyer organizations and sellers, encompassing over 63,000 government buyer organizations and more than 62 lakh sellers and service providers offering a diverse array of products and services.
GeM continues to play a pivotal role in enhancing transparency and efficiency in government procurement processes, ultimately benefiting both buyers and suppliers across the nation.
In an effort to streamline the GST registration process, the Central Board of Indirect Taxes and Customs (CBIC) has introduced a pilot project for Biometric-Based Aadhaar Authentication and Document Verification for GST registration applicants in Gujarat and Puducherry. This advisory provides important information and guidelines for taxpayers participating in this initiative.
Key Points to Remember:
1. Rule Amendment: Rule 8 of the CGST Rules, 2017 has been amended to enable the identification of applicants on the common portal using Biometric-based Aadhaar Authentication and document verification based on data analysis and risk parameters.
2. GSTN’s Initiative: The functionality for this process has been developed by the Goods and Services Tax Network (GSTN) and was initially launched in Puducherry on August 30, 2023. It will be rolled out in Gujarat on November 7, 2023.
3. Document Verification and Appointment Booking: The functionality now includes document verification and appointment booking. After submitting Form GST REG-01, applicants will receive either an OTP-based Aadhaar Authentication link or an appointment booking link.
4. OTP-Based Aadhaar Authentication: If applicants receive the OTP-based link, they can proceed with the registration process as usual.
5. Appointment Booking: If they receive an appointment booking link, they must use it to book an appointment at a designated GST Suvidha Kendra (GSK). Upon receiving the appointment confirmation, they can visit the chosen GSK.
6. Required Details for GSK Visit: Applicants visiting a GSK need to carry the appointment confirmation, jurisdiction details from the intimation email, Aadhaar number, and original documents previously uploaded with the application as indicated in the intimation email.
7. Biometric Authentication and Verification: At the GSK, biometric authentication and document verification will be conducted for all individuals as per the GST application Form REG-01.
8. Timely Appointment: Applicants should choose an appointment within the specified period, as per the intimation email, ensuring that the maximum permissible application period is not exceeded. After successful biometric authentication and document verification, ARNs will be generated.
9. Expansion of the Project: The appointment booking feature is currently available for Gujarat applicants and will soon be extended to other notified States/Union Territories.
10. Operational Hours: The operation days and hours of GSKs will follow guidelines set by the respective state authorities.
This initiative aims to enhance the efficiency and security of the GST registration process, providing a more streamlined experience for taxpayers in Gujarat and Puducherry.
Obtaining an FSSAI (Food Safety and Standards Authority of India) license, also known as an FSSAI registration or certificate, is a legal requirement for food business operators (FBOs) in India. This certification ensures compliance with food safety regulations and quality standards established by the FSSAI. Without a valid license, a food business is deemed illegal and may face penalties or closure.
Benefits of FSSAI License: By acquiring an FSSAI license, FBOs commit to upholding essential guidelines for food safety, including proper hygiene, handling, storage, and processing practices. This not only guarantees the safety of the food being served but also reassures consumers about the adherence to food safety standards. Additionally, holding an FSSAI license can enhance a food business’s reputation, attract more customers, and contribute to building a strong brand image.
Step-by-Step Guide to Applying for an FSSAI License Online:
Visit foscos.fssai.gov.in and click on ‘Apply for New License/Registration.’
Choose ‘General’ for establishments other than railway stations, airports, or seaports. Select ‘Railway Station’ or ‘Airport/Seaport’ if applicable.
Select your state.
Pick your category of business, including Manufacturing, Trade/Retail, Food Services, Central Govt. Agencies, or Head Office.
Select your specific business type within the chosen category.
Proceed to check eligibility and click on ‘You are eligible for Registration, click here to proceed.’
Fill out ‘Form A: Application for Registration under Food Safety and Standards Act, 2006’ with applicant details, business location, and food categories.
If you have a ‘Foods Safety Mitra’ (FSM) number, enter it.
Provide additional details, including the start date of your business and water supply source.
Enter your contact information and create login credentials.
Upload required documents, including photos and ID proofs.
