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GST And ‘Make In India’: A Win-Win For The Entire Nation

Existing economic initiatives, such as “Make in India”, are getting a boost from the new tax regime, at least for the most part More than eight months have passed since the introduction of India’s Goods and Services Tax (GST), are form intended to revamp the entire taxation system and stimulate economic growth. What’s more, existing economic initiatives, such as “Make in India”, are getting a boost from the new tax regime, at least for the most part. What exactly is the “Make in India” initiative? Prime Minister Narendra Modi launched “Make in India” on Sept. 25, 2014, with the primary goal of making India a global manufacturing hub by encouraging both multinational and domestic companies to design and manufacture products within the country. The initiative takes aim at increasing producti...

Talent acquisition and retention challenges faced by IT Start-ups & SMEs in India

Talent acquisition and retention challenges faced by IT Start-ups & SMEs in India It seems to be an Inverted Pyramid in case of Talent Acquisition and Retention Tier I&II – There is a huge race in campus hiring where all BIG and well-funded IT companies are attracting bright students by offering them competitive salaries and BRAND NAME. Few caliber students with good soft-skills and technical skills get into decent established mid-size companies with decent pay.   Start-ups and Small-Mid-size Companies (Tier III) Here is a quick peek at the burning issue. Very few individuals or IT graduates are interested in working with Start-ups and Small-Midsized companies because of the low salaries offered as compared with the well-established companies. Most of the prospective candidat...

Impact of Goods and Services Tax (GST) on the Indian Economy

The nation was trapped in the net of indirect taxes as well as the archaic taxation system and the economy needed a push for a simple, flat tax structure that would simplify the complicated tax policy. As the new taxation reform GST was introduced with the slogan of one tax one nation, economists hoped that it would iron out the wrinkles in the existing tax system. While on one, the rollout of new tax reforms has renewed the hope of the nation’s fiscal reform program, eliminate the cascading effect of taxes and widening the economy, there are fears of slowing down the economy, disruptions, and shutting down of businesses on the other. Still, there are some big questions – Would the hopes of tax stability triumph over uncertainty? Will the government be successful in making GST a good...

Why a cloud-based system is the answer to all of India’s GST woes

The Goods and Services Tax (GST) was introduced over a year ago in India, and since then there has been a magnitude of changes that have revamped our entire taxation system. In a recently released statement, the World Bank said, ‘the Indian GST system is among the most complex in the world’. The Goods and Services Tax (GST) was introduced over a year ago in India, and since then there has been a magnitude of changes that have revamped our entire taxation system. In a recently released statement, the World Bank said, ‘the Indian GST system is among the most complex in the world’. What makes our GST system so complex? Firstly, the tax rates of Indian GST are among the highest in the world. The highest GST slab of 28% is the second highest rate in the world. What makes it even more complex is...

What is Blocking/Unblocking of E-Way Bill Generation Facility?

The CBIC has introduced an important change with the e-way bill generation system to crack down on GST non-filers and evaders. The advisory came into effect from 2nd December 2019 as the blocking and unblocking of the e-way bill generation facility has been implemented on the e-way bill portal. Now the e-way bill generation would be barred for taxpayers who haven’t filed their returns or not paid taxes for the previous two consecutive months. What does it mean by blocking and unblocking of E-waybill generation? In simple terms, blocking of e-waybill generation means to not allow the taxpayer to generate an e-way bill if the taxpayers have not filed GSTR-3B at least for the latest two successive months or quarters accordingly. Or it can be said that the blocked GSTIN is not allowed to gener...

Demystifying E-Invoicing: The Game-Changing Mechanism under GST

It hasn’t been very long since e-way bills changed the way business was conducted in India and already another game changer is making its way through the tax reform pipeline. Come January 2020 and e-invoicing will be introduced to taxpayers. This will impact all business entities in the long run and change the way business reporting is done today. This whitepaper outlines the game-changing mechanism of e-invoicing under GST. Let us find out what is an e-invoice E-invoice is the reporting of transactions on an immediate basis and having such information available in a common or standardized format. Its objectives are to avoid tax fraud, maintain a standard readable format across offices and various software and finally easy flow of data to returns & e-way bills.  As against the common b...

How GST transformed the Indian economy?

Impact of the Goods and Services Tax in first one year The 14 year-long journey of the Goods and Services Tax finally culminated on the July 1 2017, with the implementation of what was touted to be the biggest tax reform for the country in 70 years of independence. While the central government was confident of launching the GST as a Good and Simple Tax, there were a lot of others who wanted to keep it away considering it as a half-baked GST regime over the taxpayers. The implementation of Goods and Service Tax (GST) has transformed the economy into a digital and standardized one, which in turn will now help seamless flow of information and availability of common set of data to both the Centre and the States making the Direct and Indirect Tax collections more effective. GST Revenue Drivers ...

How e-way bill will take GST on the digital highway

E-way bill system will play a pivotal role in making GST an effective weapon and strengthening its positive impact on the Indian economy. “One Nation, One Tax, One Market” seems well in reach for India now. When GST was launched at the stroke of midnight on July 1, 2017 in the central hall of Parliament, it was surrounded by chaos and confusion. Moreover, everyone was uncertain whether GST would prove to be a cornerstone in strengthening “ease of doing business” in India. However, keeping all uncertainties and chaos aside, GST has successfully entered the second year of implementation. Leniencies and relaxations have helped the taxpayers in getting accustomed to the GST provisions. After fixing the technical glitches and making people aware of the laws and rules, the government rolled out ...

E-way bill expected to usher in positive change

Numerous technical glitches held Centre back from implementing the e-way bill system as part of the new Goods and Services Tax (GST) last July. However, it soon became evident that not only would the entire country see economic improvements once the new system was in place, but that the success of the logistics industry depended on the efficient processing of documents that the system promised. In fact, during a trial run of the e-way bill mechanism in January, companies generated over two lakhs e-way bills daily, proof of how important document processing is in the GST era. An e-way bill is an electronic documentation detailing the movement of goods valued at Rs 50,000 or higher. Well, the good news is that the wait is over. The e-way bill requirement for goods transported interstate took...

Deduction Under Section 80C

Tax deductions allow taxpayers to cut down their tax liability. Tax deductions under Section 80C of the Income Tax Act, 1961 are the most preferable among different tax-saving schemes. A tax deduction of up to INR 1,50,000 is allowed to be claimed u/s 80C by an Individual or Hindu Undivided Family for making certain investments and payments. This deduction is subtracted from the gross total income to ascertain the total taxable income and hence it brings down the tax burden of the taxpayer. Deductions Under Section 80C Investments and payments allowed as deductions u/s 80C of the Income Tax Act, 1961 are as follows: Life Insurance Premium Section 80C allows individuals to claim premiums paid against as tax benefits available u/s 80C. This deduction is claimable for the premiums paid toward...