Govt finds GST evasion of Rs 40,000 cr in over a year through bogus invoicing: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As part of the All-India Enforcement Drive, the Central Board of Indirect Taxes and Customs (CBIC) has unearthed goods and services tax (GST) evasion of Rs 40,000 crore in over a year through bogus invoicing and false input tax credit claims.

The CBIC had conducted the initiative through the Directorate General of GST Intelligence (DGGI) and other GST units from November 9, 2020. “More than 5,700 cases, involving an amount of about Rs 40,000 crore, have been detected,” The Economic Times reported, quoting a senior government official.

Also read: GST Council meet highlights: Decision taken to defer correction of inverted duties only in case of textiles, says FM

The government has introduced some key changes in the GST regime that will come into effect from January 1.

One of the key changes includes availing input tax credit after matching invoices. The GST system will now calculate input tax credit for each assessee based on returns filed by their supplier. The measures are aimed at tackling fraud, ensuring a better payment discipline, plugging loopholes in the system and protecting the customer.

At present, similar rules in the legislation are not being taken seriously by taxpayers on technical grounds, BusinessLine quoted Rajat Mohan of AMRG & Associates, as saying. As a result, non-compliance is being litigated in several high courts, he said.

Also read: Explained: Crucial GST changes coming in from January 1

However, the government is also taking steps to ensure that these were not in conflict with its ease of doing business initiative, the official said.

The new rules will not impact the ease of doing business initiative, say officials. “Most of these changes are aimed at plugging the misuse of input credit and are in the right direction,” ET quoted Pratik Jain, Partner at Price Waterhouse & Co, as saying.

Large companies have implemented the system already and others will soon follow. However, a high volume of transactions will require the use of robust technology solutions, he said.

Also read: Importance of tax compliance for startups

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How to handle finances for holidays?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Given the COVID-19 fatigue resulting from the restrictions of the past 18-20 months on normal, coupled with a declining trend of cases and rapid pace of vaccination in recent times, most people are eager to make the most of the upcoming holiday and travel season.

With the easing of restrictions imposed earlier on travel and hospitality sector, both domestic and international travel is set to resume. And the holiday season means that the spending season is on too! Time to consider a few aspects so that it does not a burn a big hole in the pocket, one that takes a long while to mend!

To avoid the stress, creating and adhering to a budget is the first important decision to make. Not only will a vacation budget plan help lessen your pressure, but also hold you back from overspending and potentially piling up debt this holiday season.

Learn how to begin budgeting for a holiday in order to enjoy it to the hilt and also keep the guilt away:

Start making the list of vacation expenses

It starts with a list. Start by making a list of all of your expected holiday expenses. In addition to the gifts for friends and loved ones, consider food, stay, local transport, visa (if required), travel insurance, among other things.

Tip: Now is a good time to start stashing extra cash so you can be ready for the additional spending, either in a saving or current account with a bank that offers the best interest rates.

Decide on your spending limit

Since you know where your money is going, decide the amount you will have access to, in order to cover the vacation expenses. Thoroughly work on your budget and choose how much funds you have to spend. Ensure that you use only the money that you have set aside in your spending plan.

Tip: Choose a credit card with minimum Interest charges and repayment terms in addition to competitive cash-back program that earns you additional money on your spending.

Track your Purchases

When the holiday season begins, keep track of all the spends. Carry your gift list along with your budget sheet on each shopping trip. Moreover, be sure to keep track of the cost of your vacation-related trips and other spends. Tracking spends is the key to adhering to your budget.

Tip: Liquid funds are a great option as it allows you to withdraw money without any exit load or penalty. At the same time, it offers bank FD-like returns.

How you spend and save for the holiday season will depend on the personality you choose to be – impulsive or thoughtful. However, if you plan ahead, chances are you will make a conscious decision and reduce the financial impact of the holiday on your annual budget.

Underneath are a few other ways to cut back on spending during the holiday season:

Take advantage of sales: The pre-holiday sales that numerous retailers offer is a great way to get ahead on your shopping and save some cash. Reviewing your list and the deals ahead of time can help you maximize your savings.

Start saving early: If you put aside money each month to cover your holiday expenses at the very start of the year, you will stress a lot less about your holiday spending when the time comes. Review the previous year’s budget to see how much you spent, then divide that number by 12.

This is how much you need to put aside each month in order to cover the next year’s holiday spending:

You can start by investing a fixed component every month in a Recurring Deposit with lucrative interest rates offered by select banks

Mutual Fund SIP is another alternative that offers flexibility and high returns to suit individual needs. You can enjoy a stress-free vacation if you have planned your finances well in advance.