Pay the certificate fee (approximately Rs 100).
Electronically sign the certificate and receive an acknowledgment slip with a reference number for tracking your application.
Your application is typically approved within a week, and the certificate can be downloaded from the portal.
By following these steps, food business operators can easily apply for an FSSAI license online, ensuring their compliance with food safety standards and regulations.
The Income Tax department has provided important information and guidance for taxpayers using Digital Signature Certificates (DSC) for e-Verification. DSC is a critical component when signing Income Tax Returns, verifying responses to notices from the Income Tax Department, and requesting refunds. To ensure a smooth e-Verification process, taxpayers must be aware of DSC expiration, registration on the e-Filing portal, and the installation of the latest emBridge application.
Understanding Digital Signature Certificates (DSC): A DSC is the electronic equivalent of a physical certificate, serving as a means to establish identity for online or computer-based purposes. Just as a handwritten signature authenticates a physical document, a DSC performs the same function for electronic documents. Its usage is not only for e-Verifying returns but is also mandatory in specific cases.
Common Issue: “Something Went Wrong” If taxpayers encounter the error message “Something Went Wrong” when attempting to use their DSC, the following steps should be followed:
Follow the instructions provided in the emBridge installer for basic troubleshooting.
3. Reimport Certificate:
Delete the existing certificate from the Epasstoken Tool.
Reimport the certificate and attempt the e-Verification process again.
By adhering to these steps, taxpayers can resolve the “Something Went Wrong” issue and ensure the smooth functioning of their DSC for e-Verification.
In summary, DSCs play a vital role in ensuring the authenticity and security of online interactions with the Income Tax Department. Taxpayers must stay vigilant regarding the validity of their DSC, e-Filing portal registration, and the emBridge application to prevent last-minute issues during the e-Verification process. Following the provided solutions will help taxpayers overcome common problems and successfully use their DSC for Income Tax-related transactions.
HDFC Top 100 Fund, a long-standing player in the Indian mutual fund landscape, has celebrated its 27th year in 2023 with an outstanding performance. Over this period, the fund has managed to deliver an impressive Compound Annual Growth Rate (CAGR) of approximately 19%. A significant testament to its strength lies in a hypothetical scenario: an SIP investment of Rs 10,000 on the first business day of every month since its inception, totaling Rs 32.40 lakh, would have grown to an astounding sum of around Rs 6.88 crore by September 29, 2023.
Investment Approach: A Blend of Wisdom
The fund’s investment approach is built on a solid foundation, combining a bottom-up approach to stock selection with a keen awareness of top-down sector and macro trends. This strategy incorporates a diverse mix of GARP (Growth at a Reasonable Price) and value investing, with a strong emphasis on the quality of business models, management, and financial metrics. Portfolio construction is dynamic, with a focus on assessing the risk-reward of opportunities at any given time.
Steadfast Focus on Large-Cap Stocks
HDFC Top 100 Fund maintains a disciplined investment philosophy where more than 80% of the portfolio is consistently invested in well-established large-cap companies. This approach is framed with a medium to long-term perspective and ensures a careful eye on quality companies with reasonable valuations.
Risk Management and Diversification
The fund’s active approach to risk management is notable, adhering to regulatory and internal risk guidelines. High-conviction bets are taken only after thorough evaluation of the company’s positioning in the industry and the business cycle. The portfolio is well-diversified, and sector deviation calls are made judiciously compared to the benchmark.
Large-Cap Stocks: Stability and Opportunity
Large-cap stocks, known for their stability during economic fluctuations and attractive risk-reward ratios, have historically proven their worth. In recent years, the large-cap index has outperformed mid and small-cap indices in the majority of calendar years. Given the recent trends, large-cap stocks, represented by HDFC Top 100 Fund, offer an appealing opportunity for investors with medium to long-term horizons.
Rahul Baijal’s Perspective
Rahul Baijal, Senior Fund Manager – Equities at HDFC Mutual Fund, emphasized that HDFC Top 100 Fund’s consistent performance is a result of rigorous research, disciplined investment practices, and a commitment to well-established businesses. Large-cap stocks remain a stable and attractive option for investors seeking long-term investment opportunities, particularly in today’s market environment.
