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Mumbai, Apr 27 () In view of the COVID-19situation, the Maharashtra cabinet on Monday decided to offersome relaxation to GST payers by amending the state Goods andServices Tax Act, 2017 on the lines of the Centre.The Cabinet cleared the proposal to include Article168-A in the Maharashtra GST Act, 2017 on the lines of theCentre's move dated March 31 this year."This would enable the state to extend the deadline ofpayment of the tax," a statement said.The cabinet also decided to convert four lakh litresof milk into powder form, with an outlay of Rs 127 crore, itsaid."The milk powder and butter will be sold from NCDFI(National Cooperative Dairy Federation of India) portal aswell. The state would offer Rs 25 per kg for milk to powderconversion and Rs 15 per kg for packing of butter," it said.In a respite for farmers, the state government decidedto provide further credit supply to farmers, although some ofthem have failed to repay their previous crop loans, forsowing ahead of the monsoon season.The cabinet also allowed restructuring of loans andextending repayment deadline to March 31, 2021, it said.The council of ministers also decided to borrowRs 12,000 crore from the Contingency Fund for the ongoing loanwaiver scheme, which will benefit 11.59 lakh more farmers inthe state.The cabinet also decided to postpone elections for theposts of mayor and deputy mayor of Nanded-Waghala municipalcorporation. NDNSK NSK

Coronavirus: Maha respite for GST payers

The <keyword id="6355040" type="UNKNOWN" weightage="20" keywordseo="GST-Council">GST Council</keyword> will meet here on Thursday to take up the single-point agenda of <keyword id="9025375" type="UNKNOWN" weightage="20" keywordseo="GST-compensation-to-states">GST compensation to states</keyword> affected by delays in the release by the Centre, a government official privy to meeting agenda said. The meeting was earlier proposed in July, as announced by Union Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> after the first GST Council meeting in the backdrop of Covid-19 pandemic in June. "The Council will meet tomorrow with a single-point agenda to discuss the compensation cess. Any changes in the GST rates or cess structure would also relate to how timely compensation to the states could be released," the official said. Faced with sharp decline in GST collections due to the nationwide lockdown and disruptions in economic activities across the country, one of the options before the Centre is to pay <keyword id="2600993" type="PERSON" weightage="20" keywordseo="GST-compensation">GST compensation</keyword> to states by using a portion of its borrowings. The compensation has not been paid to the states since March. Even the compensation for March was delayed and paid in late July. A legal opinion on the matter sought by the Centre from the Attorney General earlier suggested that the former is under "no obligation to pay GST compensation shortfalls to the states" and it is the GST Council which has to decide on making good the shortfall in the goods and services tax compensation fund by putting sufficient amount into it. The AG had opined that the GST Council can recommend to the Centre to allow the states to borrow on the strength of the future receipts from the compensation fund, sources said. It would, however, be for the central government to take a final decision in the matter under Article 293(3) of the Constitution. "If there is need for borrowings to meet compensation to the states and who is going to borrow? How we are going to pay for it?" the Finance Minister had said about the Council meeting in June, hinting that the fall in revenues has become a huge cause of concern for the Centre to meet its liability towards the states as per the GST legislation. Under the GST law, states are guaranteed full compensation for any revenue loss for the first five years after the introduction of the Goods and Services Tax (GST) in July 2017. The compensation is the difference between actually revenue collected and projected revenue. The projected revenue is revenue growth of 14 per cent for the states per year over the base year 2015-16. As per the GST Act, full compensation to the states has to be paid for a period of five years till FY22 only through the compensation fund that gets its money through the levy of GST compensation cess on a few items. However, with the fund not getting enough collections since August 2019, the GST compensation to the states has been delayed. The Centre is now looking at getting GST Council nod for a mechanism to finance the compensation. The situation vis-a-vis the GST revenue has worsened in April 2020, with several states indicating a shortfall in collections to the tune of 80-90 per cent of the average monthly collections during this time of the year. In fact, Delhi has said its GST collections may end up at a mere Rs 300 crore in April as against a collection of Rs 3,500 crore in the same month previous year. Other states like Tamil Nadu, Assam, West Bengal, and Andhra Pradesh are also facing severe revenue decline due to shrinking economic activities during the Covid-induced lockdown. The problem has continued into May as well. With economic activity and GDP growth projected to remain subdued for most part of FY21, the Centre is looking at all possible means on how it could meet its constitutional obligation of compensating the states for their revenue losses. After February, when the Centre released GST compensation of Rs 19,950 crore for October and November 2019, the Centre has cleared dues for December, January and February only now. In late July, the Centre released Rs 13,806 crore to the states as compensation for their revenue losses in the GST goods regime for March 2020. "The total amount of compensation released for the year 2019-20 is Rs 1,65,302 crore whereas the amount of cess collected during the year 2019-20 was Rs 95,444 crore," a government statement had said. The monthly compensation requirement for the states in 2020-21 is pegged at Rs 20,250 crore, government sources said, which leaves a big gap between what needs to be paid and what is getting collected. Even in FY21, monthly cess collections could be at a low Rs 7,000-8,000 crore, or even lower. According to previous releases of the Finance Ministry, in the FY 2017-18, a total GST compensation cess of Rs 62,611 crore was collected, of which Rs 41,146 crore was released to the states/UTs as GST compensation. In the FY 2018-19, Rs 95,081 crore was collected as GST compensation cess, of which Rs 69,275 crore was released to the states and UTs as GST compensation. As on March 31, 2019, Rs 47,271 crore collected as GST compensation cess remained unutilised after the release of GST compensation to the states and UTs in the FYs 2017-18 and 2018-19. Since the end of August 2019, the central government has started realising the impending precarious position in paying the GST compensation to the states and UTs as the compensation cess requirement was twice of the average monthly cess collection. The sources said that though the GST Council also has the option to either bring in more items under the cess base by expanding the base of GST cess items, or to increase cess rate on the existing items. Any increase in compensation cess on a few items could yield only about Rs 2,000-3,000 crore a year. Therefore, the Council in its earlier meeting also discussed other options like forego full cess compensation, which was increasing @14% per annum, or to go ahead with whatever compensation is available. One more option looked at was to raise the tax rate on items through rationalisation via shuffling of slab rates. SEE ALSO: <a href="https://www.businessinsider.in/personal-finance/news/if-you-have-a-bank-loan-that-you-are-unable-to-pay-restructuring-is-on-its-way/articleshow/77391894.cms">If you have a bank loan that you are unable to pay, restructuring is on its way</a> <a href="https://www.businessinsider.in/finance/banks/news/loan-moratorium-still-ends-on-aug-31-while-supreme-court-gives-the-government-another-week-to-clarify-if-accrued-interest-should-be-waived/articleshow/77758597.cms">Loan moratorium still ends on Aug 31 while Supreme Court gives the government another week to clarify if accrued interest should be waived</a>

