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This guideline will, however, help the system move towards invoice matching, which can check tax evasion
The new single-page return and the transition process approved by the GST Council in the May meeting is a step in the right direction as it tries to iron some of the difficulties faced by tax payers in the first few months, while trying to retain the basic objectives of GST – expansion of tax base and checking tax evasion.
That said, one of the provisions of this new return filing process that might not go down too well with tax payers is the withdrawal of the leeway provided to smaller companies to file quarterly returns.
The leeway
In the first few months after implementation of the GST, smaller companies faced greater difficulties in getting used to the tax filing on an IT platform. A lower level of computer literacy, lack of manpower and necessary infrastructure made it difficult for them to comply with the need to upload all the sales invoices every month in order to file the GSTR 1 returns. It was easier to get comfortable with GSTR 3B returns that are only summary returns and do not require uploading of invoices.
In order to provide some breathing space to smaller businesses, the GST Council, in its October 2017 meeting, asked taxpayers with turnover up to Rs 1.5 crore to file GSTR-1 on a quarterly basis. They were, however, required to file GSTR 3B on a monthly basis and receive input tax credit on a monthly basis.
With the need to upload invoices only once every quarter, the pressure on tiny businesses would have eased greatly. A look at the return filing numbers shows that about 40 per cent of regular tax-payers opted to file quarterly returns. While around 22 lakh GSTR1 return forms were filed in October and November 2017, the numbers increased to 55 lakh in December.
What’s changed
The new return and filing process announced last week lays down that all taxpayers, with the exception of composition dealers and dealers with nil tax, shall file one simplified monthly return, GSTR1. The return filing dates are sought to be staggered, depending upon the turnover of the registered person.
The transition is set to be in three stages – In stage 1, the present system of filing of return GSTR 3B and GSTR 1 is set to continue and this is expected to continue for not more than six months.
After six months, the new single-page GSTR1 will have to be uploaded monthly by the smaller businesses, with turnover less than Rs 1.5 crore too. All the sales invoices along with self-declared input tax credit will have to be included in the return.
In stage 3, input tax credit will be available only if the supplier enters the transaction as part of his sales. In other words, the differentiation between smaller and larger businesses in GST filing is set to go after six months.
Right move
This is, however, a right move as invoice matching, which is necessary to check tax evasion, can happen only if all entities file returns for uniform periods. With some entities filing quarterly and others filing monthly returns, the mismatch in return filing dates made invoice matching difficult.
With the compliance ratio for filing GSTR1 hitting 63 per cent in December 2017, it is obvious that businesses are getting increasingly more comfortable with filing GSTR1 returns and uploading invoices. It is, therefore, right that the temporary relief provided to businesses is withdrawn.
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HAWASSA – A workshop on promoting sustainable cotton which was held in Ethiopia last week as part of a four-year government plan to reach export earnings of US$1 billion from its textile and clothing sector by 2019.
The garment and textile industries are now priority sectors of Ethiopia’s second Growth and Transformation Plan (GTP II), which kicked off in 2015.
Within this context, cotton is a key strategic crop. And in addition to GTP II delegates were informed how in October 2017, a ‘National Cotton Development Strategy’ was validated, which aims to boost the production and productivity of Ethiopian cotton over a fifteen years period up until 2032.
In his opening address, H. E. Ato Bogale Feleke, Ethiopia’s state minster Minister of Industry said: “In order to implement the strategy, a plan of action was proposed around five strategic objectives, including promoting socially and environmentally sustainable production practices (in the cotton sector).”
The workshop to promote Sustainable Cotton in Ethiopia was supported by Enterprise Partners (EP) and GIZ.
This new investment drive and focus on cotton sustainability comes after uncertainty in recent years about agricultural practices in Ethiopia which have been linked to land grabs – specifically in the Lower Omo Valley.
Reflecting on the EU-Bangladesh relationship on Europe Day
Bangladesh and the European Union have long been sharing a friendly relationship, which has grown stronger and warmer over time.
Since the establishment of formal diplomatic ties in 1973, both Bangladesh and the EU have come a long way and witnessed socio-economic changes over the long four decades.
The EU has established itself as the largest trade bloc in the world — average GDP per capita in the EU has almost doubled over the past 20 years.
In the meantime, Bangladesh has also attained remarkable socio-economic development and appeared as a model of development.
Evolving from the rubble of the devastating war in 1971, the country now has an expanding economy with macroeconomic stability, 7%+ annual average GDP growth, robust performance of exports, and strong foreign currency reserves.