ICICI Prudential Multi-Asset Fund has reached a significant milestone, completing 21 years of successful wealth creation for investors. Over this period, the fund has demonstrated its potential to generate substantial returns, turning a substantial sum of Rs. 10 lakh into a remarkable Rs. 5.49 crore.
Dominant AUM and Investment Approach: With an impressive AUM (Asset Under Management) of Rs. 24,060.99 crore, the fund accounts for nearly 57% of the total AUM in the multi-asset allocation category, as of September 30, 2023, according to Value Research data.
ICICI Prudential Multi-Asset Fund employs an open-ended investment approach, strategically allocating assets in equity, debt, exchange-traded commodity derivatives, units of Gold ETFs, units of REITs & InvITs, and preference shares. This diversified investment strategy aims to deliver consistent returns over an extended investment horizon. The fund ensures that at least 10% of its assets are distributed across three or more asset classes, further enhancing its portfolio yield. To optimize yields, the fund may also invest in covered call options.
Impressive Growth and Benchmark Comparison: An investment in this fund over 21 years has been exceptionally rewarding, as it significantly outperforms its benchmark. While the fund multiplied an initial investment of Rs. 10 lakh into Rs. 5.49 crore, a similar investment in the benchmark would have yielded around Rs. 2.57 crore, equivalent to a CAGR of 16%.
SIP Investment Success: Investors utilizing a systematic investment plan (SIP) strategy have also benefited from this fund. A monthly SIP of Rs. 10,000 since the fund’s inception would have translated into a total investment of Rs. 25.2 lakh, growing to Rs. 2.1 crore by September 30, 2023, with an impressive CAGR of 17.5%. In contrast, a similar investment in the fund’s benchmark would have resulted in a CAGR of 13.7%.
Expert Insights: Nimesh Shah, MD & CEO of ICICI Prudential AMC, emphasized the significance of judicious asset allocation across various asset classes for long-term investor success. He highlighted that the fund benefits from the expertise of fund managers from diverse asset classes, working collaboratively to optimize allocation.
S Naren, ED & CIO, ICICI Prudential AMC, underlined the advantages of diversifying investments across different asset classes to manage portfolio volatility and enhance risk-adjusted returns. This approach aligns with the ever-changing dynamics of top-performing asset classes and ensures that the portfolio can capitalize on the potential gains each asset class offers.
Conclusion: ICICI Prudential Multi-Asset Fund’s remarkable journey of wealth creation and its commitment to diversified asset allocation have made it a formidable investment choice for long-term wealth building.
The Karnataka government is taking significant steps to bolster its startup ecosystem by introducing a preferential public procurement policy. This policy, aimed at supporting startups, is set to facilitate the purchase of their products and services by the government, fostering the growth of startups in the state.
Government as the First Customer: Under this new policy, the state government is positioned to become the inaugural customer, providing a crucial avenue for startups with unique intellectual property. The government’s active involvement in this initiative demonstrates its commitment to propelling the startup ecosystem in Karnataka.
Enabling Beyond Bengaluru Initiatives: The policy is designed to specifically benefit startups that have registered unique intellectual property through the state’s startup cell and are actively engaged in the ‘Beyond Bengaluru’ initiatives. These measures are part of the state’s broader strategy to expand the startup landscape beyond the capital city, Bengaluru.
Karnataka’s Flourishing Startup Ecosystem: Karnataka currently boasts a thriving startup ecosystem, with over 25,000 startups in the state. Impressively, 15,000 of these startups are already receiving government support. This policy is expected to further bolster the state’s position as a hub for innovation and entrepreneurship.
Driving Growth in Emerging Sectors: The announcement was made during the Big Tech Show organized by the Karnataka government in Mysuru. The city is actively positioning itself as an emerging global hub for sectors such as cybersecurity, semiconductors, and Electronics System Design and Manufacturing (ESDM).
