Month: August 2020

Categories
Finance

GST Council Meet: Compensation Gap Stands at Rs 2.35 Lakh Crore for FY 2020-21 Amid COVID-19 Pandemic, Centre Places 2 Options Before States

41st GST council meeting. (Photo Credit: PIB)
41st GST council meeting. (Photo Credit: PIB)

New Delhi, August 27: Union Finance Minister Nirmala Sitharaman on Thursday chaired the 41st Goods and Services Tax Council Meeting. During the meeting, the council estimated the compensation gap at around Rs 2.35 lakh crore in GST collections due to COVID-19 pandemic.

Addressing the press conference, Revenue Secretary Ajay Bhushan Pandey stated that the total shortfall in collection of GST is estimated at Rs 2.35 lakh crore, out of which Rs 97,000 crore is on account of GST shortfall while the rest is due to COVID-19 pandemic.

Following this, the Union Finance Ministry gave the states seven days time to get back on filling the compensation gap of Rs 2.35 lakh crore and hinted brief GST Council meeting soon. The Union Ministry also gave two options for states to fill the compensation gap.

The first includes a special window which can be provided to the states, in consultation with the Reserve Bank of India, at a reasonable interest rate for the borrowing of Rs 97,000 crore. The amount can be repaid after five years (of GST implementation) ending 2022 from cess collection. While the second option is to borrow the entire Rs 2.35 lakh crore shortfall under the special window.

Apart from this, the Union Ministry stated that it will provide a further relaxation of 0.5 per cent in states’ borrowing limit under Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act, 2003). With this, states can choose to borrow more, beyond the expected compensation itself, since that is the injury caused by COVID-19.

Among other details, Union FM Revenue Secretary said that there was hardly any GST Collection in April and May. Adding more, he said, “Total GST compensation during April-July 2020 to be paid is Rs 1.5 lakh crores.” The Union Ministry informed that Centre released more than Rs 1.65 lakh crore as GST compensation to states for FY 2019-20, including Rs 13,806 crore for March.

Categories
Finance Startup

Why Do Investors Invest in Startups? Here’s How Investors Add Value to Startups and Help Entrepreneurs

Startups and Investors (Photo Credits: Pexels)

For any business to flourish, there needs to be good investment and planning that will help the firm reach its target audience and go beyond! Here’s where the role of an investor comes into picture. An investor puts capital to use for long-term gains, while an entrepreneur seeks to generate profits by using those funds. Thus an investor is a crucial aspect for any startup, who typically generates returns by deploying capital. Investing in startups is a risky proposition. However, the low requirement for overhead capital along with high upside potential, makes it lucrative for the investors to put their bets on startups.

Basically, an investor is a person that allocates capital with the expectation of a future financial return or to gain an advantage. An investor can choose to invest in-equity, debt securities, real estate, currency, commodity, token, derivatives such as put and call options, futures, etc.

According to the official website of Startup India- startupindia.gov.in, investors particularly venture capitalists (VCs) add value to startups in a lot of ways. Some of them are listed below:

  1. Stakeholder Management: The investors are the ones who manage the company board and leadership to facilitate smooth operations of the startup. Moreover, their functional experience and domain knowledge of working and investing with startups imparts vision and direction to the company.
  2. Raise Funds: Investors are best guides for the startup as they help to raise subsequent rounds of funding on the basis of stage, maturity, sector focus etc. The investors aid in networking and connection for the founders to pitch their business to other investors.
  3. Recruiting The Best to Achieve Business Goals: Finding great talent and best-fit human capital is critical for startups, especially when it comes to recruiting senior executives to manage and drive business goals. The venture capitalists, with their extensive network can help bridge the talent gap by recruiting the right set of people at the right time.
  4. Proper Marketing of the product: The venture capitalists (VCs) assist with marketing strategy for your product/service.
  5. Merger and Acquisition (M&A) Activity: VCs have their eyes and ears open to merger and acquisition opportunities in the local entrepreneurial ecosystem to enable greater value addition to the business through inorganic growth.
  6. Organizational Restructuring:As a young startup grows to an established company, they help with the right organizational structuring and introduce processes to increase capital efficiency, lower costs and scale efficiently.
Categories
Finance

Gold Price & Silver Rates Slip Ahead of Federal Reserve Chairman Jerome Powell’s Address

Gold jewellery (Photo Credits: Wallpaperflare)

Mumbai, August 27:Gold and silver rates slipped in the Indian market on Thursday. On MCX October gold futures were down 0.22 percent to Rs 51,665 per 10 gram. Silver futures fell to Rs 66,821 per kg.