The EU has consistently been a trusted partner of development of Bangladesh, and has contributed to attaining the status of middle-income country. Now we need to focus on how the partnership between Bangladesh and the EU could be further deepened in the future, especially when Bangladesh is on track for confirming its presence in the middle-income country club by 2024.
Figures and policies in our favour
The EU is a major player in the global economy in terms of trade and investment. The trade bloc is also the top trading partner for 80 countries. Also for Bangladesh, the EU continues to be a strong trading partner and a source of investment for more than four decades. The EU’s imports from Bangladesh reached $19.35 billion in 2016-2017 fiscal year, accounting for around 55.84% of Bangladesh’s total trade.
It is mainly due to the trade preferences Bangladesh gets from the EU under its “everything but arms” arrangement, which grants duty free, quota free access for all exports, except arms and ammunition.
It’s encouraging to note that our trade with the EU is growing. EU’s imports from Bangladesh have almost trebled from $7.5bn to $19.3bn in the period between 2008-2007 and 2016-2017 fiscal years. The accumulated growth of Bangladesh’s exports to the EU was 156.27% in the last 10 years.
Currently, apparel is the main export item of Bangladesh, which represents around 92% of our total exports to the EU. In recent times, frozen food, agri-products, footwear, leather products, and bicycles have also appeared to be promising items of export to the EU market. On the other hand, Bangladesh is also a potential market for the EU whose major export items are machinery, transport equipment, and chemicals.
The EU’s exports to Bangladesh almost doubled in the last 10 years from $1.87bn to $2.83bn. The EU relaxed the rules of origin (RoO) in 2010 and brought it from 2-stage to 1-stage work processing for apparel, making it more favourable for our ready-made garment exports to the EU under Generalized System of Preferences (GSP) scheme.
Under the revised RoO, apparel exporters are enjoying duty-free access to the EU even if the apparel is made of imported fabrics. This has helped our apparel industry to register robust growth in the EU market in recent years and to secure 63% share of our total garment exports to the world.
The EU has been a major partner of the development of Bangladesh’s garment industry, not only as a major importer, but also through its contribution to build capacity of the industry.
The EU’s role to support our garment industry to improve workplace safety, labour rights, and general business conduct is widely acclaimed.
Progress and achievements
In 2013, the EU together with Bangladesh government, the ILO, and the US, adopted the Sustainability Compact, which has facilitated remarkable progress in the apparel industry in terms of workplace safety.
Bangladesh has achieved a paradigm shift in workplace safety in its garment industry where the Accord on Fire and Building Safety in Bangladesh, an initiative by leading EU brands and retailers sourcing garments from Bangladeshi factories, played a crucial role.
All export-oriented apparel factories have been inspected for structural, fire, and electrical safety by Accord, Alliance, and the National Initiative. Remediation is nearing completion, as the progress is around 83% in Accord affiliated factories and 88% for Alliance. We believe our safety standards will encourage European brands to source more garments from Bangladesh.
The EU is not only a trading partner of Bangladesh but also a good friend who assists our country to address various challenges on the way to development.
Apart from economic and trade development, the EU provides support to Bangladesh for human and social development, good governance, and human rights.
EU ‘ssupport to Bangladesh also covers environment and disaster management, as well as food security and nutrition. We have witnessed how the EU has come forward to help us deal with the Rohingya issue and provided 13 million euros in the wake of the refugee crisis.
However, Bangladesh is gradually becoming economically strong, and we believe in the near future Bangladesh would reach a stage when development assistance would no longer be necessary.
Since Bangladesh is on its way to attain the status of a middle-income country, the country will require strong industrial development and investment to realize its vision.
The government has been working to accelerate industrial growth in the country by formulating business-friendly policies and building necessary infrastructure. Roads and highways are being upgraded, while steps are taken to enhance the capacity of sea ports.
Electricity generation has been increased to meet the growing demand of the expanding industrial sector, while an LNG terminal is being built to address the energy requirement in the country.
The government is also working to make Bangladesh a preferred destination of investment. Foreign investment in Bangladesh has hit a record in 2016-17 fiscal year, which was $2.45bn. Initiatives have been taken to simplify business processes in Bangladesh, and to improve our ranking in the World Bank’s Doing Business Index.
The government has taken massive steps to develop 100 economic zones in next 15 years. Besides, we have a young and vibrant population which is a valuable asset to our country for investors.