Conclusion: The Karnataka government’s forthcoming preferential public procurement policy demonstrates a clear commitment to supporting startups and fostering innovation. By becoming the first customer, the government aims to create an environment where startups can thrive, contributing to the growth of the state’s startup ecosystem.
Foreign Portfolio Investors (FPIs) have continued their selling trend in November, withdrawing a total of Rs 3,400 crore in just three trading sessions. This follows significant outflows of Rs 24,548 crore in October and Rs 14,767 crore in September. This reversal in FPI investment comes on the back of rising interest rates and heightened geopolitical tensions in the Middle East.
Changing Bond Yield Dynamics
The primary trigger for FPI selling had been the rising bond yields. However, this trend is expected to reverse, as the US Federal Reserve recently signaled a more dovish stance in its November meeting. Fed Chief Jerome Powell’s statement that “despite elevated inflation, inflationary expectations remain well anchored” has been interpreted by the market as signaling the end of the rate-hiking cycle.
Geopolitical Concerns and Market Uncertainty
Geopolitical tensions, particularly the conflict between Israel and Hamas, along with a notable increase in US Treasury bond yields, have contributed to the FPI sell-off. The global landscape has become more uncertain with concerns about a possible recession, rising inflation, and geopolitical conflicts.
Safe-Haven Assets and Indian Debt Market
In this uncertain scenario, experts suggest an increased focus on safe-haven assets such as gold and US dollars. FPIs have shown interest in the Indian debt market, with an inflow of Rs 1,984 crore during the period under review. This may represent a tactical move to allocate funds to Indian debt in the short term, with the intention of redirecting capital into the equity markets when conditions become more favorable.
Indian Bond Market Attraction
The inclusion of Indian Government Securities (G-Sec) in the JP Morgan Government Bond Index Emerging Markets (GBI-EM) has driven foreign fund participation in the Indian bond markets. So far this year, FPIs have invested Rs 92,560 crore in equities and Rs 37,485 crore in the debt market.
Sectoral Expectations
In terms of sectors, frontline banking, automobiles, capital goods, mid-cap IT, and real estate are expected to perform well in this evolving investment landscape.
When you submit a proposal for an insurance cover, you are essentially making an offer to enter into an insurance contract. In most cases, this offer is readily accepted. However, there are instances where the insurer may require additional information, such as a medical examination report, before making a final decision.
Uncertainties in the Process: The key question arises when something unfortunate happens to the policyholder during this evaluation phase, especially if the customer passes away before the process is concluded. Since the offer and acceptance process is not finalized, the policy conditions have not come into effect, and in such cases, the customer or their beneficiary is entitled only to a refund of the money paid towards the first premium.
Policy Contract Clarity: Several cases have been brought before consumer courts when insurers declined to pay the sum assured due to the customer’s demise before acceptance of the proposal. In most instances, both lower and national-level consumer courts have upheld the insurers’ decisions. Courts typically adhere strictly to the conditions outlined in policy contracts.
Customer Responsibilities: The customer’s responsibilities extend beyond signing the proposal form. It is crucial that the proposal reaches the underwriter promptly, and any additional requirements, whether medical or financial, are met in a timely manner. The insurer may request documents such as the last three years’ income tax returns, the most recent salary slip, or the statement of profit and loss account.
High Sum Assured Requirements: The requirements tend to be more stringent when the sum assured is substantial. Customers should maintain communication with agents or brokers to ensure a swift process. Timing is crucial, especially if the proposal is made toward the end of the financial year when agents may have a backlog of proposals to handle.
Disclosure Responsibility: The proposer must disclose all information regarding health and habits until the insurer formally accepts the proposal. Failure to do so, and later discovery of suppressed information, can render the policy contract void ab initio. The insurer is not required to prove the materiality of the suppressed information to cancel all liabilities under the policy. Accurate and complete disclosure is vital for a sound insurance contract.
Conclusion: Understanding the timelines and responsibilities associated with insurance coverage is essential. The offer and acceptance process, coupled with transparent disclosure, can ensure a smooth transition into the world of insurance while safeguarding the interests of policyholders and their beneficiaries.
