Why Act was amended
The amendments to the Benami Property Act were necessitated as originally the 1988 Act had many infirmities that allowed a lot of people with unaccounted money to invest and buy immovable property in the name of some other persons or a non-existent person or a fictitious person or a Benami person.
The amendment was predominantly an anti-black money measure under which any transaction which is Benami was illegal and the property could be confiscated.
The Prohibition of the Benami Property Transactions Act (PBPTA) 1988 was a toothless law as no rules were framed for 26 years for taking action against Benami transactions. Hence, the law was amended to cover all Benami transactions with retrospective effect from the year 1988 onwards.
CJI Ramana's judgment
The bench headed by the then CJI N. V. Ramana termed the amendments made by Parliament on August 27, 2016, as unconstitutional. The bench held that the amendments allowing the implementation of the PBPT Act 1988 retrospectively were violative of Article 20 (1) of the Constitution.
As per Article 20 (1) "no person shall be convicted of any offence except for violation of a law in force at the time of the commission of the (criminal) act..." The judges thus abrogated the retrospective effect (implementation) of the amendments introduced in 2016 resulting in allowing the income tax evaders in Benami deals to go scot-free.
While concluding the order, the bench also held, "the concerned authorities can not initiate or continue criminal prosecution or confiscation (of Benami properties) ... prior to October 25, 2016 (the day when the amendments came into force after passage by Parliament)... as a consequence... all such prosecutions or confiscation proceedings shall stand quashed." This gave a severe body blow to the Income Tax Department.
Calcutta High Court order
The order of the Apex court bench had germinated from a judgment of the Calcutta High Court in the case of M/s Ganpati Dealcom Pvt Ltd dated December 12, 2019, which gave benefit to the petitioners on the ground that the amendments cannot be implemented with retrospective effect and would be prospective.
The order of the Calcutta High Court was challenged in the Supreme Court by the government and the court stayed the operation of the order in favour of the government.
However, after the change of judges' roster, the case came up for hearing before the bench headed by the then CJI Ramana. Senior advocate Abhishek Manu Singhvi moved an application before the bench to be allowed to act as an intervenor in the case which was accepted.
Later, after hearing the arguments of the parties and the intervenor, the bench rejected the amendments to the PBPT Act holding that they could not have a retrospective effect and would be prospective.
Who all benefited
Those who had been proceeded against by Punjab and Haryana Benami Properties Unit of the Income Tax Department but were likely to be benefited from the Apex Court's stance include Robert Vadra (husband of Priyanka Gandhi Vadra), SP Singla Constructions, M/s SportKing group, M/s Jain Amar Clothing, M/s IGM Group, the 3MM India Ltd, to name a few from the states of Punjab and Haryana.
The cases of all these alleged tax evaders were hotly contested by the senior standing counsel of the IT Department, Denesh Goyal who convinced the court not to grant any major relief to the defaulters. All these matters were pending in the Punjab and Haryana High Court and fixed for hearing in November.
The grant has been released as per the recommendations of the 15th Finance Commission.
The Commission has recommended a total PDRD grant of Rs 86,201 crore to 14 states for 2022-23.
The recommended grant is released by the Department of Expenditure in 12 equated monthly instalments.
With the release of sixth instalment for September, the total amount of grant released to the states in 2022-23 has gone up to Rs 43,100.50 crore.
The states which have been recommended for the current fiscal are Andhra Pradesh, Assam, Himachal Pradesh, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Uttarakhand and West Bengal.
During FY 21-22, transactions with an aggregate monetisation value of about Rs 97,000 crore in terms of accruals or private investments were completed under the National Monetisation Pipeline (NMP).
Key transactions include: Highway Toll Operate Transfer (TOT) based PPP Concessions, NHAI's Infrastructure Investment Trust (InvIT), PowerGrid InvIT, annual accruals from mineral and coal blocks auctioned in FY21-22, private investment in redevelopment of railway colonies, receipts from six airports leased on PPP mode and private investment from port terminals bid out on PPP mode, said Pankaj Chaudhary, Minister of State, Ministry of Finance said in a written reply in the Lower House.
"Indicative value of assets envisaged to be monetised under NMP during FY22-23 is Rs 1,62,422 crore. Various transactions proposed to be undertaken during the year include highway TOT bundles and InvIT future rounds, redevelopment of sports stadia, operational power generation & transmission assets, lease of airports through PPP, PPP projects at various port Trusts, development of silos and warehouses, monetisation of tower assets and mining assets," said the reply.
As per the information, the aggregate asset pipeline under NMP over the four-year period, FY 2022-2025, is indicatively valued at Rs 6.0 lakh crore. This indicative value refers to value expected to be realised by the asset owners through the monetisation process, either in form of accruals or by way of private sector investment. "The sectors identified under the NMP include roads, ports, airports, railways, warehousing, gas & product pipelines, power generation and transmission, mining, telecom, stadium and urban real estate," said the reply.
"Of the tolal GST collection, Central GST is Rs 25,751 crore, State GST is Rs 32,807 crore, Integrated GST is Rs 79,518 crore and cess is Rs 10,920 crore," the Finance Ministry said in a statement.
For five months in a row, the monthly GST revenues have been more than Rs 1.4 lakh crore
"During the month, revenues from import of goods was 48% higher and the revenues from domestic transaction (including import of services) are 22% higher than the revenues from these sources during the same month last year," the ministry said.
The government has settled Rs 32,365 crore to Central GST and Rs 26,774 crore to State GST from Integrated GST. The total revenue of Centre and the states in July after regular settlement is Rs 58,116 crore for CGST and Rs 59,581 crore for the SGST.
"The growth in GST revenue till July 2022 over the same period last year is 35% and displays a very high buoyancy. This is a clear impact of various measures taken by the Council in the past to ensure better compliance. Better reporting coupled with economic recovery has been having positive impact on the GST revenues on a consistent basis. During the month of June 2022, 7.45 crore e-way bills were generated, which was marginally higher than 7.36 crore in May 2022," the statement added.
Goods and Services Tax (GST) collections in June, 2021 stood at Rs 92,800 crore.
Speaking at the GST Day celebrations, Finance Minister Nirmala Sitharaman said Rs 1.4 lakh crore is the "rough bottom line" for monthly GST revenue collections.
This is the fifth time that the monthly GST collections crossed the Rs 1.40-lakh-crore mark since inception of GST and fourth month at a stretch since March 2022, the ministry said in a statement.
During June, revenues from import of goods were 55 per cent higher and the revenues from domestic transactions (including import of services) were 56 per cent higher than the revenues from these sources during the same month last year.
The total number of e-way bills generated in the month of May 2022 was 7.3 crore, which is 2 per cent less than 7.4 crore e-way bills generated in the month of April 2022, the ministry added.
GST collections in May was Rs 1.41 lakh crore and in April hit a record high of Rs 1.68 lakh crore.
Haryana, Karnataka, Punjab and Tamil Nadu are the other states on the list of top achievers.
Himachal Pradesh, Madhya Pradesh, Maharashtra, Odisha, Uttarakhand and Uttar Pradesh have been categorised as Achievers in the ranking.
The broader aim of the exercise is to boost investor confidence, foster a business-friendly climate and augment the ease of doing business across the country by introducing an element of healthy competition through a system of assessing states based on their performance in the implementation of Business Reforms Action Plan (BRAP).
The Aspires category too includes seven states, including Assam, Kerala and Goa.
Other states in this section are Chhattisgarh, Jharkhand, Kerala, Rajasthan and West Bengal.
In the category of emerging business ecosystems, there are 11 states and UTs, including Delhi, Puducherry and Tripura.
Andaman and Nicobar, Bihar, Chandigarh, Daman and Diu, Dadra and Nagar Haveli, Jammu and Kashmir, Manipur, Meghalaya, Nagaland, and Tripura are the other states and UTs in this section.
The commerce and industry ministry has this time changed the system of ranking by making it category-based - top achievers, achievers, aspires, and emerging business ecosystems - against the earlier practice of announcing ranks.
Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Anurag Jain said the difference between various states/UTs was so little that it did not make sense to rank them but rather put them in various categories.
The BRAP 2020 includes 301 reform points covering 15 business regulatory areas, such as access to information, single window system, labour and land administration.
118 new reforms were included to further augment the reform process. Sectoral reforms with 72 action points spread across nine sectors like trade license, healthcare, legal metrology, and cinema halls were introduced for the first time to expand the scope of the reform agenda.
Speaking at the function, Sitharaman said that the nature of reforms had undergone change since 1991 and the reforms, which are now taking place, are responsive.
"Unlike the reforms of 1991, which were given to us for implementation, there is no compulsion now. The objective is to see what will bring out improvement in systems and ensure better lives for us. An element of nudge has been brought into every layer of the government," she said.
Nudging can not come only from the government and the industry has a big role to play there, the finance minister said.
She also emphasised the need for capacity building at all levels so that efficiency can be further improved.
Citing example of benefits of capacity building, Sitharaman said, "I can speak for the Department of Revenue, which in the name of wanting to bring efficiency in the revenue collection, has spent a lot of time with the states to improve and build capacities".
That is why we find GST collection is going up, she said, adding, "It is going up, not just because people are paying more tax but also loopholes are plugged and also unroll, unregistered, unassessed people coming on board".
Commerce and Industry Minister Piyush Goyal said the assessment has evolved from evidence-based to 100 per cent feedback in a multilingual format.
