MM TAX CLUB

Minimum Investment Rs 4150 Cr required with no cap on maximum Investment

3 years timeline for setting up manufacturing facilities in India, and start commercial production of EVs; 50% domestic value addition to be reached within 5 years at the maximum

Companies setting up manufacturing facilities for EVs to be allowed limited imports of cars at lower custom duty

The Union Government has approved a scheme to promote India as a manufacturing destination so that e-vehicles (EV) with the latest technology can be manufactured in the country. The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers.

This will provide Indian consumers with access to latest technology, boost the Make in India initiative, strengthen the EV ecosystem by promoting healthy competition among EV players leading to high volume of production, economies of scale, lower cost of production, reduce imports of crude Oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment.

The policy entails the following: -

Minimum Investment required: Rs 4150 Cr (∼USD 500 Mn)

No limit on maximum Investment

Timeline for manufacturing: 3 years for setting up manufacturing facilities in India, and to start commercial production of e- vehicles, and reach 50% domestic value addition (DVA) within 5 years at the maximum.

Domestic value addition (DVA) during manufacturing: A localization level of 25% by the 3rd year and 50% by the 5th year will have to be achieved

The customs duty of 15% (as applicable to CKD units) would be applicable on vehicle of minimum CIF value of USD 35,000 and above for a total period of 5 years subject to the manufacturer setting up manufacturing facilities in India within a 3-year period.

The duty foregone on the total number of EV allowed for import would be limited to the investment made or ₹6484 Cr (equal to incentive under PLI scheme) whichever is lower. A maximum of 40,000 EVs at the rate of not more than 8,000 per year would be permissible if the investment is of USD 800 Mn or more. The carryover of unutilized annual import limits would be permitted.

The Investment commitment made by the company will have to be backed up by a bank guarantee in lieu of the custom duty forgone

The Bank guarantee will be invoked in case of non-achievement of DVA and minimum investment criteria defined under the scheme guidelines

Highest monthly merchandise exports, in the current FY so far, recorded in February 2024. India’s merchandise exports in February 2024 stands at USD 41.40 Billion; an increase of 11.86% over USD 37.01 Billion in February 2023

Main drivers of merchandise export growth in February 2024 include Engineering Goods, Electronic Goods, Organic & Inorganic Chemicals, Drugs & Pharmaceuticals and Petroleum Products

Engineering Goods exports in February 2024 record an increase of 15.9% at USD 9.94 Billion over USD 8.58 Billion in February 2023

Electronic Goods exports register an increase of 54.81% at USD 3.00 Billion in February 2024 over USD 1.94 Billion in February 2023

Exports of Organic and Inorganic Chemicals increase by 33.04% from USD 2.22 Billion in February 2023 to USD 2.95 Billion in February 2024

Exports of Drugs and Pharmaceutical Products in February 2024 stands at USD 2.51 Billion; an increase of 22.24% over USD 2.06 Billion in February 2023

Petroleum Products exports in February 2024 register growth of 5.08% at USD 8.24 Billion from USD 7.84 Billion in February 2023

Exports of Agricultural products including Tobacco (58.24%), Meat, Dairy & Poultry Products (37.83%), Oilseeds (37.71%), Cereal Preparations & Miscellaneous Processed Items (17.69%), Spices (14.84%), Fruits & Vegetables (12.72%) and Rice (1.81%) continue to grow in February 2024

Overall trade deficit improves by 37.80% from USD 116.13 Billion in April-February 2022-23 to USD 72.24 Billion in April-February 2023-24; merchandise trade deficit improves by 8.43% from USD 245.94 Billion in April-February 2022-23 to USD 225.20 Billion in April-February 2023-24

India’s overall exports (Merchandise and Services combined) in February 2024* is estimated to be USD 73.55 Billion, exhibiting a positive growth of 14.20 per cent over February 2023. Overall imports in February 2024* is estimated to be USD 75.50 Billion, exhibiting a positive growth of 10.13 per cent over February 2023.

* Note: The latest data for services sector released by RBI is for January 2024. The data for February 2024 is an estimation, which will be revised based on RBI’s subsequent release. (ii) Data for April-February 2022-23 and April-September 2023 has been revised on pro-rata basis using quarterly balance of payments data.

India’s overall exports (Merchandise and Services combined) in April-February 2023-24* are estimated to be USD 709.81 Billion, exhibiting a positive growth of 0.83 per cent over April-February 2022-23. Overall imports in April-February 2023-24* are estimated to be USD 782.05 Billion, exhibiting a negative growth of (-) 4.64 per cent over April-February 2022-23.

MERCHANDISE TRADE

Merchandise exports in February 2024 were USD 41.40 Billion, as compared to USD 37.01 Billion in February 2023.

Merchandise imports in February 2024 were USD 60.11 Billion, as compared to USD 53.58 Billion in February 2023.

Merchandise exports for the period April-February 2023-24 were USD 394.99 Billion as against USD 409.11 Billion during April-February 2022-23.

Merchandise imports for the period April-February 2023-24 were USD 620.19 Billion as against USD 655.05 Billion during April-February 2022-23.