GST Council meet on Thursday to figure out how states will be compensated for delays in payment

New Delhi, Mar 13 () The GST Council on Saturday discussed the impact of coronavirus on the economy, Finance Minister Nirmala Sitharaman said. Briefing reporters after the 39th meeting of the GST Council, Sitharaman said the government is trying to make an assessment on the impact of coronavirus on the economy and is talking to the industry and the services sector. Meanwhile, Delhi Deputy Chief Minister Manish Sisodia said that the pandemic would lead to job losses and deficit in government revenue. "Corona is not only a health crisis. It's going to be most dangerous economic crisis world is going to face. The crisis would result in job losses at large scale &amp; revenue deficits in govt. I demanded GST council should discuss this and act in advance before the systems fail," he tweeted. Ratings agencies have lowered global growth forecasts citing subdued economic activity and consumption due to the deadly virus. Coronavirus, which has been declared a global pandemic by WHO has claimed over 5,000 lives across the world and infected over 1.20 lakh people. In India the number of coronavirus positive cases climbed to 84 with 2 deaths reported. Several states ordered closure of schools, colleges, public institutions and cinema halls. JD MRMR

GST Council discuss coronavirus impact on economy

New Delhi, Mar 24 () Finance Minister Nirmala Sitharaman on Tuesday extended the deadline for filing GST returns for March-May to June 30.On late filing of GST returns, no late fee, penalty or interest will be charged for companies with turnover of up to Rs 5 crore.For companies with more than Rs 5 crore turnover, no late fee and penalty will be charged on GST return filed by 15 days. A reduced interest rate of 9 per cent will be charged, she said. The minister said 'Sab ka Vishwas' indirect tax dispute redressal scheme has also been extended to June 30 and no interest on payment made till June 30 will be charged. Additionally, the government relaxed company provisions including that of mandatory holding of board meeting and filing of return by newly incorporated companies. DP ANZ ANUANU

