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President Message
GST collections are at record levels. Economy is booming. Governments are elated. But trade and industry are increasingly becoming restless because of process and compliance related difficulties in GST regime. FISME collated feedback from member MSMEs and associations and shared a note with the concerned authorities. A major concern is the denial of Input Tax Credit (ITC) due to bogus invoices. Bona fide buyers who purchase goods from sellers accused of issuing such invoices face unfair denial of ITC, affecting the entire supply chain. FISME argues that ITC should not be denied if goods are received by legitimate customers, ensuring fairness in the supply chain.
Another critical issue involves the treatment of goods seized during raids. Currently, these goods must be disposed of within one year, while final assessments can be delayed for up to five years. FISME suggests that showcause notices be issued within one year of a search or raid to expedite the resolution process. Raids and surveys present additional challenges, with assesses often required to deposit tax under DRC3, contrary to CBIC’s instructions under 1/22. These funds are rarely refunded if no dispute is assessed. FISME proposes allowing tax deposits under protest when disagreements arise. Finally, the non-interchangeability of SGST with IGST and CGST complicates refunds, especially for businesses engaged in interstate transactions. FISME has called for SGST to be made interchangeable with IGST and CGST to simplify the refund process. We feel Tax collection has to be fair and collecting tax when not due creates detrimental effect on the economy. We hope authorities would take note of the suggestions and make amends.
With the right perspective and focus, you can scale successfully in any economy.
In periods of economic uncertainty, businesses must make critical decisions about growth, expansion and scale with clarity. Will a new product or investment strategy be met with excitement by investors and customers or pull the company into a financial crisis it cannot easily recover from? The evidence is clear (and available from multiple agencies). The global economy is in a slowdown. UN Trade & Development shares that global economic growth will slow to just 2.6% in 2024. That remains just above the threshold commonly accepted as a recession.
Rather than raise rates, the government must fix the tax’s faulty design and bring in larger transaction volumes.
The 54th meeting of the Goods and Services Tax (GST) Council reportedly saw many state governments expressing discomfiture over this broader consumption tax yielding lower revenue growth in comparison to the taxes it replaced. The states are more vulnerable to GST’s low revenue potential now, than in the first five years of this tax through June 2022, when they enjoyed guaranteed revenue growth of 14% annually.Not just at the level of individual states, but even the trajectory of gross GST collections may at best be approaching the pre-GST trend growth now, after seriously lagging it in the initial five years. ...
The Indian government has announced a five-year extension of anti-subsidy duties on imports of welded stainless steel pipes and tubes from China and Vietnam.
This measure, originally implemented in September 2019, aims to protect domestic manufacturers from subsidized imports, according to a recent notification from the finance ministry. The decision follows an anti-dumping investigation conducted by the Directorate General of Trade Remedies (DGTR).
The probe, initiated after complaints from industry associations, found evidence that these products were being exported to India at prices below production costs due to subsidies.
The Indian government has announced a one-month extension of the Interest Equalisation Scheme on pre- and post-shipment rupee export credit, prolonging the initiative until September 30, 2024.
This decision aims to bolster the nation's export sector amidst global economic headwinds. The scheme, which provides interest benefits to exporters, was previously set to conclude on August 31 after a two-month extension in June. The Directorate General of Foreign Trade (DGFT) confirmed the extension in a recent trade notice, specifying that it now applies exclusively to MSME manufacturing exporters.
In a significant policy shift aimed at bolstering the domestic agricultural sector, India has raised the basic import tax on crude and refined edible oils by 20 percentage points, the government announced on Friday.
The move comes as the world's largest importer of edible oils seeks to provide relief to farmers struggling with low oilseed prices. Effective from September 14, a 20 per cent basic customs duty will be levied on crude palm oil, crude soyoil, and crude sunflower oil, according to a government notification. The decision is expected to push up edible oil prices domestically, likely reducing demand and consequently trimming overseas purchases of these key vegetable oils.
In a decisive step towards fostering electric mobility, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the implementation of the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ Scheme.
The initiative, led by the Ministry of Heavy Industries (MHI), will inject Rs 10,900 crore over the next two years to boost the adoption of electric vehicles (EVs) and build a robust EV infrastructure nationwide.
