MM TAX CLUB

EPFO’s provisional payroll data released today highlights that EPFO has added 18.75 lakh net members in the month of July, 2023. The addition during the month is the highest since first publishing of EPFO payroll data from April, 2018 covering the period of September, 2017 onwards. A growing trend is continued since last three months with an increase of around 85,932 net members over the previous month of June, 2023.  

The data indicates that around 10.27 lakh new members have enrolled during July, 2023 which is highest since July, 2022. Majority of new members joining EPFO are in the age-group of 18-25 years constituting roughly 58.45% of total new members addition during the month. This shows an increasing trend in youth enrollment, who are mostly first-time job seekers joining the organized sector workforce of the country.

Payroll data demonstrates that approximately 12.72 lakh members exited but rejoined EPFO, which is the highest in last 12 months. These members switched their jobs and re-joined the establishments covered under EPFO and opted to transfer their accumulations instead of applying for final settlement thus, extending their social security protection.

Gender-wise analysis of payroll data shows that during July, 2023 around 3.86 lakh net female members have been added in the payroll. Around 2.75 lakh female members have come under the ambit of social security coverage for the first time.

State-wise analysis of payroll data denotes that net member addition is highest in the 5 states of Maharashtra, Tamil Nadu, Karnataka, Gujarat and Haryana. These states constitute around 58.78% of net member addition, adding a total of 11.02 lakh members during the month. Of all the states, Maharashtra is leading by adding 20.45% of net members during the month.

Month-on-month comparison of industry-wise data displays significant growth in the members working in establishments engaged in Trading-Commercial Establishments, Building & Construction Industry, Electrical, Mechanical and General Engineering Products. This was followed by Textiles, Financing Establishment, Hospitals etc. Of the total net membership, around 38.40% addition is from expert services (consisting of manpower suppliers, normal contractors, security services, miscellaneous activities etc.).

The above payroll data is provisional since the data generation is a continuous exercise, as updating employee record is a continuous process. The previous data hence gets updated every month. From the month of April-2018, EPFO has been releasing payroll data covering the period September, 2017 onwards. In monthly payroll data, the count of members joining EPFO for the first time through Aadhaar validated Universal Account Number (UAN), existing members exiting from coverage of EPFO and those who exited but re-joining as members, is taken to arrive at net monthly payroll.

he All-India Consumer Price Index Number for Agricultural Labourers and Rural Labourers (Base: 1986-87=100) for the month of August, 2023 increased by 9 points and 8 points respectively to stand at 1224 (One thousand two hundred and twenty four) and 1234 (One thousand two hundred and thirty four) points respectively. The major contribution towards the rise in general index of Agricultural Labourers and Rural Labourers came from food group to the extent of 8.38 and 7.69 points respectively mainly due to increase in prices of rice, wheat atta, pulses, milk, meat-goat, sugar, gur, chillies-dry, turmeric, garlic, onion, mixed spices, etc.

The rise in index varied from State to State. In case of Agricultural Labourers, it recorded an increase of 2 to 19 points in 20 States. Tamilnadu with 1423 points topped the index table whereas Himachal pradesh with 942 points stood at the bottom.

In case of Rural Labourers, it recorded an increase of 2 to 18 points in 20 States. Andhra Pradesh with 1412 points topped the index table whereas Himachal pradesh with 1003 points stood at the bottom.

Amongst states, the maximum increase in the Consumer Price Index Numbers for Agricultural Labourers was experienced by Meghalaya (19 points) and for Rural Labourers by Gujarat and Meghalaya (18 points each) mainly due to rise in the prices of rice, pulses, beef, groundnut oil, onion, chillies green/dry, firewood, bus fare, etc.

Point to point rate of inflation based on the CPI-AL and CPI-RL stood at 7.37% and 7.12% in August, 2023 compared to 7.43% and 7.26% respectively in July, 2023 and 6.94% & 7.26% respectively during the corresponding month of the previous year. Similarly, Food inflation stood at 8.89% and 8.64% in August, 2023 compared to 8.88% and 8.63% respectively in July, 2023 and 6.16% & 6.21% respectively during the corresponding month of the previous year.

All-India Consumer Price Index Number (General & Group-wise):

The CPI – AL and RL for the month of September, 2023 will be released on 20th October, 2023.

Notification dated 19^th September 2023

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961

(43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Uttar Pradesh Expressways Industrial Development Authority’ (PAN AAALU0121E), an Authority constituted by the State government of Uttar Pradesh, in respect of the following specified income arising to that Authority, namely:

1. grants received from the state government;
2. moneys received from the disposal of land, building and other properties, movable and immovable;
3. moneys received by way of rent & fees or any other charges from the disposal of land, building and other properties, movable and immovable;
4. Income earned from Tender Fees, Document Fees, License Fees; and
5. Interest earned on funds deposited in the banks and on (a) to (d) above.

2. This notification shall be effective subject to Uttar Pradesh Expressways Industrial Development Authority:-

(a) shall not engage in any commercial activity;

 (b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of

section 139 of the Income-tax Act, 1961.

The GST e-invoice System vide Update dated September 14, 2023 issued a clarification on e-Invoicing for Government Supplies. 

GST Policy Wing has issued the clarification on the applicability of the e-invoicing to the supplies made to the Government departments or agencies, through Circular No. 198/10/2023-GST dated: July 17, 2023.

Government departments or establishments / Government agencies / local authorities / PSUs, which are required to deduct tax at source as per provisions of section 51 of the CGST/SGST Act, are liable for compulsory in accordance with section 24(vi) of the CGST Act. Therefore, Government departments or establishments / Government agencies / l registrationocal authorities / PSUs, registered solely for the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act, are to be treated as registered persons under the GST law as per provisions of clause (94) of section 2 of CGST Act. Accordingly, the registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, is required to issue e-invoices for the supplies made to such Government departments or establishments / government agencies / local authorities / PSUs, etc under rule 48(4) of CGST Rules.

It is advised hereby that the tax payers, notified for generation of e-invoices and supplying goods or services to government departments / agencies, need to generate B2B e-Invoices with the GSTIN of the Government department / agency.