Estd. 1917 CIN No. U91110TG1964NPL001030 Vol. XVIII. No. 31 August 2018 Rs. 15/-

The Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry

Accounting Ledgers and Entries in GST ...... pg 15

Between Attrition and Retention ...... pg 22

Telanganaku Haritha Haaram ...... pg 30

Open house meet on GST “Celebrating One Year of GST” ...... pg 31

Sri Etela Rajender, Minister for Finance & Planning, Govt. of Telangana. Speaks his mind on Golden Telangana

Aug, 2018 | FAPCCI Review Aug, 2018 | FAPCCI Review FAPCCI Review Contents Vol. XVIII No. 31 | August

President IN FOCUS Arun Luharuka 06 Interview with Sri Etela Rajender, Senior Vice-President Hon’ble Minister for Finance & Planning, Government of Karunendra S.Jasti Telangana Vice-President 09 Power News - Immediate Past President 11 Economy Watch Gowra Srinivas 13 Legal Digest Managing Committee C V Anirudh Rao Venkat Jasti Articles Manoj Kumar Agarwal 15 Accounting Ledgers and Entries in GST Meela Jayadev 19 What is the real value advantage of an Owner Managed Businesses ? Vinod Kumar Agarwal 20 Transforming Healthcare Delivery in India M.S.P. Rama Rao 22 Between Attrition and Retention A. Prakash 23 Stressing Finance To De-Stress Power Sector Avinash Gupta 24 “How One Bad Employee Can Corrupt a Whole Team” Gummadi Veera Mohan 25 “Tea Kettle” Shyam Sunder Agarwal 27 Forbes Community Voice Connecting expert communities to the Ramakanth Inani Forbes audience. Vitta Satish Kumar 29 The Era of New Market is Emerging! Raj Kumar Agrawal 30 Telanganaku Haritha Haaram 31 FTAPCCI Events Suresh Kumar Singhal P. Prem Kumar Prem Chand Kankaria K. Bhasker Reddy Editor Editorial Advisory Board V.V. Sanyasi Rao T. Sujatha, Joint Director CHAIRMAN Suresh Kumar Jain Sri Arun Luharuka, President, FTAPCCI Prakash Chandra Garg MEMBERS Dr. M.Gopalakrishna, I.A.S (Retd.) Challa Gunaranjan Sri Srinivas Garimella, Member, Managing Committee -FTAPCCI Abhay Kumar Jain Sri Sanjay Kapoor, Secretary General, FTAPCCI Hari Govind Prasad The Federation of Andhra Pradesh Chambers of Commerce and Industry K. Narayana Reddy Head Office : Federation House, FAPCCI Marg, Red Hills, Hyderabad - 500 004 Smt Bhagwati Devi Baldwa Ph : 23395515 (8 line) Fax : 040 23395525 e-mail : [email protected] www.ftapcci.com Shiv Kumar Gupta Branch Office : O/o 54-16-1/2 -A , Central Excise Colony 3rd floor, Gunadala, Vijayawada P. Krishna Ph : +91 866 2499055 Fax : +91 866 2499056 R. Ravi Kumar e-mail : [email protected] Rajendra Agarwal The views expressed by the authors in their articles published in this magazine are their personal views and do not necessarily reflect the views of FAPCCI. We would like feedback/comment from readers to enable us to improve our offering. write to us at : [email protected]

Aug, 2018 | FAPCCI Review 3 3 4 Aug, 2018 | FAPCCI Review Dear FTAPCCIates, I am Happy to inform you that from the 19th of July 2018, I took over as the President of FTAPCCI in place of Mr. Gowra Srinivas. I acknowledge the efforts made by the outgoing President to bolster the image of FTAPCCI and due to his untiring efforts, FTAPCCI made all time high excess of income over expenditure of nearly Rs. 98 lakhs. During his tenure he was instrumental in conducting various programs, particularly on GST, which was rolled out during his tenure. Friends, I would like to share few thoughts on state of Indian economy. The economy is resilient and recorded 7.7% growth of GDP in the last quarter of FY 2017-18. The multinational institutions like International Monetary Fund (IMF), World Bank have projected economy’s growth at 7.5% for the coming year. Thus, India becomes the fastest growing economy in the world. Though the Indian economy has emerged as fastest growing economy of the world and 6th largest economy surpassing France, there are some areas of concern that has to be looked into: In the month of June there was a robust increase in export but due to higher imports especially of oil, the current account deficit was at a record high. The private sector investment is still sluggish and once it gets fix up the GDP growth will further gain momentum. Inflation is also high but the Government is confident of maintaining its fiscal deficit at 3.5%. From President Desk President From The positive aspects are: The construction and auto sector has shown tremendous growth during the last 4 years. The infrastructures especially the road sector has shown a tremendous growth in the last 4 years. Recently Government has announced Minimum Support Price of 1.5 times of the cost of production to the farmers. This will give a major boost to the agriculture sector and rural economy. Some indicators like record sales of tractors points out that the agriculture sector will continue to show a higher growth. For the current year for FTAPCCI, we have major plans to do events, and increase revenues by admitting new members. The anticipated growth in exports will result in higher income from issuing of Certificate of Origin. We have strengthened our team and I am confident that with better team efforts we will achieve our goals. I wish all the Members of Managing Committee, Members of FTAPCCI and Staff to have a fruitful year.

Arun Luharuka

Aug, 2018 | FAPCCI Review 5 Interview with Sri Etela Rajender, Hon’ble Minister for Finance & Planning, Govt. of Telangana Hon’ble Chief Minister of Telangana State. Sir, please accept our congratulations on the 4th anniversary of Telangana Formation Day and we at FTAPCCI are very happy that Telangana even though is a newly formed state, has quickly risen to the top of table in terms of ease of doing business. Sir, the general industrial outlook in the state also looks very promising and we at FTAPCCI are very positive on the development of industry, trade, commerce and service under the leadership of our Hon’ble CM and you. Capital expenditure of Telangana state since inception has been substantially higher when compared to other states and it has been largely allocated in Irrigation, Energy, Housing and transport. While we compliment the state on this, would you please let us know what would be the capital outlay percentage for infrastructure, education and health in the future as these could be the key growth drivers for the state in the long term? Telangana state has never ignored any particular sphere or portfolio. We have allocated more for irrigation and safe drinking water facilities considering that it’s a onetime investment. The 40,000 Cr investments that we have made in Mission Bhagiratha are to provide safe drinking water to each and every household in the State. These investments will fetch dividends to the state for a long time. The thought that we are focussing maaore on irrigation and ignoring ri Etela Rajender, Finance & Planning, Small Savings, other fields is wrong; in fact we are giving equal importance State Lotteries, Consumer Affairs, Legal Metrology, SCivil Supplies Minister of Telangana State is elected to the Telangana Legislative Assembly from Huzurabad To fulfil our dream of “Golden constituency in Karimnagar District. He is a four-time “ Member of Legislative Assembly and was first elected from Telangana”, we strongly believe that the Kamalapur in the 2004 General Elections. He was later both “Vidya” and “Vaidyam” are

re-elected to the erstwhile Andhra Pradesh Assembly from

Huzurabad in 2009 and 2010. equally important and have allocated A B.Sc graduate from Osmania University, Sri Etela Rajender large funds towards“ health care and played an active role in separate Telangana agitation and was there with party supreme Sri K Chandrashekhar Rao education from the inception of the party in 2001. He was one of the founding members of the party. to other fields that you have mentioned such as health and education. The budget allocation to provide clean drinking In an interview, he explained the priorities of the water scheme to the people of the state comes under the Telangana government and how the State is forging ahead portfolio of health, as we know that majority of diseases of all other States in many parameters of development are water born, and even after so many years, people are under the dynamic leadership of Sri K. Chandrasekhar Rao, suffering from fluoride contamination in some parts. Our beloved Chief Minister empathises with the situation and

To my knowledge there is no other wants to bring in a qualitative change in what we call as

“govt that spends an equal amount in “Human wealth”. With respect to education, our government “ is committed to bring in quality education and inspire the spheres of Education and Health children to attend school and study well and to ensure that as in Telangana. we spend close to Rs. 1.3 Lakh per student including the

6 Aug, 2018 | FAPCCI Review midday meal scheme. State. To ensure a healthy industrial climate in the state we need to however have quality education in a typical To fulfil our dream of “Golden Telangana”, we strongly pyramid type structure with sufficient ITIs, Diploma believe that both “Vidya” and “Vaidyam” are equally colleges, which in turn promotes industrial growth. Is important and have allocated large funds towards health your ministry of planning, formulating or developing care and education. any 5 year plan for encouraging these job oriented The government has opened more than 570 residential institutes? schools and ICU centres, Dialysis centres and distributing The truth is we have not closed down these Engineering KCR Kits to all pregnant women to encourage people to colleges, we have only streamlined them so that we have take treatment in government hospitals. quality Engineers passing out from these colleges. We To my knowledge there is no other govt that spends an have come down heavily on colleges that resort to false equal amount in the spheres of Education and Health as in student attendance system or providing certificates to Telangana. failed candidates to avail fee reimbursement. What I feel is, education has to evolve constantly to ensure that jobs are provided to its seekers. If manufacturing picks up, we We offer a red carpet welcome with will have more ITIs and more diploma colleges. The world “assurances of zero corruption and is changing and it has become increasingly difficult for the governments world over to create enough jobs for its

promises of granting all permissions citizens. Look at America, once an immigration friendly

within 15 days to industrialists and nation is now closing its doors to the world. The education “ system or the curriculum or the types of college that we companies that establish factories and need to start / change or evolve depends on the way the offices here in Telangana. world is transforming and not the other way around. It is a constant process change that we must all adjust to or support. Sir, the share of manufacturing in India’s GDP when compared to most developed economies is low and the central government have been mindfully trying to We are getting a request to release increase it with initiatives like the “Make in India”. Even “ though the overall GSDP of Telangana state has been the industrial subsidies on time and growing significantly more than the Country’s GDP, we we are always trying to do that. But have seen a slight decline in share of manufacturing in the state GDP. Sir is this anomaly or is it because of more the govt has many priorities and conscious focus on the services sector or is this because of priorities keep changing. We shall lesser budgetary allocation to promote manufacturing? What steps is the govt taking to increase the share of be able to allocate or disburse only manufacturing in Telangana GSDP? after the priorities are met. There This is not something that will happen in a hurry and just thoughts on manufacturing does not translate into action. are seekers and providers for any The concepts of “Global Village” or LPG - Liberalisation, government and we see the industry Privatisation and Globalisation have all contributed to our manufacturing remaining stagnant for a long time. People as providers. Anyway, we are also have access to machines and systems that are manufactured globally say in Germany or USA or Japan and moreover exploring other ways of releasing people find it suitable to import machines and products subsidies such“ as adjustment against because of ease of communication and convenience of logistics. The service sector in India and especially in taxes etc. our state is booming and with the advent of GST, we are confident that manufacturing will also pick up. Having In your budget speech this year you have announced said that, we are not neglecting manufacturing and we in a Hub for Medical Devices and a Mega Food Park apart Telangana have launched various schemes such as TS-iPass, from the already in-progress industrial parks such as the subsidies, promise of land, abundant electricity and water. Pharma City. What kind of resources allocations is the We offer a red carpet welcome with assurances of zero government planning to bring them to market quickly corruption and promises of granting all permissions within and in what time frame will they be ready? 15 days to industrialists and companies that establish The state of Telangana is primarily an agrarian state. We factories and offices here in Telangana. have planned a lot of agri based parks such as processed food Sir, on the topic of education and budget allocation park, spice park etc spread in all parts of the state. Recently, for it, the Hon’ble CM has ordered the closure of many we have instituted an interim committee to look into these sub standard Engineering colleges so that quality aspects and they have come out with their findings and education is imparted to the students in Telangana recommendations. We plan to allocate sufficient resources

