MM TAX CLUB

The amendment exempts the garment or hosiery industry selling in loose or open from 6 declarations required under the Legal Metrology (Packaged Commodities) Rules, 2011

To protect the interest of consumers, 4 declarations relevant to the consumers only to be given
 

The Department of Consumer Affairs under Ministry of Consumer Affairs, Food & Public Distribution has received various representation for exempting the garment or hosiery sold in loose or open at the point of sale from the Legal Metrology (Packaged Commodities) Rules 201.  Therefore, Department of Consumer Affairs vide the Legal Metrology (Packaged Commodities) (Third Amendment) Rules, 2022 has exempted the garment or hosiery industry selling garment or hosiery items in loose or open, for ease of doing business and reducing the compliance burden, from declaring the following:

(i) Common/ generic name of the commodity

(ii) Net qty. in std. unit of W or M or no. of commodity in the package

(iii) Unit sale price

(iv) Month and year of manufacture or pre-packing or import

(v) Best before or use by date, month and year  in case of commodity becoming unfit for human consumption with time

(vi) Consumer Care name & address

Now, only the following information relevant to consumers is to be given viz.:

(i)      Name and address of the manufacturer/ marketer/ brand owner/ importer with country of origin or manufacture in case of imported products,

(ii)      Consumer care email id and phone number,

(iii)     Sizes with internationally recognizable size indicators such as S, M, L, XL, XXL and XXXL along with details in metric notation in terms of cm or m and

(iv)     Maximum retail price (MRP).

The notification issued by the Department of Consumer Affairs is for ease of doing business by reducing compliance burden to industries without compromising the interest of consumers by declaring the information relevant to consumers.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi has approved the the proposal for amendment of policy of exemption for Wheat or Meslin Flour (HS Code 1101) from export restrictions/ ban.

Impact:

The approval will now allow to put a restriction on the export of Wheat Flour which will ensure a curb on rising prices of wheat flour and ensure food security of the most vulnerable sections of the society.

Implementation:

Directorate General of Foreign Trade (DGFT) shall issue a notification to this effect.

Background: 

Russia & Ukraine are the major exporters of wheat accounting for around 1/4^th of the global wheat trade. The conflict between them led to the global wheat supply chain disruptions increasing demand of Indian wheat. As a result, the price of wheat in domestic market showed an increase. In order to ensure food security of 1.4 billion people of the country, the decision was taken to put a prohibition on export of wheat in May 2022.

However, due to prohibition on export of wheat (which was done to put a check on increasing prices in domestic market and to ensure food security in the country), the demand for wheat flour has increased in foreign markets and it’ s exports from India have registered a growth of 200% during April-July 2022 compared to the corresponding period in 2021. 

The increased demand for wheat flour in international market led to significant price rise of wheat flour in the domestic market.

Earlier, there was a policy not to prohibit or put any restrictions on the export of Wheat flour. Therefore, a partial modification of the policy was required by withdrawing the exemption from ban/ restrictions on export for Wheat Flour in order to ensure food security and put a check on mounting prices of Wheat flour in the country.

NIH, Narela to help in mainstreaming and integrating Ayush healthcare services with modern medicines: Shri Sarbananda Sonowal

Union Minister of Ayush Shri Sarbananda Sonowal today visited the National Institute of Homoeopathy (NIH) at Narela, Delhi. NIH, Narela is a satellite Institute of the National Institute of Homoeopathy, Kolkata and will be the first of its kind to be established in Northern India.

MoS for Ayush and WCD  Dr. Munjapara Mahendrabhai Kalubhai, Member of parliament Shri Hansraj Hans,  Secretary Ministry of  Ayush Vaidya Rajesh Kotecha, and other officials of Ministry of Ayush and NIH  were also present on the occasion.

Addressing the gathering Shri Sarbananda Sonowal said that National Policy on Health envisages inter-alia mainstreaming of Ayush in healthcare and also to integrate these systems in education and research in all tiers of healthcare delivery. He said that the Ministry of Ayush has undertaken various steps to encourage R&D and innovation, develop Apex level Institutes for education and research in Homoeopathy. I am confident this Homoeopathy Institute will popularize the Ayush system and cater to the needs of the Northern region of the country.

The foundation stone for the National Institute of Homoeopathy at Narela Delhi was laid on 16th October, 2018. This Institute will produce high quality professionals in various streams of Homoeopathy. This Institute will have 07 departments and provide PG & Doctoral courses in multiple disciplines of Homoeopathy Medicine. The Institute will also focus on fundamental aspects of drug development, quality control, safety evaluation and scientific validation of Homoeopathy and practices. The Institute will establish Benchmark standards in Education, Health Care and Research.

NIH, Narela is being constructed at the cost of Rs. 287 Crore and shall also function as an international collaboration center for global promotion and research in the Homoeopathy system. The Institute will have a pivotal role in making bilateral and multilateral collaboration with the universities/research organizations of international repute.

Officers of CGST Bhiwandi Commissionerate in Mumbai Zone have busted two separate fake GST invoice rackets, which was used to avail and pass on fake Input Tax Credit (ITC) of around Rs. 23 crore on bogus invoices of Rs 55 crore. Two persons, proprietors of M/s M. M. Buildcon / Lambodar Buildcon and M/s. Vishwakarma Enterprises, have been arrested on 18.08.22 under CGST Act.

Acting on a specific input, the anti-evasion wing of CGST Bhiwandi Commissionerate initiated an investigation against these firm. During the investigation both the firms found to be non-existing/ fake. In the statements, the proprietors admitted to the fraud and tax evasion. Further, Input Tax Credit (ITC) to the tune of Rs. 23 crore is availed and passed on the basis of fake invoices issued by non- existent/ fake/non- genuine firms/dummy firms.

Based on material evidence gathered during the investigation, the proprietors of both firms were arrested on 18.08.2022 under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017. 

This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. These are 15th and  16th arrest by CGST Bhiwandi Commissionerate in last one year.

CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters. CGST officers will intensify this drive against tax evaders in the coming days.

20" August 2022

The Excise and Taxation Department, Government of Haryana identified a list of 213  suspicious taxpayers in the State who were claiming Input Tax Credit (ITC) in their FORM  GSTR-3B but had no input tax credit reflected in their FORM GSTR-2A / FORM GSTR-2B. It w as suspected that few of these taxpayers are basically of the nature of fake invoice 

originators who would take suo-moto input tax credit and then pass fake / non-existent input tax credit to other firms within and outside the State.

Accordingly, a Special Drive was initiated against these taxpayers between 8“ Aug 2022 to 16" Aug 2022 to physically verify and cancel registration of fake/non-existent taxpayers under the provisions of Haryana GST Act, 2017 and rules framed thereunder.

Out of 213 taxpayers, 205 have been physically verified and 114 of which were found apne -existent at their principal place of business. The department has suspended made from these suspicious taxpayers, Further, physical verification and cancellation of registrations of remaining fake taxpayers is under process.

The Government of Haryana has zero tolerance for fake/non-existent firms and appropriate action under the Act will be taken against people floating such bogus firms and recipients availing input tax credit from these bogus firms.