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GST Invoicing Norms for Retailers Eased Retailers need not issue separate invoices for exempted items, can club all purchases in one bill Retailers won't have to issue long invoices detailing prices and taxes for each item under the goods and services tax (GST) regime, further easing the billing and compliance burden on them. They will also not have to issue separate invoices for exempted items taxed at the 0% rate and can club all purchases in one bill. The GST Council has approved these changes based on the recommendations of the law committee set up to review demands by stakeholders. The two changes will make invoicing and filing easier for retailers. They can issue invoices clubbing all goods taxed at one rate and mention just the total tax, facilitating smaller and less cumbersome invoices. Under the earlier arrangement, all items had to be mentioned separately along with their prices and taxes. Retailers had argued that the end-customer is concerned with the net sal

Govt Plans to Set Rules for Food Exports Packaging Regulations to be in sync with those in developed markets such as US and EU The government is working towards new packaging norms for export of food items to address concerns over food safety and health standards even as some Indian food products face rejection in developed markets.The ministry of commerce and industry has constituted a standing committee to formulate packaging standards for export of 500 products including fresh fruits and vegetables, spices, tea, and coffee. The regulations will be in sync with those of developed markets such as the US, Vietnam, the European Union, and Japan, said an official from the ministry.“A large amount of contamination can happen during transit if the packaging is not done properly,“ said the official. “The government is keen to promote exports of fresh and processed food products and is hoping that these regulations will help in increased business for exporters,“ the person sa id on c

EPFO to consider crediting ETF units to PF accounts Retirement fund body EPFO is likely to consider next month a proposal to credit subscribers' share of its ETF investments to their provident fund accounts which can be redeemed at the time of withdrawal."Employees Provident Fund Organisation's (EPFO) apex decision making body the Central Board of Trustee (CBT) headed by Labour Minister Santosh Gangwar will meet in November. They are likely to consider the proposal to credit ETF investments to members' accounts," a Labour Ministry official told . The official said that the issue was listed on the agenda of the CBT meeting held earlier this year and was referred to the Comptroller and Auditor General (CAG) .The official said that the CAG had agreed to the proposal in principal but sought few clarifications.As per estimates, EPFO's investment in ETFs is expected to touch Rs 45,000 crore by the end of the current fiscal. EPFO had started investing in Exch

SEBI likely to tighten listing norms To crack down on shell companies, regulator may raise the bar on financial record, trading volumes Capital market regulator SEBI is likely to propose the tightening of listing criteria on the stock exchanges, at its upcoming board meeting on September 18.The proposal may apply to the main board of stock exchanges as well as the small and medium enterprises (SME) segment, sources close to the development told BusinessLine. The move follows the recent action by the SEBI to suspend trading in 331 entities on the ground that they were shell companies. Listing criteria is the minimum threshold that companies should follow in terms of financial record and trading volumes to be listed on the bourses. SEBI intends to now raise the threshold to prevent shell companies from getting listed. “The thinking within SEBI is to ensure a tighter regime against shell companies that gain entry to stock markets and become a vehicle for money laundering and tax e

Government, SC in favour of ethics body for legal profession The Indian government and the Supreme Court are in favour of setting up an independent body to regulate ethics in the legal profession, the absence of which has prevented the country from improving its global position in the enforcement of business contracts.In an endeavour to usher in major reforms in the legal profession, the Centre and country’s highest court have also suggested the need to regulate professional fees. “Regulatory framework of the legal profession  needs a review. There is need to regulate professional fee and ethics which can be done by an independent body instead of elected body of the Bar,” according to the minutes of the meeting that ET exclusively accessed. The meeting was attended by the top brass of the Prime Minister’s Office and secretaries from the ministries of finance, revenue and law and Niti Aayog Demonstrating how the lack of a regulatory mechanism is adversely affecting the country’s

Banks to now match original IDs with photocopies The government has made it mandatory for banks and financial institutions to check the original identification documents of individuals dealing in cash above the prescribed threshold, to weed out the use of forged or fake copies.The department of revenue in the finance ministry has issued a notification making an amendment to the Prevention of Money-laundering (Maintenance of Records) Rules. The new rule requires the reporting entity to compare “the copy of officially valid (identification) document so produced by the client with the original and recording the same on the copy”.The Prevention of Money Laundering Act (PMLA) forms the core of the legal framework put in place by India to combat money laundering and generation of black money. PMLA and its rules impose obligation on reporting entities like banks, financial institutions and intermediaries to verify identity of clients, maintain records and furnish information to Financ

GST Valuation rules under GST could lead to transfer pricing disputes As companies focus on the country’s biggest indirect tax reform — Goods and Services Tax (GST) — an old ghost of transfer pricing (TP) may come to haunt them in the coming years, warn tax experts.Transfer price is basically a price charged by a subsidiary or a division of a company to another. The rules suggest that there has to be an ‘arm’s length’ while fixing this price so that it’s not too low or too high than the existing open market prices. Tax officers can question and demand tax in case they suspect that companies are escaping taxes. Unlike the earlier tax regime, GST has something called an open market pricing for related party transactions. Many tax experts feel that currently, the valuation rules under GST and those for calculating transfer pricing are not harmonised, and this could lead to future tax demands.Due to open market pricing for the related party transactions, goods and services, whether c