Govt extends GST filing deadline in view of coronavirus lockdown

Increasing GST on <keyword id="6354485" type="COMPANY" weightage="20" keywordseo="Mobile">mobile</keyword> phones to 18 per cent from 12 per cent at the time of economic slowdown coupled with <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword> outbreak will derail the <keyword id="6354887" type="UNKNOWN" weightage="20" keywordseo="Industry">industry</keyword> and lead to job losses, industry body ICEA said on Sunday. The <keyword id="7825659" type="COMPANY" weightage="20" keywordseo="India-Cellular-and-Electronics-Association">India Cellular and Electronics Association</keyword> said the decision will put a burden of Rs 15,000 crore on common man and adversely impact over 100 crore Indian consumers. "When coronavirus is spreading panic, economic slowdown is at its peak, consumer sentiment is battered and stock markets are in free-fall, increasing GST is both counter-intuitive and insensitive. This will lead to immediate job losses and severely dampen future investments in manufacturing," ICEA Chairman Pankaj Mohindroo said in a statement. He said that till June 2017 consumers were paying 4-5 per cent value added tax and 1 per cent on excise duty and later they were burdened with 12 per cent GST which has been further increased to 18 per cent. "The 18 per cent GST hike will also bring back the bad old days of early 2000s when the grey market in mobile phones was rampant at 90 per cent. It reverses years of painstaking efforts by governments and industry to increase mobile manufacturing and penetration by sensible policy interventions and tax rationalisation," Mohindroo said. He said this move will also prove to be disastrous for the already fragile retailer community wherein lakhs of small and mid-sized retailers survive by selling mobile phones. A top official of the country's leading smartphone seller Xiaomi had said on Saturday that smartphone makers will be forced to increase handset prices with this hike in GST. "As a result of this GST increase, all smartphone makers will be forced to increase prices. This can weaken the demand and mobile industry's Make in India programme. This could also have long lasting impact on internet penetration and digital India program as majority of Indians access the internet on smartphones," Xiaomi India Managing Director Manu Jain said. ICEA said that the GST hike is contrary to Prime Minister Narendra Modi's vision to make India the world leader in mobile phone manufacturing. Mohindroo said that with hike in GST, it will be difficult to achieve even half the target of USD 80 billion domestic production of mobile phones in the country by 2025 set under National Policy on Electronics 2019. Mobile manufacturing production in the country increased five-folds and revenues 10-folds from 58 million units valued at Rs 18,900 crore in 2014-15 to 290 million units valued at Rs 1,81,200 crore in 2018-19. "The government revenues post GST had doubled from Rs 10,900 crore to Rs 20,700 crore within two years. To strike the sector with a higher GST at this stage is the equivalent of killing the goose that lays the golden egg. Not a savvy move by any stretch," Mohindroo said. PRS MRMR

