MM TAX CLUB

Union Minister for Micro, Small & Medium Enterprises, Shri Narayan Rane today launched the Union MSME RuPay Credit Card of Union Bank of India in Sindhudurg at the two day MSME Conclave being held in the district.  The card is being offered by Union Bank of India in association with National Payments Corporation of India (NPCI).  It provides a simplified payment mechanism to MSMEs to meet their business-related operational expenses.

The RuPay Card offers benefits like anytime digital payments, interest-free period and will carry interest rate similar to the rate charged for loans. MSME borrowers will be able to enjoy an interest-free credit period of up to 50 days on their business spends. The card also offers the EMI facility to the customers on their business-related purchases. MSMEs will also get specially curated efficient business services on this card which will help them in taking their business on most of the digital platforms.

The RuPay Credit card will simplify and expedite payment mechanism for MSMEs while enabling banks to monitor the transactions at granular level. The Credit card will also reduce the demand for cash withdrawal by the businesses due to availability of the digital payment tool.

Other benefits include accidental insurance coverage, lounge access, and other rewards being offered by NPCI on RuPay cards. Besides this, the card offers variety of additional features and business services for the MSMEs.

During the MSME Conclave, the Union Minister distributed the first batch of RuPay cards to select MSME entrepreneurs.

Notification No. 01/2022 – Central Tax

New Delhi, the 24th February, 2022

The CBIC vide Notification No. 01/2022 – Central Tax dated February 26, 2022 has issued amendment in NN 13/2020, so as to notify such turnover limit from INR 50 crores to INR 20 crores in a following manner:

W.e.f. April 1, 2022, the class of registered person are mandatorily required to issue e-invoice, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds INR 20 crores.

Now, the e-invoicing is mandatory for the taxpayers having turnover of more than INR 20 crore from April 1, 2022.

Extract of notification can be read as under;

G.S.R.....(E).- In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely:-

In the said notification, in the first paragraph, with effect from the 1st day of April, 2022, for the words “fifty crore rupees”, the words “twenty crore rupees” shall be substituted.

Apparel industry must focus on vertical integration to increase its scale and size and to benefit from PLI  scheme : Shri  Upendra Prasad Singh

Apparel exports likely to breach $20 bn next fiscal or year after that

Textile exports likely to cross $100 bn from current $40 bn in 5 years

AEPC celebrates its 44th Foundation Day

Shri  Upendra Prasad Singh, Secretary, Ministry of Textiles has said  that the Indian apparel industry must focus on vertical integration to increase its scale and size and to benefit from the Production Linked Incentive (PLI) scheme.

Speaking at the 44th Foundation Day of Apparel Export Promotion Council (AEPC) today , Shri Singh said, “sapparel and garmenting is not very investment centric but it is very important from employment point of view. Perhaps, there is a need for backward integration and more of you can get into integrated value-chain like spinning and weaving.”

Virtually addressing the Foundation Day, the Textiles Secretary said that along with the PLI scheme, the government is committed to make the Prime Minister Mega Integrated Textile Region and Apparel (PM MITRA) scheme a success. Idea is not to just have a world class infrastructure but also a thriving industry there, he said.

Stating that textile has always been among the top priorities of the government, the Secretary said, “There are a lot of big opportunities. The demand continues to be robust and the China plus one sourcing strategy by the west is certainly a great opportunity for us.” Shri  Singh said that it all depended on how good, efficient and integrated the Indian apparel industry is and how it increases its size and scale. “AEPC has a big role to play. Let us not get into just the macro figure, let us get into the micro level. Let us go product by product and country by country,” he added.

“We should be in a position to breach $20 billion apparel exports by next fiscal or the year after that,” Shri  Singh said, adding that the country’s textile exports can increase from the current $40 billion to $100 billion in the next five years.

AEPC Chairman, Shri Narendra Goenka shared the journey of the AEPC since its establishment in 1978 from a quota monitoring and export promotion body to the Council that today offers services ranging from skilling, assessment, market intelligence, advocacy, capacity building programs on financial risks, compliance management, IPR issues, AI and technology driven production innovations, lean and six sigma, circularity, sustainability, among others.

Shri Goenka listed down the key priorities for the apparel sector namely leverage policy support for improving scales, product diversification, leverage the upcoming FTAs, create new USPs based on sustainability and responsible business, use technology and AI for leaner supply chain, and better branding. AEPC Vice Chairman Shri Sudhir Sekhri spoke about the initiatives taken by AEPC for the holistic growth of the apparel sector.

AEPC is the official body of apparel exporters in India, under the aegis of Ministry of Textiles, which provides invaluable assistance to Indian exporters as well as importers/ international buyers.

Central Goods and Services Tax (CGST) Commissionerate, Faridabad, of Panchkula CGST Zone, on 23.02.2022 arrested two persons for running a fake billing racket, involving five (5) dummy firms, dealing in trading of iron scrap, registered in Faridabad, Haryana, for issuance of fake invoices of over Rs 200 crore without actual supply of goods and availing and passing fraudulent Input Tax Credit (ITC) amounting to Rs. 31.85 crore.

A team of officers of Anti-Evasion, CGST Commissionerate, Faridabad, conducted simultaneous searches at 5 places in Faridabad on 22nd February, 2022. During the investigation, it was found that the said firms have been availing and passing on fraudulent Input Tax Credit based on bogus / fake invoices without actual supply of goods.

As per Section 132 of CGST Act 2017, issuance of an invoice or bill without supply of goods or services and wrongful availment or utilization of Input Tax Credit is a cognizable and non-bailable offence if the amount is over Rs. 5 crore.

Both the proprietors of the said firms have accepted that they have availed and passed on fraudulent ITC of Rs. 31.85 crore, without actual supply of goods to inter-state recipients and have accepted the total GST liability of Rs. 31.85 crore during initial investigation. The quantum may increase in future.

Therefore, both the accused have been arrested under Section 69 of Central Goods and Services Tax Act, 2017 for committal of offences under Section 132(1)(b), 132(1) (c) & 132 (5) of the CGST Act, 2017. They were produced before the CJM Court, Faridabad, on 23.02.2022 and were remanded to 14 days Judicial Custody.

Further investigation in the case is underway.

A specific intelligence was developed by the officers of Delhi South CGST Commissionerate concerning certain bogus firms that were created solely for the purpose of generating fake invoices and passing ineligible input tax credit along the chain.

Searches and inspections were conducted across locations spread across Delhi, unearthing a cartel running 54 bogus firms registered in Delhi –NCR region that were engaged in fake invoicing and circular trading. Incriminating documents such as rubber stamps and letter heads of various firms, mobile phones, laptops etc. have been seized from the search premises.

Preliminary enquiry conducted so far into these transactions has revealed fake invoicing of around Rs. 611 crores and tax evasion of over Rs. 38.5 crores. The members of cartel in their Confessional statements have accepted their roles in managing these bogus firms.

The persons behind these bogus firms hatched the conspiracy to defraud the government and committed offences specified under section 132(1)(b) and 132(1)(c) of the CGST Act 2017 which are cognizable and nonbailable.  Three key persons of the cartel namely Sh. Ankit Gupta, the mastermind managing these bogus firms and two of his accomplice Sh. Rabiendra Singh and Sh. Rajendra Singh has been arrested on 23.02.2022. The accused were produced before the Duty Magistrate following which they have been remanded to judicial custody for 14 days.

Further investigation is under progress.