The gold rate in the Indian market tracked a muted trend in the international spot prices as investors waited for Federal Reserve Chairman Jerome Powell’s address. The dollar index fell to a near one-week low against its rivals, making gold less expensive for holders of other currencies.

According to Good Returns website, the cost of 24 carat 10-gram was Rs 51,410 in Mumbai. The price of 10-gram 24-carat gold in Delhi, on the other hand, was at Rs 54,390. Customers can buy a 10-gram 24-carat gold in Kolkata at Rs 52,880.

Categories
Process & Business Expansion

Tata Group Plans to Intensify E-Commerce Operations by Launching All-in-one Online App & Compete With Biggies Like Amazon, Flipkart And Reliance

Tata Motors (Photo Credits: Wikipedia)

Mumbai, August 27: Tata Group conglomerate is planning to expand its footprint in the e-commerce space. The company has plans of launching an all-in-one e-commerce app for its consumer products and services, according to a Bloomberg report. The launch of the app is expected to take place by the end of 2020 or early next year.

By ramping up its e-commerce operations, it will be competing with biggies in this space which includes names like Amazon, Flipkart and Reliance. There is cut-throat competition in this space and each of these players is looking to expand their growth and tap the second most populous country.

Tata Group has plans of making a sizeable presence in the online market. According to a forecast by Cisco Systems Inc, internet users are expected to reach 900 million by 2023. There has been a huge jump in the consumption of content and people using smartphones to do various activities. Tata Group, therefore, wants to capitalise on this opportunity and make the most of it.

Categories
Motivational Startup Strategy

5 Common Startup Tips An Entrepreneur Shouldn’t Follow

Startups | Representational Image (Photo Credits: Pexels)

Starting a business with an innovative idea is a great deal of work. After completing lots of preparations and paperwork, an entrepreneur can pull off his/her business model. However, there will be always people to give advice that might not work for the startup to grow. Following them blindly, as those pieces of advice worked for others, can prove to be a disaster for your business.

Here are a few tips which an entrepreneur shouldn’t follow:

1) Customer is Always Right:

Many times an entrepreneur hears this line. The main issue behind the advice is customer pays and for that, an enterprise needs to listen to his/her every demand. However, it is a proven fact that no one can be an expert on everything. When conflicts arise, the best way is to clear the misunderstanding with proper communication. This will not only bring the client back but also s/he will trust you more for being truthful.

2) Raise Money and Grow as Fast as Possible:

Of course, speed is something that is needed to sustain in a competitive market. But the biggest mistake an entrepreneur makes is earning more money in a shorter period and then burning it with the same speed without even waiting for their products to fit in the market. The result — the sooner they rise, the sooner they fall. Best way to deal with this issue is to make a plan to expend the money in the right direction and identify product-market fit.

3) Choose Between Business And Family:

This is one misconception that most of the female entrepreneurs have. Instead of believing in this misconception, one should create a seamless work-life integration, where passion intersects with your personal life. The first and foremost part starts believing in yourself, and the second being surrounded yourself with people who believe in you.

4) Following Best Practices:

Walking on the path shown by others sometimes may help an entrepreneur, but not always. A path derived and designed by others, how is that going to fulfil the dreams and aspiration of a budding entrepreneur? To lead from the front, getting inspiration from someone is awesome, but one should not strict to best practices. S/he always be on a lookout to derive new ways to solve issue and progress.

5) Fake It to For Success:

Last but not least. This tip might help an entrepreneur in the initial phase but will end in a disaster. No investor, client or customer like dishonesty. This not only dampens their reputation in the market but also eradicates the trust that people have on them. Ask yourself, do you want to be called as a ‘cheater’? Think wisely before you proceed with this ‘faking’ people tip.

Categories
Finance

Delayed GST Payment: Govt Changes Interest Liability Rules, Interest to Be Charged on Net Tax Liability From September 1, 2020

GST Payment (Photo Credits: Unsplash)

New Delhi, August 26: The government on Wednesday changed the interest liability rules and said that the interest on delayed payment of Goods and Services Tax (GST) will be charged on net tax liability with effect from September 1. Reports inform that the industry had earlier this year raised concern over the directive of recovery of about Rs 46,000 crore of unpaid interest on delayed GST payment. The interest was charged on gross tax liability.