Increased GST on mobile phones will lead to job losses says industry body

GST rate on mobile phones will be hiked to 18 per cent while that on maintenance repair overhaul (MRO) services for aircraft will be lowered to 5 per cent with effect on April 1, Finance Minister Nirmala Sitharaman said on Saturday. Briefing reporters after the 39th <keyword id="3680839" type="PERSON" weightage="20" keywordseo="gst-council-meeting">GST Council meeting</keyword>, she said Infosys Chairman Nandan Nilekani made a detailed presentation for the transition into a better GST Network system and the requirement of hardware to enhance capacity for addressing the system related issues that are being faced by taxpayers in the IT system. Demand for more skilled manpower, better hardware to enhance capacity has been agreed to by the Council, she said. The GST Council has decided that a completely enhanced capacity, a leaner system of GST Network with capacity enhance, staff response, better solutions, which were envisaged and proposed by Nilekani by January 2021, should be completed by July 2020, Sitharaman said. With regard to GST rates, the minister said there are four sectors -- footwear, textiles, fertiliser and mobile phones-- which face inverted duty structure wherein inputs are taxed at a higher rate than finished products. "It was decided by the Council to raise the GST rate on mobile phones and specified parts which presently attract 12 per cent to be taxed at 18 per cent. "For all other items where there is duty inversion, if there is a need to calibrate the rates for removing inversion, it was decided in one of the future meetings we will take up the issue," she said. Counterpoint Research Associate Director Tarun Pathak said, "This will impact the pricing and especially at a time when we are staring at uncertainty in the larger electronics supply chain due to coronavirus. An increase in price means a section of users will either go for second hand or even turn to grey market". The GST rate on handmade and machine-made matchsticks has been rationalised to 12 per cent from 5 per cent and 18 per cent respectively. The GST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft would be reduced from 18 per cent to 5 per cent with full Input Tax Credit and change the place of supply for B2B MRO services to the location of recipient. "This change is likely to assist in setting up of MRO services in India," Sitharaman said. The Council, chaired by Finance Minister, also deferred implementation of e-invoice and QR Code to October 1, 2020, from an earlier timeline of April 1. Also, the rollout of the e-wallet scheme for exporters too has been extended to March 31, 2021. The Council also decided that the interest for delay in payment of GST would be charged on the net cash tax liability with effect from July 1, 2017, and the law would be amended retrospectively. For GST registrations which have been cancelled till March 14, 2020, application for revocation of cancellation of registration can be filled up to June 30, 2020, as a one-time measure to facilitate those who want to conduct business. The Council also relaxed the requirement of MSMEs from the furnishing of Reconciliation Statement in Form GSTR-9C, for 2018-19, for taxpayers having aggregate turnover of below Rs 5 crore. It also decided to extend the due date for filing the annual return and the reconciliation statement for 2018-19 to June 30, 2020. For businesses with aggregate turnover of less than Rs 2 crore, late fees would not be levied for delayed filing of the Annual Return and the Reconciliation Statement for 2017-18 and 2018-19. The Council also approved a new facility called 'Know Your Supplier' to be introduced so as to enable every registered person to have some basic information about the suppliers with whom they conduct or propose to conduct business.

Mobile phones to become expensive from April 1

New Delhi, Mar 13 () Hiking GST on mobile phones will be detrimental for consumer sentiment and in turn impact local manufacturing, industry body ICEA said. In a letter to the finance ministry, the mobile handsets and electronics industry body said the sector is already under deep stress because of disruption in the supply chain due to the coronavirus outbreak. It is a very inappropriate time to consider hike in GST rate of mobile phones from the current level of 12 per cent, it added. "We understand that one of the logic being put forward is that the industry is suffering from inverted GST! Instead of correcting this wrong by rationalising GST on parts, components and inputs of mobile phones, a bizarre move to increase GST on the final product is now being considered," ICEA Chairman Pankaj Mohindroo said in the letter to Finance Minister Nirmala Sitharaman. The letter, dated March 12, said the proposal to hike GST on mobile phones is not in the interest of the consumers, trade, industry or the nation. "Mobile Phones is the only sector that has performed under flagship 'Make In India' program of the government. Hence, any change in the GST will be detrimental to the consumer sentiment which in turn can impact domestic manufacturing activity," Mohindroo said. According to ICEA, 31-32 crore Indians who buy phones in the country will be impacted by the move. "The Hon'ble Prime Minister has envisioned India to become the world's no.1 manufacturing destination for the mobile phones. And it may be difficult to achieve this vision unless the GST rate on handsets is retained at the current level of 12 per cent," Mohindroo said. PRS ABMABM