In a bid to accelerate domestic production under the government's Production-Linked Incentive (PLI) scheme, IT hardware manufacturers are urging for a significant reduction in the certification process for locally-made laptops and notebooks.
Industry leaders have voiced concerns to the Ministry of Electronics and Information Technology (MeitY) regarding the extended timelines for obtaining Bureau of Indian Standards (BIS) certification, which currently spans five to six months
India is poised to unveil a comprehensive policy to promote green steel production, a significant step in its broader strategy to tackle climate change and reduce greenhouse gas emissions from its steel industry.
This announcement was made by Sandeep Poundrick, Secretary of the Ministry of Steel, during a specialised event reported by Reuters.
The new policy will focus on several key areas, including public procurement of green steel products and incentivising smaller steel manufacturers to adopt low-carbon production methods.
In a significant move aimed at revitalising India's maritime sector, the Indian government is expected to approve the establishment of a Rs 25,000 crore Maritime Development Fund (MDF) later this month.
According to a report by Mint, this strategic fund will provide long-term, low-cost financial assistance to the nation’s shipbuilding industry and support blue-water infrastructure development, in alignment with the 'Make-in-India' initiative, which seeks to position India as a global manufacturing powerhouse.
In a significant move aimed at supporting the rehabilitation of micro, small, and medium enterprises (MSMEs) hit by recent floods in Vadodara, the Gujarat government has unveiled a comprehensive relief package.
This package seeks to aid local businesses that faced heavy financial losses due to the natural calamity. Announcing the relief measures on Thursday, a government spokesperson outlined several targeted benefits for affected businesses. For those operating lorries, a lump sum amount of Rs 5,000 will be provided.
Union Minister for Micro, Small and Medium Enterprises (MSME), Jitan Ram Manjhi, unveiled a substantial development package for Jharkhand's MSME sector on Wednesday.
Speaking at an MSME conclave in Ranchi, Manjhi announced an allocation of Rs 220 crore to bolster the state's small business landscape.The package includes Rs 120 crore for the establishment of four new industrial clusters and Rs 30 crore for three additional technology centres in Jharkhand.
MLC Manjunath Bhandary announced that the Karnataka state cabinet has granted administrative approval for a Rs 27 crore textile park project to be established in Karkala, Udupi district.
The approval, under the leadership of Chief Minister Siddaramaiah, marks a significant step toward realising this long-awaited project. "The government has given administrative approval to the textile park in Karkala during a cabinet meeting held on Thursday," Bhandary said.
Indian External Affairs Minister S Jaishankar concluded a two-day visit to Geneva on Friday, where he engaged in comprehensive discussions with Swiss Foreign Minister Ignazio Cassis.
The talks centred on strengthening bilateral relations and maximising the potential of the recently signed trade agreement between India and the European Free Trade Association (EFTA). The Indian Ministry of External Affairs reported that Minister Cassis extended a special welcome to his Indian counterpart in Geneva.
Their dialogue focused particularly on leveraging the Free Trade Agreement between India and the EFTA states—Switzerland, Norway, Iceland, and Liechtenstein—to enhance trade and investment opportunities.
India is emphasising strict compliance with 'Rules of Origin' in its ongoing Free Trade Agreement (FTA) negotiations with the United Kingdom, particularly in the automobile sector, Commerce Secretary Sunil Barthwal stated on Tuesday.
The government aims to ensure that these rules do not negatively impact India's automobile industry. Addressing leaders of the auto industry, Barthwal highlighted the importance of creating a level playing field in the FTA negotiations.
India and the United Arab Emirates (UAE) have signed a Memorandum of Understanding (MoU) for civil nuclear cooperation, marking the first such agreement between the two nations.
The agreement was formalized during the visit of Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to India on Monday. The MoU, signed between the Nuclear Power Corporation of India Limited (NPCIL) and the Emirates Nuclear Energy Company (ENEC)-led Barakah Nuclear Power Plant Operations and Maintenance, represents a significant step forward in the bilateral relationship.
According to the FISME factor, 60% of MSMEs believe that insufficient documentation is the foremost issue in securing credit while 40% point to the lengthy approval process.