He said also that the purpose of this BRAP exercise is to infuse a culture of learning from each other's best practices and improve upon the business climate in each State/UT with a unified objective for India to emerge as the most favoured investment destination across the globe.
"The process started in 2014 has started bearing fruit as we go along. Rather than ease of doing business being limited to a few areas, few cities and few businesses, we are seeing it being reflected across the country through the spirit of competitive federalism and also of collaboration," he added.
The DPIIT, since 2014, has been assessing states/UTs based on their performance in the implementation of prescribed reforms in the BRAP exercise.
So far, assessments of states/UTs have been released for the years 2015, 2016, 2017-18, 2019 and 2022.
Jain also asked the states to identify minor provisions, which can be decriminalised to reduce the compliance burden.
"We have requested states to look very closely at decriminalisation...Make it a civil penalty or compoundable for minor violations," he added.
Commenting on the rankings, Fintech company IOUX co-founder Vineet K Sachdev said IOUX would like to engage more closely with all state governments and public institutions to improve ease of doing business (EODB).
"The Digital India Vision of our government is a master stroke to leapfrog our country in EoDB rankings," he said, adding that IOUX has brought innovative solutions to the biggest pain point of delayed payments of MSMEs.
Addressing a roundtable on 'Investing in India's Digital Revolution' in San Francisco, the minister encouraged constant engagement with investors to understand and address their concerns.
The Finance Minister said she was open to receive suggestions, understand pain points and offer necessary redressal wherever possible.
"FM Smt. @nsitharaman said that in order to promote a robust #StartUp ecosystem in India, @DPIITGoI has set up a very proactive #StartUp cell and encouraged those interested in Indian #StartUps to engage with @DPIITGoI." a tweet from the Finance Ministry said.
During the interaction with Finanace Minister Smt. @nsitharaman at the Silicon Valley, potential of Indian #StartUps was the highlight and investors agreed that India’s potential in producing #Unicorn companies is immense. (2/5)
— Ministry of Finance (@FinMinIndia) April 27, 2022
During the meeting, investors from Silicon Valley also expressed that India's potential in producing Unicorn companies is immense.
"FM said that India, in pursuit of #digitization, has announced introduction of #DigitalCurrency by 2023. She also elucidated that #FinancialInclusion #FI will not be the sole purpose of this as India is already marching ahead to greater #FI, achieved through #JAM trinity," another tweet said.
FM Smt. @nsitharaman said that in order to promote a robust #StartUp ecosystem in India, @DPIITGoI has set up a very proactive #StartUp cell and encouraged those interested in Indian #StartUps to engage with @DPIITGoI. (4/5)
— Ministry of Finance (@FinMinIndia) April 27, 2022
Earlier in the day, the Finance Minister held lively interaction with a group of students studying at Stanford University covering a variety of topics.
She was accompanied by India's Ambassador to the US, Taranjit S Sandhu and Chief Economic Advisor V Ananth Nageswaran.
Sitharaman also participated in a roundtable discussion with Women CXOs representing various fields including fintech, health, education, IT, among others.
The meeting focussed on the ways through which they could continue to contribute to India's growth story.
"FM highlighted various Govt initiatives that are focussed on women-led development, such as schemes for #SHGs and #DirectBenefitTransfer that have especially benefited rural women, and others such as #MudraYojana that have empowered women entrepreneurs," a separate tweet said.
Quoting examples of strong, empowered and inspiring women from ancient Indian scriptures, the minister said, today's women are also no less and have the potential to innovate and reach new heights in their journey through their own technological and digital stewardship.
The Finance Minister had a meeting with Gen. James Mattis, former US Secretary of Defense, and currently Davies Family Distinguished Fellow, Hoover Institution, Stanford University and discussed matters of mutual interest between India and the US.
She also had a meeting with Perumal Gandhi co-founder Perfect Day, a Silicon Valley-based synbio/biotech StartUp.
It has developed technology to make milk proteins by leveraging microbial fermentation, rather than using animal source.
"Mr Perumal Gandhi discussed Perfect Day's growth plan with the FM and sought to #invest in India to accelerate Perfect Day's scale up journey and join in the #MakeInIndia campaign," another tweet said.
The gross GST revenue collected in March 2022 is Rs 1,42,095 crore, of which CGST is Rs 25,830 crore, SGST is Rs 32,378 crore, IGST is Rs 74,470 crore (including Rs 39,131 crore collected on import of goods) and cess is Rs 9,417 crore (including Rs 981 crore collected on import of goods).
The gross GST collection in March 2022 is all-time high, breaching an earlier record of Rs 1,40,986 crore collected in January.
The revenues for March 2022 are 15 per cent higher than the GST revenues in the same month last year.
"The improvement in revenue has also been due to various rate rationalisation measures undertaken by the Council to correct inverted duty structure," the ministry said in a statement.
Out of the gross market borrowing of Rs 14.31 lakh crore estimated for the next financial year, Rs 8.45 lakh crore is planned to be borrowed in the first half or April-September period.
The government has front loaded its borrowing programme as the 60 per cent of the record borrowing planned for the financial year beginning April 1 would be complete in the first six months itself.
Front loading of borrowing will be done with the objective of pushing capital expenditure which will have a multiplier effect on the economy.
As per the Union Budget document, the gross market borrowing through dated securities for 2022-23 will be Rs 14,95,000 crore. Taking into account the switch operations conducted on January 28, 2022, the gross market borrowing through dated securities for 2022-23 is expected at Rs 14,31,352 crore, the ministry said in a statement.
The gross borrowing for 2021-22 was Rs 12,05,500 crore.
The borrowing is scheduled to be completed in 26 weekly tranches of Rs 32,000-33,000 crore, the ministry said.
The borrowing will be spread under 2, 5, 7, 10, 14, 30 and 40 year securities and Floating Rate Bonds (FRBs) of various tenors. Long term securities, including the 14, 30 and 40 year ones, will make up for a significant chunk of the borrowing.
FRBs of various tenors will be issued on a fortnightly basis.
The government will continue to carry out switching of securities to smoothen the redemptions, the statement said, adding that it may continue to exercise the greenshoe option to retain an additional subscription up to Rs 2,000 crore against each of the securities indicated in the auction notification.
Weekly borrowing under treasury bills in the first quarter of 2022-23 is expected to be Rs 33,000-34,000 crore, with net borrowing of Rs 2.40 lakh crore during the quarter.
There will also be an issuance of Rs 13,000 crore under 91 DTBs, Rs 12,000-13,000 crore under 182 DTBs and Rs 8,000 crore under 364 DTBs in each auction to be held during the quarter.
To take care of the temporary mismatches in government account, the statement said the Reserve Bank of India has fixed the Ways and Mean Advances (WMA) limit for H1 of FY'23 at Rs 1,50,000 crore.
The government and the RBI are working jointly to bring a framework for issuance of sovereign green bonds.
In her Union Budget speech, Finance Minister Nirmala Sitharaman had announced that the government proposes to issue sovereign green bonds to mobilise resources for green infrastructure.
The net borrowing during 2022-23 would be Rs 11.6 lakh crore, which is nearly Rs 2 lakh crore higher than the current year's budget estimate of Rs 9.7 lakh crore.
Gross borrowing includes repayment of past loans. The government raises money from the market to fund its fiscal deficit through dated securities and treasury bills.
Union Minister of State for Sports Nisith Pramanik said the GST rates are fixed based on the recommendations of the GST Council and most of the sports equipment are taxed at a GST rate of 12 per cent.
He said only a few sports equipment such as for general physical exercise and padding pools attract Goods and Services Tax (GST) at 18 per cent.
"Further, this ministry has been receiving representations from sports goods manufacturers seeking exemption in rate of duty for sports goods under GST regime. The Department of Sports has requested the Ministry of Finance to make a uniform GST slab, i.e. 5 per cent, on all sports goods to encourage manufacturing of sports goods in India," he said during Question Hour.
Pramanik was replying to a question on whether GST on sports equipment is very high and if so, the steps being taken to reduce it under the Fit India initiative.
The February mop-up was impacted by the Omicron wave that swept through the country and hence, the gross sales tax collection was lower than the record Rs 1,40,986 crore netted in January.
"The gross GST revenue collected in February 2022 is Rs 1,33,026 crore of which Central GST is Rs 24,435 crore, State GST is Rs 30,779 crore, Integrated GST is Rs 67,471 crore (including Rs 33,837 crore collected on import of goods) and cess is Rs 10,340 crore (including Rs 638 crore collected on import of goods)," the ministry said in a statement.
The revenues for February 2022 are 18 per cent higher than the GST revenues in the same month last year and 26 per cent higher than the GST revenues in February 2020.
The ministry said February, being a 28-day month, normally witnesses revenues lower than in January.
This growth in February 2022 should also be seen in the context of partial lockdowns, weekend and night curfews and various restrictions that were put in place by many states due to the omicron wave, which peaked around 20th January, it added.
"The current year may as well end with an economic reset manifest of a post-COVID-19 world...Manufacturing and Construction will be the 'growth drivers', triggered by the PLI schemes and public capex in infrastructure," the review report said.
Agriculture, which continues to see a constant increase in net sown area and crop diversification, will strengthen food buffers while benefiting farmers through generous volumes of procurement at remunerative minimum support prices and income transfers through PM KISAN scheme, it added.