The merchandise trade deficit for April-February 2023-24 was estimated at USD 225.20 Billion as against USD 245.94 Billion during April-February 2022-23.

Non-petroleum and non-gems & jewellery exports in February 2024 were USD 29.97 Billion, compared to USD 25.57 Billion in February 2023.

Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in February 2024 were USD 33.15 Billion, compared to USD 31.52 Billion in February 2023.

Non-petroleum and non-gems & jewellery exports during April-February 2023-24 was USD 286.51 Billion, as compared to USD 284.78 Billion in April-February 2022-23.

Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were USD 387.60 Billion in April-February 2023-24 as compared to USD 399.03 Billion in April-February 2022-23.

SERVICES TRADE

The estimated value of services export for February 2024* is USD 32.15 Billion, as compared to USD 27.40 Billion in February 2023.

The estimated value of services import for February 2024* is USD 15.39 Billion as compared to USD 14.97 Billion in February 2023.

The estimated value of services export for April-February 2023-24* is USD 314.82 Billion as compared to USD 294.89 Billion in April-February 2022-23.

The estimated value of services imports for April-February 2023-24* is USD 161.86 Billion as compared to USD 165.09 Billion in April-February 2022-23.

The services trade surplus for April-February 2023-24* is estimated at USD 152.96 Billion as against USD 129.80 Billion in April-February 2022-23

For the month of February 2024, under merchandise exports, 22 of the 30 key sectors exhibited positive growth in February 2024 as compared to same period last year (February 2023). These include Handicrafts Excl. Hand Made Carpet (86.98%), Tobacco (58.24%), Electronic Goods (54.81%), Coffee (45.92%), Tea (38.21%), Meat, Dairy & Poultry Products (37.83%), Oil Seeds (37.71%), Organic & Inorganic Chemicals (33.04%), Iron Ore (32.87%), Drugs & Pharmaceuticals (22.24%), Plastic & Linoleum (22.14%), Cereal Preparations & Miscellaneous Processed Items (17.69%), Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc. (17.07%), Engineering Goods (15.9%), Spices (14.84%), Carpet (14.55%), Fruits & Vegetables (12.72%), Ceramic Products & Glassware (9.79%), Man-Made Yarn/Fabs./Made-Ups Etc. (8.66%), Petroleum Products (5.08%), Rmg Of All Textiles (4.88%) and Rice (1.81%).

Under merchandise imports, 13 out of 30 key sectors exhibited negative growth in February 2024. These include Project Goods (-89.87%), Sulphur & Unroasted Iron Pyrites (-55.98%), Fertilisers, Crude & Manufactured (-33.72%), Vegetable Oil  (-29.84%), Leather & Leather Products (-20.96%), Chemical Material & Products (-15.52%), Pearls, Precious & Semi-Precious Stones (-13.37%), Organic & Inorganic Chemicals (-12.35%), Cotton Raw & Waste (-9.4%), Artificial Resins, Plastic Materials, Etc. (-8.7%), Newsprint (-7.9%), Transport Equipment (-5.2%) and Wood &  Wood Products (-1.68%).

For April-February 2023-24, under merchandise exports, 15 of the 30 key sectors exhibited positive growth during April-February 2023-24 as compared to April-February 2022-23. These include Iron Iron Ore (155.38%), Electronic Goods (23.72%), Tobacco (18.16%), Oil Meals (17.12%), Ceramic Products & Glassware (15.9%), Fruits & Vegetables (15.38%), Meat, Dairy & Poultry Products (12.72%), Oil Seeds (12.05%), Drugs & Pharmaceuticals (9.34%), Cereal Preparations & Miscellaneous Processed Items (9.03%), Coffee (8.47%), Spices (7.99%), Cotton Yarn/Fabs./Made-Ups, Handloom Products Etc. (6.7%), Engineering Goods (1.23%) and Carpet (0.88%).

Under merchandise imports, 17 of the 30 key sectors exhibited negative growth in April-February 2023-24 as compared to April-February 2022-23. These include Cotton Raw & Waste (-60.26%), Sulphur & Unroasted Iron Pyrts (-41.15%), Fertilisers, Crude & Manufactured (-39.38%), Project Goods (-30.69%), Vegetable Oil  (-28.95%), Coal, Coke & Briquettes, Etc. (-22.95%), Pearls, Precious & Semi-Precious Stones (-22.88%), Organic & Inorganic Chemicals (-20.18%), Newsprint (-16.61%), Petroleum, Crude & Products (-15.04%), Transport Equipment (-14.38%), Pulp And Waste Paper (-13.46%), Textile Yarn Fabric, Made-Up Articles (-13.05%), Silver (-11.53%), Wood &  Wood Products (-11.44%), Leather & Leather Products (-10.16%) and Artificial Resins, Plastic Materials, Etc. (-4.03%),

Services exports is projected to grow positively at 6.76 percent during April-February 2023-24 over April-February 2022-23.

