Essay About India’S Sovereign Rating And Gst Current News

Gst Current News
CURRENT TOPICS17 Nov 17After world bank booster shot on sharp improvement in doing business ranking,Moody investor services on 17 Nov 17 upgraded India’s Sovereign rating after 13 Years from lowest investment grade Baa3 to Baa2 and changed the outlook from stable to positive. Why. This was possible due to NM govt incremental reforms e.g demonetization, GST, effort to resolve bad debt crisis of banks. It is a reflection of India’s improved macroeconomic standing. Effects.  Higher capital inflow, strengthening of rupee and ease India Inc’s access to overseas capital at lower rates and increase investor confidence. More inflow from foreign portfolio FPI into Indian equities and surge in demand of Indian bonds. Income tax raids on brokers/ NSE officials NSE co location case which happened during 2011-14. A Co-location facility provides early login and faster access to data feed of the exchange. Even a split second faster access can yield a huge gain for the brokerOct 17World Bank’s doing business report 2018 upgraded India’s rank from 130 to 100 among 190 countries. India was also adjudged the fifth best performing nation globally in reforming business environment. The country improved its ranking in six out of ten sub-categories used by World Bank to judge the climate of business. It topped among all south East Asian countries.GST will have a significant bearing on india’s ranking in years to come.In protecting minority investors, India is fourth best country in the world, a jump from 13th rank.Passage and implementation of Insolvency and bankruptcy code as well as setting of sectoral regulators led to 33 places increase in parameters in resolving insolvency.In access to credit , India improved its rating by 15 places to 29.Main factors are ease in payments of taxes online( Tax compliance and payments have become easier), the possibility of submitting building plans in advance for applying to a construction permit, a new form for business incorporation that combines PAN with TAN and reduction in the time required to complete provident fund and state insurance applications. The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code has come into force  from  2016.The Code outlines separate insolvency resolution processes for individuals, companies and partnership firms. The process may be initiated by either the debtor or the creditors. A maximum time limit, for completion of the insolvency resolution process, has been set for corporate and individuals. For companies, the process will have to be completed in 180 days, which may be extended by 90 days, if a majority of the creditors agree. For startups (other than partnership firms), small companies and other companies (with asset less than Rs. 1 crore), resolution process would be completed within 90 days of initiation of request which may be extended by 45 days        Insolvency regulator: The Code establishes the Insolvency and Bankruptcy Board of India, to oversee the insolvency proceedings in the country and regulate the entities registered under it. The Board will have 10 members, including representatives from the Ministries of Finance and Law, and the Reserve Bank of India. Insolvency professionals: The insolvency process will be managed by licensed professionals. These professionals will also control the assets of the debtor during the insolvency process.Bankruptcy and Insolvency Adjudicator: The Code proposes two separate tribunals to oversee the process of insolvency resolution, for individuals and companies: (i) the National Company Law Tribunal for Companies and Limited Liability Partnership firms; and (ii) the Debt Recovery Tribunal for individuals and partnerships. Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017 and was applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. GST is a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level It was introduced as The Constitution (One Hundred and First Amendment) Act 2017, The GST is governed by a GST Council and its Chairman is the Finance Minister of India. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12% ,18% and 28%.. GST is a destination based taxed where the tax is collected by the State where goods are consumed. India is going to implement the GST from July 1, 2017 and it has adopted the Dual GST model in which both States and Central levies tax on Goods or Services or both.SGST – State GST, collected by the State Govt.CGST – Central GST, collected by the Central Govt.IGST – Integrated GST, collected by the Central Govt. Benefits of GST:To tradeTo Consumers ·        Reduction in multiplicity of taxes·        Simpler Tax system ·        Create unified common national market for India, giving a boost to Foreign investment and “Make in India” campaign·        Mitigation of cascading/ double taxation ·        Reduction in prices of goods & services due to elimination of cascading·        Boost export and manufacturing activity and leading to substantive economic growth·        More efficient neutralization of taxes especially for exports·        Uniform prices throughout the country·        Help in poverty eradication by generating more employment·        Development of common national market·        Transparency in taxation system·        Uniform SGST and IGST rates to reduce the incentive for tax evasion·        Simpler tax regime·        Increase in employment opportunities ·        Fewer rates and exemptions  ·        Distinction between Goods & Services no longer required