Observing that the IMF in its January 2022 update has lowered its global growth estimate for 2022, it said India is yet the only large and major country listed by the IMF whose growth projection has been revised upwards in 2022-23.
"In a testimony to the resilience of its people and the farsightedness of its policymaking, the Indian economy that contracted by (-)6.6 per cent in 2020-21 is now projected in 2022-23 to grow the quickest among the league of large nations," it said.
The report said the Budget 2022-23 has strengthened the direction set for India's economy by the previous year's budget.
The capex budget, higher by 35.4 per cent over current year's budget estimates and rising to 4.1 per cent of GDP after inclusion of grants-in-aid to states for capital works, will power the seven engines of Gatishakti to reduce the infrastructure gap and facilitate private investment in the country, it said.
On the impact of third wave of COVID-19, it said, overall economic activity remained resilient and this is reflected in robust performance of several high frequency indicators like power consumption, PMI manufacturing, exports and e-way bill generation.
"Once the uncertainty and anxiety caused by the Covid-19 virus recedes from people's minds, consumption will pick up and the demand revival will then facilitate the private sector stepping in with investments to augment production to meet the rising demand. Barring external shocks geo-political and economic this scenario should play out for the Indian economy in 2022-23," it said.
The Budget has targeted a nominal GDP growth of 11.1 per cent in 2022-23 with a GDP deflator of 3.0-3.5 per cent. The implied real growth component of just about 8 per cent is close to the forecast in Economic Survey, 2021-22 as well as 7.8 per cent projected by the Monetary Policy Committee (MPC) of the RBI in its meeting of February 2022.
The unchanged repo and reverse repo rate along with the MPCs accommodative stance prioritise growth during these uncertain times and reinforce the investment orientation of the budget.
It said that Atmanirbhar Bharat Mission encapsulating major structural reforms continues to play a critical role in shaping India's economic recovery, both through the signalling of business opportunities and expansion of spending channels.
Armed with necessary macro and micro growth drivers, the stage is set for India's investment cycle to kickstart and catalyse its recovery towards becoming the fastest growing economy in the world, the report said.
India's economic recovery has gathered steam in the festive season, recording a decade high Diwali sales of Rs 1.3 lakh crore as per Confederation of All India Traders. Improving Covid-19 situation amid high business and consumer spirits has delivered sustained economic recovery in October, 2021 as well.
The finance ministry report, however, said that the global economic recovery continues to be impacted by prolonged supply constraints and input cost inflation. Yet IMF in its October, 2021 update foresees improved global growth prospects at 5.8 per cent in 2021 and 4.9 per cent in 2022 triggering a coterminous global trade growth, by volume, at 9.7 per cent and 6.7 per cent respectively. World Trade Organisation's October forecast also confirms favourable trade prospects underpinned by resurgence in global economic activity and vaccine dissemination. This augurs well for India's export performance in the near future lending credence to IMF projecting India to become the fastest growing economy, among major countries, in the current and the following year, said the DEA report.
The report had identified the external sector to play a critical part in India's economic revival with exports visibly emerging as an engine of growth. India's merchandise exports in October, 2021 have now crossed the US$ 30 billion mark for the seventh consecutive month. With merchandise imports in FY 2021-22 until October, 2021 also crossing their pre-pandemic 2019 levels, rapid recovery of domestic output is evident. FDI achieved the US$ 20 billion mark in the first five months of FY 22 as it did in FY 21. India's foreign exchange reserves stood comfortably at US$ 640.1 billion as on October 22, 2021, providing cover for around 14 months of imports projected for 2021-22.
Accordingly, the annual rate of inflation, based on wholesale prices, eased to 10.66 per cent last month from 11.39 per cent in August.
However, on a YoY basis, the Wholesale Price Index (WPI) data furnished by the Ministry of Commerce and Industry has risen exponentially over September 2020, when it stood at 1.32 per cent.
"The high rate of inflation in September 2021 is primarily due to rise in prices of mineral oils, basic metals, non-food articles, food products, crude petroleum and natural gas, chemicals and chemical products etc, as compared to the corresponding month of the previous year," the ministry said in its review of 'Index Numbers of Wholesale Price in India' for September.
"The month over month change in WPI index for the month of September, 2021 (as compared to August, 2021) was 0.07 per cent."
The states which will receive money from the grant as recommended by the 15th Finance Commission are Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.
"The Department of Expenditure, Ministry of Finance has released 7th monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs. 9,871.00 crore to the States here today. With the release of this installment, a total amount of Rs 69,097.00 crore has been released to eligible states as Post Devolution Revenue Deficit Grant (PDRD) in the current financial year," an official statement said.
The grants are released as per the recommendations of the 15th Finance Commission in monthly installments to meet the gap in revenue accounts of the states post devolution. The Commission has recommended this grant to 17 states during 2021-22.
The eligibility of states to receive this grant and the quantum of grant was decided by the Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution for the financial year 2021-22.
"The 15th Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs 1,18,452 crore to 17 States in the financial year 2021-22. Out of this, an amount of Rs 69,097.00 crore (58.33 per cent) has been released so far," the statement added.
If you are young, then definitely you should start planning for retirement from the initial days of your job.
Under NPS, investors can secure their retirement and can arrange monthly pension along with lump sum amount. By investing just Rs 74 a day in NPS, investors can get Rs 1 crore by the time they retire. NPS is a market-linked, retirement-oriented investment option.
NPS money is invested in Equity (share market and Debt), government bonds and corporate bonds. Investors have the option to decide how much of NPS money will go into equity at the time of account opening. Usually, up to 75% of the money can go into equity following which investors are likely to get slightly higher returns than PPF or EPF. For example,
if you are 20 years old and start investing in NPS by saving Rs 74 for the day; when you retire after 40 years, you will be a crorepati by investing just Rs 2,230 every month. Assuming a return at the rate of 9% total wealth of the investors will be around Rs 1 crore when they retire.
Suppose a 20 year-old invests Rs 2230 per month over investment period of 40 years with estimated return of 9%. After 40 years, the investor will receive Rs 92.40 lakh interest with Rs 10.7 lakh total investment. With this, the total pension wealth will be Rs 1.03 crore with Rs 3.21 lakh tax saving.
However, investors cannot withdraw all this money at once. They can withdraw only 60 percent of it and the remaining 40 percent they will have to put in an annuity plan, from which they will get pension every month.
Although it is a market linked product, it is possible that the returns may change.
Video Editor: Partha Narayan Das
Producer: Sanchita Mondal
These states are Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Manipur, Meghalaya, Nagaland, Rajasthan and Uttarakhand.
"11 states.... have achieved the target set by the Ministry of Finance for the capital expenditure in the 1st Quarter of 2021-22. As an incentive, these States have been granted permission by the Department of Expenditure to borrow an additional amount of Rs 15,721 crore," the Ministry said in a statement.
The additional open market borrowing permission granted is equivalent to 0.25 per cent of their Gross State Domestic Product (GSDP). Additional financial resources thus made available will help the States in pushing their capital expenditure further.
The Ministry said capital expenditure has a high multiplier effect, enhances the future productive capacity of the economy, and results in a higher rate of economic growth.
Accordingly, out of the net borrowing ceiling (NBC) of 4 per cent of GSDP for the states for 2021-22, 0.50 per cent of GSDP was earmarked for incremental capital expenditure to be incurred by the States during 2021-22. The target for incremental capital expenditure for each state to qualify for this incremental borrowing was fixed by the Department of Expenditure.
To become eligible for incremental borrowing, States were required to achieve at least 15 per cent of the target set for 2021-22 by the end of April-June quarter of 2021-22, 45 per cent by the end of second quarter, 70 per cent by the end of third quarter and 100 per cent by March 31, 2022.
The next review of Capital expenditure of States will be undertaken by the Department of Expenditure in December, 2021. In this round, capital expenditure achieved by the States till September 30, 2021 will be assessed.
Third review will be done in March, 2022 on the basis of capital expenditure incurred by the State during the first three quarters of the year 2021-22.
The capital expenditure-linked borrowing ceiling of 0.50 per cent of GSDP will be allowed to those States who will achieve actual capital expenditure of at least 45 per cent of the target by September 30, 2021 or 70 per cent of the target by December 31, 2021.
There would be a final review of actual capital expenditure by the States in the month of June, 2022.
Any shortfall/deficiency in actual capital expenditure for the year 2021-22 by the State in comparison with the targeted capital expenditure for the year 2021-22, will be adjusted from the borrowing ceiling of the State for the year 2022-23.
This was announced by the Secretary of Department of Financial Services under Finance Ministry at a press meet addressed by FinMin Nirmala Sitharaman on Wednesday. As per reports, the family pension would go up to as much as Rs 30,000 to Rs 35,000 per family of bank employees.
In continuation of the 11th bi-partite settlement on wage revision of public sector bank employees signed by the IBA with the unions last year in November, there was a proposal for enhancement of family pension and also the employers' contribution under the National Pension Scheme (NPS).
The same has been approved by the Finance Minister, the Secretary of DFS said. Earlier the scheme had slabs of 15, 20 and 30 percent of the pay that a pensioner drew at that point of time. It was capped subject to a maximum of Rs 9,284. That was a very paltry sum.
The Secretary said that Finance Minister Nirmala Sitharaman was concerned and wanted that to be revised so that family members of bank employees get a decent amount to survive and sustain.