The backward and forward linkage industries to the garment sector, man-made fibre based high-end textiles, pharmaceuticals, and footwear and leather products, frozen foods, ship-building have become promising industries in Bangladesh where foreign investment can be highly feasible.
Bangladesh has immense opportunities to diversify its export items, and the EU can play a key role in enabling Bangladesh to tap into those potentials. The EU can extend its support in enhancing Bangladesh’s supply side capacity and promoting export-oriented FDI flows to Bangladesh.
The time is ripe for shaping the EU-Bangladesh relationship in line with the demands of the changing times.
We hope this relationship will reach a newer height, where the EU will be a strong and reliable partner in Bangladesh’s journey towards prosperity, driven by trade and investment.
The Supreme Court on Monday declined to stay the Delhi high court order against Monsanto Technology in its patent dispute with Nuziveedu Seeds.
The Bench presided over by Justice R F Nariman issued notice to all parties and posted the hearing for July 18. Till then, the high court order will stay without any modification.
In its order earlier this month, the high court had ruled that Indian patent law did not allow Monsanto, the world’s largest seed firm, any patent cover for its genetically modified cotton seeds with Bollard I and Bollard II technologies. The court had also allowed Monsanto to approach the Protection of Plant Varieties and Farmers’ Rights Authority under the agriculture Ministry for registering the variety within three months. The court further directed Monsanto to continue with its obligations under the sub-licence agreements between the two seed firms. The high court order was passed in the long-pending dispute between the two companies. The point of discord is the interpretation of Section 3(j) of the Patent Act.
It prohibits the grant of patents for plants, plant varieties or seeds.
Monsanto Co said on Monday Chief Executive Officer Hugh Grant will step down after the seeds firm completes a deal to be acquired by Bayer AG, according to Reuters.
German conglomerate Bayer is preparing to close its $62.5 billion takeover of Monsanto this quarter in a deal that will give it control of more than 25 percent of the world’s seed and pesticides market.
A decision by the apex court will have deep impact on various aspects of agriculture, pharmaceuticals and intellectual property rights.
Monsanto counsel argued the company had invented a method by which the seed is injected with fluid protecting it from pests and diseases. The US-based biotech giant claimed that its invention is registered in 25 countries. The Bench told the counsel that the high court had observed that India was different from other countries.
The judges initially wanted evidence be decided by competent authorities, but later decided to hear the case after the summer vacation.
Director of Handlooms and Textiles C. Munianathan on Monday inspected the site for the proposed textile park at Padalur in Perambalur district on Monday.
The district administration has already handed over the site, measuring about 100 acres in Padalur and Irur villages in Alathur taluk, to SIPCOT.
Former Chief Minister Jayalalithaa had announced in a conference of District Collectors in 2012 that a textile park would be established in Perambalur district off Chennai-Tiruchi National Highway.
Accompanied by district officials, Mr. Munianathan inspected the site and reviewed the facilities. He also inspected the common facility centre and a private manufacturing unit. He also interacted with a few entrepreneurs. He later held discussions on works related to the edpark with Collector V. Santha and other officials.
46 beneficiaries received free training
Minister for Social Welfare M. Kandasamy on Monday distributed free sewing machines and certificates to 46 women from the Adi Dravidar community.
The Adi Dravidar Welfare Department had conducted free tailoring classes for women.
The beneficiaries who had received training were given all the materials required for sewing and Rs. 1,500 as stipend for a period of 12 months.
Mr. Kandasamy said that free training and sewing machines were given to 31 women from Ariyankuppam training centre and 15 from Kalitheerthaa training centre.
He stressed the need for more skill development training for women.
The Minister underlined that only skill development will help women to become economically independent. “Every woman has to be empowered, which will give them courage to face challenges,” he said.
Tirupur: A group of farmers from Anaipalayam have petitioned the district administration against four textile bleaching units situated on the banks of Noyyal river that allegedly release industrial effluents into the river and its canals. They requested authorities to take action against the units, which allegedly violate zero liquid discharge (ZLD) norms, to save the river and also the Anaipalayam irrigation tank. Agriculture on 600 acres depends on the water from the tank, the farmers said.
“We have seen four bleaching units releasing untreated industrial effluents into the open land, which then flow into the river and also to the main canal of Anaipalayam tank. The most recent instance was on last Friday, when one of the units involved in the violation during night time. When we questioned, the unit owners threatened us,” D Karuppasamy, a farmer, said.