GST hike on mobile phones will be detrimental for local manufacturing: ICEA

New Delhi, Apr 1 () Smartphone company Realme on Wednesday announced first ever hike in prices of handsets following the government's decision to increase GST rate on mobile phones to 18 per cent and devaluation of the rupee.The hike in prices of Realme handsets will vary from product to product in line with competitors and will be applicable on both old and new devices. The government in March increased GST rate on mobile phones to 18 per cent from 12 per cent. The move was however opposed by the mobile handset industry. "This increase in GST rate will further impact the smartphone segment as the consumers come from different geographies, have disposable incomes and are price sensitive. Today we are announcing that Realme smartphones will have to boost the prices up for the first time since 2018," Realme India said in a statement.The company said the Covid-19 pandemic has highly impacted the smartphone industry leading to supply shortage and price hike of components. "Further, the India Rupee rate has been continuously fluctuating and facing depreciation currently. This has impacted the overall cost of the smartphone device, therefore many smartphone brands have already increased the price of smartphones in 2019 and 2020," Realme said.Industry body India Cellular and Electronics Association (ICEA)had said increasing goods and services tax rate on mobile phones at the time of economic slowdown coupled with coronavirus outbreak will derail the industry and lead to job losses.ICEA had estimated that the decision will put a burden of Rs 15,000 crore on the common man and adversely impact over 100 crore Indian consumers."The 18 per cent GST will also bring back the bad old days of early 2000s when the grey market in mobile phones was rampant at 90 per cent. It reverses years of painstaking efforts by governments and industry to increase mobile manufacturing and penetration by sensible policy interventions and tax rationalisation," ICEA Chairman Pankaj Mohindroo had said.He said this move will also prove to be disastrous for the already fragile retailer community wherein lakhs of small and mid-sized retailers survive by selling mobile phones. PRS PRS ANUANU

Realme increases smartphone prices due to GST hike, rupee dip

New Delhi, May 8 () The ATM industry has pitched for a stimulus package along with several relaxations, including lowering of the GST rate, saying the current lockdown due to the coronavirus infection has hit transactions and posed severe challenges.In a letter to Finance Minister Nirmala Sitharaman, the Confederation of ATM Industry (CATMi) mentioned that it has been recognised by the government as a crucial player to further the financial inclusion. The COVID-19 situation has caused a sharp decline in the ATM transactions and has posed severe business challenges to the ATM industry, the CATMi stated."Specifically, in the battle against COVID-19 pandemic, we form a critical link in the distribution of the vital sustenance subsidies (direct benefit transfer) which the Government of India under your leadership has been kindly extending to the financially disadvantaged sections of the society," CATMi said in the letter.It has urged the government for an increase in ATM interchange rates, citing recommendations by a committee submitted to the Reserve Bank in December 2019. A bank pays ATM interchange charges for transactions done by its card customers at other bank ATMs. CATMi said it is leaving no stone unturned in its efforts to keep ATMs up and running, the economic slowdown due to coronavirus pandemic has worsened the financial issues the industry has been facing over the last five years because of increasing cost on operations and compliances."The ATM industry today badly needs a stimulus package to keep afloat and augment the banking system in the country and we seek your kind support on the same," the body said.Seeking for an urgent intervention by the finance ministry, CATMi said measures such as bringing down GST rates from the current 18 per cent to 12 per cent, increase in contract terms by public sector banks for two years to recover costs as well as compensation to brown label ATMs (BLA) with an average transaction of last six months post-COVID may help the industry to a great extent as there has been a huge drop in transaction volumes post the pandemic.CATMi has also asked for incentives to deploy cash dispensers/cash recyclers for ATM operators to increase penetration in line with the RBI scheme of incentives for banks. It has also requested for GST deferral for six months, extension of working capital loans at RBI repo rates for next nine months, lending up to Rs 10 lakh to white label ATMs (WLA) franchisees from SIDBI at affordable rates without collateral with basic KYC.The ministry should also consider to extend interest subvention scheme for exporters and include ATM manufacturers in the scheme (scheme has expired on 31st March 2020) and classification of ATM industry as a priority sector for lending activity. KPM MR