Latest reports suggest that family members of deceased bankers in Public Sector Banks will now get a pension of 30% of last drawn salary as against the earlier income of Rs 9,284. Further, the government has also approved the proposal to increase the contribution made by PSBs for employee pensions under NPS to 14% from the existing 10%.
Thousands of families of PSU bank employees will be benefited by the enhanced Family Pension, while increase in employers’ contribution will provide increased financial security to the bank employees under NPS.
Out of the total revenue collected CGST was Rs 22,197 crore, SGST was Rs 28,541 crore, IGST was Rs 57,864 crore -- including Rs 27,900 crore collected on import of goods -- and Cess was Rs 7,790 crore -- including Rs 815 crore collected on import of goods.
The GST collection for the returns filed during July 1-5 of Rs 4,937 crore had also been included in the GST collection for the month of June 2021 since taxpayers were given various reliefs in the form of waiver or reduction in interest on delayed return filing amid the pandemic, said an official statement.
The government has settled Rs 28,087 crore to CGST and Rs 24,100 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlement in the month of July 2021 was Rs 50,284 crore for CGST and Rs 52,641 crore for the SGST.
The revenues for the month of July 2021 are 33 per cent higher than the GST revenues in the same month last year. During the month, revenues from import of goods were 36 per cent higher and the revenues from domestic transaction (including import of services) are 32 per cent higher than the revenues from these sources during the same month last year.
GST collection, after posting above Rs 1 lakh crore mark for eight months in a row, dropped below Rs 1 lakh crore in June 2021 as the collections during the month of June 2021 predominantly related to the month of May 2021 and during May 2021, most of the states/UTs were under either complete or partial lockdown due to Covid.
With the easing of Covid restrictions, GST collection for July 2021 has again crossed Rs 1 lakh crore, which clearly indicates that the economy is recovering at a faster pace. The robust GST revenues are likely to continue in the coming months too, the Finance Ministry statement said.
Commenting on the GST collection numbers, M.S. Mani, Senior Director, Deloitte India said: "The sharp increase in the collections indicates the resumption of economic activities in June and will raise expectations of better collections in the coming months."
"The improvement in GST collections both on domestic transactions and imports, accompanied by the fact that major producing states have shown significant increases, would indicate that the economic activities have resumed across the country," Mani added.
As per reports, the Narendra Modi government is not going to make any announcement today regarding minimum pay hike of the CG employees. So now, the CG employees’ all hope is on the upcoming cabinet meeting.
Similar reports of announcement for the CG employees were there ahead of Independence Day, Dussehra, Diwali and New Year… But all ended up in disappointment for the 50 lakh odd Central government employees.
There has been a change of guard at the Union Finance Ministry. As Arun Jaitley is away abroad for treatment and Piyush Goyal has filled the post for time being.
Now the big question is, will Goyal come up with any such announcement in the interest of the lakh of employees? Apart from all these media reports of a possible hike or announcement, one thing is for sure that turning blind to the demand of the CG employees will definitely hurt the Modi government in the 2019 polls, believe experts.
“It’s a genuine demand of the Central government employees. Moreover, the Modi government had promised to hike the minimum pay beyond the recommendations of the 7th Pay Commission. The Centre must keep its promise,” said a retired CG employee.
It is pertinent to mention here that disappointment had already engulfed the CG employees after the government declared an interim budget. However, hopes are still intact on the Modi government as it might not want to disappoint the employees.
The CG employees are presently getting a minimum pay of Rs 18,000 and demanding Rs 26,000- a hike of Rs 8000 or an increase in the fitment factor by 3.68 times from the existing 2.57 times.
A Finance Ministry statement said this was a remarkable jump from 78.49 per cent in 2019.
After the evaluation of 143 economies, the 2021 survey has highlighted India's significant improvement in the scores on all 5 key indicators.
In terms of transparency, India scored 100 per cent in 2021 and 95.83 per cent in terms of formalities.
Regarding institutional arrangement and cooperation, India scored 88.89 per cent and in the parameter of paperless trade the score was 96.3 per cent.
The score for cross-border paperless trade was 66.67 per cent in 2021.
The survey notes that India is the best performing country when compared to South and South West Asia region (63.12 per cent) and Asia Pacific region (65.85 per cent).
The overall score of India has also been found to be greater than many OECD countries including France, the UK, Canada, Norway, Finland, and the overall score is greater than the average score of the European Union.
In terms of "women in trade", India scored 66 per cent.
The Ministry statement noted that CBIC, has been at forefront of path-breaking reforms under the umbrella of 'Turant' Customs to usher in a Faceless, Paperless and Contactless Customs by way of a series of reforms.
This has had a direct impact in terms of the improvement in the UNESCAP rankings on digital and sustainable trade facilitation.
Further, during the Covid-19 pandemic, Customs formations have made all efforts to expedite Covid related imports such as Oxygen-related equipment, life-saving medicines, vaccines among others.
A dedicated single window Covid-19 24/7 helpdesk for EXIM trade was created on the CBIC website to facilitate quick resolution of issues faced by importers.
The Global Survey on Digital and Sustainable Trade Facilitation is conducted every two years by UNESCAP.
The 2021 Survey includes an assessment of 58 trade facilitation measures covered by the WTO's Trade Facilitation Agreement.
The survey is keenly awaited globally as it evidences whether or not the trade facilitation measures being taken have the desired impact and helps draw comparison amongst countries.
A higher score for a country also helps businesses in their investment decisions.
The scheme can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this scheme, the finance ministry said in a statement.
PMVVY is a pension scheme announced by the government exclusively for the senior citizens aged 60 years and above which is available from May 4, 2017 to May 3, 2018.
"Scheme provides an assured return of 8 per cent per annum payable monthly (equivalent to 8.30 per annum effective) for 10 years. Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly, quarterly, half-yearly, yearly as chosen by the pensioner at the time of purchase, the statement read.
Also Read: 7th Pay Commission: Details of allowances in different posts, pensioners
Subsequent to the 43rd GST Council Meeting held on 28.05.2021, it was decided that the Central Government would borrow ₹1.59 lakh crore and release it to States and UTs with Legislature on a back-to-back basis to meet the resource gap due to the short release of Compensation on account of the inadequate amount in the Compensation Fund. This amount is as per the principles adopted for a similar facility in FY 2020-21, where an amount of ₹1.10 lakh crore was released to States under a similar arrangement.
This amount of ₹1.59 lakh crore would be over and above the compensation, in excess of ₹1 lakh crore(based on cess collection) that is estimated to be released to States/UTs with Legislature during this financial year. The sum total of ₹2.59 lakh crore is expected to exceed the amount of GST compensation accruing in FY 2021-22.
All eligible States and UTs (with Legislature) have agreed to the arrangements of funding of the compensation shortfall under the back-to-back loan facility. For effective response and management of COVID-19 pandemic and a step-up in capital expenditure all States and UTs have a very important role to play. For assisting the States/UTs in their endeavour, Ministry of Finance has frontloaded the release of assistance under the back-to-back loan facility during FY 2021-22 ₹75, 000 crore (almost 50 % of the total shortfall for the entire year) released today in a single instalment. The balance amount will be released in the second half of 2021-22 in steady instalments.
The release of ₹75,000 crore being made now is funded from borrowings of GoI in 5-year securities, totalling ₹68,500 crore and 2-year securities for ₹6,500 crore issued in the current financial year, at a Weighted Average Yield of 5.60 and 4.25 percent per annum respectively.
It is expected that this release will help the States/UTs in planning their public expenditure among other things, for improving, health infrastructure and taking up infrastructure projects.
(PIB)
The Monthly Economic Review for June 2021 released by the Department of Economic Affairs (DEA) noted that inflationary pressures took an upturn in May 2021 with headline inflation (CPI-C) and WPI inflation touching a high of 6.3 percent and 12.94 per cent, respectively.
Supply side disruptions in states and unfavourable base effects drove the broad-based momentum in retail inflation across food, fuel and core categories. On the other hand, electricity and manufactured products inflation led the uptick in wholesale inflation.
Healthy monsoon coverage, gradually rising Kharif sowing and unlocking of states is expected to ease food, and thereby headline, inflation, it said.
"However, risks due to global demand-led recovery in commodity prices and input cost pressures remain," it said.
As the Indian economy struggles to shed the impact of the second wave of Covid-19, the report suggested that maintaining a fast past of vaccination and plugging the lags in the healthcare infrastructure in the country would be the most sustainable stimulus for the durable recovery of the Indian economy.
Resilient tax collections of the Central government in the first two months of FY 2020-21 and sustained momentum in capital expenditure, particularly in the road and rail sector, augurs well for continued economic recovery driven by capital expenditures, it said.
The recently announced economic relief package is expected to further oil the wheels of the capex cycle via implementation of the PLI scheme and streamlining of processes for PPP Projects and Asset Monetisation, the review said.
Consumption sentiment is expected to pick up with further enhancement of employment support under the Aatma Nirbhar Bharat Rozgar Yojana (ANBRY), targeted support to the urban poor through the credit guarantee scheme for on-lending by micro-finance institutions, and wider Bharat-Net digitisation coverage.
Free food-grain and enhanced fertiliser subsidies under the package along with continued MGNREGA implementation, on the other hand, would serve as a cushion for rural demand in the coming quarters, the review said.
The department, which was under the Ministry of Heavy Industries and Public Enterprises so far, would look into the residual work relating to erstwhile Bureau of Public Enterprises including the Industrial Management Pool.