It was in March that the GST Council, which comprises of centre and state finance ministers, had decided in its 39th meeting that interest for delay in payment of GST to be charged on net tax liability with effect from July 1, 2017, and law would be amended retrospectively. However, on August 25, the Central Board of Indirect Taxes and Customs (CBIC) notified September 1, 2020, as the date from which interest would be charged on net tax liability.

Earlier, the CBIC had said that GST law permits interest calculation on delayed GST payment on the basis of gross tax liability. This position has been upheld in the Telangana High Court’s decision dated April 18, 2019. It must be noted that the net GST liability is arrived at after deducting input tax credit from gross GST liability. Therefore, calculating interest on gross GST liability increases the payout burden on businesses.

According to AMRG & Associates Senior Partner Rajat Mohan, this notification seems to be in disconnect with decisions of GST Council wherein it was assured to the taxpayers that the said benefit would be available retrospectively from July 1, 2017. “Prospective availability of this benefit would mean that millions of taxpayers may be looking at demand of interest for over 3 years from the date of GST implementation. Businesses are expected to approach the High Courts again on this unjustified and illegal demand of interest basis the ”principle of estoppel”, Mohan said.

Businesses, which are other than those under the composition scheme and quarterly return filers, registered under goods and services tax (GST) have to file returns (GSTR-1). They have to show tax liability by 11th of following month and pay taxes by filing GSTR-3B between 20-24 (due date varies according to the state in which businesses are registered). There have been cases where GST assessees have paid taxes after due date but did not pay the interest due on account of delayed payment.

Categories
Startup

Hewlett Packard Enterprise Creates Platform to Engage With Tech Startups in India, Here Are Details About Digital Catalyst Program And How to Apply

Hewlett Packard Enterprise (Photo Credits: Company website)

Bangalore, August 26: Hewlett Packard Enterprise (HPE) has created a platform to engage with tech startups in India. HPE has launched the HPE Digital Catalyst Program in partnership with angel investing platform LetsVenture. The objective is to support, innovate and identify the next generation of digital disruptors in the Indian startup ecosystem.

As part of this program, HPE will work with a selected cohort of eight enterprise-focused, growth-stage startups along three tracks – technology, go-to-market, and investment. With more than 50,000 startups, India is believed to have the third-largest startup ecosystem in the world.

“COVID-19 has acted as a catalyst in accelerating digital transformation around the world,” said Som Satsangi, managing director, Hewlett Packard Enterprise, India “At HPE, we have always been a believer in the power of partner ecosystems in driving innovation.

Here’s how to apply for the program: 

Click on the link: letsventure.com

The applications are now open and the last date for submission is September 18, 2020.

October 1, 2020, is the announcement of the cohort.

October 5, is the launch of the program.

Mid of January 2021 is the showcase and wrap up of the program

How will the startups benefit?

Startups participating in the program will receive support from HPE teams including technology mentoring by HPE’s distinguished technologists, market validation and mentoring with HPE’s sales leaders. The disruptive startups aligned with HPE’s strategy will also have the opportunity to pitch to the HPE Pathfinder program for funding.

 

Categories
Finance

MSMEs in Maharashtra: State Government Mulling Relief Package For Lockdown-Hit Sector, Says Industries Minister Subhash Desai

MSME (Photo Credits:
Emergency Credit Facility Under ECLG for small businesses hiked from Rs 25 crore to Rs 50 crore by NCGTC. | Representational Image.

In what is believed to be a move to revive the Micro Small and Medium Enterprises (MSME) sector in Maharashtra, the state government is planning to provide some relief to the sector which has been severely impacted due to coronavirus lockdown. Maharashtra industries minister Subhash Desai was quoted in a TOI report saying that the MSME sector has asked for relief which includes interest subvention, relief in electricity duty and support for wages to be dispensed during the lockdown.

Desai said that the state government will consider providing a relief package to MSME sector after this issue comes up in the cabinet. The state has 20 lakh units registered as MSMEs, of which, six lakh are in the manufacturing sector, while the others are in service sector.