Picture a company ensnared in the cobwebs of its past, its culture as obsolete as a VHS tape in the age of streaming. As the world around it hurtles forward, this company clings desperately to its outdated norms, blind to the dangers of stagnation. Such a company is on a slow march to irrelevance, not because it lacks talent or resources, but because it’s shackled by a culture that no longer serves its purpose. In today’s dynamic environment, companies can’t afford to view their organisational culture as set in stone.
Creating a small business budget stands as a cornerstone of financial success, especially as businesses embark on the journey of a new year. A well-structured budget not only guides small businesses through their financial landscape but also provides a roadmap for achieving their financial goals.
Understanding the nuances of a business budget is crucial for any small business owner who aims to navigate 2024 with financial clarity and strategic foresight.
5 Strategies That Helped Me Achieve 10x Returns on My Marketing Efforts
Iwant to share some of the strategies that have helped me achieve crazy results — 10x returns on my marketing efforts, no joke.
I know how overwhelming it can be with all of the marketing advice that's out there, but I'm here to cut through the noise and give you some actionable tips that have worked wonders for me.
South Indian MSMEs Demand GST Relief, Raw Material Price Cuts
Gujarat, In a pivotal meeting held on Tuesday, representatives of Micro, Small, and Medium Enterprises (MSMEs) from various industrial associations in South India met with officials from the Ministry of MSMEs to voice their concerns and demands.
Ishita Ganguli Tripathy, Additional Development Commissioner at the Ministry of MSMEs, participated in the interactive session, aimed at addressing the pressing challenges faced by the sector.
Boss Packaging Solutions Makes Strong Debut on NSE SME, Surging 25%
Boss Packaging Solutions made a robust debut on the National Stock Exchange's SME platform on September 6, with shares opening at Rs 82.5, marking a 25 per cent premium over the initial public offering (IPO) price of Rs 66.
This performance surpassed grey market expectations, which had anticipated an 8 per cent premium.
Indian Space Tech Startup Pixxel Selected for NASA's Earth Observation Program
In a significant development for the Indian space technology sector, Bengaluru-based startup Pixxel has been chosen by the National Aeronautics and Space Administration (NASA) to participate in its USD 476 million Commercial Smallsat Data Acquisition program.
This marks the largest supplier deal secured by an Indian company fr0m NASA to date.
The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) has released the Quick Estimate of Index of Industrial Production and Use-Based Index for the Month of July 2024 (Base 2011-12=100).
FISME regularly receives monthly reports on the economies of various countries from their missions in India. These reports provide information on key economic parameters, trade related information and all news relevant for importers and exporters. In this edition you can take a look at reports on:
Write your comments on the FISME Factor. Share your views and suggestions on MSME issues. Win prize! The best mail will get a special book every fortnight.
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GST collections are at record levels. Economy is booming. Governments are elated. But trade and industry are increasingly becoming restless because of process and compliance related difficulties in GST regime. FISME collated feedback from member MSMEs and associations and shared a note with the concerned authorities. A major concern is the denial of Input Tax Credit (ITC) due to bogus invoices. Bona fide buyers who purchase goods from sellers accused of issuing such invoices face unfair denial of ITC, affecting the entire supply chain. FISME argues that ITC should not be denied if goods are received by legitimate customers, ensuring fairness in the supply chain.
Another critical issue involves the treatment of goods seized during raids. Currently, these goods must be disposed of within one year, while final assessments can be delayed for up to five years. FISME suggests that showcause notices be issued within one year of a search or raid to expedite the resolution process. Raids and surveys present additional challenges, with assesses often required to deposit tax under DRC3, contrary to CBIC’s instructions under 1/22. These funds are rarely refunded if no dispute is assessed. FISME proposes allowing tax deposits under protest when disagreements arise. Finally, the non-interchangeability of SGST with IGST and CGST complicates refunds, especially for businesses engaged in interstate transactions. FISME has called for SGST to be made interchangeable with IGST and CGST to simplify the refund process. We feel Tax collection has to be fair and collecting tax when not due creates detrimental effect on the economy. We hope authorities would take note of the suggestions and make amends.
With the right perspective and focus, you can scale successfully in any economy.