Conclusion: Due to Covid-19 pandemic, most of us encountered mental weariness. Now, we have learnt to make pandemic protocols and safety measures a part of our lives. Given the experience, we are likely to keep up the discipline without throwing caution to the wind. Just like Covid-norms, a few financial norms can protect our financial well-being while we make the most of this holiday season!

So, stay on course, start planning and have a happy Holiday!

The author, Ashish Misra is COO, Retail Banking at Fincare Small Finance Bank. The views expressed are personal

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

New Year in Mumbai: All about the 5 pm to 5 am COVID-19 curbs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hours before the New Year’s Eve festivities, Mumbai Police issued an order extending Section 144 of the Code of Criminal Procedure (CrPC) in the city till January 15. The order bans people from visiting open spaces like grounds, beaches, sea faces, promenades, parks, public places or gardens between 5 pm and 5 am during this period in view of the rising number of Omicron cases.

Also read: COVID-19 latest updates: Omicron has started replacing Delta variant in India; tally rises to 1,270

The order came into effect from 1 pm December 31 and will continue till January 15, Deputy Commissioner of Police (Operations) S. Chaitanya said in a notification. Any gathering of five or more people is banned under Section 144 of the CrPC. Here’s all you have to know about the 5 pm to 5 am curbs and other restrictions in Mumbai.

• Mumbai Police had earlier imposed Section 144 from December 30 to January 7. It has now been extended till January 15.
• A maximum number of 50 people can attend marriages, whether in an enclosed space or open area.
• Only 20 people will be allowed to attend funerals.
• All other existing curbs already in place shall continue to be in force till further orders.

Also read: People with no travel history infected with Omicron, it means it’s spreading in community: Delhi health minister

• On December 30, the Maharashtra government issued fresh guidelines capping the attendance in open or closed gatherings at 50.
• The Brihanmumbai Municipal Corporation (BMC) has also imposed similar prohibitions for New Year celebrations in bars, clubs, restaurants, hotels, pubs and resorts from December 30 to January 7.
• Those breaking the law will face punishment under Section 188 of the IPC and the Epidemic Diseases Act and the National Disaster Management Act, the DCP said in the order.

On December 30, Mumbai saw a 46 percent jump in COVID-19 cases at 3,671 new infections, including 190 Omicron cases.

Also read: Post-Omicron: As virus changes, so does world’s response to COVID-19

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

2021: Nifty rallies 24%, best year for investors since 2017; IT stays in high demand, metals shine

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As Dalal Street heads into the New Year,  2021 emerged the best year for Indian shares in four years. Benchmark indices Sensex and Nifty50 rallied 22 percent and 24 percent respectively in the Calendar Year 2021 — their best annual returns since 2017. All sectors finished the year in the green — the first such instance in at least the past five years.

In Calendar 2021, the 30-scrip index added 10,642.8 points and the broader Nifty50 gauge gained 3,414.6 points.

Broader markets also rewarded investors with significant gains. The Nifty Midcap 100 index galloped 46.1 percent and its smallcap counterpart 59.3 percent.

Here are some areas that stayed on investors’ radar in the year gone by:

• Resurgence of COVID-19; emergence of Omicron
• Economic recovery hopes
• Sustained foreign fund outflows
• Fears of overheating valuations
• A slew of IPOs (Check out the biggest D-Street debutants of 2021)
• Inflation concerns; rising input costs
• Monetary policy normalisation
• Fears of Evergrande spillover

“After a super show in 2021, valuation levels in Indian equities could make most people cautious on India within emerging markets and Asia. Indian equities are running into many challenges, including the US rate cycle, rising oil prices, elections in key states, a potential third wave of COVID, upward inflexion in domestic interest rates, rich headline valuations and strong relative trailing performance,” said Dhiraj Relli, MD and CEO at HDFC Securities.

“The Indian market still has potential to positively surprise, as the macro construct and earnings remain largely supportive,” he added.

IT remained a major theme on Dalal Street for the second year of the pandemic. The Nifty IT index surged 59.6 percent, after roaring 54.9 percent in 2020.

Pharma and healthcare, however, stepped back in 2021. The Nifty Pharma and Healthcare indices finished the year with gains of 10.1 percent and and 18.3 percent respectively. In 2020, a sudden spike in demand for healthcare, thanks to the pandemic, had sent the Nifty Pharma soaring 60.6 percent and the Nifty Healthcare 56.5 percent.

The biggest sectoral gainer on NSE was the Nifty Metal, up 69.7 percent. Among other top sectoral gainers were the Nifty Metal (up 69.7 percent), the Nifty Realty (up 54.3 percent) and Nifty Consumer Durables (up 46.1 percent).

