GJ Town India

GST on reform spree! Further reforms of GST in current fiscal (2019-20) has an edge & some focussed advantages, 1: Simplified Tax Structure:   Reduction in cascading effect of taxes, transparent and has harmonisation of laws and procedures.  2: Easy Compliance: compliance burden has come down with one pan-India tax replacing multiple taxes and automated processes.   3: Promoting Trade and Industry:   Seamless flow of tax credit. 4: Spurring Economic Growth: Creation of unified common national market. Some developments during the GST journey since 2017:   1: Subsuming of taxes: It was new experience of subsuming 17 different types of taxes under GST. Pre – GST, Trade & Industry had to undergo compliances under Central Excise, Service Tax & VAT and doing business in multiple states involved adhering to different VAT laws, compliance through different portals and answering to different authorities, all that has been unified int...

Timely Availability of Export Credit is Key to India’s Export Growth: Piyush Goyal Union Minister of Commerce and Industry & Railways, Piyush Goyal, is holding a meeting in New Delhi on issues related to export credit with representatives of exporters’ organisations like FIEO, Gem and Jewellery Export Promotion Council (GJEPC), representatives of exporters’ organizations, Finance Ministry officials and heads of financial institutions. Ministers of State for Commerce and Industry, Hardeep Singh Puri and Som Parkash, Commerce Secretary, Anup Wadhawan, Secretary MSME, Dr. Arun Kumar Panda, Director General of Foreign Trade, Alok Vardhan Chaturvedi and senior officials of the Department of Commerce are also attending the daylong meeting. Timely and efficient availability of export credit is critical for any trade activity and is one of the key drivers that boost growth of export. This was stated by Commerce Minister in his opening address. The time has come when we s...

Export Credit extended by Scheduled Commercial Banks has continued to reflect a steady increase. As per data compiled by the Reserve Bank of India (RBI), the Export Credit – Balance Outstanding in respect of all Scheduled Commercial Banks at the end of financial year 2016-17 & 2017-18 stood at Rs. 2,43,505 Crore and Rs. 2,43,890 Crore respectively. It declined marginally by 0.56% to Rs. 2,42,523 Crore in the First Quarter of Current Financial Year before registering an increase of 4.59% to Rs. 2,53,676 Crore in Second Quarter ending Sept. 30th, 2018. Federation of Indian Export Organisation (FIEO) has urged the Government to increase the flow of credit to Micro, Small & Medium Enterprise (MSME) exporters. Government has taken various steps in this regard. These, inter-alia, include raising interest equalization rate under Interest Equalisation Scheme (IES) from 3% to 5% for MSME exports. That including Merchant exporters under IES for Pre and Post Shipment Rupe...

New Governor will  act as an effective bridge Welcoming the appointment of Mr Shaktikanta Das as the new RBI Governor, Mr Ganesh Gupta, President, FIEO said that his previous exposure as Revenue and Economic Affairs Secretary would come very handy in dealing with vexatious economic issues confronting the country. Mr Gupta said that the new Governor will act as an effective bridge between the Government and the Central Bank so as to give necessary boost to the Indian economy. Mr Das would be able to address the concern of the states having worked in the Finance Commission. FIEO Chief hoped that the new Governor will ensure flow of credit to exports sector, which is declining sharply on year-on-year basis affecting the liquidity of exporters particularly the MSMEs. While exchange rate is market driven, Mr Gupta propagated for RBI intervention to stem extreme volatility in Rupee as it is neither beneficial for exporters nor importers. A movement of Rupee in...

They are focusing to attain higher double-digit growth The issue needs urgent attention of the government FIEO President, Mr Ganesh Kumar Gupta has said that the bank credit issue of exporters are yet to be resolved.  PSU Banks officials including MDs, EDs, GMs, AGMs are not accessible to exporters particularly from the MSME sector. This has tightened the hands of these exporters to take orders. Exporters are not able to discuss issues and challenges with regard to availability and cost of credit to the exports sector. Commerce Minister, Mr Suresh Prabhu, who is taking several steps to promote exports would not fructify if banks would not lend to exporters smoothly and at affordable rates. On one hand, the government is pushing digital India initiative and paperless transactions, these banks demand bundles of documents, collateral and other papers for considering our applications for smaller limit (Rs one to five crores) of loan. It takes months and...