In periods of economic uncertainty, businesses must make critical decisions about growth, expansion and scale with clarity. Will a new product or investment strategy be met with excitement by investors and customers or pull the company into a financial crisis it cannot easily recover from? The evidence is clear (and available from multiple agencies). The global economy is in a slowdown. UN Trade & Development shares that global economic growth will slow to just 2.6% in 2024. That remains just above the threshold commonly accepted as a recession.
The Indian government has announced a five-year extension of anti-subsidy duties on imports of welded stainless steel pipes and tubes from China and Vietnam.
This measure, originally implemented in September 2019, aims to protect domestic manufacturers from subsidized imports, according to a recent notification from the finance ministry. The decision follows an anti-dumping investigation conducted by the Directorate General of Trade Remedies (DGTR).
The probe, initiated after complaints from industry associations, found evidence that these products were being exported to India at prices below production costs due to subsidies.
The Indian government has announced a one-month extension of the Interest Equalisation Scheme on pre- and post-shipment rupee export credit, prolonging the initiative until September 30, 2024.
This decision aims to bolster the nation's export sector amidst global economic headwinds. The scheme, which provides interest benefits to exporters, was previously set to conclude on August 31 after a two-month extension in June. The Directorate General of Foreign Trade (DGFT) confirmed the extension in a recent trade notice, specifying that it now applies exclusively to MSME manufacturing exporters.
In a significant policy shift aimed at bolstering the domestic agricultural sector, India has raised the basic import tax on crude and refined edible oils by 20 percentage points, the government announced on Friday.
The move comes as the world's largest importer of edible oils seeks to provide relief to farmers struggling with low oilseed prices. Effective from September 14, a 20 per cent basic customs duty will be levied on crude palm oil, crude soyoil, and crude sunflower oil, according to a government notification. The decision is expected to push up edible oil prices domestically, likely reducing demand and consequently trimming overseas purchases of these key vegetable oils.
In a decisive step towards fostering electric mobility, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the implementation of the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)’ Scheme.
The initiative, led by the Ministry of Heavy Industries (MHI), will inject Rs 10,900 crore over the next two years to boost the adoption of electric vehicles (EVs) and build a robust EV infrastructure nationwide.
In a bid to accelerate domestic production under the government's Production-Linked Incentive (PLI) scheme, IT hardware manufacturers are urging for a significant reduction in the certification process for locally-made laptops and notebooks.
Industry leaders have voiced concerns to the Ministry of Electronics and Information Technology (MeitY) regarding the extended timelines for obtaining Bureau of Indian Standards (BIS) certification, which currently spans five to six months
India is poised to unveil a comprehensive policy to promote green steel production, a significant step in its broader strategy to tackle climate change and reduce greenhouse gas emissions from its steel industry.
This announcement was made by Sandeep Poundrick, Secretary of the Ministry of Steel, during a specialised event reported by Reuters.
The new policy will focus on several key areas, including public procurement of green steel products and incentivising smaller steel manufacturers to adopt low-carbon production methods.
In a significant move aimed at revitalising India's maritime sector, the Indian government is expected to approve the establishment of a Rs 25,000 crore Maritime Development Fund (MDF) later this month.
According to a report by Mint, this strategic fund will provide long-term, low-cost financial assistance to the nation’s shipbuilding industry and support blue-water infrastructure development, in alignment with the 'Make-in-India' initiative, which seeks to position India as a global manufacturing powerhouse.
In a significant move aimed at supporting the rehabilitation of micro, small, and medium enterprises (MSMEs) hit by recent floods in Vadodara, the Gujarat government has unveiled a comprehensive relief package.
This package seeks to aid local businesses that faced heavy financial losses due to the natural calamity. Announcing the relief measures on Thursday, a government spokesperson outlined several targeted benefits for affected businesses. For those operating lorries, a lump sum amount of Rs 5,000 will be provided.
Union Minister for Micro, Small and Medium Enterprises (MSME), Jitan Ram Manjhi, unveiled a substantial development package for Jharkhand's MSME sector on Wednesday.
Speaking at an MSME conclave in Ranchi, Manjhi announced an allocation of Rs 220 crore to bolster the state's small business landscape.The package includes Rs 120 crore for the establishment of four new industrial clusters and Rs 30 crore for three additional technology centres in Jharkhand.