India’s trade deficit has shown considerable improvement in April-February 2023-24. Overall trade deficit for April-February 2023-24* is estimated at USD 72.24 Billion as compared to the deficit of USD 116.13 Billion during April-February 2022-23, registering a decline of (-) 37.80 percent. The merchandise trade deficit during April-February 2023-24 is USD 225.20 Billion compared to USD 245.94 Billion during April-February 2022-23, registering a decline of (-) 8.43 percent.

The Directorate of Revenue Intelligence (DRI) busted a big syndicate involved in smuggling of foreign-origin gold worth around Rs. 40 crorein its operation code named ‘Rising Sun’ on 12^thand 13^thMarch, 2024.

The operation, meticulously planned and coordinated across four states, resulted in seizure of a huge quantity of smuggled gold, weighing around 61.08 kg valued at around Rs. 40 crore, alongwith 19 vehicles, cash and other electronic items in Guwahati, Barpeta, Darbhanga, Gorakhpur and Araria.

Acting on specific intelligence, the DRI officers in Guwahati apprehended six members of the syndicate, including two masterminds, from a residential premises at Guwahati and recovered 22.74 kg of gold, cash amounting to Rs. 13 lakh, vehicles, and other electronic items. A vehicle, which had already left Guwahati, was tracked down and intercepted at Barpeta, Assam, approximately 90 km from Guwahati and 13.28 kg of smuggled gold was recovered from the intercepted vehicle and another two persons were apprehended.

Following the leads unearthed during investigations, DRI officers from Muzaffarpur intercepted a vehicle near Darbhanga and recovered 13.27 kg of gold.  Another vehicle was intercepted by DRI officers at Gorakhpur and 11.79 kg of foreign origin gold recovered. Another nine cars having secret cavities used by the syndicate were also identified and intercepted at Araria, Bihar, by DRI officers from Patna.

Initial questioning of the apprehended persons revealed that the syndicate used to smuggle gold into India through the Indo-Myanmar land border in small quantities, aggregate the same at Guwahati and further transport to Delhi, Jaipur, etc. DRI has apprehended 12 persons – eight people in Guwahati, two in Muzaffarpur and two in Gorakhpur in this operation.

MHA decides to extend financial support of 50% on GST on purchase of goods from Kendriya Police Kalyan Bhandar as a welfare measure, the decision to be effective from 1st April 2024

Under the leadership of Prime Minister Shri Narendra Modi and able guidance of Union Home Minister Shri Amit Shah, decision to benefit serving and retired personnel of CAPFs, Central Police Organisations and State Police Forces and their families

Ministry of Home Affairs recognizes and respects the hard work of force personnel in maintaining internal security of the Country and gives utmost importance to the welfare of CAPFs and their families

The Ministry of Home Affairs has decided to extended financial support of 50% on Goods and Services Tax (GST) on purchase of goods from Kendriya Police Kalyan Bhandar as a welfare measure. This decision shall be effective from 1^st April 2024.

Under the visionary leadership of Prime Minister Shri Narendra Modi and the able guidance of Union Home Minister Shri Amit Shah the decision was taken to benefit serving and retired personnel of Central Armed Police Forces (CAPFs), Central Police Organisations and State Police Forces and their families.

The Ministry of Home Affairs recognizes and respects the hard work of force personnel in maintaining internal security of the Country and gives utmost importance to the welfare of CAPFs and their families. Personnel of Central Armed Police Forces are often deployed in far flung areas and inhospitable terrain where they perform their duties regardless of risk to lives and personal inconvenience. Kendriya Police Kalyan Bhandar was established in 2006. Currently it has all India presence with 119 Master Bhandars and more than 1700 Subsidiary Bhandars through which goods at cheaper rates are being made available to the force personnel.

Circular No. 02/2024 dated March 06, 2024

In exercise of the powers conferred by Clause (91) of section 2 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) (hereinafter referred to as the Act) and subject to sub-section (2) of section 5 of the said Act, the Commissioner of state tax hereby assign the functions under rules 9, Rule 10 and rule 12 of the Kerala Goods and Services Tax Rules, 2017 to the Deputy State Tax Officer/ Assistant State Tax Officer also. The Circular No. 5/2023, dated 08/01/2023 stands amended as under.

In the circular No. 5/2023 of the Commissoner of State Tax, in the table, -

in the third column against Sl. No. 4, the words and figures, "Rule 9", "Rule 10" and "Rule 12" shall be omitted

in the third column against Sl. No. 5, under the heading "Rules", -

(1) the existing Sl. No. 1 shall be renumbered as Sl. No. 1C;

(2) before the Sl. No. 1C so renumbered, the following Sl. No. and entries thereto shall be inserted, namely, -

"1. Rule 9

1A. Rule 10

1B Rule 12"

At present all the registration tasks for new registration under the Kerala State Goods and Services Tax Act, 2017 are done at the Central Registration Unit. Hence the officers not below the rank of an Assistant State Tax Officer at the Central Registration Unit are assigned with the functions under Rule 9, Rule 10 and Rule 12 of the Kerala Goods and Services Tax Rules, 2017.

This circular shall come into force at once.