ATM industry seeks lower GST rate, stimulus to address COVID-19 challenges

Bhopal, Jul 13 () GST intelligence officers have arrested the CEO of SOM distilleries in connection with alleged tax evasion of over Rs 30 crore in the supply and sale of alcohol-based hand sanitisers by the firm during the past three months of coronavirus-induced lockdown period, officials said on Monday. The CEO, G D Arora, who was arrested on Sunday has been sent to judicial custody till July 24 by a local court, they said. The Directorate General of GST Intelligence (DGGI) officials had already arrested liquor baron and promoters of the firm -- Jagdish Arora, his brother Ajay Arora, besides Binay Kumar, who was employed as the director of the company, they said. The firm has paid Rs 8 crore in cash towards its GST liability, the officials said, adding that the agency has seized alcohol-based hand sanitisers worth over Rs 20 crore produced by the firm. Calls and e-mails to the company did not elicit any response. Giving details of the case, the probe agency said the managers and other employees of SOM Distilleries Private Limited (SDPL), situated at Raisen near here, were examined. Their examination has indicated that during the three-month period from March 24, 2020 till June 25, 2020, the unit had manufactured about 56 lakh litres of alcohol-based hand sanitisers, a statement issued by the DGGI on Monday said. "After accounting for the declared sale as per invoices the sanitizers found on stock, it is estimated that about 49 lakh litres of hand sanitizers with an estimated value of Rs 187 crore and involving a GST amount of Rs 33.53 crore was removed clandestinely and/or without payment of taxes by M/s SDPL," it said. Based on these investigations and his direct role in the clandestine removal of hand sanitizers, the CEO of M/s SDPL was arrested on July 12, 2020, the statement said. "Earlier the CEO's statement was recorded on 26.6.2020 after which he had got admitted in a Bhopal-based hospital. On 9.7.2020, the owner of this hospital was summoned under Section 70 to confirm the medical status of the accused. Subsequently, the CEO was discharged by the hospital on 11.7.2020 after certifying that he was fit," it said. After his evidence was recorded on Saturday and Sunday, he was arrested by the DGGI officials, the statement said. "M/s SDPL has voluntarily paid GST amounting to Rs 8 crore in cash on 09.7.2020. The total estimated GST evasion on hand sanitizers is estimated to be Rs 33.53 crore," it said. In its investigation and follow-up searches conducted at Bhopal, New Delhi and Gurugram during the first and second weeks of this month, hand sanitizers supplied by M/s SDPL in bulk drums were recovered from the recipients, the statement said. "This confirmed the DGGI's assessment that besides clandestinely supplying Genius brand of alcohol-based hand sanitizers in the plastic bottles of sizes 90 ml, 180 ml, 500ml and 750 ml, M/s SDPL had also clandestinely supplied these sanitizers (in bulk) in packages ranging from 5 litres to 250 litres (drums) and even 30,000 litre tankers to various parts of the country," it said. At the receiving end, the recipients had then repacked these bulk consignments into retail sized bottles, affixed brand names and sold in wholesale retail to the public, the statement said. "In view of COVID-19 induced lockdown and even subsequently, this product has a huge demand across India," the DGGI said. AKV SRY

GST intelligence officers arrest SOM distilleries CEO in over Rs 30 crore tax evasion case

Bhopal, Jul 3 () GST intelligence officials carried out more than 50 search operations in the last one month at various premises of pan masala and cigarette manufacturers in Indore and detected tax evasion worth over Rs 500 crore, according to an official statement issued on Friday. In order to protect government revenue, six immoveable properties and 14 bank accounts have been provisionally attached as part of the investigation proceedings by the officials of Directorate General of Goods and Services Tax Intelligence (DGGI) here. "Operation Kark to counter illicit sale of pan masala/tobacco/cigarettes, which was initiated on 30th May, has till now detected GST evasion of about Rs 512 crore in last one year (period), while five people have been arrested in this operation," the statement issued by Additional Director General, DGGI, here said. In the last one month period, the officials of central GST intelligence have conducted as many as 53 searches under this operation, it said. The operation has been named ''Kark'' -- considering the high Goods and Services Tax (Kar in Hindi) loss and the reported adverse effects of consuming illicit tobacco not subject to food and safety standards leading to high prevalence of oral cancer (Kark) in India. Officials said that the sleuths part of the searches acted as corona warriors by conducting operation in parts of Indore affected by the deadly coronavirus pandemic. In a recent operation, the GST intelligence officials had detected tax evasion of Rs 105 crore by a cigarette manufacturing firm in Indore in the last one year. As a result of searches conducted in the last week of June, additional evidence suggests that the GST evasion for the period April 2019 to May 2020, by the firm is Rs 270 crore, according to the statement, adding that the amount may rise further. "A search by officials of central GST intelligence was conducted on June 25, 2020 at the premises of the supplier of filters used in (manufacture of) cigarettes (by the Indore based firm)," it said. Investigations revealed that this unit had declared, on invoices, to have provided filters to three dummy firms. Whereas, the filters had been supplied to only one firm, which was searched by the officials, the statement said. One of the proprietors of the dummy firm was found to be an employee of a media organization run by the accused running these illegal units, it said. On June 29, three immovable properties located at Indore and nine bank accounts belonging to the accused and his associate companies involved in GST evasion were provisionally attached, the statement said. "As many as seven people which include directors of the companies (manufacturing cigarettes), transporters and their representatives, key associates in the GST fraud are presently absconding or not appearing under formal summons and are not cooperating with the legal proceedings," the DGGI said. AKV AKV AAR AAR