Indian Merchants Chamber president Rajiv Podar said that the biggest challenge for MSMEs is a fund crunch and a large chunk is blocked by PSUs. “In addition, 65% of MSMEs are below the investable grade and are therefore, not able to access the Centre’s relief package,” he said. Podar said the RBI’s interest rate transmission has not trickled to MSMEs adding that the government will need to stimulate demand in the economy.

Meanwhile, Anant Singhania, director of J K Organisation and CEO of J K Enterprises was quoted in the report saying that the Centre’s Atmanirbhar package catered more to MSMEs, who were already borrowers, to able to borrow more. He said the rest got excluded from the package and are in need of help. “The industrial sector on the whole, “faces a funding challenge since cash flow has come to a grinding halt,” said Singhania, adding that the industry is functioning at a sub-optimal level, facing a lack of demand and lack of workers.

Further, Singhania said that the governments had to give some assurance to the large number of migrants who left the cities so that they would return. “There also needs to be some monetary infusion in the market from the government and public sentiment needs to change on the ground,” he said.

Categories
Motivational Strategy

5 Steps for Newcomer to Build and Grow a Personal Brand Amid COVID-19

Steps to build and grow a personal brand. | File Image
Steps to build and grow a personal brand. | File Image

For a budding professional, the most difficult job is to build and grow a personal brand. This will not only boost his morale but also help his/her in securing a job in the corporate field. However, with pressures mounting with time and firms taking extra precautions in hiring candidates amid COVID-19 pandemic, here are five steps for a budding professional to build and grow a personal brand.

Create a Target Audience:

The first and the foremost step for building a personal brand is to create and make aware the target audience aware of the brand. For this, a well-written CV plays a vital role which should include a career summary, academic information, work experience, languages known, certifications, positions of responsibilities, and achievements.

Following this, post the CV in the right platform like Linkedin where recruiters can notice their prospective candidate. Apart from creating a profile, ask peers and ex-fellow employees to endorse your skills. Also, share relevant articles and write those which are relevant to your domain.

Online Classes:

Many of the budding professionals fail to grow their brand as they stick to traditional training. With the situation like COVID-19 pandemic in place and recruiters looking for extra talented people, budding professionals should focus on taking up online classes which makes them ready for the future. Courses like artificial intelligence, digital marketing, graphic designing, content writing, marketing analytics, among others.

Content Writing:

Apart from creating a CV and joining online classes to upgrade skills, a budding professional should write content in the field, in which s/he specialises. Content writing helps in building a professional brand. However, a clear knowledge of one’s vision, target audience and goals should be clear for writing content.

Participate in Case Study Competitions:

It is said that participating in case studies helps in building analytical and critical thinking. With this, a person develops the art of paying attention to details. Also, one learns to read between the line and begins strategic thinking. In the beginning, the idea might look scary, but with time this will help a budding professional into an ideal match for the recruiter.

Subscribe to Online Business News Providers:

This is the last step which will help a budding profession to build and grow a personal brand. There is no harm in gaining current affairs related issues. This will help the budding professional in facing the HRs, future colleague and even friends to strike conversations on mutual interest. Even subscribing to OTT platforms like Discovery Plus or History Channel will enhance the chances of being recruited by a firm.

Among all other things, a budding professional should always look for options to enhance his/her skills. This will make him/her more confident and market-ready.

Categories
Startup

RBI Says ‘Promoting Startup And Ensuring Their Survival is Critical in Generating More Employment’

Startup
Startup (Photo Credits: Pixabay)

Mumbai, August 25: Reserve Bank of India (RBI) on Tuesday said that the promotion of young firms and startups and ensuring their survival is critical for generating more employment generation and higher productivity-led economic growth in India. RBI’s annual report for 2019-20 mentioned that it will be essential to reorient resources and policy focus in this direction.

RBI in its report mentioned that Indian IT firms are already leading globally in terms of developing applications using artificial intelligence (AI), machine learning (ML), robotics, and blockchain technology. This niche advantage needs to be leveraged to strengthen India’s position as an innovation hub, coupled with India’s ‘Start-up India’ campaign which recognises the potential of young entrepreneurs of the country.

Commenting on the economic growth revival of the country following the impact of coronavirus, RBI said that the government’s consumption will continue to support current economic demand while private consumption is expected to lead the recovery.