Aug, 2018 | FAPCCI Review 7 to promote them and are already doing so. IT companies have developed well and in fact are flourishing in our state. Our Hon’ble Minister Shri KT We are much obliged to the Hon’ble CM and you Rama Rao has ensured that all important multinational IT for making Telangana an industry friendly state with companies have set up their offices in our state by offering schemes such as TS-iPASS. However we request you to increase the budget allocations to clear the substantial the right infrastructure and a very salubrious business industrial subsidies due to the enterprises set up in the environment. You must also be aware that Telangana is State. Is your ministry planning to release funds this famous for the Pharmaceutical Manufacturing sector and financial year to clear the subsidies? we are further focussing on that. Similarly our focus area in We are getting a request to release the industrial future would be Textile and Food. We are just four years into subsidies on time and we are always trying to do that. But the state now and are learning every step of our way and the govt has many priorities and priorities keep changing. improving year on year. We will constantly try to progress We shall be able to allocate or disburse only after the and implement new methods to attract industry into our priorities are met. There are seekers and providers for any state. government and we see the industry as providers. Anyway, we are also exploring other ways of releasing subsidies such Lastly Sir, we are very thankful to you for accepting as adjustment against taxes etc. this interview and taking time off from your busy schedule to answer our questions. Would like you to But Sir, adjustment of subsidies against tax payable may create new problems as the release of funds does pass on any message to the members of FTAPCCI? not follow the first come first basis method and may Telangana in all spheres is the most happening state in benefit the relative newcomers in the list. India, be it in infrastructure development; be it in creating I understand. This has recently come up for discussions a healthy industrial climate; be it in maintaining good law and we are streamlining it soon. and order or be it in offering good governance. We wish that Again in tune with the same topic of subsidies for FTAPCII and its members conform to the speed at which we industries, is the ministry of industries working closely work, to support and be in tune with our “way of thinking” with your ministry with respect to industrial promotion and our “way of working”. That is our expectation. and in such a case can we expect any future sops to attract industry and commerce to our state?

8 Aug, 2018 | FAPCCI Review POWER NEWS

Revamp of coal auction rules: mechanism has been provided under century, but the Soviet Union surpassed Business-friendly reforms on cards the Coal Mines Special Provisions Act America in 1974, and Saudi Arabia did The coal sector is poised for a round and the amended Mines and Minerals the same in 1976, according to Energy of business-friendly reforms after being Development and Regulation Act. The Department figures. opened up for private commercial procedure, laid down under the Coal By the end of the 1970s the USSR mining. Block Allocation Rules introduced by was producing one-third more oil than the NDA government, provides for the US; by the end of the 1980s, Soviet reverse online auctions for power output was nearly double that of the projects and forward bidding for other US. uses. The last decade or so has seen Through enactment of Coal Mines a revolution in American energy Special Provisions Act, the NDA production, however, led by techniques government had also paved way for including hydraulic fracturing, or private commercial coal mining. fracking, and horizontal drilling. Source:https://energy.economictimes. Those innovations - and the indiatimes.com/news/coal/revamp-of- breakup of the Soviet Union - helped coal-auction-rules-business-friendly- the US narrow the gap. Last year, Russia reforms-on-cards/65002761. produced more than 10.3 million barrels a day, Saudi Arabia pumped A high-power committee, headed US expected to become world’s top just under 10 million, and the US came by former Central Vigilance Commission crude oil producer next year in under 9.4 million barrels a day, Pratyush Sinha, has recommended The US has nosed ahead of Saudi according to US government figures. a complete overhaul of regulations Arabia and is on pace to surpass Russia The US has been pumping more than governing mine auctions — including to become the world’s biggest oil 10 million barrels a day on average bidding on revenue share basis, producer for the first time in more than since February, and probably pumped allowing captive mines to sell part of four decades. about 10.9 million barrels a day in June, the output in the market and easing of The latest forecast from the US up from 10.8 million in May, the energy bank guarantees. The committee has Energy Information Administration agency said in its latest short-term also suggested linking the value of to- predicts that US output will grow next outlook. be-auctioned blocks with a proposed year to 11.8 million barrels a day. Capuano’s agency forecast that monthly coal index, which is to be US crude output will average 10.8 developed on the basis of the prevalent million barrels a day for all of 2018 and spot price and rates for captive mining, 11.8 million barrels a day in 2019. The international markets and Coal India. current US record for a full year is 9.6 Experts see the recommendations million barrels a day in 1970. as investor-friendly for a sector that Source:https://mynews4.com/news/ has always been strictly governed by nation-world/us-expected-to-become- the state. worlds-top-oil-producer-next-year The committee, whose members include former SBI chairperson Rs 1 crore ISRO’s lithium ion cell Arundhati Bhattacharya and former technology gets overwhelming Union Bank of India CMD Arun Tiwari, initial response was set up in December last year to “The response to ISRO’s examine challenges of the current announcement to transfer the lithium rupees per tonne bidding system and “If the forecast holds, that would ion cell technology is overwhelming. suggest changes for conducting future make the U.S. the world’s leading More than 130 companies have auctions. producer of crude,” says Linda Capuano, purchased the RFQ document. In its report submitted to the coal who heads the agency, a part of the The Indian Space Research ministry last week, the committee Energy Department. Organisation (ISRO) in June announced has sought to allow captive miners to Saudi Arabia and Russia could its decision to transfer its own lithium sell 25% of their output in the open upend that forecast by boosting their ion cell technology to the Indian market. At present, captive miners own production. In the face of rising industry on a non-exclusive basis for have to sell any excess production global oil prices, members of the usage in automobiles for Rs 1 crore. to Coal India at a notified price. The OPEC cartel and a few non-members The space agency had said report has also suggested flexibility in including Russia agreed last month the initiative will accelerate the coal mining to captive bidders in line to ease production caps that had development of the indigenous electric with requirements of the attached contributed to the run-up in prices. vehicle industry. end-use plants. Currently, owners are The idea that the US could ever The VSSC, located in Kerala, will penalised if the captive mines do not again become the world’s top oil transfer the lithium ion cell technology reach the production milestones as per producer once seemed preposterous. to the successful Indian industries/ schedule. The United States led the world in start-ups on a non-exclusive basis The present coal mine auction oil production for much of the 20th to establish production facilities in

8 Aug, 2018 | FAPCCI Review 9 the country that can produce cells of Gujarat government with a mandate kWh is extremely competitive, and varying size, capacity, energy density to find out how much haircut can be almost 10-20 per cent cheaper than and power density catering to the taken by stakeholders, including banks, coal-fired power generation (NTPC’s entire spectrum of power storage state electricity boards and promoters, 2017-18 average wholesale thermal requirements, ISRO had said. to make power projects viable. tariff was over Rs 3.20/kWh). “Successful companies can come to It’s a double whammy. Not only An imported coal-fired power VSSC and familiarise themselves about has the seaborne thermal coal price generation plant would require a tariff the battery technology. We do not hit a high of $110-120 a tonne, the of around Rs 6 per kWh to generate have the manpower to depute to the rupee has also weakened to a record a viable return. “Imported coal-fired technology buyer’s place,” ISRO official low of Rs 69 (currently trading at Rs power plants cannot compete with Somanath said. 68.62) against the US dollar. The cost domestic coal-fired power, and they According to him, the lithium ion of imported coal for Indian power have no chance of being competitive cell battery technology buyers can generation companies has touched against deflationary renewable energy innovate further so address the market a seven-year high (based on average with a zero tariff indexation over needs. “Batch manufacturing of lithium prices) during the April-June quarter. 25 years,” according to Tim Buckley, ion cells is sufficient for ISRO’s needs. “Adani Power is running on couple director of Energy Finance Studies, Whereas in the case of mass production of phases of its plant wherein it is Australasia, of Sydney-based Institute it is only the industry that can do it,” he supplying to Haryana under the power of Energy Economics and Financial added. “ISRO will not get any royalty purchase agreement and supplying Analysis. from the buyers of its lithium ion cell only half of the committed power. technology. The idea is to enable the Only Tata Power has been meeting the New committee industry to develop. He said ISRO for required 1,805 MW for Gujarat. Gujarat Early this month, the Gujarat its use will source lithium ion batteries from Bharat Heavy Electricals Ltd (BHEL) as the technology has been transferred to the power equipment major. Last month, ISRO issued the RFQ containing a brief description of the qualification process and technology transfer process, instructions to applicants, eligibility criteria, timelines and other details. Presently, the lithium- ion battery is the most dominant battery system finding applications for a variety of societal needs including mobile phones, laptops, cameras and many other portable consumer gadgets apart from industrial applications and aerospace. Recent advances in the battery technology have made it the preferred power source for electric and hybrid electric vehicles also. Source:https://economictimes. Urja Vikas Nigam Ltd have written to government set up a committee led indiatimes.com/news/science/rs-1- independent power producers (IPPs) to by former Supreme Court judge RK crore-isros-lithium-ion-cell-technology- restore their supply and meet their PPA Agarwal to find a solution to these gets-overwhelming-initial-response/ commitments”. An Essar spokesperson stranded assets. Former Reserve Bank articleshow/64996136.cms confirmed that the plant had shut of India Deputy Governor SS Mundra down during the April-June quarter. and former CERC chairman Pramod High coal prices, weak rupee leading A petition by these power Deo are the other two members of to a crisis in power generation firms producers to raise electricity prices the committee. The committee had With the cost of imported coal was shot down by the Supreme Court been asked to find out the amount of touching a six-year high and rupee in April 2017. The three companies had haircut that banks, project developers weakening against the US dollar, power even offered the Gujarat government and electricity buyers were ready to generation companies are witnessing to take over 51 per cent stake in these take. The panel could also suggest a crisis of sorts, with Essar group plants for Rs 1. But no decision was measures for reduction in the cost of shutting down its 1,200-megawatt taken by the government so far. power generation. (MW) power project and the Adani Source:https://www.business- group utilising only part of its installed Renewable is the future standard.com/article/companies/ capacity in Mundra, Gujarat. The only According to experts, the cost of high-coal-prices-weak-rupee-leading- hope, company officials say, is from a wind and solar infrastructure in the to-a-crisis-in-power-generation-firms- high-powered committee set up by the country, with a tariff of Rs 2.43-3 per 118071801379_1.html

10 Aug, 2018 | FAPCCI Review 9 ECONOMY WATCH

Andhra Pradesh tops government’s Ease assets with loans over Rs 500 crore. period. of Doing Business rankings; podium The AMC will also bid for assets taken The revenue from the registration finish forT elangana and Haryana by National Company Law Tribunal (NCLT) department was not very impressive Andhra Pradesh (AP) outperformed 28 for resolution. in recent years as officials had failed to other states and seven union territories Union finance minister Piyush Goyal achieve the targets. The income statements in the 2016-17 financial year as far as the said that the plan focuses on turning of 2015-16 and 2016-17 proved this. ease of doing business within a state is around assets in a manner that will not Surprisingly, officials at various concerned. The third edition of the annual lead to jobs losses. “The government will registration offices in Bhadradri- rankings, published by the government on not intervene in the resolution process Kothagudem and Bhadradri districts Tuesday, showed that AP is the best state which would be entirely led by banks”. achieved 91 per cent of their target in to do business in, followed by Telangana As per the report submitted by 2017-18 and the offices earned Rs 91 crore committee on Resolution of Stresses against Rs 101-core target during the Assets, different approaches have been year. The registration office in Khammam outlined for stressed loans upto `50 crore, earned Rs 43 crore against Rs 51-crore between `50 to `500 crore and over `500 target, followed by Kusumanchi office crore. For SME sector with loans upto `50 with Rs 6.01 crore against its Rs 8.56-crore crore, bank officials will be given 90 days target. Sattupalli registration office earned for a resolution. The bank officials will also Rs 6.31 crore against Rs 7 crore and Kallur look how to turnaround the company and office Rs 2.44 crore against Rs 3-crore their capital requirement. target. Since, resolution of these assets will N. Venkat Rao, a farmer, said, “Rythu be mostly under a single bank control, the Bandhu has kindled in the minds of committee has recommended an overall farmers a spirit of owning land and those approach which would be customised at who own land, retaining it. Those who are and Haryana. individual bank level. The sector has Rs 2.1 in need of money now sell only a portion AP, Telangana and Haryana scored lakh crore exposure. of their land, preferring to retain the rest.” 98.42 percent, 98.33 percent and 98.07 Source: https://www.deccanchronicle.com/ Source:https://www.deccanchronicle. percent respectively. Jharkhand, Gujarat, nation/current-affairs/030718/centre- com/nation/current-affairs/030718/rythu- Chhattisgarh, Madhya Pradesh (MP), move-to-help-npas.html bandhu-boosts-telangana-revenue-too. Karnataka, Rajasthan and West Bengal html (WB) finished in the top 10. Rythu Bandhu boosts Telangana The rankings were published by revenue too How will this double-digit MSP hike the Department of Industrial Policy & The Rythu Bandu scheme has boosted impact consumer goods and rural Promotion (DIPP), which is under the the revenue of the registration and stamps sales? Commerce and Industry Ministry. department in Bhadradri-Kothagudem The 24 per cent increase in minimum The publication of rankings is aimed and Bhadradri districts. Farmers who had support prices (MSPs) for kharif crops, at triggering competition among states, bought lands and not registered their sale announced by government, will impact to attract investments and improve the agreements are now coming forward to sentiment positively, pushing up rural business climate. The ministry released the complete the process leading to increase sales growth, executives of some of the latest ranking of states and UTs under the top fast-moving consumer goods (FMCG) Business Reform Action Plan (BRAP), 2017. and durable companies have expressed. In the last Budget, the NDA government A third of FMCG and durable sales identified 372 action points for states that come from rural areas and an uptick in they would carry out on a mission mode. rural consumption augurs well for these The parameters included areas such as businesses, analysts tracking the market construction permits, labour regulation, said. environmental registration, access to “The (MSP) announcement is timely information, land availability, and ‘fast- and comes when the monsoon has been tracked’ approvals via the single window advancing well across the country. This system. will certainly help push up sentiment,” In its latest ‘Doing Business’ report, Managing Director of Bajaj Corp has the World Bank (WB) said India’s rank said ‘while a procurement policy by the improved by a number of notches to 100 in revenue of the registration department. government was yet to be announced, the among 190 nations. The government has More than 285 persons completed their MSP hike, the highest in six years (the last said that it aims to figure among the top sale agreements in the past six months. was in 2012-13 at 29 per cent), would leave 50 countries in the overall ease of doing Farmers in rural areas often conduct more disposable income in the hands business rankings. the land transaction on sale deeds and of consumers, aiding consumption. This Source: https://www.firstpost.com/ avoid registering it to save money. They point is also endorsed by a Nestlé India business/andhra-pradesh-tops-the- have now changed the practice as the spokesperson, who says that higher MSPs governments-ease-of-doing-business- amount under the Rythu Bandu scheme would positively impact rural incomes. rankings-podium-finish-for-telangana- will be given only to the land owners who “Rural sales growth for the (FMCG) and-haryana-4707131.html have registered their sale agreements in market has been improving since the land records. Only then will they be given fourth quarter of 2017-18. It is now likely Centre move to help NPAs pattadar passbooks in their name. to surpass urban sales growth with the To deal with non-performing assets The income of the registration and latest announcement,”. (NPAs) of banks, the Centre on 2/6/2018 stamps department in 2017-18 reflected A recent report by Nielsen said that unveiled “SASHAKT” which proposes to the growth in land registrations by the January-March 2018 period saw rural set up independent Asset Management the people. Consequently, sale of land markets for FMCG companies growing Companies (AMC) to bid for stressed for house sites came down during the 1.4 times that of urban markets, with

10 Aug, 2018 | FAPCCI Review 11 the trend likely to get stronger with a April-May 2018 period despite the US- implemented 47 measures to facilitate good monsoon and more rural-focused China trade war, according to Engineering trade during this review period. These initiatives (including higher MSP) by the Export Promotion Council of India (EEPC). included elimination or cut in tariffs, government, heading into a general The US-China trade war intensified as simplified import and export customs election in 2019. the two sides started slapping additional procedures and reduction of import taxes. Kamal Nandi, business head and tariffs on each other’s goods, worth nearly At an average of almost seven trade- executive vice-president, Godrej $70 billion. As planned, Washington facilitating measures per month, this is Appliances, said that rural markets had began taxing 818 Chinese goods worth marginally higher than the six measures high growth potential, given the lower $34 billion to punish Beijing for allegedly recorded in the previous reporting period penetration of consumer goods and playing underhand in trade practices and (mid-May 2018 to mid-October 2017). durables in general, implying that any pressuring US companies to hand over Source://economictimes.indiatimes. effort to alleviate rural distress was a com/articleshow/64917658.cms?utm_ welcome move. source=contentofinterest&utm_ Source:https://www.business-standard. medium=text&utm_campaign=cppst com/article/economy-policy India surpasses France to become India is 57th Most Innovative Nation world’s sixth largest economy in the world, takes top rank in central India has surpassed France to become Asia world’s sixth-largest economy in terms of Despite being ranked on the lower gross domestic product (GDP), according end, India remains the top performer in to figures released by World Bank. the lower middle-income group, where it India’s GDP reached $2.597 trillion in takes the secured fifth spot. 2017, while it was at US $2.582 trillion for India has taken the 57th position on France, the World Bank said. The United the Global Innovation Index that ranks 126 their technologies for doing business in States, China, Japan, Germany and the economies based on 80 indicators. The China. United Kingdom occupy top 5 places with country’s rank has been improving from “Indian engineering exports have GDP of US $19.390 trillion, US $12.237 the 81st spot in 2015 to the 60th place in managed to grow by close to 20 per cent trillion, US $4.872 trillion, US $3.677 2017. Despite being ranked on the lower for April-May, 2018, reflecting a ‘so far trillion, US $2.622 trillion respectively. In end, India remains the top performer in so good’ scenario even as the US-China terms of per capita GDP, the figure in India the lower middle-income group, where it tariff war has spread to some key trading is much lower than that in France. While takes the secured fifth spot. markets in Europe, Canada and Mexico India’s population is 1.34 billion, France Many Asian countries have been and shows no signs of abating early,” has 67 million people. steadily improving their ranking over the an EEPC statement said. Engineering With the growth forecast of 7.3% in past five years, including the Philippines, exports to the US include non-ferrous 2018-19, India has been termed world’s Cambodia and Vietnam. Four of the top metals, automobiles and automobile fastest growing major emerging economy. five innovation clusters are in Asia, based components. The World Bank has forecast that the Indian on patents and publishing. The Global Source:economictimes.indiatimes. economy will grow at the pace of 7.5% for Innovation Index which published its com/articleshow/64887944.cms?utm_ 2019-20 and the subsequent year. 11th edition has become a major input source=contentofinterest&utm_ Growth in India is projected to for policymakers on innovation around medium=text&utm_campaign=cppst advance 7.3% in FY 2018-19 (1 April 2018- the world. This time, topping the charts 31 March 2019) and 7.5% in FY 2019-20, is Switzerland that has been ranked first G20 nations impose 39 new trade- reflecting robust private consumption since 2011, followed by the Netherlands restrictive measures in 7 months: WTO and Sweden. G20 members including India and Source: https://www.moneycontrol. the US have applied as many as 39 new com/news/trends/current-affairs-trends/ trade-restrictive measures such as higher india-is-57th-most-innovative-nation-in- duties and taxes as also stricter customs the-world-takes-top-rank-in-central-asia- procedures during seven months to mid- 2696951.html May, a WTO report has said. G20 is a group of developed and developing countries Govt plans to simplify companies law, which also includes Australia, Brazil, says Piyush Goyal China, France, UK, EU, Germany, Japan, Finance Minister Piyush Goyal said Korea, Russia, South Africa and Turkey. that the Centre is looking at simplifying The report comes against the backdrop and strengthening investment, the World the Companies Law to provide relief to of trade wars intensifying globally, led by Bank said in its June 2018 edition of the businesses. He said the government is of the US and China, in the past couple of Global Economic Prospect report. the view that they should not face legal months. Increase in trade restrictive steps The ninth-edition of the World problems and prosecution except for is not good news for India as it would Economic League Table (WELT) released matters of serious nature. Source: impact exports growth of the country. by CEBR said that Indian economy will Source:https://www.moneycontrol.com/ It is taking several steps to promote the overtake the UK and France in real money news/business/economy/govt-plans-to- outbound shipments, which helps create dollar terms by the end of this year. India simplify-companies-law-says-piyush-goyal- employment opportunities, earn foreign will become the world’s third-largest 2712781.html exchange and boost economic activities. economy by 2032, said the report. Since 2011-12, India’s exports have Source:http://www.dnaindia.com/business/ India’s engineering exports up 20 per been hovering at around USD 300 billion. report-india-surpasses-france-to-become- cent despite US-China trade war: EEPC During 2017-18, the shipments grew by world-s-sixth-largest-economy-shows- Indian engineering exports have about 10 per cent to USD 303 billion. The world-bank-data-2635835 grown by close to 20 per cent during the report also added that the G20 economies

12 Aug, 2018 | FAPCCI Review 11 LEGAL DIGEST

12 Aug, 2018 | FAPCCI Review 13 14 Aug, 2018 | FAPCCI Review 13 Accounting Ledgers and Entries in GST

CMA Bhogavalli Mallikarjuna Gupta Corporate Trainer and Advisor on GST ...... ne year back Goods and Service Outward Supplies – Within the State Act 2017, GST liability has to be paid on Tax is introduced in India from These accounts will be used for receipt of advance form the customers for O1st July 2017 and for many of tracking Outward supplies i.e., sales goods and services, but the same is now the taxpayers it is knee jerk reaction as within the state. These accounts have differed for the goods wide Notification they were not prepared. Now we are in to be created separately for goods and 66/2017-Central Tax, dt. 15-11-2017. It is new financial year, it is the right time to services as we have a requirement to still applicable to service providers or the make certain changes to the accounting show them separately basis on the format taxpayers providing services. To track systems if not done as it will help in the of the monthly GSTR - 1return. the liability of such advances it has to filing of the monthly returns and the n Outward Supplies – B2B (table 4) accounted separately and the same can annual return along with reconciliation n Outward Supplies – B2C (table 7) be reconciled on a monthly basis in Table statement once notified by the n If required can also have separate 11A of the GSTR – 1 and for issue of the Government. ledger accounts for B2C large, that is receipt voucher and while returning the In the reconciliation statement it for supplies to unregistered taxpayers advances to the customers wide refund is expected to show the reconciliation where the invoice value is more than Rs voucher which will be adjusted in table between the annual return filed in the 2.5 Lacs. 11(B) of the GSTR – 1. state for GST with the published financial Outward Supplies – Outside the state n GST on Advances – CGST A/c data. For this a proper accounting system These accounts will be used for n GST on Advances – SGST A/c I.e. chart of accounts or ledger accounts tracking Outward supplies i.e., sales n GST on Advances – IGSTA/c if defined in a systematic manner will outside the state. These accounts have n GST on Advances – UTGSTA/c help in preparation of such statements to be created separately for goods and n GST on Advances – GST Cess A/c seamlessly without spending much time services as we requirement to show ITC – Interim Recovery Account and efforts. There should be different them separately basis on the format of These accounts are to be created in ledgers for tracking the liability, recovery the annual return released in September case if the organization decides to take or interim recovery under GST else it will 2016. input tax credit only on updating in the be a challenge. Say for example if there is n Outward Supplies – B2B (outside the Electronic Credit Ledger Account, this only one account of GST liability account, state) will give full control and information then it will be a challenge to reconcile n Outward Supplies – B2C (outside the on which invoices input tax credit is the same and state separately for the state) not availed. Moreover, it helps the transactions related to the interstate, n Outward Supplies – Reverse Charge management in follow up and in decision stock transfer or for reporting of n Outward Supplies – Stock Transfer making process also. This option would purchases from unregistered taxpayers (outside the state) make sense in case of matching of or advance received. n Outward Supplies – Purchase Returns suppliers and recipients returns. Though Accounting under Goods and Service (within the state) it may have some stress on the working Tax n Outward Supplies – Purchase Returns capital it will ensure that there is no In this section, we will see the major (outside the state) requirement of paying interest in case accounting entries to be generated Reverse Charge Liability Accounts if the supplier of goods or services does under GST along with the new ledger For inward supplies i.e. purchases not file the return and also safeguard accounts / Chart of accounts to be which are made from unregistered the compliance ratings as and when created in the accounting software or tax payers in GST, Reverse Charge is introduced. ERP. The granular level for capturing the applicable to such transactions and for n ITC Interim Recovery Account – CGST reporting requirements under GST. In the tracking such liability this account will A/c GST returns we need to show data under be useful. Many of the taxpayers are of n ITC Interim Recovery Account) – SGST various sections. the impression that the reverse charge A/c New ledgers / chart of accounts to is differed from time to time and vide n ITC Interim Recovery Account – be created under GST are Output Tax notification 10/2018-Central Tax (Rate), IGSTA/c Liability dt. 23-03-2018 it is differed till 30th n ITC Interim Recovery Account – For accounting, the output tax June 2018 under Section 9, Sub-section UTGSTA/c liability which is directly related to (4) of the CGST Act again differed till n ITC Interim Recovery Account – GST outward supplies it is recommended to 30.09.2018 but still reverse charge Cess A/c have ledger accounts tax wise and for liability is applicable on the notified list of Input Tax Credit – Recovery Account goods and services separately. This will goods and services falling under Section This account can be updated when help in reconciling the return data with 9, Sub-section 3 of the CGST Act. the input tax credit is reflected in the the accounts directly without any manual n Reverse Charge Liability – CGST A/c Electronic Credit Ledger Account and intervention. n Reverse Charge Liability – SGST A/c for this accounting or ERP being used n Output Tax Liability – CGST A/c n Reverse Charge Liability – IGSTA/c should be supporting it. n Output Tax Liability – SGST A/c n Reverse Charge Liability – UTGSTA/c n ITC Recovery –CGST A/c n Output Tax Liability – IGST A/c n Reverse Charge Liability – GST Cess n ITC Recovery – SGST A/c n Output Tax Liability – UTGST A/c A/c n ITC Recovery – IGSTA/c n Output Tax Liability – GST Cess A/c GST on Advances n ITC Recovery – UTGSTA/c n Output Tax Liability – IGST – Stock As per the provisions of the Time of n ITC Recovery – GST Cess A/c Transfer A/c Supply in Sections 12 and 13 of the CGST 14 Aug, 2018 | FAPCCI Review 15 Input Tax Credit – Reverse Charge CGST A/c – IGSTA/c Recovery Account n GST ITC Interest Payable Account – n GST ITC Interest Recovered Account – This account can be updated when SGST A/c UTGSTA/c the input tax credit is reflected in the n GST ITC Interest Payable Account – n GST ITC Interest Recovered Account – Electronic Credit Ledger Account and for IGSTA/c GST Cess A/c this accounting or ERP being used should n GST ITC Interest Payable Account – Input Tax Credit – Reverse Charge be supporting it. UTGSTA/c Recovery n ITC Reverse Charge – CGST A/c n GST ITC Interest Payable Account – On payment of taxes under reverse n ITC Reverse Charge – SGST A/c GST Cess A/c in cash, input tax credit is available, n ITC Reverse Charge – IGSTA/c ITC – GST Interest Interim Account and for tracking of that, we will use this n ITC Reverse Charge – UTGSTA/c The amount of interest paid on the account. n ITC Reverse Charge – GST Cess A/c one hundred and eighty first day will n ITC Reverse Charge Recovery – CGST Input Tax Credit – Reversal Account be reversed as and when the supplier A/c As per the provisions of the GST, the of the goods or services or both is n ITC Reverse Charge Recovery – SGST input tax credit availed if the supplier paid back. Until the point of time the A/c of the goods and services or both is not supplier is paid, the same is parked n ITC Reverse Charge Recovery – paid within 180 days, the input tax credit in the interest interim account. Based IGSTA/c availed has to be reversed along with on the accounting package or ERP a n ITC Reverse Charge Recovery – interest. in such cases when the input new ledger account can be created or UTGSTA/c tax credit account is reversed, it will be the option of using the DFF or GDF in n ITC Reverse Charge Recovery – GST parked in this reversal account. . Based Oracle Applications or any other name Cess A/c on the accounting package or ERP a new whatever it is called. Inward supplies ledger account can be created or the n GST ITC Interest Interim Account – These accounts are required to be option of using the DFF or GDF in Oracle CGST A/c captured to for reporting the inward Applications or any other name whatever n GST ITC Interest Interim Account – supplies under various categories in the it is called. SGST A/c GSTR – 2 returns. n ITC Reversal –CGST A/c n GST ITC Interest Interim Account – n Inward Supplies – Registered (within n ITC Reversal –SGST A/c IGSTA/c the state) n ITC Reversal –IGSTA/c n GST ITC Interest Interim Account – n Inward Supplies – Registered n ITC Reversal –UTGSTA/c UTGSTA/c (Outside the state) n ITC Reversal –GST Cess A/c n GST ITC Interest Interim Account – n Inward Supplies – Unregistered ITC – GST Interest Payable Account GST Cess A/c n Inward Supplies – Composition On the one hundred and eighty ITC – GST Interest Recovered Account Taxpayers A/c first day the input tax credit has to be On payment to the supplier, the n Inward Supplies – Exempted A/c reversed along with the Interest has to input tax credit is eligible again and at n Inward Supplies – Non-GST A/c be paid at the time of reversal of input the same time the amount of interest n Inward Supplies – Nil Rated A/c tax credit, and for an accounting of the paid at the time of reversal is also The above accounts have to be same, this account will be used. Based eligible, and it can be used only for created for each registration number in on the accounting package or ERP a new future payment of interest. case if you have a presence in more than ledger account can be created or the n GST ITC Interest Recovered Account one state. In case if you are using any option of using the DFF or GDF in Oracle – CGST A/c ERP, you can explore the usage of the Applications or any other name whatever n GST ITC Interest Recovered Account sub-ledgers or whatever name you call it is called. – SGST A/c it at the account level. n GST ITC Interest Payable Account – n GST ITC Interest Recovered Account Accounting Entries for Outward Supplies Transaction Accounting Entry Outward supplies (sales within the Debtors A/c / Outward Supplies – B2B (within the state) Dr Cr state – B2B) Output Tax Liability – CGST A/c / Output Tax Liability – SGST A/c Cr If GST Cess is there, that will also be accounted separately Cr

Outward supplies (sales outside the Debtors A/c / Outward Supplies – B2B (within the Dr Cr state – B2B) state) Output Tax Liability – IGST A/c If GST Cess is there, Cr that will also be accounted separately Debtors A/c / Outward Supplies – B2C (within the state) Cr Outward supplies (sales within the Dr Output Tax Liability – CGST A/c / Output Tax Liability – SGST A/c Cr state – B2C) If GST Cess is there, that will also be accounted separately Cr Debtors A/c / Outward Supplies – B2C (within the state) Dr Outward supplies (sales outside the Cr Output Tax Liability – IGSTA/c \ state – B2C) Cr If GST Cess is there, that will also be accounted separately Debtors A/c / Outward Supplies – B2B (within the state) Dr Cr Debit Note (within the state – B2B) Output Tax Liability – CGST A/c / Output Tax Liability – SGST A/c Cr If GST Cess is there, that will also be accounted separately Cr Debtors A/c / Outward Supplies – B2B (within the state) Dr Debit Note (outside the state – B2B) Cr Output Tax Liability – IGSTA/c Cr If GST Cess is there, that will also be accounted separately

16 Aug, 2018 | FAPCCI Review 15 Transaction Accounting Entry Debit Note (within the state – B2C) Debtors A/c / Outward Supplies – B2C (within the state) Dr Cr Output Tax Liability – CGST A/c / Output Tax Liability – SGST A/c Cr If GST Cess is there, that will also be accounted separately Cr

Outward supplies (sales outside the Debtors A/c / Outward Supplies – B2B (within the Dr Cr state – B2B) state) / Output Tax Liability – IGSTA/c / If GST Cess is Cr there, that will also be accounted separately Cr Credit Note within the state – B2B Outward Supplies – B2B (within the state) / Output Tax Liability – CGST Dr A/c \ Output Tax Liability – SGST A/c Cr Debtors A/c / If GST Cess is there, that will also be accounted separately Cr Outward Supplies – B2B (within the state) Dr Credit Note Outside the state – B2B Cr Output Tax Liability – IGST A/c Debtors A/c Cr If GST Cess is there, that will also be accounted separately Outward Supplies – B2C (within the state) Dr Cr Credit Note within the state – B2C Output Tax Liability – CGST A/c / Output Tax Liability – SGST A/c Cr Debtors A/c / If GST Cess is there, that will also be accounted separately Cr

Outward Supplies – B2C (within the state) / Output Tax Liability – Dr Credit Note Outside the state – B2C IGST A/c / Debtors A/c If GST Cess is there, that will also be accounted separately

Inter Branch Transfers A/c Dr Cr Stock Transfer Within the State Outward Supplies – Stock Transfer A/c Cr (within the state) Inter Branch Transfers A/c / Outward Supplies – Stock Transfer A/c Dr Stock Transfer Outside State / (within the state) / Output Tax Liability – IGST Stock / Transfer Cr A/c Cr Cash or Bank A/c / GST on Advances – CGST A/c Dr Advance Received from Customer GST on Advances Advance – SGST A/c Dr within the state Customers A/c / Output Tax Liability – CGST A/c Dr Cr Output Tax Liability – SGST A/c Cr If GST Cess is there, that will also be accounted separately Cr Dr Cash or Bank A/c / GST on Advances Advance – IGST Dr Advance Received from Customer A/c Customers A/c / Output Tax Liability – IGST A/c outside the state If GST Cess is there, that will also be accounted sepa- Cr rately Cr

Dr Customer Advance Adjusted Output Tax Liability – CGST A/c Dr subsequently – within the state Output Tax Liability – SGST A/c GST on Advances Advance – CGST A/c Cr GST on Advances Advance – SGST A/c Cr Customer Advance Adjusted Output Tax Liability – IGST A/c Dr subsequently – outside the state GST on Advances Advance – IGST A/c Cr Accounting Entries – Inward Supplies Transaction Accounting Entry Inward Supplies – Registered (within the state) A/c) Dr Customer Advance Adjusted ITC Interim Recovery – CGST A/c Dr subsequently – outside the state ITC Interim Recovery – SGST A/c Dr Creditors A/c Cr Inward Supplies – Registered (outside the state) A/c Inward supplies (Purchases Outside Dr ITC Interim Recovery – IGST A/c the state – Registered) Dr Creditors A/c Cr When input tax credit is taken – ITC Recovery – CGST A/c Dr (Purchases within the state – ITC Recovery – SGST A/c Dr Registered) ITC Interim Recovery – CGST A/c Cr ITC Interim Recovery – SGST A/c Cr When input tax credit is taken – Dr Input Tax Credit RA – IGST A/c (Purchases Outside the state – Input Tax Credit (IRA) – IGST A/c Registered) Cr Inward Supplies – Composition Tax Inward Supplies – Composition Taxpayers A/c Dr Payer Creditors A/c Cr

16 Aug, 2018 | FAPCCI Review 17 Transaction Accounting Entry

Inward Supplies – Non-GST Inward Supplies – Non-GST A/c Dr Supplies Creditors A/c Cr

Inward Supplies – Exempted Inward Supplies – Exempted A/c Dr Creditors A/c Cr

Inward Supplies – Nil Rated A/c Dr Inward Supplies – Nil Rated Creditors A/c Cr

Inward Supplies – Unregistered A/c Dr ITC Reverse Charge Recovery – CGST A/c Dr Inward Supplies – Unregistered Tax Dr Payers (Reverse Charge) ITC Reverse Charge Recovery – SGST A/c Creditors A/c Cr Reverse Charge Liability – CGST A/c Cr Reverse Charge Liability – SGST A/c Cr ITC Recovery – CGST A/c Dr When input tax credit is availed on ITC Recovery – SGST A/c Dr the reverse charge inward supplies ITC Reverse Charge Recovery – CGST A/c Cr ITC Reverse Charge Recovery – SGST A/c Cr ITC Reversal – CGST A/c Reversal of Input tax credit for inward Dr ITC Reversal – SGST A/c Dr supplies within the state GST ITC Interest Interim Account – CGST A/c Dr Cr GST ITC Interest Interim Account – SGST A/c Dr ITC Recovery – CGST A/c Cr ITC Recovery – SGST A/c Cr GST ITC Interest Payable Account – CGST A/c Cr GST ITC Interest Payable Account – SGST A/c

Reversal of Input tax credit for inward ITC Reversal – IGST A/c Dr supplies outside the state GST ITC Interest Interim Account – IGST A/c Dr ITC Recovery – IGST A/c Cr GST ITC Interest Payable Account – IGST A/c Cr ITC Recovery – CGST A/c Recovery of Input tax credit after Dr ITC Recovery – SGST A/c Reversal of Input tax credit for inward Dr GST ITC Interest Recovered Account – CGST A/c Cr supplies within the state Dr GST ITC Interest Recovered Account – SGST A/c Dr Cr ITC Reversal – CGST A/c Cr ITC Reversal – SGST A/c Cr GST ITC Interest Interim Account – CGST A/c GST ITC Interest Interim Account – SGST A/c Recovery of Input tax credit after ITC Recovery – IGST A/c Dr Reversal of Input tax credit for inward GST ITC Interest Recovered Account – IGST A/c Dr supplies outside the state ITC Reversal – IGST A/c Cr GST ITC Interest Interim Account – IGST A/c Cr Accounting entries at the time of filing of the returns Transaction Accounting Entry Output Tax Liability – CGST A/c Dr Output Tax Liability – SGST A/c At the time of utilization of Input Dr Output Tax Liability – IGST A/c Tax Credit Dr Cr Output Tax Liability – GST CESS A/c Dr Cr ITC Recovery – CGST A/c Cr ITC Recovery – SGST A/c Cr ITC Recovery – IGST A/c ITC Recovery – GST CESS A/c

The new financial year has started three months back and still we have a time to revisit the ledger accounts created and if required can make new ledger accounts. It is recommended to have ledger accounts at tax rate level also as it helps in annual return filing under GST if required to be reported at that level. In case of tally users they can explore the option of using the cost centers or in case ERP’s various features provided by them can be used. The ledger accounts given are at a broad level in general and based on the requirements of the organization they should be considered as a base line and created.

18 Aug, 2018 | FAPCCI Review 17 What is the real value advantage of an Owner Managed Businesses ?

emember the famous David but lies within. Ramas Krishnan, and Goliath story? Let us now For most SMEs, the timing of this Aspire Infinite and The Alternative Rrewind to the time when we challenge is killing. The symptom is Board, India. started our business and explore the a cash crunch – resulted through a ...... reasons why our initial customers long chain of added costs, delayed loved us and rewarded our efforts ? deliveries, slower decisions, stressed For sure, it was not because of our working capital, lesser customer assets, products or our team. They value and price pressures.This is the bought you, the “Owner” and your worst time to consider strategic ini- passion and promise of providing tiatives or new investments. So, how better service than the biggies. does one go about managing this The reason SMEs are in business change and becoming big ? We all is solely because they offer more and know that being BIG means that the better attention to the customer. This Owner needs to step back and allow usually means the Owner is hands- teams and systems to take over. That on, accessible to the customer 24x7. indeed is the only way to scale. But, It also means the Owner is quick to that is merely the outcome and not take decisions and respond to market the process. opportunities, which a larger com- Before the Owner can step back, it pany cannot do easily. The Owner is is necessary for a new “customer val- able to “disrupt” status quo and get ue” to be created – one that replaces The unique things moving for themselves and the Owner’s passion. This cannot be their clients. directly replaced with teams or sys- competitive This is what creates and also, lim- tems. The business needs to give a advantage of an its SMEs across the world – irrespec- new reason for the client to work tive of the sector, industry, size or with them, other than the Owner. Owner Managed product. It is an opportunity and also, This reason should command a pre- the biggest risk. mium and a competitive advance. Business lies in When this agility is rewarded by Do we have that yet? its agility – the market and the SME grows, it This question needs disruptive tries to mimic the biggies and slowly answers and a commitment to invest NOT in its products, builds infrastructure, teams, systems in building value in the Company. technology or and processes. All of these are in- Not just hiring people or implement- deed good – but do they come at the ing ERPs. Successful Owners who services. This also expense of speed and agility? Quite keep their eye on the customer and often, growth adds layers to the busi- their own profitability do this intui- defines its ness process and teams add bureau- tively. Quite often, it is about think- biggest threat cracy. The Owner and the SME forget ing of your own business as a “fran- their core USP and begin to anchor chise” that needs to be recognized by to growth. after things that do not yet matter to clients and run by your team. Can we the customers - brands, collaterals, create such a model? technology, offices, web presence…. The best way to do this is to take et al. The obvious result is added time to step back from day to day costs, which reflect as added prices challenges when the going is good. to the customer. Investing in the future requires our- Now, they key question is this. selves to be accountable to our goals. Does the customer see your growth It is important to periodically subject as adding value to their business? Are yourself to a formal, critical review. It they prepared to fund your costs? If can be an external agency or people not, it is time to step back and check you trust or an executive board. The the “price” of growth. The biggest risk first step is to promote your goals to sustained success of an Owner ahead of yourself. Possible? Managed Business does not lie in the market, competition or its products -

18 Aug, 2018 | FAPCCI Review 19 Transforming Healthcare Delivery in India

Mr. Sai Pratyush, Additional Vice-President – Product Marketing – Managed Services, Tata Teleservices ......

round 70% Indians live in remote villages, often outside the catchment area of government A [1] hospitals. A country of more than 6,00,000 villages has a little more than 23,109 single-physician clinics serving it with not more than 4-6 beds each.[2][3] Shortage of qualified medical professionals is one of the key challenges facing the Indian healthcare industry. Deloitte’s Healthcare Outlook Report 2015 says India’s ratio of 0.7 doctors and 1.5 nurses per 1,000 down significantly on procedural time. connect with the ambulance staff and people is dramatically lower than the Today, Mobile apps help direct patients guide them in case of emergencies. WHO average of 2.5 doctors and nurses to the nearest Doctor or Clinic and even Tech-enabled building management per 1,000 people. The report estimates help you track and manage your blood solutions features like state-of-the- that the industry needs an additional pressure and sugar levels. art sensors can detect temperature 1.54 million doctors and 2.4 million Technological evolution has shifted anomalies for transport and storage of nurses to match the global average. focus towards preventive healthcare. life-saving drugs. Can technology help transform Indian Individuals have become proactive Thanks to mobile apps, Anganwadi healthcare delivery? about health. For example, with and government healthcare workers Technology is triggering an fitness bands people can monitor their are empowered to take corrective evolution of healthcare services in fitness parameters and heart rates measures. Unlike before, today, a simple India. According to Frost and Sullivan, on a real time basis. Information on SMS alert is sufficient to ensure that India’s healthcare information any disease is just a click away due to parents are reminded of the fact that technology market is expected to hit increased internet penetration and rise their children have to be administered $1.45 billion in 2018, more than three in ownership of handheld devices and polio drops or other vaccines by a times the $381.3 million reached in laptops. Individuals are well-informed certain date. 2012. Insufficient hospital beds and about their medical condition. Making healthcare services available, low patient-doctor ratio is a challenge, From a patient’s perspective, accessible, and affordable to a billion but enhanced technology is steadily medical technology is helping lower plus people across India remains a helping address this problem. Since hospitalization costs. Technologically major challenge. Time is ripe to leverage it is difficult to setup well equipped advanced surgeries have reduced the technology and develop state-of-the- hospitals or medical centers in every duration of hospital stay. From the art ambulances and diagnostic labs to village or district, tech-enabled industry perspective, the advantage reach people in the remotest part of systems and messaging technologies is the utilization of tech-enabled the country. Technology will continue are coming to the rescue. Government infrastructure both within and outside to create patient-centric healthcare agencies and healthcare centers are the hospital. Ambulances with location- systems that can improve response now able to collate information on based devices are helpful in India where time, reduce human error, save costs, healthcare indexes and track the traffic is a problem. Well-equipped and impact the quality of life. progress of people’s health in the ambulances empower paramedics remotest villages across India. In some onboard to examine the vitals of [2] https://en.wikipedia.org/wiki/ instances, availability of health records patients en-route to the hospital. Primary_Health_Centre_(India) of patients in a digital format has cut Conferencing devices can help doctors [3] https://en.wikipedia.org/wiki/Village

20 Aug, 2018 | FAPCCI Review 19 20 Aug, 2018 | FAPCCI Review 21 Between Attrition and Retention

Indu Madhavi Iragavarapu Positive Psychologist & Chief Training Officer Medhas i-Train ......

HUMANS - The most evolved race on earth is definitely the most intelligent, subtle, and accommodative. Living, perceiving, knowing being an infinite potential and mastering the art of choosing is the undeniable super power human race has mastered from the evolutionary era. From naturalists, Scientists, psychologists, behaviorists to the latest human resources specialists, we believe and realise that there are two things that will determine your fate- choice and awareness.” people in the organization determines to a “culture shock” if asked to work in a One of the insights that propelled and defines the organization. In fact start up environment, where guidelines behavioral science into the DNA of so the culture, goals, processes, structure, may not be laid down, and processes many disciplines was the idea that we are suggestive reflections of the and interactions may be more ad are not fully rational: We procrastinate, personalities who have framed them. hocin nature and vice versa. A cultural forget, break our promises, and change The decisions like hiring an employee, fit assessment therefore is a must at our minds. Seemingly ubiquitous compensation allotted, work flow, therecruitment stage which should be computer interfaces, changing life relationship building, organizational thoroughly backed up with apt training styles; of course change in needs culture are influenced by the underlying intervention, in the case of genuine are blurring the lines between our values, motives, and dispositions of the candidature. connected and our unconnected selves. founders, which forms the genesis of The economics, highly competitive In these uniquely challenging and the organization. and open job market prospects changing scenarios, it is not just tough If the intake of the employees or moderate to some extent on the but almost impossible for a human the selection processes are based attrition but to a very large and positive resource professional of the highest on some estimate of congruence extent a culturally fit intake would offer talent to absorb, enhance, sustain and of their own personal characterises a bridge between micro and macro retain an individual who is now evolved (personality, values, motives) with perspectives. Psychology suggests that above the Maslow’s theory – Hierarchy that of the organizations, there would attributes of the people shape their of Needs. be a sync between the individual environment. If not totally eliminating, When theories like attribution and and organizational goals. As HR but at least we can predict the negative expectancy have become hogwash, professionals we are so often caught consequences of homogeneity which there are still genuinely evolving up in assessing candidates for the mostly happens at the higher levels metrics, which would help human job at hand in terms of technical and with strategic decisions. resource professionals to gain an edge behavioural skills required for the While the debate on homogenous over the scenarios and the challenges. job that they could miss out on a key and heterogeneous continues, we If there is a nocebo effect, the result of assessment — cultural fit. To determine should not forget that these two a negative thought, then there is also whether the candidate will “fit” and attributes are not mutually exclusive, the placebo effect, where healing is “gel well” in the organization is the rather they are mutually determined. mediated by a positive thought, leaving basic prerequisite for a good employee You cannot separate people from the us a higher scope that there would retention. For instance a comparative situation. Believing on the theory of definitely be enough space for trying study of a person who is used to evolution, let’s make a kick start towards weighing and finding life changing operating in large, established and a value defined and people driven solutions. structured corporations with formal organizations which are culturally It is an universal fact that the kind of processes would normally be subjected strong.

22 Aug, 2018 | FAPCCI Review 21 Stressing Finance to De-Stress Power Sector D Radhakrishna Mumbai based Power Expert ...... ower Sector in India is right now players who have ventured out in this in shambles. All four segments of sector with little or no experience are Pthe Power Sector i.e Generation finding means to walk out from the of Conventional Power, Renewable sector on either Force Majeure clauses Power, Transmission and Distribution or under No-demand conditions. Such wings are getting no respite on Physical a situation is alarming on the supply as well as Financial performances. . side and difficult to survive unless some Today, the installed capacity of Power drastic measures are taken to moralize Generation is more than 3,30,000 Mw investment as well as recovery of and with the Private Sector taking over Financial Insitute money . It looks like, On technical side, nowhere in the world major share both on thermal as well Government of India and respective are more than 10 % losses allowed as Renewables (from Central & State State utilities jointly or severally must but here, in some cases losses are as Sector which are mostly financed from get together & do something to take much as 60 %. Except Andhra Pradesh Indian banks) it looks like financial over assets when they are still in and Gujarat, the losses should be stress assets are growing and NPA’s are economically operation permissible. Very recently, Ministry of alarming increasing . The second part of Generation Power laid down direction that in case Very recently, our Parliaments’ is Renewables. Government has of losses more than 15 %, the tariff Energy Committee placed its report on ambitious targets of 1,75,000 Mw by composition will permit only 15% from rising NPA’s and Stressed Assets in the ‘2022 but integration of Renewable next year. House. They have termed 34 projects of Power with grid is a challenge but The Uday scheme which Private players with around 40,000 Mw an opportunity as well. Mostly this primarily transfers debts to State of Thermal Plants which have bad debts segment was taken over by new players Government, with a condition to and leading for NPAs totalling 1,72,000 and they are finding difficulty in Tariffs improve performance in a phased crores. On phycial grounds with no as well as selling the Power in the open manner, looks like a complete failure. demand in the system, it looks like dark market as they have to compete with The reasons are clear that tariff is not days are ahead . Besides this, Gas based conventional powers. Solar power has linked to cost, even though some tariff Power plants of 25,000 Mw across the a potential of day time generation and components are unacceptable. for e.g country have also in the same shape tariff coming down from Rs 17.5 to Rs giving Agriculture Sector be given free with no gas and it is also attributing 2.50 in five years span making project electricity and line losses be controlled to NPAs with many applications before financing unviable Regulators have with 100% metering and stoppage of NLCT to treat them as NPAs s. mandated Renewable Power obligation sinks to arrest pilferage. As per estimate, around Re 1/- is the but it has no powers to enforce it. The This year most of the Regulators have fixed charge, which respective Utilities other renewables like Wind and Bio- avoided increase of tariff but long term are bound to pay to stressed units if mass are in serious trouble in terms of solutions are in the hands of customers Power purchase agreements are in getting finance. Hydro-power which as they can guard pilferage and ensure existence and power is not available has got a good potential at micro or timely payment. Other solution can be, on account of no fuel avaialibility or large level, are looking for new policies as Andhra Pradesh envisaged, of taking on account of merit order despatches with respect to land & forest prices. It fixed charges for internet eater supply which forbids purchase of costly power also seems that Government can give cables and electricity from lower middle when in system cheaper power is clean power usage incentives and that class and below. available which obviously raises tariff can bring some shape between Energy The other solution can be to bring of consumers. mix and peaking Power consumption. uniformity in electricity rates for So glaring is the generation of the Transmission and sub-transmission domestic consumption pan India akin sector that except Commissioned are the only segment of Power sector to Telecom Railways and Road Tariff. projects, no new projects are safe reliables as Regulators have given In a nut shell, Electricity sector which forthcoming. The life of a Thermal due pricing and right of use to only grew from 1200 Mw in 1947 to 35,000 Power plant is around 25 years and with paying customers. in 2017 with per capita consumption timely renovation / refurbishments The last segment is retail level of from present 1200 units to be expanded when it reaches 20 years, the Plant distribution of power and this level to 2500 units, per capita need to be can easily get ten more years of life. needs to be robust, reliable and trouble watched and vouched for carefull y But keeping a Plant idle for 20 years, it free for cash rolling. Unfortunately, this both in terms of physical performance will not even fetch scrap value. Private segment is leaking from all perspective. and financial performance

Aug, 2018 | FAPCCI Review 23 “How One Bad Employee Can Corrupt a Whole Team”

Stephen Dimmock and William C. Gerken (Harvard Business Review). Collected by: Ms.Deepa David, Asst.Manager-HR, Care Hospitals, Hyd......

ne bad apple, the saying goes, can ruin the bunch. So, too, with Oemployees. Our research on the contagiousness of employee fraud tells us that even your most honest employees become more likely to commit misconduct if they work alongside a dishonest individual. And while it would be nice to think that the honest employees would prompt the dishonest employees to better choices, that’s rarely the case. Among co-workers, it appears easier to learn bad behavior than good. For managers, it is important to realize that the costs of a problematic advisor, as well as for the advisor’s co- change supervisors during the merger, employee go beyond the direct effects of workers. allowing us to attribute all changes in that employee’s actions — bad behaviors We found that financial advisors are behavior to peer effects from co-workers of one employee spill over into the 37% more likely to commit misconduct with the same rank. Within this restricted behaviors of other employees through if they encounter a new co-worker with sample, we found strong evidence of peer effects. By under-appreciating a history of misconduct. This result peer effects just like in the main sample. these spillover effects, a few malignant implies that misconduct has a social These results show that, independent of employees can infect an otherwise multiplier of 1.59 — meaning that, on any effects from managers, employee healthy corporate culture. average, each case of misconduct results behavior is affected by the actions of History — and current events — are in an additional 0.59 cases of misconduct peer co-workers. littered with outbreaks of misconduct through peer effects. Prior studies document that peer among co-workers: mortgage However, observing similar behavior effects are stronger among individuals underwriters leading up to the financial among co-workers does not explain why who share the same ethnicity. crisis, stock brokers at boiler rooms such this similarity occurs. Co-workers could Accordingly, we use advisor ethnicity as Stratton Oakmont, and cross-selling behave similarly because of peer effects and show that peer effects in misconduct by salespeople at Wells Fargo. – in which workers learn behaviors or are stronger between advisors who In our research, we wanted to social norms from each other — but share the same ethnicity; the contagion understand just how contagious bad similar behavior could arise because effect is nearly twice as large if an advisor behavior is. To do so, we examined co-workers face the same incentives or meets a new co-worker with a history of peer effects in misconduct by financial because individuals prone to making misconduct and who shares the advisor’s advisors, focusing on mergers between similar choices naturally choose to ethnicity. Thus, similar individuals, who financial advisory firms that each have work together. In our research, we likely interact more, have stronger effects multiple branches. In these mergers, wanted to understand how peer effects on each other’s behaviors. financial advisors meet new co-workers contribute to the spread of misconduct. Understanding why co-workers make from one of the branches of the other We compared financial advisors across similar choices about whether to commit firm, exposing them to new ideas and different branches of the same firm, misconduct can guide managers in behaviors. because this allowed us to control for the preventing misconduct. Given its nature, We collected an extensive data set effect of the incentive structure faced by knowledge and social norms related using the detailed regulatory filings all advisors in the firm. We also focused to misconduct must be transmitted available for financial advisors. We defined on changes in co-workers caused by through informal channels such as misconduct as customer complaints for mergers, because this allowed us to social interactions. More generally, which the financial advisor either paid a remove the effect of advisors choosing understanding why co-workers behave in settlement of at least $10,000 or lost an their co-workers. As a result, we were able similar ways has important implications arbitration decision. We observed when to isolate peer effects. We also ran tests for understanding how corporate culture complaints occurred for each financial that included only advisors who did not arises and how managers can shape it.

24 Aug, 2018 | FAPCCI Review 23 TEA KETTLE The complete high-tea company Join to experience the hygiene, tastier & smarter range of menu PhVi Studios, Hyderabad...... common experience for many conversations. The start-up journey ml to over a 1000ml )and improving its moving in the small bi-lanes wasn’t free of founder’s woes and utility in preserving and serving fresh & A of Vasavi Colony, Karkhana, hiccups of the initial years are nothing hot tea for over 6 -8 hours. Secunderabad, people very often are short of any roll coaster ride. Soon they Tea Kettle’s menu is a well-designed, lead by fresh-bake flavours, raising realized and were able to gain control Taste-savy, Artificial ingredients-free, their gastronomic appetite, walk into by swiftly shifting gears before they Pro-organic, Hygiene-made and timely- the yellow & Orange painted building weren’t to go beyond burning their service in assuring the customers to in hope of munching a menu of snacks, fingers in trying out various operational a taste-bow of experiences. In short, but end-up in getting introduced to a models, ranging from partnering to the menu complements the client’s specialized Kitchen. The experience outsourcing the operational facilities meetings where it fulfills and engages thus turns their disappointment into and resources, which obviously the conversations with Samosas, a learning pleasure of knowing about didn’t meet-out and match-up their Sandwiches, Cakes, Cookies, Muffins, the India’s fast growing high-tea menu aspirations, client expectations and Puffs, Pakoras, and etc. overall business net results. Raj & Sudheer with improved The founders on picking clues revenues and flowing of funds are now and strategic insights from the near- proportionately equipping to meet the disasters and mistakes were able to game and equipping to face the future. transform the learning’s into actions. By rejuvenating their capabilities and The recovery started by developing a revamping capacities to serve the niche business model and in setting- B2C segment and also developing up a designed kitchen to serve the models in the offing like Franchise, specialized menu of high-tea food Ready-to-Serve(RTS), Quick-Service- items and establishing with couple of inbound outlets for a couple of catering company; Tea Kettle. corporates, have allowed Tea Kettle to At times the Instincts are most set face the future and to serve across bankable in making decisions and when the high-tea menu needs of Meetings, they are tested, tried and explored, they Gatherings and Networking. open-up the possibilities of turning one’s The fillips in the model with intuition into an idea and leading to tasty menu items and timely service discover a huge opportunity. significantly established operational profitability, tweaking loose-ends, These words came true, when former improved order-ticket size, consistency Bankers and Colleagues M.S.Raja in customers acquisition and innovation, Shekar and G Sudheer Kumar at which started paying them with a very Axis bank, Hyderabad, decided to quit good B2B list of clientele from Private & Restaurants(QSR)Points in next couple their well-paying jobs, in taking up Government Banks, Corporates, Political of years. an entrepreneurial journey; around Parties, Communities and Business By 2020, Founders focusing to hold the highly scrambled, distributed and Groups, Departments and others. presence leading Indian locations with under-explored market opportunity of As they caught-up to serve the signature stores and soon to launch high-tea catering services and needs. range of occasions, menu upgradation franchisees across along with setting- Despite High-tea, a concept introduced and customer acquisition, now aiming up a chain of specialty Kitchens creating to us as a British Culture, by and large equally to scale the service value- more customers, each time and every it’s even customary for Indians too chain, importantly scaling-up and time. in having served a variety of snacks tapping high-tea hospitality needs. Tea Tea Kettle, is now more determined and tea, irrespective of the size & Kettle’s tea-bag/flask is a gesture of its in the process of taking the high-tea sort of conversations across Families, commitment to customer service and culture with its token of success and Companies and Meetings. also showcases the innovative effort learning’s to breath in a brand new In 2016 their idea took a shape as invested by them. It speaks more about high-tea experience, as never before. TEA KETTLE, India’s first complete its attitude in simplifying product needs, So what’s stopping, call Tea Kettle and and original high-tea menu start-up, easy-of-handling across occasions start ordering your menu and post which serves a hygienic, quality and (from a table meeting to travelling), business enquiries. tastier items across the occasions of Quantity-fit ability (from 250 ml, 500

Aug, 2018 | FAPCCI Review 25 26 Aug, 2018 | FAPCCI Review Forbes Community Voice Connecting expert communities to the Forbes audience. What is This? It’s Time To Adopt AI Into Your Business Model

Alannah Sandehl

just as new employees do. Companies face strategic questions in determining when these applications can be fully operationalized and the level of human oversight required. The most important determinant is the level of tolerance companies and their customers have for mistakes. For marketers, the stakes are a lot lower than for self-driving car manufacturers. However, without appropriate oversight, AI can do serious damage to brands and bottom lines. For example, Microsoft’s chatbot Tay was pulled offline after 4chan members taught it to tweet offensive statements. Companies can protect themselves by testing for more than technological performance and including the insights of social science and social media hen people think of data, AI can conduct repetitive and researchers. In addition, initial beta artificial intelligence (AI), straightforward workflows successfully. testing, which is often manual, can be Wthey might envision an evil This is the least expensive form of AI supplemented by embedded testing supercomputer or a lifelike robot technology and it typically results in and automating continuous testing. plotting to overtake its owner. a quick return on investment (ROI). In Automating Data Analysis The reality of AI isn’t that dark. In terms of augmentation, AI can help While big data can offer plenty fact, you are probably using it already. people work better, faster and smarter. of information relevant to marketing Salesforce, Gmail and even Netflix Evolution Of Creativity: According campaigns, humans are often unable utilize AI in some capacity. AI also plays to Tom Bartol, a neuroscientist at the to produce meaningful results from it. a large role in marketing. Algorithms Salk Institute, the human brain can This is a good place for AI to add value. can now process data to optimize hold as much information as the entire While most data analytics are the best marketing strategy for lead internet, while only using the power generated online, AI can be used to generation. required for a light bulb. In contrast, integrate offline data and create a more There are valid concerns that AI will a computer requires “a whole nuclear comprehensive view of customers. For encroach on human productivity and power station” to example, Amazon collects and analyzes make certain jobs obsolete. However, it have the same memory and data offline to see how long customers is AI’s very ability to streamline business processing power. Despite this capacity, interact with a product. processes that will allow people to so much of our brainpower Software such as Domo can greater harness their creative and is used on repetitive and simple generate reports of data from intellectual strengths. tasks. One of the biggest opportunities Salesforce, Facebook, Shopify and Despite some alarming predictions that AI provides marketing professionals Square that clients can use to better of AI putting people out of work, I feel is more time to devote to creativity and understand customer preferences and optimistic about its impact. As with innovation. product performance. any new technology, integrating AI At IDM, my priority is to harness These reports can enable a company requires a well-thought-out strategy. AI for my clients’ businesses and our to place more time and emphasis on In my opinion, it can assist marketing agency’s operations. analysis, resulting in better targeting efforts in two primary ways. Here are my takeaways for those and increased revenue growth. Automation And Augmentation: AI in the marketing community who are Content Creation offers solutions through automation looking to harness AI. Another application of AI is natural and augmentation. The Importance Of Oversight language generation (NLG) and With the right mix of context and AI applications need to be trained, natural language processing (NLP).