Wealth creators & destroyers of 2021

As many as 42 stocks in the Nifty50 universe finished the year with gains, a list led by Tata Motors, Hindalco, Wipro, Bajaj Finserv and Tech Mahindra — rising between 84 percent and 162.4 percent.

Hero MotoCorp was the worst hit among the eight laggards in the 50-scrip pack.

Nearly 400 stocks in the BSE 500 — the broadest index on the bourse — clocked gains for 2021. Among the top gainers were Tata Teleservices, Magma Fincorp, Trident, Adani Gas, JSW Energy, Tata Power, IRCTC, KPIT Tech and Gateway Distripark. (Biggest wealth creators of 2021)

On the other hand, Ujjivan Small Finance Bank, Strides Pharma, Ircon, RBL Bank, Spandana Sphoorty, Bandhan Bank and Yes Bank were among the laggards. (Biggest losers of 2021)

Here’s how the main indices fared in the year gone by:

What next?

Naveen Kulkarni, Chief Investment Officer at Axis Securities, expects 2022 to be “a little more volatile but still very good for equity investors in India”.

“2022 is very likely to be another year of good double-digit returns and continued wealth creation. Auto, banking and capital goods will be the most interesting sectors for 2022,” he said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ITR filing: No extension of Dec 31 deadline, says Centre

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The central government on Friday ruled out the possibility of extending the deadline to file income tax returns (ITRs) beyond December 31, 2021. Revenue Secretary Tarun Bajaj said the deadline stands.

In case a taxpayer misses the deadline, they still have the chance of filing their ITR by March 31, 2022, but with a penalty.

According to the Income Tax (I-T) department, a belated income tax return attracts a late filing fee under Section 234F of the Income Tax Act. The amount of penalty payable by the assessees filing a late return increases based on the degree of delay.

The penalty for filing ITR after the due date is up to Rs 5,000.

Those who have an annual income of Rs 5 lakh, however, are required to pay Rs 1,000 for filing ITR after the due date.

In case an assessee doesn’t file ITR at all, he/she will not be able to carry forward the losses of the current assessment year. A penalty may also be levied which is a minimum of 50 percent of the assessed tax or a maximum of 200 percent of the assessed tax. The assessee may have to face prosecution also (i.e. rigorous imprisonment for a term up to 7 years and fine), in extreme and high-value cases.

A person can claim the refund of the excess tax paid/deducted during a financial year by filing an ITR for that year. Also, ITR can be used as proof of income and address.

Generally, taxpayers are required to file ITR by July 31 of any year (unless extended by the government). This year, the Central Board of Direct Taxes (CBDT) had extended the last date for filing ITR to December 31 in view of the coronavirus pandemic.

Revenue Secretary Bajaj said returns filed so far are more than those filed in the previous year.

Over 5.36 crore income tax returns for the 2020-21 fiscal have been filed so far, with about 27 lakh filed on Thursday alone, as the compliance deadline neared, the I-T department said.

Apart from filing ITRs, taxpayers were required to complete four other tasks by the last day of the year — Employees Provident Fund (EPF) account holders must add a nominee, failing which employees will lose on several benefits  as only nominated members can withdraw the EPF savings in the event of a subscriber’s sudden demise; government retirees must submit their annual life certificate, also known as Jeevan Pramaan Patra, which is critical to continue receiving their pension; the EPFO has made it mandatory to link Aadhaar number with EPF account; and the demat and trading accounts lacking an updated KYC (know-your-customer) will be deactivated if not done by December 31, 2021.

With PTI inputs

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ujjivan Small Finance Bank raises interest rates on fixed deposit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ujjivan Small Finance Bank has raised interest rates on fixed deposit and will now be offering interest rate at 7.5 percent for senior citizens.

It has announced an additional 75 basis points for senior citizens across all tenures. For 990 days tenure, the interest rate will now be as high as 7.50 percent, while for 19 months 1 day tenure, the bank will now offer 7.35 percent, the bank said.

For the general citizen, for 990 days tenure, the interest rate has been increased to 6.75 percent while for the 19 months 1 day months tenure, the bank will now offer an interest rate of 6.60 percent.

Here’s a comparison of old and revised interest rates; for fixed deposits (NRE, Domestic and NRO) below Rs 2 crore for 990 day tenure:

As the table suggests, a senior citizen investing Rs 1,00,000 for 990 days at 7.5 percent can earn returns up to Rs 1,22,314 at maturity. For general citizen investing Rs 1,00,000 for 990 days at 6.75 percent can earn up to Rs 1,19,895, the lender said.

