QBiz: Foreign Currency Under GST Ambit; Nano May Be Phased Out

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GST was implemented from 1 July. (Photo: The Quint)

1. GST: Indians Travelling Overseas May Need to Pay More For Foreign Currency Notes

Indians travelling overseas may need to pay more for foreign currency notes they buy at home before leaving if the customs department has its way and imposes goods and services tax (GST) on their import into the country. Banks say they are perplexed at the customs department levying integrated GST (IGST) on such consignments, which are exempt from basic customs duty, and have sought a clarification from the government.

Imports of currency could face 12 percent IGST if the government decides in favour of the customs department, which will make the notes costlier. A notification under GST categorically exempts rupee notes transfer to the Reserve Bank of India but not by banks.

Source: The Economic Times

2. Tata Motors May Soon Phase Out The Nano

The Tata Nano, Ratan Tata’s brainchild, may soon come to an end as the company may have already started phasing out the ‘people’s car’ in the domestic market.

Sources told BusinessLine that Tata Motors has finally decided to stop investing any further in the ‘world’s cheapest car’ as it has been unable to grow and continues to be the worst performer in the segment.

The company, however, may continue to produce the Nano for export markets.

If the Nano has to continue selling in India, it would have to prepare to clear the mandatory crash-test from 2019 onwards. This would require fresh investments, which Tata Motors may be unwilling to make.

Source: The Hindu BusinessLine

3. Axis Bank Emerges The Frontrunner to Acquire FreeCharge

Axis Bank, India’s third-largest private sector lender, has emerged the frontrunner to acquire FreeCharge, the digital payments platform owned by troubled e-commerce marketplace Snapdeal, according to three people aware of the development.

The payments unit has been seeking a buyer for several months now, even as its parent negotiates the terms for its own sale.

Mumbai-headquartered Axis Bank is currently conducting due diligence on FreeCharge, according to the three sources cited above, who estimate that a potential deal could deliver a payout of 20-40 million dollars to cash-starved Snapdeal.

This, however, could not be independently verified by ET. Axis Bank and Snapdeal did not reply to emailed queries.

Source: The Economic Times

4. Even Your Phone, Credit Card Bills For June May Attract GST

Your phone and credit card bills for June could attract the Goods and Services Tax (GST) instead of service tax, depending on your billing cycle.

Though GST rolled out from 1 July, services in the previous month could also attract the new levy based on the date of the bill.

“If the invoice was generated after 30 June, it will attract GST. For services, the tax is levied based on the date of supply of service or issue of invoice,” a senior Finance Ministry official said on Friday.

Source: The Hindu BusinessLine

5. GST: Revised MRP Stickers on Pre-July Stocks Allowed Till 30 Sept, Says Paswan

Pasting stickers with revised prices on pre-July stock will not amount to a breach of rules, the government said on Friday, offering relief to companies that had been worried about what to do with products predating the goods and services tax (GST), which kicked in on 1 July.

Consumer affairs, food and public distribution minister Ram Vilas Paswan said the decision had been communicated to all chief ministers. He urged them to set up helplines to address consumer grievances during the transition to GST.

“The sticker mentioning revised price shall not overwrite the original MRP (maximum retail price),” Paswan said, adding that stickers would be allowed until 30 September. Goods sold after that date have to carry prices with GST on packages.

Source: Livemint

6. Essar Steel vs RBI: Central Bank to Issue Corrigendum

The Reserve Bank of India (RBI), on Friday, told the Gujarat High Court that it would issue a corrigendum on its June 13 circular that allowed the National Company Law Tribunal (NCLT) to accord priority to 12 non-performing asset (NPA) accounts set to face insolvency proceedings. The court also adjourned till 12 July the hearing of Essar Steel’s petition asking for a stay on insolvency proceedings.

The court was hearing Essar Steel’s plea, filed on 4 July, against insolvency proceedings initiated against it at the NCLT by State Bank of India-led 22 banks’ consortium of lenders as well as Standard Chartered Bank.

Source: Business Standard

7. GST Won’t Make a Difference to Education: Finance Ministry

The government has said education will not become expensive under the goods and services tax (GST) that rolled out on 1 July. Schooling up to higher secondary and most of the services provided to educational institutions are exempt from taxation under GST, finance ministry said.

“There is no change made in any subject relating to education in the GST era, except to reduce tax rate on certain items of education such as school bags etc," a finance ministry statement said on Friday.

Mid-day meal scheme as well as security, cleaning and housekeeping services performed in educational institutions up to higher secondary are also exempt from GST. Services relating to admission and examination up to higher secondary are exempt under GST, the statement said. The clarification came following concerns in some quarters that education will become expensive under GST.

Source: The Economic Times

8. GST impact: Airlines, Cab Aggregators Grapple With Higher Lease Payouts

Under the new indirect tax regime, leasing of goods is regarded as a service and attracts the goods and services tax (GST). This has created complexities for airlines, cab aggregators and cab leasing companies, even as they grapple with teething issues of implementation of the GST.

Among the many issues faced by airlines, the anomaly in terms of input tax credit for economy class and dual taxation on aircraft leasing top the list. According to the rules, while input credit arising from procurement of both goods and services can be used in case of business class, input credit from services alone can be used for off-setting tax liability with respect to economy class travel.

Source: Business Standard

9. SEBI Seeks Details of Proposed IDFC-Shriram Capital Mega Merger

The Securities and Exchange Board of India (SEBI) has sought details from IDFC and Shriram Group's companies on the proposed merger.

The move follows Thursday's reports that unveiled the proposed merger. According to reports, Chennai-based Shriram Capital and IDFC Bank are set to begin negotiations for merging all or some of their businesses in a mega-union that could create a Rs 60,000-crore financial powerhouse.

Sources said that the market regulator has asked stock exchanges to submit details of trade patterns for the price movements in their respective stocks.

Source: Business Standard