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Investors are willing to bear GST pain for long-term gains With introduction of the goods and services tax (GST) Bill round the corner, a levy that will have an impact on how the economy and corporate earnings shape up over the next few quarters, MAHESH NANDURKAR, executive director and India Strategist at CLSA,  What is your market outlook? One can easily expect around 10 per cent return from the markets over the next year. Though this might not appear very high in context of the over 20 per cent return we have seen in the last six months alone, one should not hope for a repeat of such super-normal returns. As we are in a relatively low-risk rate of return environment, we need to tone down our expectations as well. The current valuations will sustain and I don’t advise investors to sell just yet, though the market looks expensive. How will GST impact the economy and corporate earnings? The June quarter numbers will see an elevated impact. What...

Good Morning Everyone Have a Good Day to all of you 🌹 🌹 🌹 🌹 Daily Update 19-June-2017 Economic Times • Telecom may leave a hole in non-tax revenue kitty • E-retailers clearing up stocks via pre-GST sales • BMW India grows 8% in 2017, to invest Rs 125 crore • GA in talks to buy 74% stake in Karvy Computershare • Sebi may make acquisition of distressed assets stress-free • Over 50 global retailers to enter India in 6 mths, likely to open about 3,000 stores • Centre removes interstate supply charges on solar power projects till December 2019 Business Standard • In Brexit boost, Jaguar Land Rover to hire 5,000 staff • DoT asks FinMin to slash telecom revenue target by 40% • Big NPAs offer insolvency professionals a Rs 2,500-cr biz prospect • Bankers' meet from Monday to decide on 12 large defaulters RBI named • From Infosys to BAT: Firms wake up to flip side of social media Mint • GST rollout from 1 July, firms get extra time to file returns • M...

GST Updates 17th GST Council meeting concludes, affirms rollout of GST from midnight of June 30 & July 1 while approving 5 set of GST Rules out of 6 viz. Ant-profiteering, Advance Ruling, Appeal & Revision, Assessment and Funds Settlement Rules; An alternate Rule to operate on E-Way Bill till consolidated one is fixed; Hotel tariffs between Rs. 2000/- to Rs 7,500/- will attract 18% GST, whereas 28% GST rate will apply to hotel tariff above Rs. 7,500/-; 2 GST rates for lotteries viz. 28% for private & 12% on State authorized lotteries; Defers Returns filing due date for July & August to August 20 & September 20 respectively, introduces Form GSTR-3B for said two months to be filed on self-declaration basis reflecting supplies and output tax liability; GSTR-1 reflecting invoice wise outward supply details for July can be filed in the system by September 5, while that of August can be filed by September 20; New businesses would get 30 days to register under GST from J...

Clarity is required for assessees to take necessary steps — in terms of readying supporting documentation where credits can be transitioned, and also negotiating with counter parties on who will bear sunk costs where credits can’t be transitioned With the goods and services tax (GST) looming, one of the biggest challenges that businesses are grappling with is the transition of existing tax credits. Such credits, once transitioned, can be used to pay GST on outward supplies. Credits that cannot be transitioned become a sunk cost for businesses, given that outward supplies will attract GST at the prescribed rates, but at the same time, a corresponding credit will not be available for offset.   The GST law contemplates two broad scenarios in which credits can be carried forward. The first is a currently registered assessee under the central/state laws, who can transition 100 per cent of the credit shown in his returns.    The second is a currentl...

With the objective of ensuring smooth rollout of GST and taking into account the concerns expressed by the trade and industry regarding filing of the returns in GST regime, it has been decided that, for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month. However, the invoice-wise details in regular GSTR – 1 would have to be filed for the month of July and August, 2017 as per the timelines given below – Month GSTR – 3B GSTR - 1 GSTR – 2 (auto populated from GSTR-1) July, 2017 20 th  August 1 st  – 5 th  September* 6 th  – 10 th  September August, 2017 20 th  September 16 th  – 20 th September 21 st   – 25 th  September * Facility for uploading of outward supplies for July, 2017 will be available from 15th July, 2017. No late fees and penalty would be levied for...

Branded mid market and luxury hotels have a reason to cheer because the GST Council on Sunday relaxed the criteria for imposing the goods and services tax (GST) on hotel rooms. The Council decided that the 28 per cent GST would be imposed on hotel rooms with a tariff of Rs 7,500 above against the previous proposal of Rs 5,000 and above. Rooms with tariffs between Rs 2,500 and Rs 7,500 will attract 18 per cent.   The GST on restaurants in fivestar and luxury hotels has been reduced from 28 to 18 per cent, bringing it at par with standalone air-conditioned restaurants.   Food & beverages form 30-40 per cent revenue for fivestar hotels. Restaurants and bars at a number of hotels (located within 500 metres of highways) have been hit due to a Supreme Court ban on serving liquor.   “The revised GST on rooms and restaurants inside hotels is a favourable move as it reflects the ground realities better. Other than metro cities, most hotels in T...

Regulator Sebi plans to relax its norms for direct registration of foreign investors and also fasttrack the listing process for companies, including startups, as part of efforts to make the Indian stock market more attractive for domestic and overseas investments.The regulator is also looking to make the corporate governance norms more robust, including by encouraging greater say for independent directors and by making their removal from boards more inclusive in terms of shareholders´ approval.Another area of concern is “favouritism” and family connections in appointment of independent and non-executive directors.   Business Standard New Delhi, 19th june 2017

Amid doubts in some quarters over the tech preparedness for the goods and services tax (GST), the high-powered GST Council on Sunday decided to introduce the new  indirect tax system from the midnight of June 30-July 1, but gave a relaxed timetable and exemption from penalties and late fees to industry while filing returns in the first two months. However, some states expressed fears that the relaxation given on filing returns would lead to a revenue loss for them.   “We don’t have the luxury of time to defer the implementation of the GST... The official launch of the GST would take place on the midnight of June 30 and July 1,” Union Finance Minister Arun Jaitley told reporters after a five-and-a-half-hour meeting of the Council, whose chairman he is.   Revenue Secretary Hasmukh Adhia said the Centre was ready, but it was companies that wanted time to plug in. “GST Suvidha Providers and other software providers wanted 10-15 days’ time to test ...

The Securities and Exchange Board of India or Sebi is likely to relax rules to make it easier for a public shareholder to become the promoter of a company, and vice versa, two people with direct knowledge of the development said.  Both the processes impose onerous terms but the one to become a public shareholder from a promoter is some what tougher, they said, requesting anonymity.   According to the existing norms, if a public shareholder wants to become the promoter of a listed company he needs to buy at least 25% stake and offer to buy more from public shareholders. On the other hand, if a promoter wants to become a public shareholder, he is required to cut his shareholding to 10% or lower if another entity comes and takes over as a promoter along with a subsequent open offer and a shareholder approval.   If there is no takeover but the promoter decides to reclassify himself as a public shareholder to turn the company into a professionally ...