Ujjivan SFB allows monthly, quarterly, half-yearly, annually, and at maturity interest pay-out options. It also offers premature closure and partial withdrawal facility, with applicable charges.

The above interest rates are applicable on tax saver fixed deposits too. However, they carry a lock-in period of five years.

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Kerala Lottery result December 31, 2021: Winner gets Rs 70 lakh

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Kerala State Lottery Department released the list of winners for the Kerala Lottery Nirmal NR-257. The state’s Lottery Department was the first one to be set up in India and now organises seven weekly lotteries and six bumper lotteries every year. The Nirmal NR-257 results are announced online as well. The winners of December 31 will receive a prize of Rs 70 lakh.

Kerala Lottery results for December 31, announced as of yet are:

1st Prize (Rs 80 lakh) Winning Ticket: NN 608798

2nd Prize (Rs 10 lakh) Winning Ticket: NV 705061

3rd Prize (Rs 1 lakh) Winning Tickets:

NN 257784   NO 415004

NP 640331   NR 358722

NS 366702   NT 550616

NU 217589   NV 773094

NW 476931  NX 100957

NY 825081   NZ 382042

Consolation Prize (Rs 8,000) Winning Tickets:

NO 608798  NP 608798

NR 608798  NS 608798

NT 608798  NU 608798

NV 608798  NW 608798

NX 608798  NY 608798

NZ 608798

4th Prize (Rs 5,000) Winning Tickets:

0372  0949

1267  1393

1469  1831

2126  2325

2381  2581

2739  2762

3783  5487

5630  5990

9184  9854

5th Prize (Rs 1,000) Winning Tickets:

0163  0816  1193

1205  1263  1293

1354  1383  1642

1810  2067  2241

2401  2418  3141

4134  5036  5347

5776  6301  6333

6342  6377  6765

6942  7002  7312

7321  7402  8050

8158  8821  8845

9154  9195  9290

6th Prize (Rs 500) Winning Tickets:

0235  0319  0609  0708

0727  0874  0961  1112

1155  1629  1657  1732

1901  2129  2206  2344

2537  2731  2791  3234

3239  3311  3349  3409

3415  3864  4053  4111

4214  4223  4315  4316

4542  4670  5001  5017

5021  5085  5189  5442

5618  5900  6013  6054

6107  6393  6596  7122

7199  7279  7346  7432

7654  7657  7659  7731

7969  8003  8004  8013

8025  8257  8404  8507

8710  8884  8965  8983

9005  9135  9152  9213

9233  9421  9431  9468

9522  9539  9936

7th Prize (Rs 100) Winning Tickets:

3185  7918  1410  5927

8484  3468  4566  1422

2826  3336  7603  0586

0374  9019  8301  7417

6178  7433  9021  0862

2512  4558  7741  3476

6127  1010  5229  6859

3713  1856  8442  5327

0257  3124  7413  8621

3920  5863  3515  4942

6683  9736  6017  7644

7006  6785  1750  8062

6544  1148  8218  3080

7811  6325  3854  7109

2931  3674  7219  0466

8690  7480  2379  8400

3180  0379  2072  0178

9101  6755  0121  6269

7425  3023  4307  3287

8069  1249  7038  5851

2121  9899  2790  5145

1096  3031  5782  4172

7237  0562  5109  3361

8600  5964  5519  4679

7023  6210  6993  6516

3624  7996  8382  1324

8975  2703

How to claim the prize 

Winners of prizes have to confirm the number of the winning tickets in the state gazette which will publish Kerala lottery results. Once their winning tickets are confirmed against the published results, holders of the tickets are to report to the Kerala lottery office in the state capital within 30 days. Ticket holders are to carry identity proof as well as the winning ticket.

For ticket holders who win Rs 5,000 or less, prize money can be claimed from any lottery shop in Kerala after the verification is done. Ticket holders who win above Rs 5,000 will have to surrender their tickets before the bank or government lottery office with their identification proofs for the claim.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nirmala Sitharaman denies BJP link with Kannauj perfume maker, says tax raids based on actionable intelligence

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Union finance minister Nirmala Sitharaman on Friday said law enforcing agencies act on actionable intelligence in conducting income tax raids and denied that Rs 200 crore cash recovered from perfume maker Peeyush Jain is not BJP money.

This comes after the Income Tax Department raided multiple premises linked to perfume traders including SP MLC Pushpraj Jain who had launched ‘Samajwadi ittra’ or perfume last month, in Kannauj.

“It is not BJP money,” she said when asked about opposition charge that the Rs 197.49 crore cash recovered from perfume maker Peeyush Jain in UP’s Kannauj was her party’s money and the tax authorities had raided the person by mistake and are now raiding the other Jain they had originally wanted to target.