It would also look into coordination of matters of general policy affecting all public sector enterprises (PSEs), and evaluation and monitoring the performance of PSEs, including the Memorandum of Understanding (MoU) mechanism.
Matters relating to permanent machinery of arbitration for the PSEs, and counselling, training and rehabilitation of employees in Central public sector undertakings (PSUs) under the Voluntary Retirement Scheme, would also be looked into by the department.
Review of capital projects and expenditure in Central PSEs also would be taken care of by the department, a gazette notification said.
The department also deals in measures aimed at improving performance of Central PSEs and other capacity building initiatives of PSEs.
It will also render advice relating to revival, restructuring or closure of PSEs including the mechanisms required, among other responsibilities.
"The central government hereby specifies the denomination of bank notes of the value of 200 rupees," a Gazette notification said.
The notification has been issued under Section 24 of the Reserve Bank of India Act, 1934, and on the recommendations of the Central Board of Directors of the RBI.
Earlier, Minister of State for Finance Santosh Kumar Gangwar told IANS that Rs 200 note, printing of which had begun, would be in circulation soon.
The move to introduce the new currency was to increase the circulation of smaller denomination notes.
An official source had told IANS that the paper for Rs 200 notes was ready in the Mysuru paper mill in June. It was being printed in the RBI printing press.
Post-demonetisation, there have been reports of people facing problems in using the Rs 2,000 note as sufficient quantum of smaller denomination notes of Rs 100 and Rs 500 were not available.
"There are some press reports that services provided by a Residents Welfare Association (RWA) will become expensive under the GST. These are completely unsubstantiated," a Finance Ministry statement here said.
A RWA shall be required to pay GST on monthly subscription/contribution charged from its members if such subscription is more than Rs 5,000 per member and the annual turnover of RWA by way of supply of services and goods is also Rs 20 lakh or more.
"Under the GST, the tax burden on RWAs will be lower for the simple reason that they will now be entitled to ITC (Input Tax Credit) in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture), goods (taps, pipes, and other sanitary/hardware fittings) and input services such as repairs and maintenance services," it said.
The ITC on central excise and VAT paid on goods and capital goods was not available in the pre-GST period and these were a cost to the RWA.
Thus, there is no change made to services provided by the housing society to its members in the GST era, the Ministry said.
Supply of service by RWA (unincorporated body or a registered non-profit entity) to its own members by way of reimbursement of charges or share of contribution up to Rs 5,000 per month per member for providing services and goods for common use of its members in a housing society/residential complex are exempt from GST.
Further, if the aggregate turnover of such RWA is up to Rs 20 lakh in a financial year, then such supplies would be exempted from GST even if charges per member are more than Rs 5,000, it said.
"There are some reports that GST at the rate of 18 per cent will be levied on annual subscription/ fee charged for lodging in hostels. This is not true. There is no change in tax liability relating to education and related services in the GST era, except reduction in tax rate on certain items of education," the ministry clarified in a statement.
"It may be mentioned that services provided by an educational institution to students, faculty and staff are fully exempt," it said.
Services of lodging/ boarding in hostels provided by such educational institutions which are providing pre-school education and education up to higher secondary school or equivalent or education leading to a qualification recognised by law, are fully exempt from the GST.
"Annual subscription/ fees charged as lodging/ boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST," the statement noted.
The RBI maintained its key interest rate at 6.25 per cent for its fourth successive monetary policy review, dashing the government's hopes of a reduction.
"Regarding the Finance Ministry's invitation for a meeting with the MPC...all the MPC members declined the request of the Finance Ministry," Patel told reporters here following the announcement of the second bi-monthly monetary policy review of the fiscal.
Patel did not specify as to when the invitation had come from the Finance Ministry. Patel was asked if the ministry invite was an assault on the independence and autonomy of the RBI. The committee did not accept the invite, he added.
Since the six-member MPC started setting rates in October last year, this was the first time it did not take a unanimous decision, with five members voting in favour of holding the rate and one opposing.
Three of the six members of the MPC are government nominees, while the others are from the RBI.
Wednesday's RBI decision to stay the lending ratecomes after latest official data showed a significant fall in both retail inflation as well as the country's economic growth rate in the fourth quarter of the last fiscal, impacted by demonetisation, which had raised hopes for a rate cut.
Government sources said that there is unhappiness in official circles about the way the MPC has resisted relaxing rates for a period that has extended over six months now.
Announcing the status quo on the key interest rate, Patel said the abrupt fall in inflation in April "from the firming trajectory that was developing in February and March has raised several issues that have to be factored into the inflation projections".
"Risks are evenly balanced, although the spatial and temporal distribution of the monsoon and the government staying the course in effective food management will play a critical role in the evolution of risks."
"The risk of fiscal slippages, which, by and large, can entail inflationary spillovers, has risen with the announcements of large farm loan waivers," he added.
The change in the RBI's monetary policy stance from "accommodative" to "neutral" made at the February review is also being regarded in official circles as a hardening of the apex bank's conservative and risk-averse approach.
The draft law -- Fugitive Economic Offenders Bill, 2017 -- has been prepared and put in public domain at the Department of Economic Affairs, Ministry of Finance, website for comments and suggestions of all stakeholders.
"It is widely felt that the spectre of high-value economic offenders absconding from India to defy the legal process seriously undermines the rule of law in India," the Finance Ministry said here in a statement
"It is, therefore, felt necessary to provide an effective, expeditious and constitutionally permissible deterrent to ensure that such actions are curbed," the statement said.
"The government is considering to introduce legislative changes or even a new law to confiscate the assets of such absconders till they submit to the jurisdiction of the appropriate legal forum," the statement added.
All stakeholders need to submit their suggestions by June 3.
The legislative action is part of the Union Budget announcement.
Finance Minister Arun Jaitley had in the Budget 2017-18 said: "In the recent past, there have been instances of big time offenders, including economic offenders, fleeing the country to escape the reach of law. We have to ensure that the law is allowed to take its own course.
"Government is, therefore, considering introduction of legislative changes, or even a new law, to confiscate the assets of such persons located within the country, till they submit to the jurisdiction of the appropriate legal forum. Needless to say that all necessary constitutional safeguards will be followed in such cases."
The government is considering to chalk out an alternative for increasing salaries and allowances of the central government employees and pensioners in future instead of forming a pay commission or the 8th Pay Commission.
The Narendra Modi-led BJP government will soon take a policy decision in this regard, The Sen Times reported citing a Finance Ministry official on condition of anonymity.
The 7th Pay Commission Chairman Justice A K Mathur was earlier of the view that the central government employees’ salary be revised every year taking into account the available data and price index.
Besides, the 7th Pay Commission recommended reviewing the pay matrix periodically instead of waiting for long ten years to revise the salary and allowances.
The commission also suggested the use of Aykroyd formula to recommend the pay hike of the central government employess.
Also Read: 7th Pay Commission: Did Govt Cheat Employees On Allowances?
Note: Aykroyd formula is attributed to Dr Aykroyd who worked on nutrition for nearly 30 years and was director of the Nutrition Division, Food and Agriculture Organisation, United Nations. In 1935, he was appointed director of the government's nutritional research centre in India. This formula takes into account the three basic needs of human being while considering pay hike and salary structure.
Earlier, the union of the central government employees had alleged that they have been cheated by the government on several grounds in the 7th Pay Commission. Being ‘upset, angry and dissatisfied’ with the government decision, the employees Federation had also decided to take up the matter with the government.
Also Read: 7th Pay Commission: Details Of Allowances In Different Posts, Pensioners
A nationwide GST, which subsumed 17 local levies like excise duty, service tax and VAT and 13 cesses, was rolled out on July 1, 2017.
In a series of tweets, the ministry said GST has simplified compliance for all taxpayers and the GST Council also recommended several trade beneficial clarifications in light of the COVID-19 pandemic.
Under GST, businesses with an annual turnover of up to Rs 40 lakh are exempt from the tax. Additionally, those with a turnover up to Rs 1.5 crore can opt for the Composition Scheme and pay only 1 per cent tax.
For services, businesses with turnover up to Rs 20 lakh in a year are GST exempt. A service provider having turnover up to Rs 50 lakh in a year can opt for composition scheme for services and pay only 6 per cent tax.
"It is now widely acknowledged that GST is both consumer and taxpayer-friendly. While high tax rates of the pre-GST era acted as a disincentive to paying tax, the lower rates under GST helped to increase tax compliance. More than 66 crore GST returns have been filed so far," the Ministry tweeted.
It is now widely acknowledged that GST is both consumer and taxpayer-friendly. While high tax rates of the pre-GST era acted as a disincentive to paying tax, the lower rates under GST helped to increase tax compliance. More than 66 crore GST returns have been filed so far.(1/3)
— Ministry of Finance (@FinMinIndia) June 30, 2021
The multiple markets across India, with each state charging a different rate of tax, led to great inefficiencies and costs of compliance. Under GST, compliance has been improving steadily, with around 1.3 crore taxpayers registered, the ministry said.
Tweeting with the hashtag '4yearsofGST', the ministry said GST has reduced the rate at which people have to pay tax. "The revenue neutral rate as recommended by the RNR Committee was 15.3 per cent. Compared to this, the weighted GST rate at present, according to the RBI, is only 11.6 per cent".
GST has significantly eased one of the most complex indirect tax systems and a company looking to do business in every state had to make as many as 495 different submissions. Under GST, that number has reduced to just 12, it said.