GST intelligence cracks whip on pan masala manufacturers, detects over Rs 500 cr tax evasion

Bhopal, Jun 13 () Tax evasion of Rs 225 crore has been detected by Central GST intelligence officers after they busted illegal pan masala manufacturing units in Indore and arrested three persons for their involvement in the huge racket. The officers of Directorate General of GST Intelligence (DGGI) and the Directorate of Revenue Intelligence (DRI) conducted joint raids at 16 suspected illicit and undeclared warehouses and residential locations in Indore and Ujjain between Tuesday and Friday, an official statement issued on Saturday said. "Based on preliminary investigations by DGGI, it has been estimated that the accused persons and their associates have evaded GST of around Rs 225 crore on the goods sold illicitly during the period July, 2019 till March, 2020," it said. The total duty implication in this fraud is estimated to be around Rs 400 crore, the statement issued by the DGGI said. "During the emergent months (April &amp; May, 2020) of pandemic lockdown also, these persons are believed to have resorted to large scale illicit sale and supply of pan masala/ tobacco," it said, adding that further investigation in the matter was continuing. The statement said that organisers and masterminds made an unsuccessful attempt of disrupting the enforcement officials by engaging a mob of about 20-30 people during the search at one of the residential and later at a factory premises on Thursday and Friday. "However, both these attempts to disrupt government function were effectively thwarted by the DGGI enforcement officers with timely and professional assistance by Madhya Pradesh Police, who were always the part of the search operations throughout," the statement said. In view of the serious offences committed, three accused persons were arrested on Friday, it said. The DGGI investigations indicate that the masterminds of this fraud had set-up eight companies in the real estate, hospitality and media sectors to launder illicit wealth generated from these businesses. The accused persons are believed to have used more than 70 cargo trucks for orchestrating this GST fraud for the last many years. "The cargo trucks were found to be bearing display of 'On Press Duty' for ferrying the illicit consignments of pan masala/ tobacco and their raw materials within Madhya Pradesh and to neighbouring states. The drivers were found to be carrying identity cards of a local Indore newspaper," the statement said. The DGGI had recently detected an annual GST evasion of Rs 18.77 crore and made seizure of illicit goods and cash worth Rs 2.92 crore. This had led to the arrest of one Pakistani national residing in Indore. In the latest operation named 'Kark', three independent groups found to be involved in large scale clandestine manufacture, undeclared supply and illicit sale of pan masala/ tobacco without payment of GST have been covered by the enforcement agencies. The operation was named 'Kark' -- considering the high Goods and Services Tax (Kar in Hindi) loss and the reported adverse effects of consuming illicit tobacco not subject to food and safety standards leading to high prevalence of oral cancer (Kark) in India, the statement said. During the search operation which was also conducted in Jabalpur and Bhopal in addition to Indore and Ujjain, unaccounted finished goods (branded pan masala and tobacco) and primary raw material such as betel nuts, raw tobacco, essence and packing material, have been seized in large quantities from undeclared premises, said the statement issued by the Additional Director General, DGGI, Bhopal. The officers who conducted raids in Indore and Ujjain, which are the state's worst coronavirus-affected areas, followed necessary social distancing protocol and wore gloves, masks and other protective equipment, the agency said. "To avoid detection, the masterminds and organizers of this fraud had floated the partnership/ proprietorship/HUF firms engaged in manufacturing and trading of pan masala and tobacco owned on paper by three dummy persons. These three dummy persons had actively colluded and knowingly participated in the GST fraud," it said. Certain masterminds of the fraud and financial beneficiaries have not joined the investigations, the DGGI said. "They have been summoned by the central GST intelligence department for tendering statements under the provisions of Central GST Act, 2017," the probe agency said. The sale and distribution of pan masala and chewing tobacco had been completely banned across India due to the pandemic-induced lockdown from March 25 considering its risk in spreading COVID-19 infection. "This detection and evidence collected by DGGI indicates that some unscrupulous manufacturers, dealers may have, unfortunately, taken undue benefit of this emergent situation. The market information suggests that these banned goods were being sold and consumed in some places within Madhya Pradesh and Maharashtra during the lockdown period, at 4-5 times their usual market rates," the statement said. AKV AKV RDM RDM