“Only recently, the farmers have collectively taken steps to desilt the tank and its canals as well as strengthening its bunds, on supervision of the public works department. But, those bleaching units continue to violate the environmental norms in the region,” he added.
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ICE cotton futures fell nearly 1 percent as traders locked in profits after prices hit four year highs on fears of unavailability of quality U.S. cotton for delivery.
* The most active ICE cotton contract for July expiry CTc2 CTN8 settled down 0.91 cent, or 1.05 percent, at 85.99 cents per lb.
* The contract traded within a range of 85.91 and 88.08 cents a lb, its highest since May 2014. * “It was just a small correction after the sharp rise … The most recent news are still bullish,” said Gabriel Crivorot, an analyst at Societe Generale (PA:SOGN) in New York.
* Analysts and traders said there was a shortage of high quality cotton amid high demand. * “There are ideas that the U.S. is now running short of high quality cotton to deliver to the exchange and to overseas buyers,” said Jack Scoville, vice president with Price Futures Group in Chicago in a note.
* “Demand remains strong in export markets as the weekly export sales report showed moderate to strong volumes last week.” * The weekly export sales report from the U.S. Department of Agriculture for the week ending April 26, showed exports of 432,600 running bales, up 3 percent from the previous week. As per USDA’s classing report for the week-ending May 3, of the nearly 37,000 running bales classed, only 35 percent were deliverable against ICE contracts. * Market participants are keeping a close watch on rain in Texas, the major cotton growing region in the United States. * ICE cotton contract for December expiry CTZ8 fell 0.3 percent to 80.33 cents. * “The government forecast is for the drought conditions to persist over the next month, that does not mean there will not be enough rain to alleviate circumstances, but the outlook is not good for farmers in the region,” Crivorot said. * Total futures market volume rose by 5,055 to 38,417 lots. Data showed total open interest gained 5,773 to 281,665 contracts in the previous session. * Certificated cotton stocks CERT-COT-STX deliverable as of May 4 totaled 73,202 480-lb bales, down from 75,638 in the previous session.
The Supreme Court on Monday refused to grant a stay on a Delhi High Court ruling that the US company Monsanto cannot claim patents on its GM cottonseeds, but the world’s largest seed maker said it is “confident on the merits” of its case. The Delhi High Court last month concurred with Nuziveedu Seeds Ltd, which argued that India’s Patent Act does not allow Monsanto patent cover for its genetically modified (GM) cotton seeds.
The case is being submitted for an expedited preliminary hearing on July 18, said a Monsanto India spokesman. “We remain confident on the merits of the case. India has been issuing patents on man-made biotech products for more than 15 years, as is done widely across the globe,” the Monsanto India spokesman said. The Centre approved Monsanto’s GM cottonseed trait, the only lab-altered crop allowed in India, in 2003 and an upgraded variety in 2006.
The approvals helped turn the country into the world’s top producer and second-largest exporter of the fibre.
Monsanto’s GM cotton seed technology now dominates 90 per cent of the country’s cotton acreage. “The Delhi High Court’s decision in April would provide relief to farmers by reducing royalties and seed prices,” said Kalyan Goswami, Director-General of the National Seed Association of India. Details of the Supreme Court’s refusal to grant a stay on the ruling against Monsanto were not immediately available.
The Chhattisgarh government has decided to implement generation of e-way bill for intrastate movement of goods from June 1.
The Union government had made it compulsory to generate an e-way bill for interstate movement of goods from April 1. Karnataka state was the first to make the system operational.
“The Chhattisgarh government will be holding a series of workshops for traders and transporters to make them aware about the new system,” the state’s commercial tax department officials said. Besides divisional headquarters, workshops will also be held at the block level, they added.
The e-way bill system would involve carrying electronic waybills by transporters while moving goods exceeding Rs 50,000 in value and ensure seamless movement of goods across state borders. The system under the goods and services tax (GST) promises faster movement of goods through a seamless portal-driven payment system without transport carriers having to wait at state borders.
Officials said the implementation of the new system was crucial as the government believed it to be a key measure to plug revenue leaks. It is expected that trade and industry will be further facilitated insofar as the transport of goods is concerned, thereby eventually paving the way for a nationwide single e-way bill system, officials added.
They added that prior to the introduction of the e-way bill, India’s logistics costs were far higher than those in key economies, cutting the competitiveness of Indian goods and adding to costs for the consumer. The new system promises to contribute significantly towards adding to the productivity and efficiencies in the economy.