"GST has replaced the complex indirect tax structure with a simple, transparent and technology-driven tax regime and has thus integrated India into a single common market.
With the continuous simplification of procedures and rationalisation of rate structures so as to make GST compliance easy for common man as well as the trade, we have been able to achieve economic integration of the country with a humane touch," the ministry added.
Under GST, a four-rate structure that exempts or imposes a low rate of tax 5 per cent on essential items and top rate of 28 per cent on cars is levied. The other slabs of tax are 12 and 18 per cent. In the pre-GST era, the total of VAT, excise, CST and their cascading effect led to 31 per cent as tax payable, on an average, for a consumer.
GST also represents an unprecedented exercise in fiscal federalism. The GST Council, that brings together the central and state governments, has met 44 times to thrash out how the tax will work.
The minister said an announcement with regard to the additional steps will be made after consulting Prime Minister Narendra Modi.
Jaitley has held a series of meetings in the last few days with some of his ministerial colleagues and senior government officials to take stock of the situation and firm up steps to push up growth.
"We have taken note of all economic indicators which are available... the government will take any additional moves which are necessary. I am not in a position to announce today in the press conference. I will be certainly consulting the prime minister before that and when we decide, you will come to know," he told reporters here.
He further said this is a proactive government and has been reacting to the situation as when the situation demanded.
"We have been taking appropriate actions... we have been consistently moving on the reform agenda," he stressed.
Two years ago, India was touted as a rare bright spot in a gloomy global economy, with GDP growth outpacing a slowing China.
But since early 2016, GDP growth has fallen for six consecutive quarters, slumping to a three-year low of 5.7 per cent in the April-June quarter, with India losing the fastest growing economy tag to China for the second straight quarter.
Sectoral reasons and action points would be prepared, sources said, adding that high-level discussions with ministries such as the railways to assess the capital requirement for the year have been held and more such meetings would follow.
"We have taken note of all indications which are coming and over the last two days, I have had a series of discussions with some of my colleagues, secretaries and other experts within the government," the minister said.
Yesterday, he had a two-hour long review meeting that was attended by Commerce Minister Suresh Prabhu, Railway Minister Piyush Goyal and Niti Aayog Vice-Chairman Rajiv Kumar.
Besides, Additional Principal Secretary to the Prime Minister P K Misra, Commerce Secretary Rita Teaotia, secretaries in the finance ministry and Chief Economic Advisor Arvind Subramanian were part of the deliberation.
The finance ministry, in a notification, said that on the recommendations of the Central Board of Directors of the RBI, "the central government hereby specifies the denomination of banknotes of the value of two hundred rupees".
The new Rs 200 notes are likely to be in circulation shortly.
According to sources, the exercise of printing Rs 200 denomination notes is being undertaken to further improve the currency situation in the country.
Following the demonetisation on November 9 last year, the Reserve Bank had introduced Rs 2,000 notes and also issued a new Rs 500 notes with additional security features.
So with the introduction of Rs 200 notes, the problem people face due to high-value Rs 2,000 notes would be taken care of.
The Reserve Bank has also introduced a new fluorescent blue Rs 50 banknotes bearing the motif of 'Hampi with Chariot' that depicts India's cultural heritage.
In a surprise announcement, Prime Minister Narendra Modi had in November last year announced scrapping of old notes of Rs 1,000 and Rs 500 notes, wiping out over 86 per cent of the cash in circulation.
The move was aimed at checking black money, counterfeit notes and terror financing.
A meeting between the Finance Ministry, National Council of Joint Consultative Machinery (JCM), and the Department of Personnel and Training (DOPT) was scheduled for June 26 to discuss and decide on pending arrears for central government employees and pensioners. On the same day, a document was doing rounds on social media claiming that Dearness Allowance and Dearness Relief for Central government employees and pensioners will be resumed from July 2021.
The Finance Ministry clarified that no such order regarding resumption of DA for the central government employees and DR for pensioners from July 1 has been issued. The Ministry made it clear that this claim is Fake and no such announcement has been made by the Government of India.
Last year, the ministry had announced to freeze the hike in DA and DR till July 2021.
According to the order issued on April 23, 2020, no arrears will be paid for the period from January 1, 2020, to June 30, 2021.
The order further mentioned that as and when the decision to release the future instalment of dearness allowance and dearness relief due from July 1, 2021, is taken by the government, the rates of dearness allowance and dearness relief as effective from January 1, 2020, July 1, 2020, and January 1, 2021, will be restored prospectively and will be submitted in the cumulative revised rate effective from July 1, 2021.
"Both the government of India and the Reserve Bank of India will continue to remain vigilant and will take whatever steps are necessary to ensure that there is stability in the financial markets," the Finance Ministry said in a statement.
The US Federal Reserve on Wednesday decided to cut its bond purchases by another USD 10 billion. It has now decided to purchase USD 65 billion per month of mortgage-backed securities and longer-term treasury securities as against USD 75 billion per month earlier.
"This decision was expected and should not in anyway surprise or affect the Indian markets. However, it may be noted that USD 65 billion is not a small sum and will continue to infuse a large amount of liquidity into the world markets," the statement added.
The announcement of the Federal Reserve sent markets to a tizzy with the BSE Sensex plunging over 225 points in early trade and the rupee losing 33 paise to trade at 62.75 a dollar.
The Finance Ministry reaffirmed that the Indian economy is better prepared for the consequences, if any, of the taper.
It, however, said that Swiss authorities have been requested to provide the relevant facts along with their view on possible reasons for increase or decrease in deposits so that facts could be presented in the correct perspective.
Certain reports suggested that the funds of Indians in Swiss Banks have risen to over Rs 20,700 crore (CHF 2.55 billion) at the end of 2020 from Rs 6,625 crore (CHF 899 million) at the end of 2019, reversing a 2-year declining trend. It has also been stated that this is also the highest figure of deposits in the last 13 years.
"Reports allude to the fact that the figures reported are official figures reported by banks to Swiss National Bank (SNB) and do not indicate the quantum of much-debated alleged black money held by Indians in Switzerland. Further, these statistics do not include the money that Indians, NRIs or others might have in Swiss banks in the names of third-country entities," the Ministry statement said.
The statement added that the customer deposits have actually fallen from the end of 2019 in Swiss Banks. The funds held through fiduciaries have also more than halved from the end of 2019. The biggest increase is in "Other amounts due from customers". These are in form of bonds, securities, and various other financial instruments, the finance min statement said.
The ministry also ascribed various other reasons for the increase in deposits and not possible on account of the increase of deposits in the Swiss banks out of undeclared incomes of Indian residents. It said that that increase in deposits may be on account of an increase in deposits owing to the business of Swiss Bank branches located in India or an Increase in Inter- bank transactions between Swiss and Indian Banks. Also, it could be due to a capital increase for a subsidiary of a Swiss Company in India or an increase in the liabilities connected with the outstanding derivative financial instruments.
The government has issued clarifications in wake of the widely held position that it has curbed generation of black money in the economy or unaccounted funds of Indians stashed abroad. The fresh tax agreements reached between India and certain perceived tax havens have introduced certain instruments to prevent round-tripping of funds and generation of black money.
It is pertinent to point out that India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and both countries have also signed the Multilateral Competent Authority Agreement (MCAA) pursuant to which, the Automatic Exchange of Information (AEOI) is activated between the two countries for sharing of financial account information annually for the calendar year 2018 onwards.
Exchanges of Financial Account information in respect of residents of each country have taken place between both countries in 2019 as well as 2020. In view of the existing legal arrangement for the exchange of information of financial accounts (which has a significant deterrent effect on tax evasion through undisclosed assets abroad), there does not appear to be any significant possibility of the increase of deposits in the Swiss banks which is out of undeclared incomes of Indian residents, the finance ministry said.
Announcing ECLGS 4.0 on Sunday, the Finance Ministry also said that the current ceiling of Rs 500 crore of loan outstanding for eligibility under ECLGS 3.0 will be removed, subject to maximum additional ECLGS assistance to each borrower being limited to 40 per cent or Rs 200 crore, whichever is lower.
The move would bring in more small businesses under its ambit.
An official statement said: "The modifications in ECLGS, would enhance the utility and impact of ECLGS by providing additional support to MSMEs, safeguarding livelihoods and helping in seamless resumption of business activity. These changes will further facilitate flow of institutional credit at reasonable terms."
Further, as the country faced a severe shortage of medical oxygen amid the second wave of Covid-19, the Centre has decided to offer 100 guarantee cover to loans up to Rs 2 crore to hospitals, nursing homes, clinics and medical colleges for setting up on-site oxygen generation plants.
The interest rate for such loans has been capped at 7.5 per cent.
The statement further said that borrowers who are eligible for restructuring as per RBI guidelines of May 5, 2021 and had availed loans under ECLGS 1.0 of overall tenure of four years comprising of repayment of interest only during the first 12 months with repayment of principal and interest in 36 months thereafter will now be able to avail a tenure of five years for their ECLGS loan.
The government has also announced additional ECLGS assistance of up to 10 per cent of the outstanding as on February 29, 2020 to borrowers covered under ECLGS 1.0, in tandem with restructuring as per RBI guidelines of May 05, 2021.
Validity of ECLGS has been extended to September 30, 2021 or till guarantees for an amount of Rs 3 lakh crore are issued.