GST intelligence detects Rs 225cr tax evasion, busts illicit pan masala manufacturers in Indore

New Delhi, Apr 17 () Auto industry body SIAM on Friday said it has sought temporary GST rate cut on vehicles and introduction of incentive based scrappage policy from the government at the earliest in order to revive the sector amid the coronavirus pandemic. While appreciating RBI's announcement to support NBFCs and MSME sector by infusing liquidity in the system, the Society of Indian Automobile Manufacturers (SIAM) sought several 'key interventions' for the the auto sector. "COVID-19 has left the Indian economy and automobile industry in deep distress and financial support and demand revival is a necessity," SIAM President Rajan Wadhera told . COVID-19 is an unprecedented situation and hence requires unique measures, he added. "SIAM is hopeful that the lending rates would be slashed substantially for consumers to benefit in these challenging times," he added. In order to revive the auto industry, SIAM has sought temporary reduction in standard GST rate by 10 per cent across all vehicle categories, auto components while maintaining the current product segment GST rate differential, Wadhera said. The auto industry body has also sought introduction of incentive based vehicle scrappage scheme to generate demand. "The incentives can be in the form of 50 per cent rebate in GST, road tax and registration charges," he added. SIAM has also asked for fund allocation for diesel/CNG bus procurement by state transport undertakings, over and above the allocation for electric buses under FAME 2 scheme, Wadhera noted. Besides, it has also asked to expedite release of all pending payments to vehicle manufacturers and contractors of highway and infrastructure projects against past procurement by central government and other agencies to increase liquidity in the system, he added. Wadher said SIAM has also asked for fast track disbursement of all government incentives and benefits to all industries. "The automotive industry is the backbone of manufacturing sector in India in terms of employment and contribution to GDP, and its revival will be critical for the manufacturing sector and economy of India," he added. MSS RVK

COVID-19: SIAM seeks GST rate cut, incentive based scrappage policy to revive auto sector

Indian industries: GadkariNew Delhi, Mar 16 () The government on Monday said inRajya Sabha that six lakh industries under MSME have beenrestructured and urged the sector to look at opportunitiesfor expansion following the global impact of coronavirus.Replying to a query during the Question Hour in theUpper House, MSME and Road Transport and Highways MinisterNitin Gadkari said six lakh industries under MSME havealready been restructured and by December 31, the extendeddate for restructuring, the numbers will increase."It is not practically correct to say anything aboutthis, but because of coronavirus now lot of opportunities arewith the Indian industries," Gadkari said in reply to anothersupplementary on impact of Coronavirus on MSMEs.In reply to another query regarding job losses orproduction losses in the sector, the minister said, "Thestraight answer is no."He said as far as exports and employment were concernedthey were growing, but underlined the need for timely paymentto industries by central and state government undertakings."The major problem is state government and centralundertakings... they don't give money of small MSME," he saidand added that if one company is impacted thousands arerendered jobless.There is no provision to protect the interests ofindustries under MSME in NCLAT Act, he said.He said his department was contemplating taking actionagainst the heads of such central or state undertakings whichdo not make payments within three months and the stepsincluded 12 per cent interest on the amount.He noted that the earlier date of restructuring whichwas March 31 has been extended to December 31 and exudedconfidence that a large number of industries will benefitfrom the move."We have restructured 1.5 lakh accounts," the ministersaid, adding massive steps were on so that no account shouldturn NPA.Stressing that the government is extending full supportto MSMEs, the minister said that the recommendations of UKSinha Committee have been accepted and "during January 2019to January 2020, over six lakh accounts have beenrestructured under the circular covering loans of Rs 25,000crore." Besides, one of the recommendations of Sinha committeepertaining to "Fund of funds" to provide debt and equitysupport is being finalised. He added: "Finance Secretary has approved it...it willgo to the Cabinet." In addition, distressed asset fund is being created,he said and added that demonetisation has had no impact onthe sector. Rather this along with GST has ushered ineconomic reforms. MBI NAMRT RT

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