Also Read: GST Council decides to defer rate hike on textiles from 5% to 12%

Speaking to reporters after the GST Council meeting, Sitharaman said the former chief minister Akhilesh Yadav is “shaken” by the raids, as she sought to defend the action. “How do you know whose money is it? Are you his partner? Because only partners know whose money is kept,” she said.

Dismissing opposition charge that the raids were politically motivated, she asked if the raiding parties come empty-handed, “Recovery of money shows there was actionable intelligence. The raids happening on Friday too were based on such inputs.”

In multiple raids by the Income Tax Department and the Central Board of Indirect Taxes and Customs against perfume trader Peeyush Jain, around Rs 257 crore in cash, 25 kg of gold and 250 kg of silver were seized from his house in Kanpur as well as from his house and factory in Kannauj. The union finance ministry on Monday said it was the “biggest ever seizure of cash” by an enforcement agency.

Also Read: Steel PLI to draw Rs 40,000 crore in investments, generate 5.25 lakh jobs: Ministry

BJP leaders have sought to link the perfume trader with the SP claiming he had launched the ‘Samajwadi Attar (perfume)’ with Yadav’s support recently. However, Samajwadi Party president Akhilesh Yadav on Tuesday categorically denied any links between his party and Peeyush Jain, and mockingly said the BJP got “its own businessman” raided “by mistake”.

He also claimed that ‘Samajwadi Attar’ was launched by SP MLC Pushpraj Jain. “BJP got its own businessman raided. Instead of SP leader Pushpraj Jain, it got Peeyush Jain raided,” Yadav told reporters in Unnao.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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ICRA upgrades telecom industry outlook to ‘stable’ amid tariff hike, relief measures

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The telecom tariff hike and the recent relief package offer sufficient headroom for the industry to undertake deleveraging and fund Capex for 5G tech upgrade, ICRA said on Wednesday, revising the outlook on the telecom services sector to ‘stable’ from ‘negative.’ The hike coupled with consistent up-gradation of subscribers to 4G from 2G and increase in usage of telephony services is expected to result in improvement in industry ARPU (average revenue per user) to around Rs 170 by the end of FY2023, it said.

“…ICRA has revised its outlook on the telecom services industry to stable from negative,” according to a statement. The telecom industry has implemented the long-awaited tariff hikes, which have the potential to improve the industry ARPU levels to around Rs 170 by the end of FY2023, according to ICRA.

“This will result in increased profit generation, which coupled with the relief package announced by the government, provides enough headroom for the industry to undertake deleveraging as well as fund capex (capital expenditure) for the technology upgrade to 5G,” ICRA said.

Sabyasachi Majumdar, senior vice-president and group head (corporate ratings) of ICRA Ltd, said the latest round of tariff hikes where telcos increased the prepaid tariffs by around 20 percent would provide much-needed traction in the ARPU levels.

“We expect the industry revenues to grow by 18-20 percent in FY2023, followed by a growth of 10-12 percent in FY2024, which given the high operating leverage, is likely to translate in healthy expansion in operating profits, the same are projected to grow by around 30 percent in FY2023,” it said. As per ICRA’s calculations, the moratorium on dues, announced as part of the relief package, provides an annual cash flow breather of about Rs 40,000 crore for the industry till FY2025.

The telcos’ bank guarantee (BG) requirement has also been slashed. The Department of Telecommunications has started returning the BGs to the telcos, noting this improves the sector’s financial flexibility. “While the moratorium on the dues would impact the non-tax receipts of the government from the telecom sector, two telcos have prepaid their dues towards earlier spectrum auctions totalling to Rs 26,300 crore thereby making up for the loss to the government,” it said.

For FY2022, the telecom sector is expected to contribute around Rs 54,000 crore to the government’s non-tax receipts which will be close to the budgeted estimate for the fiscal, it estimated. Debt, however, continues to remain the “Achilles’ heel” of the industry, it warned.

ICRA expects industry debt levels to remain at around Rs 4.7 lakh crore as of March 31, 2022, before moderating to Rs 4.5 lakh crore as of March 31, 2023. “Telcos have been focusing on deleveraging. Bharti Airtel recently concluded its rights issue of Rs 21,000 crore and collected 25 percent as upfront payment, while Vodafone Idea is also scouting for a fundraiser,” ICRA said in a statement.

Ankit Jain, assistant vice-president and sector head at ICRA Ltd, said that while there has been an improvement in operating metrics of the industry, the next phase of growth will be driven by the non-telco businesses, including enterprise business, cloud services, digital services and fixed broadband services.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow