Categories
Finance Strategy

GST Council Likely to Meet on August 27 to Discuss Compensation Payout to States

जीएसटी
जीएसटी

New Delhi, August 19: The Goods and Services Tax (GST) Council is likely to meet on August 27 to discuss the compensation pay-out to states. The council will also discuss the opinion of the Attorney General on the legality of market borrowing to meet revenue shortfall. This will be the 41st meeting of the GST Council and will be held via video conference. Sources reveal that the meeting would be a single agenda meeting on states’ compensation.

A full-fledged meeting of the Council would be held on September 19, the agenda for which is to be decided, a report by news agency PTI said. The Attorney General, the chief legal officer of the government, is of the opinion that the Centre has no statutory obligation to make up for any shortfall in GST revenues of states from its coffers, sources revealed.

They had earlier indicated that following the AG’s opinion, states may now have to look at market borrowings to meet the revenue shortfall and the GST Council will take a final call. In March, the Centre had sought views from Attorney General KK Venugopal on the legality of market borrowing by the GST Council to make up for any shortfall in compensation fund – a corpus created from levy of additional tax on luxury and sin goods to compensate states for revenue shortfall arising from their taxes being subsumed into GST.

Reports inform that the Attorney General had also opined that the Council would have to decide on meeting the shortfall in the GST compensation fund by providing the sufficient amount to be credited to the fund. As per sources, the options before the Council for meeting the shortfall could be to rationalize GST rates, cover more items under the compensation cess or increase the compensation cess, or recommend higher borrowing by states to be repaid by the future collection into the compensation fund.

Under the GST law, states were guaranteed to be compensated bi-monthly for any loss of revenue in the first five years of the GST implementation from July 1, 2017. The shortfall is calculated assuming a 14 per cent annual growth in GST collections by states over the base year of 2015-16. Under the GST structure, taxes are levied under 5, 12, 18 and 28 per cent slabs. On top of the highest tax slab, a cess is levied on luxury, sin and demerit goods and the proceeds from the same are used to compensate states for any revenue loss.

The GST Council has to decide how to meet the shortfall in such circumstances and not the central government, sources added.  Any borrowing of the central government is upon the security of the Consolidated Fund of India. Similarly, borrowing by a state government is upon the security of the consolidated fund of the state.

In either case, it would lead to increased general government debt burden and also a higher fiscal deficit. The payment of GST compensation to states became an issue after revenues from the imposition of cess started dwindling since August 2019 and the Centre had to dive into the excess cess amount collected during 2017-18 and 2018-19.

In 2019-20, the Centre had released over Rs 1.65 lakh crore as GST compensation. However, the amount of cess collected during the year 2019-20 was Rs 95,444 crore. The compensation payout amount was Rs 69,275 crore in 2018-19 and Rs 41,146 crore in 2017-18.

 

Categories
Startup

UP MSME Act of 2020 Introduced by Uttar Pradesh Government to Ease Conditions for Setting up Medium And Small Enterprises in State

MSME
MSME (Photo Credits: Wikipedia)

Lucknow, August 20: Uttar Pradesh is bringing an Act to ease the conditions for setting up Medium And Small Enterprises (MSME) units in Uttar Pradesh. According to a Times of India report, under this Act, an investor will be given 1,000 days to get necessary clearances after the first go-ahead. The new UP MSME (Establishment and Operations) Act of 2020, was cleared by the cabinet recently.

How does it work?

A person will have to make an application through a Declaration of Intent to a district-level nodal agency, which will have to issue an acknowledgement within 72 hours of receiving the application. On the basis of this acknowledgement, one will be able to establish their unit. At present, if a person wants to set up an MSME unit in UP, they need to get clearances from 29 different departments.

Units Not Covered in this Act:

However, there are certain restrictions as there are certain units that will not be covered by the Act. From products, gutka, pan masala etc, alcohol, to plastic bags of 40 microns or less or as banned by the government from time to time, Also, any other item identified by UP Pollution Control Board as a red category is also not covered under this Act.

Categories
Business motivation

Start Business from Home With These Essential Steps

बिजनेस
बिजनेस

When time is harder, you get toughest. Amid this pandemic, when you think everything is difficult to catch up with, you need to find a solution. The pandemic has forced lots of small businesses to shut down and as per The Centre For Monitoring Indian Economy (CMIE), at least 5 million salaried people lost jobs in India in July 2020. The situation is grim, but at the same time, presents an opportunity for people to look at becoming entrepreneurs from home.

We bring you some ideas or ways for starting a business, being at home when everything is closed. Big businesses were not born overnight. Someone had an idea, concept, and worked on it. Here are some steps you need to keep in mind when planning to Start Business at Home –

  1. Assess Your Business Idea
    Start brainstorming your ideas or anything you believe you can be work on being at home only. One requires to have an idea before beginning anything. With various business options possible, you need to focus on one, which matches your skill.
  2. Consider Your Skills With Training
    Nobody is born without skill or talent. So pick something that you think you have an expertise in and start with what you have proper knowledge of. You can try some specialized courses also if need be. Additional skills will always help you improve your business.
  3. Write Down Your Project Report
    Your project report will define how well you have done your homework. The more uniqueness you offer, the faster you will be on the path of success. Study the markets well, be it domestic or international market, as per your business idea. Write down your report based on research, which may include a revenue model with cost and sales price, taxes, delivery charges, etc.
  4. Source of Funding
    The funds play a major role in any business, but small businesses or start-ups are either self-financed or acquired from friends and family. Therefore, you need to be careful with your finances as you need to keep your business running until you start earning profit. With this, you should have one backup for the funding source if something goes wrong.
  5. Fix Your Work Location
    As a small business, you need to own a small workplace, small shop, or an office. This is an essential aspect of your business because you require to register your business as you will receive a permit from the registration office for running your business, and this permission will help you get power and water permits.
  6. Registering Your Business
    Thanks to new direct instructions given by Prime Minister Narendra Modi, the Ministry of Corporate Affairs, you only need one working day for registering your business. Now the option of registering is available online and every necessary information is on the website.
  7. Launch a website
    In today’s time, owning a website plays a major part in any business for providing information on the products and business. It is a significant step for building a business and building trust among your target audience. There’re many websites that guide you and help you build your website.

These are seven simple yet essential steps to keep in mind for starting a small business while being home during these tough times.

 

Categories
Marketing Startup

5 Cost-Effective Marketing Strategies for Startups

Marketing
Marketing (Photo Credits: Pickpik.com)

The greatest challenge in front of startups is that they are usually on a tight budget. Even if they are not, it is very important, that they should wisely spend each penny for a better result which they can see tomorrow. Therefore, startups shouldn’t be focussing on big marketing spends, but their attention should be on strategies which will help them reach out to a wider audience with limited spends.

Let’s take a look at some cost-effective marketing strategies which startups should consider.

1) Create a company website

Make a proper website, which is easy to navigate and can be opened on all the platforms, like a laptop, mobile phone or on a tablet. It should have all the information about what the company does.

2) Focus on Good Content & SEO

Once your website is up and running, the next step should be to populate the website with relevant content. Equal importance should also be given on SEO for your content to be easily found on search engines.

3) PR and news articles

If you are new in the market, it is very important to spread a word in the media about your arrival with the help of good PR and relevant news articles about your company.

4) Social Media Marketing

Use social media to reach out to your potential customers within a fixed budget. Don’t bombard the audience with too much promotional content. It is very important to create a niche and credibility so that people can trust your brand. Startups can also try influencer marketing, it is a very popular marketing form involving endorsements and product placement from influencers, people and organisations who have an expert level of knowledge or social influence in their field.

6) Be Part of Relevant Forums & Groups

Join as many relevant business groups on social media. Try and look out for questions pertaining to your business. You might see someone asking a question that you can answer (with your expertise), and use it as an opportunity to promote your business.

The marketing strategy of a start-up in the initial few months should be to engage with the customers, and not just sell a product. Remember, you are a new brand and people are not aware of your existence, so it is very important to engage and create a relationship with your customers.

Categories
Business motivation

Maruti Suzuki Ties Up With IIM Bangalore to Help Startups Lead Innovations in Mobility Sector

Maruti Suzuki
Maruti Suzuki logo (Photo Credits: Wikipedia)

Bangalore, August 20: In order to help start-ups working in technology-based innovations that can be applied in the mobility sector, Maruti Suzuki on Thursday announced a partnership with the Indian Institute of Management Bangalore (IIM-B).

Commenting on the tie-up, Kenichi Ayukawa, Managing Director and CEO of Maruti Suzuki, said, “The mobility startup incubation programme addresses the needs of early-stage startups which have the potential of becoming large-scale businesses.”

According to an ANI report, this collaboration marks the first-of-its-kind initiative by an automobile manufacturing company to help early-stage startups become large scale businesses. In addition to this, the country’s biggest carmaker Maruti is hopeful that the collaboration with IIMB will help in the creation of jobs.

Under the partnership, early-stage startups will get incubation support and a chance for potential partnership with Maruti Suzuki to fast-track the growth of their venture. The programme will select professionals who have technology in digital, data and AI/ML in the fields of autonomous mobility, shared mobility, mobility solution for rural, connected cars, vehicle diagnostic, vehicle safety, advanced driver-assist system, supply chain management, blockchain, data security, warehousing, finance, advertisement and loyalty programme.

A mobility and automobile innovation lab was launched by Maruti in January last year to co-create innovative business solutions in the mobility space.

 

Categories
Startup

Dream11 Journey: From Fantasy Gaming Startup to IPL 2020 Title Sponsor, Here’s A Look At The Rise of The Unicorn

Dream11 (Photo Credits: Twitter)

Mumbai, August 19: Dream11, Fantasy gaming startup has bagged the Indian Premier League (IPL) 2020 title sponsorship rights. Dream11 won the title sponsorship rights with a bid of Rs 222 crore, replacing Vivo for a four and a half month deal.

In India, the online fantasy sports gaming has seen exponential growth over the last three years. To quote, IFSG-KPMG report, the biggest player in this category is Dream11 which commands 90 percent market share.

Here are some interesting facts about Dream11 growth journey: 

  • Dream11 was co-founded by Harsh Jain and Bhavit Sheth in 2012. It is an India based app.
  • Dream11 is headquartered in the city of Mumbai, Maharashtra.
  • In April 2019, Dream11 became the first Indian gaming company to enter the ‘Unicorn Club’.
  • In 2014, the company reported 1 million registered users, which grew to 2 million in 2016 and to 4 million in 2018.
  • Dream11 was also recognised as one of the top 10 innovative companies in India by Fast Company in 2019.
  • China-based App development organisation called Tencent Games had invested in the application in the year 2018.
  • On the Dream11 platform, the share of cricket as a sport is 85 percent, and this explains why IPL is an important platform for the brand to be in.

Here’s how the game format works:

Dream11 provides a fantasy gaming platform for multiple sports such as cricket, football, basketball, kabaddi, hockey, volleyball, and baseball, handball. Here users create a virtual team of real-life players and earn points based on the performances of these players in real matches. In order to participate in a Dream11 game, a user must be at least 18 years old and needs to get their profile verified using their PAN.

 

Categories
Finance Startup Strategy

Narendra Modi Govt Operationlises Rs 20,000 Crore Stressed Fund to Benefit Around 2 Lakh MSMEs, Issues Guidelines for CGSSD Under Atmanirbhar Bharat Package

MSMEs in India | Representational Image Only (Photo Credits: Pexels)

New Delhi, August 19: Prime Minister Narendra Modi-led Union Government on Wednesday operationalised Rs 20,000 crore stressed fund aiming to benefit around 2 lakh MSMEs. Apart from this, the Union government has also issued guidelines for Credit Guarantee Scheme for Subordinate Debt (CGSSD) which was announced under the Atmanirbhar Bharat package.

According to the plan of the government, the subordinate debt that will be provided by the banks would be fully guaranteed through the Credit Guarantee Trust for Medium and Small Entrepreneurs (CGTMSE) and be counted as quasi-equity. In the subordinate debt, support of Rs 4,000 crore would be given by the government to CGTMSE. Through the CGSSD, a guarantee coverage will be provided for MSME restructuring. Under the scheme, 90 per cent guarantee will be covered by the trust, while 10 per cent will be covered by the concerned promoter.

Here’s the MSME tweet:

Who are eligible for CGSSD?

1) MSMEs whose accounts have been standard as on March 31, 2018, with regular operations — standard or NPA — through FY 2019.

2) Stressed MSME units which were SMA-2 and NPA as of April 30, 2020.

Requirements for availing sub-debt under CGSSD:

1) After fulfilling the eligibility criteria, all the promoters of the MSME units will be given credit equal to 15 per cent of stake in the company or Rs 75 lakh.

2) A separate loan account needs to be opened. All the promoters will have to infuse sub-debt or loan amount as promoter contribution.

3) As per RBI norms, all MSME loans would be linked to an external benchmark.

4) The maximum tenor for repayment will be 10 years, with a 7-year moratorium on principal payment.

5) Following the completion of the moratorium, principal amount to be repaid within 3 years. However, no additional charge will be levied in case of pre-payment of the loan.

Categories
Business motivation Strategy

Modi Govt Considering Giving ‘MSME Status’ to Dealers to Enable Them to Avail Benefits Offered to MSMEs, Says Nitin Gadkari

Nitin Gadkari | File Image (Photo Credits: Facebook)

The Modi government is considering of giving ‘MSME status’ to dealers which will enable them to avail benefits offered to micro, small and medium enterprises (MSMEs). The announcement was made by Nitin Gadkari, Union Minister for MSME and road transport and highways, while he was addressing a virtual exhibition on ‘Construction Equipment, Technology Components and Aggregates’ on August 18. “Regarding MSME, we are thinking now of giving MSME status to dealers also and they will get benefit of it, that is also under consideration by which they will get the benefits,” Gadkari said.

He said the government is also working on integrating and developing all kinds of transport like waterways, sea transportation, rail, road and air transport which will definitely reduce the logistic cost and help industries in a big way. Adding further, Gadkari emphasised that the government is ready to provide all possible support and industries should come up with innovative plans so that India can be a manufacturing hub in the automobile sector.

The Minister said the micro, small and medium enterprises (MSMEs) comprising manufacturing and services units need to get registered to avail the benefits and subsidies offered under various government schemes. The MSMEs that have been registered are eligible for tariff subsidies as well as tax and capital subsidies. The registration also helps them in getting government tenders and enables easier access to loans at low interest rates.

Gadkari said in order to achieve the objective of self-reliance, the country needs to reduce imports and boost manufacturing of various components in sectors like automobiles and construction equipment. The minister called for research, innovation and technology upgradation and emphasised on the need for joint ventures and foreign collaborations to get easy finance and compatible technology, an official statement said.

The minister also reiterated his appeal to major industries to clear the outstanding dues to MSMEs in a timely manner. He said the Ministry has also requested the Finance Ministry, the industries who want to make their technology centers, training centers, research centers, from income tax point of view, whether we are in a position to give some more support to them by which we can inspire and motivate them for more research and innovation,” Gadkari said.