The Centre has permitted disbursement under the scheme up to December 31, 2021.
The 'Monthly Economic Review' for April 2021 published by the Department of Economic Affairs (DEA) said that learning to "operate with COVID-19" provides a silver lining of economic resilience amidst the second wave.
"The second wave of COVID-19 has posed a downside risk to economic activity in the first quarter of FY 2021-22. However, there are reasons to expect a muted economic impact as compared to the first wave. Learning to "operate with COVID-19", as borne by international experience, provides a silver lining of economic resilience amidst the second wave," it said.
Noting that the global economy recovered further in March and April, powered with vaccination drives and fiscal stimuli by few large economies, it said that in India the momentum in economic recovery since the first wave moderated in April due to the second wave of coronavirus.
It said that agriculture continues to be the silver lining with record food grain production estimated in the ensuing crop year on the back of predicted normal monsoons.
Rural demand indicators like tractor sales recorded a growth of 172 per cent and 36 per cent compared to a low base in March 2020 and even the pre-Covid month of March 2019 respectively.
Industrial production showed mixed trends. While Index of Industrial Production (IIP) in February 2021 registered a broad-based decline of 3.6 per cent (YoY) and 3.9 per cent compared to January 2021, the eight-core index posted a growth of of 6.8 per cent (YoY) in March 2021 and 11.1 per cent compared to February 2021.
In FY 2020-21, the core sector contracted by 7 per cent compared to 0.4 per cent growth in FY 2019-20 with fertilizer being the sole growing sector and electricity recovering steadily in the second half.
The Purchasing Managers Index for manufacturing rose further to 55.5 in April with consumer goods as the strongest-performing category, followed by capital goods and then intermediate goods. The rebound was also reflected in RBI's survey estimates on capacity utilization and manufacturers' optimism for the current year, the report said.
In the second half of FY 2020-21, GST collections registered a good growth and collections exceeded Rs 1 lakh crore in each of the last six months owing to economic recovery. GST collections registered another record high of Rs 1.41 lakh crore in April, indicative of continual economic recovery.
The Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi has approved designating Subhash Chandra Garg as the Finance Secretary. Former Finance Secretary Ajay Narayan Jha superannuated on February 28.
A Personnel Ministry order also said as much.
Garg (58), a 1983 batch IAS officer of Rajasthan cadre, has been working as the Secretary in Department of Economic Affairs since June 2017.
As per convention, the senior-most among the five secretaries in the Finance Ministry is designated as the Finance Secretary. In the current top bureaucratic set-up, Ajay Bhushan Pandey is the Revenue Secretary, Rajiv Kumar is Secretary, Department of Financial Services, Atanu Chakraborty is Secretary in Department of Investment and Public Asset Management (DIPAM) and Girish Chandra Murmu is the Expenditure Secretary.
Pandey and Kumar are 1984 batch IAS officers respectively. Chakraborty and Murmu are 1985 batch IAS officers.
The collection of Rs 1,06,577 crore for March though was the highest-ever monthly collection since the introduction of GST, the Finance Ministry said in a statement.
Revenue in March grew 15.6 per cent over Rs 92,167 crore GST collection in the same month of previous year.
Out of the March collection figures, the CGST component is Rs 20,353 crore, SGST Rs 27,520 crore, IGST Rs 50,418 crore (including Rs 23,521 crore collected on imports) and cess is Rs 8,286 crore (including Rs 891 crore collected on imports).
The total number of GSTR 3B Returns filed for the month of February up to March 31, is 75.95 lakh.
Revenue for the last quarter in 2018-19 is 14.3 per cent higher than same period a year ago. Total revenue earned by the central government and the state governments after regular and provisional settlement in the month of March, 2019, is Rs 47,614 crore for CGST and Rs 51,209 crore for the SGST.
Monthly average of GST revenue during 2018-19 is Rs 98,114 crore, which is 9.2 per cent higher than FY 2017-18.
Abhishek Jain, Tax Partner, EY says:"The steep increase in GST collections is quite a welcome outcome for the economy. Some major reasons for the growth could be reconciliation by businesses of outward and inward supplies, intelligent data analytics; related tax leakage detections and consequent GST payment by businesses."
These figures hint towards stabilisation of revenue growth under GST which has been moving up in recent months, despite various rate rationalisation measures.
Apart from the Commission’s Chairman and Members Ajay Narayan Jha, Dr. Anoop Singh, the Finance Ministry were represented by Subhash Chandra Garg Finance Secretary, Ajay Bhushan Pandey Revenue Secretary, Girish Chandra Murmu, Expenditure Secretary, Dr. Krishnamurthy Subramanian Chief Economic Adviser, PC Mody Chairman CBDT, PK Das, Chairman CBIC and other senior officials of the Finance Ministry and the Finance Commission.
The Commission observed that the GDP numbers have somewhat fluctuated within the overall global trend which suggests continued high growth trend over the medium term. The Commission also noted that the revenue projections on the Direct Taxes are healthy though on Indirect Taxes, there have been periodic fluctuations. On the expenditure trend, there were discussions in regard to the rationalisation of the Centrally Sponsored Schemes in sync with the new life cycle, they being co-terminus with the Finance Commissions.
The Finance Ministry presented before the Commission some preliminary views of the Government on the Financial Terms of Reference of the Commission. The economic development in the last 5 years were analysed in detail with specific focus on Growth, Investments, Industrial Production, Banking and Payments, Inflation and Monetary Policy, External Sector, Medium Term Outlook. The Ministry made its projections for 2018-19 and 2019-20 to the Commission along with its projections for the award period of the XVFC, which is 2020-21 to 2024-25.
The Finance Ministry gave some accounts and overviews of Receipt and Expenditure Forecast including a fiscal overview of XIVFC vs. XVFC both a percentage of GDP and as percentage of GRR. They also made a resource forecast which included tax projections; and a comparative picture of tax growth and buoyancy. The expenditure projections made by the Ministry included expenditure classifications and requirements; expenditure of the Central Government during the award period of the XIVFC and the expenditure requirements during the award period of the XVFC.
The Ministry and the Commission had a detailed discussion on fiscal management in which the Ministry put up a number of suggestions for consideration of the Commission. Discussions were also held on GST issues, local body grants and population data.
The Commission is now awaiting the full Memorandum of the Government of India through Finance Ministry which is expected to be delivered soon.
Apart from the Commission’s Chairman and Members Ajay Narayan Jha, Dr. Anoop Singh, the Finance Ministry were represented by Subhash Chandra Garg Finance Secretary, Ajay Bhushan Pandey Revenue Secretary, Girish Chandra Murmu, Expenditure Secretary, Dr. Krishnamurthy Subramanian Chief Economic Adviser, P C Mody Chairman CBDT, PK Das, Chairman CBIC and other senior officials of the Finance Ministry and the Finance Commission.
The Commission observed that the GDP numbers have somewhat fluctuated within the overall global trend which suggests continued high growth trend over the medium term. The Commission also noted that the revenue projections on the Direct Taxes are healthy though on Indirect Taxes, there have been periodic fluctuations. On the expenditure trend, there were discussions in regard to the rationalisation of the Centrally Sponsored Schemes in sync with the new life cycle, they being co-terminus with the Finance Commissions.
The Finance Ministry presented before the Commission some preliminary views of the Government on the Financial Terms of Reference of the Commission. The economic development in the last 5 years were analysed in detail with specific focus on Growth, Investments, Industrial Production, Banking and Payments, Inflation and Monetary Policy, External Sector, Medium Term Outlook. The Ministry made its projections for 2018-19 and 2019-20 to the Commission along with its projections for the award period of the XVFC, which is 2020-21 to 2024-25.
The Finance Ministry gave some accounts and overviews of Receipt and Expenditure Forecast including a fiscal overview of XIVFC vs. XVFC both a percentage of GDP and as percentage of GRR. They also made a resource forecast which included tax projections; and a comparative picture of tax growth and buoyancy. The expenditure projections made by the Ministry included expenditure classifications and requirements; expenditure of the Central Government during the award period of the XIVFC and the expenditure requirements during the award period of the XVFC.
The Ministry and the Commission had a detailed discussion on fiscal management in which the Ministry put up a number of suggestions for consideration of the Commission. Discussions were also held on GST issues, local body grants and population data.
The Commission is now awaiting the full Memorandum of the Government of India through Finance Ministry which is expected to be delivered soon.
Faced with liquidity crunch after IL&FS default and with rising number of defaults, the shadow bankers are seeking a bailout in the form of a separate liquidity window. But any decision on this would require detailed discussions, sources said.
According to Finance Ministry sources, though non-banking financial companies (NBFCs) are major finance providers, they are at present in deficit. "Their sources of funds are the market, not public. There has to be greater granularity in their liquidity requirements vis-a-vis the assets and liabilities, and the RBI will look into that."
Remarking that there are asset-liability mismatches in some cases, sources said, "only the infrastructure-funding NBFCs need a separate credit window. Public deposit is not the option, in case of such NBFCs."
According to another source, retirement and insurance funds are hard-earned money of the middle class saved for twlight years and emergencies. "Such savings should not be invested in markets, where the risks are unseen and sudden and the hope for higher returns may sometimes result in exemplary losses, as seen in the case of IL&FS, where after losing money the middle class investors looked up to the government for recovery."
Even the Employees Provident Fund Organisation (EPFO), sources said, could pull back from NBFC investments to avoid default risks.
