1. PwC report says that India Inc may be allowed to deposit GST on cash basis
- PricewaterhouseCoopers (PwC) report titled as Reimagining GST@3 has said that India Inc may be allowed to deposit GST on a cash basis.
- The report says that such GST collection on a cash basis will help businesses in overcoming liquidity problems due to COVID-19.
- PwC report titled as Reimagining GST@3 has also said that government should think about suspending GST payments for some sectors during the COVID-19 period.
- As per the report, the government should also think about clear guidelines for issues such as eligibility of ITC on expired stock, intermediary services and taxability of discount schemes.
- The report recommends a one-time dispute settlement scheme under GST. Currently, GST is collected on an accrual (bill) basis.
2. GST Compensation issue to be discussed for the third time at GST council meeting
- GST Compensation issue will be discussed for the third time at the GST council meeting on 12 October.
- 10 states ruled by opposition parties have said that Group of States’ Finance Ministers should be set up to reach an agreement on GST compensation issue. They also want voting on the suggestion of centre.
- However, 21 states ruled by NDA/BJP has agreed with the suggestion of central government and they want that the process of borrow ₹1.1 lakh crore through a special window to be started.
- The centre says that the issue of borrowing does not come under the jurisdiction of the GST Council. Borrowing comes under Article 293 of the Constitution.
- In its 5 October meeting, the GST council has extended compensation cess on aerated drinks, cars and tobacco products beyond June 2022.
- Goods and Services Tax Council:
- It is a constitutional body described under Article 279A of the Indian Constitution.
- This body makes recommendations to the Central and State Government on issues related to Goods and Services Tax.
- This council is headed by the Union Finance Minister.
3. GST e-invoicing to be made available for all businesses having over ₹100 crore turnover
- GST e-invoicing will be made available for all businesses having over ₹100 crore turnover from January 1, 2021.
- From 1 April 2021, GST e-invoicing will be made available for all taxpayers.
- GST e-invoicing has been made available for all businesses with turnover above Rs 500 crore from 1 October.
- Goods and Services Tax (GST): It is a value-added indirect tax that is levied on the cost of most of the goods and services provided for domestic consumption.
- GST came into effect from 1 July 2017 through the 101st Constitution Amendment Act, 2017 of the Indian Constitution.
4. Bi-Monthly Monetary Policy announced by RBI
- RBI has issued its bi-monthly Monetary Policy statement and kept the interest rate, repo rate and reverse repo rate unchanged.
- While the reverse repo rate is 3.35%, the repo rate remains at 4%.
- The Monetary Policy Committee has maintained its accommodative stance. Accommodative stance means that RBI is not likely to increase key rates.
- RBI Governor has announced that Real Time Gross Settlement (RTGS) will become 24X7 from December 2020.
- As of now, new housing loans risk weights are linked to loan size and Loan-to-value ratio. But, RBI has removed loan size until March 31, 2022. So, risk weights will be linked to Loan-to-value ratio.
- RBI has also said that it will rationalize risk weights for all new housing loans until March 31, 2022.
- Scheme for co-lending will also be linked to all NBFC, HFC by banks. As per the MPC, real GDP growth for FY21 may contract by 9.5%.
5. 43.4% increase in export of agricultural commodities
- Union Agriculture Ministry has said that exports of agricultural commodities increased by 43.4% in the first half of the current fiscal.
- From April to September of 2019-20, the exports stood at Rs 37,397.3 crore.
- In September 2020, exports of agricultural commodities increased by 81.7% to Rs 9,296 crore. In September 2019, they stood at Rs 5,114 crore.
- Exports of groundnut, refined sugar, wheat, basmati rice and non-basmati rice have increased.
- The government has announced Agriculture Export Policy, 2018, to increase exports. Eight Export Promotion Forums (EPFs) have been formed under APEDA to increase exports. Agri-Infra Fund of Rs 1 lakh crore has also been set up.
6. Neeraj Garg to be new CEO of Hindustan Coca-Cola Beverages Pvt Ltd
- Coca-Cola has appointed Neeraj Garg as the new CEO of Hindustan Coca-Cola Beverages Pvt Ltd (HCCB).
- His appointment will become effective on January 1 and he will succeed Christina Ruggiero, who is the first woman CEO of HCCB.
- On January 1, T Krishnakumar will become Chairman of Coca-Cola India Inc.
- Coca-Cola has also made several changes to its leadership, such as appointment of Arnab Roy, global brand head for Coca-Cola (Trademark) as Vice-President-Marketing at Coca-Cola India.
- Coca-Cola is an American company that sells Coca-Cola, invented by John Stith Pemberton.
7. Consumer confidence index decreased to 49.9 in September
- As per RBI’s consumer confidence survey, the consumer confidence index has decreased to 49.9 in September.
- In July, the consumer confidence index stood at 53.8. But, on a one-year ahead expectations basis, the index increased from 105.4 to 115.9.
- As per the survey, the current situation index (CSI) has decreased to all-time low levels for the third time and future expectations index (FEI) for the second time continuously.
- The consumer confidence survey also finds that discretionary spending will remain low in future.
- The survey was carried out in 13 major cities between August 29 and September 10, 2020.
- RBI’s Consumer Confidence Survey (CCS) shows current perceptions and future expectations on following parameters:
- General economic situation
- Employment scenario
- Overall price situation
Income and spending
8. IRDAI’s committee recommends lowering of entry-level capital requirement for SAMIs
- IRDAI’s Committee on Standalone Micro-insurance Company has recommended lowering of entry-level capital requirement for standalone micro-insurance companies (SAMIs).
- The committee has recommended a lowering of the minimum capital requirement to Rs 20 crore from current Rs 100 crore prescribed by Insurance Act, 1938.
- Only 9% of total population is currently covered by the micro-insurance sector. The committee has also recommended risk-based capital (RBC) approach and proposed a cell captive model.
- The committee has also recommended the amendment in Insurance Act, 1938, to bring the standalone micro-insurance business under the regulation.
- As per the committee, a Micro-insurance Development Fund should be set up by IRDAI to help and promote growth of the micro-insurance business.
- Insurance Regulatory and Development Authority (IRDAI):
- The IRDAI is an autonomous, statutory body of India.
- It aims to regulate and promote the insurance and re-insurance industries in India.
- It was established in 1999. It is headquartered in Hyderabad.
- Its chairperson is Subhash Chandra Khuntia.
9. SEBI reviewing the reappointment of Amit Goela and Madhu Vadera Jayakumar
- SEBI is reviewing the reappointment of Amit Goela and Madhu Vadera Jayakumar on the board of the Multi Commodity Exchange (MCX).
- Their reappointments have already been approved by MCX shareholders on August 31 at annual general meeting of MCX.
- Amit Goela and Madhu Vadera Jayakumar were appointed on the board of MCX in 2015.
- An enquiry against Amit Goela is pending since 2017 for his role in the trading of shares of Reliance Communications.
- Multi Commodity Exchange of India Limited (MCX):
- It was set up in 2003.
- It is Mumbai based. It is the first listed exchange in India.
- Its CEO is P.S. Reddy.