Categories
Finance Sales Strategy

TReDs Platform Joining Fee Waived For MSMEs till September 20

TReDs Platform
TReDs Platform Joining Fee Waived For MSMEs till September 20 (Photo Credits: Ministry of MSME)

Mumbai, August 18: Narendra Modi government has invited MSMEs to join the Trade Receivables Discounting System (TReDS) platform with zero fees. The free access to the TReDS platform will be there till September 20.

TReDS is an online factoring platform connects buyers, suppliers and financiers. This platform will enable MSME suppliers to get quick access to low-cost finance.

Joining Fee on TReDs Platform Waived till September 20:

Congrats MSMEs !
The fee for joining TReDS platform has been waived. You can get funds against your approved invoices quickly. Register yourself and make your #msmetochampions. @FinMinIndia @sidbiofficial pic.twitter.com/4KdUEyGAaz

— Ministry of MSME (@minmsme) August 17, 2020

What is a TReDS platform?

TReDS is an online mechanism for facilitating the financing of trade receivables of MSMEs through multiple financiers. It also enables discounting of invoices of exchange of MSME sellers against large corporate.

How will MSMEs benefit on TReDS Platform?

Quicker Payment: MSME sellers will receive funds against the approved invoices within 48 hours
Multiple Financiers: MSMEs are not restricted to a single bank. With the help of TReDS platform, they will have the option to choose the lowest bids among the multiple financiers.
Without Recourse Borrowing: There will not be any obligation on the seller to repay the financier. The buyer’s account will be dedicated automatically through a pre-approved NACH mandate.
Lower cost of Funds: Sellers will be able to access financing at competitive terms as it is based on the credit rating of the buyer. The transparent bidding process will help to discover the most suitable price.

 

Categories
Business motivation Leadership Building Motivational Powerful Personalities

7 Motivating Quotes By The Most Powerful Women That Will Boost Confidence of Female Entrepreneurs

Female Entrepreneur (Photo Credits: Pexels)

Modern times have witnessed more and more women entrepreneurs taking up different types of businesses and succeeding like never before. Female entrepreneurs are rising beyond all levels and proving themselves worthy of everything with each passing day. There are times when people are let down, but the wisdom lies in not giving up, and not paying heed to what the world says! One should believe in oneself and the rest of the things will fall in place! However, at time we just need the positivity and the motivation to get us going.

The quotes from these great inspirational ladies below are truly words of wisdom. Inspirational quotes from successful people can help you reframe negative thoughts during tough times and change your attitude for better things in life

The wise and beautiful words from the most positive thinkers will get you in the right mindset to tackle the hurdles that you face. Inspirational quotes and motivational quotes that will inspire you to achieve your dreams. Read these quotes by these empowering women, launch your business, and becoming a girl boss.

Here are 7 motivating quotes from the most powerful women in history

  1.  “I don’t believe in failure. It’s not a failure if you enjoyed the process.” -Oprah Winfrey
  2. “If you push through that feeling of being scared, that feeling of taking risk, really amazing things can happen.”- Marissa Mayer
  3. “I invented my life by taking for granted that everything I did not like would have an opposite, which I would like.” -Coco Chanel
  4. “We need to accept that we won’t always make the right decisions, that we’ll screw up royally sometimes—understanding that failure is not the opposite of success, it’s part of success.” -Arianna Huffington
  5.  “If people are doubting how far you can go, go so far that you can’t hear them anymore.”- Michele Ruiz
  6.  “You never lose in business, either you win or you learn.” – Melinda Emerson
  7.  “If you are starting your own business, the best shortcut is to find a good mentor.”- Kim Kiyosaki

Throughout history, it has never been easy for women to prove their mettle. However, women have fought against all odds in the stereotype male-dominated society and made important contributions as businesswomen, entrepreneurs, actors, leaders among several other fields. Some of the most talented and successful women have believed in history and the world has seen what they are capable of. So never give up on dreams and keep hustling.