MLC Manjunath Bhandary announced that the Karnataka state cabinet has granted administrative approval for a Rs 27 crore textile park project to be established in Karkala, Udupi district.
The approval, under the leadership of Chief Minister Siddaramaiah, marks a significant step toward realising this long-awaited project. "The government has given administrative approval to the textile park in Karkala during a cabinet meeting held on Thursday," Bhandary said.
Indian External Affairs Minister S Jaishankar concluded a two-day visit to Geneva on Friday, where he engaged in comprehensive discussions with Swiss Foreign Minister Ignazio Cassis.
The talks centred on strengthening bilateral relations and maximising the potential of the recently signed trade agreement between India and the European Free Trade Association (EFTA). The Indian Ministry of External Affairs reported that Minister Cassis extended a special welcome to his Indian counterpart in Geneva.
Their dialogue focused particularly on leveraging the Free Trade Agreement between India and the EFTA states—Switzerland, Norway, Iceland, and Liechtenstein—to enhance trade and investment opportunities.
India is emphasising strict compliance with 'Rules of Origin' in its ongoing Free Trade Agreement (FTA) negotiations with the United Kingdom, particularly in the automobile sector, Commerce Secretary Sunil Barthwal stated on Tuesday.
The government aims to ensure that these rules do not negatively impact India's automobile industry. Addressing leaders of the auto industry, Barthwal highlighted the importance of creating a level playing field in the FTA negotiations.
India and the United Arab Emirates (UAE) have signed a Memorandum of Understanding (MoU) for civil nuclear cooperation, marking the first such agreement between the two nations.
The agreement was formalized during the visit of Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to India on Monday. The MoU, signed between the Nuclear Power Corporation of India Limited (NPCIL) and the Emirates Nuclear Energy Company (ENEC)-led Barakah Nuclear Power Plant Operations and Maintenance, represents a significant step forward in the bilateral relationship.
According to the FISME factor, 60% of MSMEs believe that insufficient documentation is the foremost issue in securing credit while 40% point to the lengthy approval process.
Picture a company ensnared in the cobwebs of its past, its culture as obsolete as a VHS tape in the age of streaming. As the world around it hurtles forward, this company clings desperately to its outdated norms, blind to the dangers of stagnation. Such a company is on a slow march to irrelevance, not because it lacks talent or resources, but because it’s shackled by a culture that no longer serves its purpose. In today’s dynamic environment, companies can’t afford to view their organisational culture as set in stone.
Creating a small business budget stands as a cornerstone of financial success, especially as businesses embark on the journey of a new year. A well-structured budget not only guides small businesses through their financial landscape but also provides a roadmap for achieving their financial goals.
Understanding the nuances of a business budget is crucial for any small business owner who aims to navigate 2024 with financial clarity and strategic foresight.
Iwant to share some of the strategies that have helped me achieve crazy results — 10x returns on my marketing efforts, no joke.
I know how overwhelming it can be with all of the marketing advice that's out there, but I'm here to cut through the noise and give you some actionable tips that have worked wonders for me.
Gujarat, In a pivotal meeting held on Tuesday, representatives of Micro, Small, and Medium Enterprises (MSMEs) from various industrial associations in South India met with officials from the Ministry of MSMEs to voice their concerns and demands.
Ishita Ganguli Tripathy, Additional Development Commissioner at the Ministry of MSMEs, participated in the interactive session, aimed at addressing the pressing challenges faced by the sector.
Boss Packaging Solutions made a robust debut on the National Stock Exchange's SME platform on September 6, with shares opening at Rs 82.5, marking a 25 per cent premium over the initial public offering (IPO) price of Rs 66.
This performance surpassed grey market expectations, which had anticipated an 8 per cent premium.
In a significant development for the Indian space technology sector, Bengaluru-based startup Pixxel has been chosen by the National Aeronautics and Space Administration (NASA) to participate in its USD 476 million Commercial Smallsat Data Acquisition program.
This marks the largest supplier deal secured by an Indian company fr0m NASA to date.
“You can't cross the sea merely by standing and staring at the water. ”