The EPFO's Finance, Investment and Audit Committee (FIAC), at its meeting earlier this month, "alerted by the downgrading of certain NBFCs sought steps to avoid default and loss of money" to ensure safety of workers' retirement savings.
Following this, the Finance Ministry is monitoring the EPFO and what it plans to do with investments in troubled NBFCs, such as Dewan Housing Finance Limited (DHFL).
Earlier this month, CARE Ratings downgraded the DHFL borrowings, which included long-term bank facilities, a fixed deposit programme, perpetual debt, subordinated debt and non-convertible debentures (NCDs). DHFL is a housing finance company worth Rs 1.13 trillion.
The CARE action came just three days after rating agency Crisil downgraded the Rs 850 crore DHFL commercial papers.
Last year, the NBFCs had petitioned the Prime Minister saying 'systemically important' NBFCs should be allowed to access public deposits and even demanded a separate RBI credit line.
But it would not be easy for the RBI to tighten or close a key source of funding -- comprising insurance, provident and pension funds -- for a sector already facing fund crunch to avoid future default risks.
At best, it can ask managers of such public funds to seek early re-payment from troubled NBFCs.
Mutual funds are another source of NBFC funding, but they are pure market instruments. Though insurance regulator IRDAI has not yet sought details of insurance companies' exposure to DHFL, insurers have slowed investments in NBFCs.
Most insurers have become cautious about buying NBFC securities on concerns of asset-liability mismatch, after trouble arose at IL&FS. The insurers feel the money invested belonged to policyholders and returns on it may become difficult if the company defaulted.
The IRDAI has asked insurers for details of their exposure to IL&FS and has said they will have to make provisions for it as it cannot be written off.
IRDAI Chairman Subhash Chandra Khuntia said insurers should not concentrate risks in a few entities and must diversify investments. But insurers and pension and provident managers say there is a dearth of good investment opportunities, which leads them to NBFC investment.
The RBI, when it starts looking into the process of creating a separate liquidity window, may seek views from insurance regulators as well as pension fund regulator PFRDA, sources said.
The Department of Expenditure has sought details on those schemes on budgetary allocation and expenditure pattern in the past five years, coverage of beneficiaries, implementation mechanism, asset, service creation and its maintenance.
The government launches several schemes for the welfare of people -- depending on the status and performance of the existing scehmes, in the Budget some new schemes are added or some modifications are carried out.
In a communication to financial advisors of all ministries, a DoE office memorandum said: "The gaps in achievements of outcomes, key bottlenecks and challenges, vision for the future and recommendations for the scheme with reasons" are to be part of submission.
"Outcome indicators as proposed prepared by NITI Aayog may be considered," it said.
The Department seeks to know the summary of past evaluations including recommendations made accepted or not accepted.
"It is essential to highlight the importance of recommendations made for the scheme. The evaluation agency may provide recommendation for the scheme in any of the categories -- Continue in existing form; Continue with some Modifications (suggest modifications); Scale up the scheme (Financial/Physical/both); Scale down the scheme (Financial/ Physical/ both); Close; and Merge with another scheme as sub-scheme/component.
Central Sector Schemes are the schemes that are entirely and directly funded and executed by the central government. The schemes are formulated by the Centre, based on subjects from the Union List.
Central Sector Schemes include Bharatnet, Namami Gange-National Ganga Plan, LPG connection to poor households, Crop Insurance Scheme, recapitalisation of public sector banks, family welfare schemes, labour welfare schemes, National Means-cum-Merit Scholarship Scheme, National Scheme for Incentive to Girl Child for Secondary Education, interest subsidy for short term credit to farmers, MRTS and metro projects, Pradhan Mantri Mudra Yojana and other credit guarantee funds.
The collection is, however, lower compared to April when the gross revenue had touched all time high of Rs 1,13,865 crore.
"Year-end collections are always highest as there is pressure on field officers to meet the targets," said Amit Bhagat, Partner, indirect tax practice, Dhruva Advisors.
While the trend is normal, a lower tax collection certainly adds to the pressure on government finances.
"The total gross GST revenue collected in the month of May, 2019 is Rs 1,00,289 crore of which CGST is Rs 17,811 crore, SGST is Rs 24,462 crore, IGST is Rs 49,891 crore (including Rs 24,875 crore collected on imports) and Cess is Rs 8,125 crore (including Rs 953 crore collected on imports)," said a Finance Ministry statement.
The total number of GSTR 3B Returns filed for the month of April up to May 31, 2019 is 72.45 lakh. The GSTR-3B Form records the summary of outward supplies, input tax credit (ITC) claimed and net tax payable.
A higher GST collection boosts the overall indirect tax collection of the government and gives more elbow room to spend on social infrastructure and public welfare schemes. It will also ease Centre's burden of compensation to states on account of loss of revenue due to new tax regime.
The monthly average of GST revenue during 2018-19 was Rs 98,114 crore, up 9.2 per cent compared to monthly average in financial year 2017-18. These figures indicate that the new regime has now largely stabilised.
The collection has been robust in spite of several rate cuts across various items.
The revenue in May 2019 is 2.21 per cent higher than the monthly average of GST revenue in FY 2018-19 (Rs 98,114 crore)," the official statement said.
The CG employees have been demanding a hike in their present basic pay recommended by the 7th Pay Commission citing that it's not enough to meet the present market scenario or to say, it fails to put any impact on their financial position.
The Central government employees are presently getting a minimum pay of Rs 18,000, but demanding an increase of Rs 8000. Which means, they want the Centre to hike the fitment factor to 3.68 times to get a revised pay of Rs 26,000.
A good news in this regard is that, if some media reports are to be believed, the new Finance Minister of the country, Nirmala Sitharaman has been briefed about the Seventh Pay Commission recommendations and the demands of the CG employees. With this, it can be expected that the Union Minister will certainly consider the long-standing demand of the employees.
On the other hand, rumours were earlier there that the government may consider a hike in the minimum pay of the Central government employees but it would not be Rs 8000, rather Rs 6000.
It is worth mentioning that, Rajnath Singh, during his stint in the first term of the Modi government as the Home Minister, had held a discussion with officials concerned over the matter giving a hint that the Modi government was serious and concerned about the demand of the employees. However, the general elections had crushed all hopes of the CG employees then.
Now, it's to see if the demand of the Central government employees to hike minimum pay further against 7th Pay Commission recommendation is considered by the government soon.
This is the second meeting of the Prime Minister with key Secretaries after taking office for the second term.
According to sources, at the meeting at his official residence, Modi discussed the roadmap for reform in every department. The sources also said that the discussion featured the subject of increase in the revenue mop-up and taking steps to push GDP growth.
The budget to be presented by Finance Minister Nirmala Sitharaman, on July 5, is expected to address issues like the slowing economy, the liquidity crisis in the non-banking financial companies, and the agrarian crisis among others.
Liquidity crisis, which came to light after the IL&FS crisis, has hit the economy hard across segments from trade to real estate.
The Union Budget for the financial year 2019-2020 gains significance as the economy is going through a rough patch with the GDP growth rate declining to 5.8 per cent during the January-March quarter of the financial year 2018-19, from 7.7 per cent on a year-on-year basis.
The employment rate in the country also has hit a 45-year low. Job creation will be a major task for the new government.
In its 35th meeting, the GST Council on Friday decided to introduce electronic invoicing system in a phase-wise manner for business-to-business or B2B transactions. The move is set to help tax authorities contain the menace of tax evasion.
"E-invoicing is a rapidly expanding technology which would help taxpayers in backward integration and automation of tax relevant processes," the Finance Ministry said in a statement after the GST Council meeting.
The Phase-1 is proposed to be voluntary and would be rolled-out from January 2020.
Pratik Jain, Partner & Leader, Indirect Tax, PwC India said that the decision to implement e-invoicing model means that technology will continue to play a critical role in tax administration.
"While this system could initially be implemented for B2B segment only, but with e-ticketing for multi-screen cinema halls, a similar mechanism is also proposed for B2C segment. If this experiment turns out to be successful, one could see this mechanism getting extended to other B2C segments as well," he said.
Another anti-evasion measure taken by the Council is requiring registered multiplexes to issue tax invoice. Accordingly, the electronic ticket issued by them would be deemed a tax invoice.
In order to ease the compliance burden, the GST Council took a slew of measures including a decision to allow Aadhaar number for GST registration. Further, it extended due date for annual return for financial year 2017-2018 by two months to August 31, 2019.
The Council, meeting for the first time after Modi government came back to power for its second term, also introduced a single return for all businesses to be rolled from January 1, 2020.
"This would indeed ease compliance," industry body Ficci said.
In order to give ample opportunity to taxpayers as well as the system to adapt, the new return system for trade and businesses would be introduced in phased manner.
Accordingly, Form GST ANX-1 would be made compulsory from October 2019 onwards. While large taxpayers (having aggregate turnover of more than Rs 5 crore in previous year) would file Form GST ANX-1 on monthly basis, small taxpayers would file their first Form GST ANX-1 for the October-December quarter of this year in January 2020.
"For October and November 2019, large taxpayers would continue to file Form GSTR-3B on monthly basis and will file first FormGST RET-01 for December 2019 in January 2020. It may be noted that invoices etc. can be uploaded in Form GST ANX-1 on a continuous basis both by large and small taxpayers from October 2019 onwards," the Finance Ministry said.