Aug, 2018 | FAPCCI Review 27 caregiver. Maximize ROI AI offers marketers the tools to fine- tune campaigns and create original and impactful messages for their target audiences. It can analyze data more effectively, providing actionable insights to improve ROI. Fashion label Natori offers a powerful success story. After employing autonomous digital marketing tools, Natori was able to identify new audiences and high-performing ad types it had underutilized or hadn’t considered. The transformation of their marketing strategy resulted in These automations are already being human-generated content and found increased conversions and revenue. used by media companies to convert the quality to becomparable. Yes, management will have to make data into intelligent content related Content creation technology some changes to adopt this new to news, sports, finance and, most might be best suited for analyzing technology. Yes, staff members will importantly, marketing. With these data in similar formats, as opposed have to undergo training to use tools, companies can respond almost to data from varied sources, such it effectively. Yes, you will have to instantly to new trends, creating as a combination of documents, reassure your team that they won’t be timely and experiments and interviews. And automated out of a job. But after some relevant stories for their clients. companies will also have to apply growing pains, AI will open up a realm Real estate site Trulia optimized human intelligence to these content- of possibilities for your company, its usage of NLG to generate location creating algorithms. Human oversight employees and clients. descriptions by applying thresholds, is critical for content that suggests the rankings, information retrieval (TF-IDF) reader take action (e.g., investment and seed sentences. Most importantly, advice) or reports sensitive data, they conducted blind tests of AI and such as health results to a patient or

28 Aug, 2018 | FAPCCI Review The Era of new market is emerging!

Sanjay Pershad The future of retailing will see the coming together of Editor, ITCOM Journal offline and online, where offline business will complement ...... the online business.

question that arises is what comes first - Innovation, ADigitization or Disruption? Whatever may be the answer, one has to disrupt its own innovated technology in order to digitally transform. With the e-commerce audience emerging with the increased user base of internet, the benefits of the internet to small business industries is growing which is in turn giving rise to new retail, new finance and new technology. The C2B supply chain and personalized manufacturing is the future. In the ‘Made in Internet’ era, you can design your products in the U.S., manufacture in Germany, assemble in China and sell them worldwide. This helps SMEs to sell globally, buy globally, pay globally industry. - like Jio’s rock-bottom pricing, and get products shipped globally. Propelled by rising smartphone Flipkart’s buy one get three free A recent study has revealed that penetration, the launch of 4G and heavy discount on Amazon over 120 million Indian consumers networks and increasing consumer Prime - is destroying the healthy are expected to shop online this wealth, the Indian e-commerce competitiveness of the market. year, with an annualised growth market is expected to grow. A But surprisingly, the trend of pure of 115 percent, aided by fast- humongous number of consumer e-retail era will soon come to an increasing data consumption and needs and desired experiences is end. Global giants like Alibaba has improvement in logistics, along directly impacting the micro, small realised the fact and implemented with a number of offers presented & medium enterprises (MSME) and the module of offline market as by e-commerce platforms. India is the retail sector in India. well. It will be the mix of online and the fastest growing internet nation Additionally, the government’s offline markets that will equally in the world. A compound annual initiative towards Digital India, exist with support logistics as the growth rate (CAGR) of 13 percent Make in India, and the Innovation new retail mantra. will take the number of online users Fund is encouraging more online Recently, Big Basket started its to 720 million as compared to 500 penetration and e-commerce offline retail strategy. The company million in 2017. With a growth of 25 growth in the country. Recently the is looking to transform its core per cent, the Indian e-commerce Reserve Bank of India has allowed online business to offline centres to industry is expected to cross the inter-operability for prepaid store daily moving consumer goods, $125 billion mark by 2020, growing payment instruments, such as groceries, fruits and vegetables. This at the rate of 55%, the highest in digital wallets, creating room for investment comes in at a time when the world, attracted by huge deals technological innovation in this Indian and foreign behemoths are and discounts offered by the major area. A question arises whether heavily investing into this sector. e-commerce companies led by the Competition Commission of Recently, Flipkart restarted its Flipkart, Amazon India, Paytm Mall, India (CCI) will decide on the anti- grocery business, whereas, Amazon Reliance Digital etc. The capacity of dumping of foreign capital and desi is planning to enter the offline stores burning money and better manage capital or not. in India. of supply chain does matter for The concern is on predatory Indeed, time will say what is the growth of the e-commerce pricing. The predatory price war there in store!

Aug, 2018 | FAPCCI Review 29 Telanganaku Haritha Haaram he Telanganaku Haritha Haram taken up in Government, Private and • Outside Forests areas – 130 Crores Programme, one of the flagship institutional lands wherever feasible (Including 10.00 Crs. in HMDA & GHMC Tprogramme of Government of apart from roadside plantations. Now, areas). Telangana is aimed at increasing the it has been decided to plant 100.00 • 100 Crores within Forest areas (20.00 green cover from 24% to 33% in the state Crores plants per year from next year. Crs through plantations and 80.00 Crs in tune with National Forest Policy, 1988. Initially, it wasdecided to plant and through rejuvenation). All sectors of the society are involved in rejuvenate 230 crores seedlings in the the programme. Plantations are being state as follows –

Planting Achievements so far: 2015-16 : 15.86 crores Plants 2016-17 : 31.67 crores Plants 2017-18 : 34.07 crores Plants 2018-19 : 7.75 crores Plants Total plants planted so far:89.35Crs. Green Brigades :30815 teams with 481989 Members

Achievements of Forest Department so far - • BlockPlantations – 23,117 Ha • Avenue Plantations – 6,179 Kms • Peripheral trenches – 6,404 Kms • Firelines– 5,823 Kms • Assisted Natural Regeneration – 2.45 Lakh Ha • Forest Urban Parks – 30 Nos.

Ftappci is committed to support Governement of Telangana Flagship Scheme of “Telangana ku Haritha Haram”

30 Aug, 2018 | FAPCCI Review FTAPCCI EVENTS Open house meet on GST

n the eve of completion of the GST Return filing at national level one year of GST, FTAPCCI has was around 87%, it was around 85% in Oorganized ‘open house meet’ Telangana which is a matter of concern. on GST on 7th July 2018 at Federation He suggested that those who were House, FTAPCCI, Hyderabad with the unaware of procedures could find officials of central tax and customs assistance at the 36 GST Seva kendras in department. the State. Sri Gowra Srinivas, President, He also informed that Telangana FTAPCCI in his welcome address stood among the top States in commended the GST team for having processing Export refunds. The four GST handled with great ease the GST issues. Commissionerates in Telangana carried Ftappci President He informed that FTAPCCI has conducted out two special drives for refunds in Meets Chief Secretary innumerable number of programmes March and June to complete 90% of the of Government of when there was turbulence in the GST refunds .They accepted physical claims and made industry and trade GST ready. only this time. Efforts are on for making Telangana Sri Arun Luhuruka, President He was all praise for GST Council saying GST Refund filing electronically. along with Sri Sanjay Kapoor, it has done a good job of looking into He further informed that Telangana Secretary General FTAPCCI met issues and challenges aroused during had 3.5Lakh GST assesses and nearly the Chief Secretary Sri Shailendra the course of implementation and 20% had opted for the composite Kumar Joshi, IAS, Government solved them. scheme. However, those who opted for of Telangana in his Chambers at Shri Abhay Kumar Jain, Chairman, composite scheme cannot charge GST. Secretariat on 25th July, 2018 at GST & Customs Committee in his It is advisable by consumers to use the 3.30 pm. The President explained introductory remarks congratulated GST verify app to check GSTN to know about the consisting number the Hyderabad zone for topping in GST whether retailers charging taxes are of Members of FTAPCCI and refund procedure. The zone has settled authorised to do so. stressed that maximum number refunds worth Rs 452 crore against Sri B.B. Agrawal, IRS along with of members are having their applications for Rs 557 crore. Sri Anil Kumar Jain, IRS, Principal operation in Telangana. He Shri Bankey Behari Agrawal, IRS, Commissioner, Customs, Hyderabad, stressed upon the commitment Chief Commissioner, GST and Customs, Sri. Naresh Penumaka, IRS, Principal of FTAPCCI to take forward the Hyderabad Zone in his address said Commissioner - Central GST, Hyderabad flag ship schemes & policies that with the support of FTAPCCI, the Commissionerate, Sri. Mandalika of Government of Telangana department is making a progress in Srinivas, IRS, Commissioner - Central through its channels. achieving the objective of making GST, Medchal Commissionerate and Sri. The Chief Secretary asked interaction of public with the officials D.P. Naidu, IRS, Commissioner -Central the Secretary General to give a redundant. GST, Secunderabad Commissionerate detailed letter on the proposed He informed that the State of have answered the queries raised by activities of FTAPCCI planned for Telangana Revenues have risen 15% the participants during the Open House next one year and the kind of from Rs. 19,955 crore in the Pre GST session. The Meeting ended with Vote of involvement required from GOT. period( July 2016-June 2017) to Rs. Thanks by Sri V.S. Sudhir, Co-Chairman, He assured all possible help and 23,014 crore in the post – GST period GST and Customs Committee, FTAPCCI. support in working together. (July 2017-2018). He stated that while Enclo : Q&A

Aug, 2018 | FAPCCI Review 31 FTAPCCI EVENTS

The Federation of Telangana and AndhraPradesh Chambers of Commerce and Industry Open house meet on GST “Celebrating One Year of GST” Answers to the Queries raised by the stakeholders

S.No Question Reply As an importer Nile Limited No possibility of taking it as ITC. As the last date for filing/revision of Tran -01 have paid Service Tax (RCM) ended on 27.12.2017, there is no scope to avail the Credit of Service Tax men- 1 on ocean freight on 20-06- tioned in this case. 2018 through Service Tax Challan with interest, services In terms of Rule 117 of the CGST Rules 2017, GST TRAN-1should be filed by a related to April 2017 to June Registered person who intends to avail transitional credit under Sec.140 within 2017. 90(ninety) days of the appointed the which can be extended by the Commis- sioner for a period not exceeding another 90 days. How to take Credit of Service Tax paid amount in GST re- The last date for filing of GST Tran-1 form was the extended up to 27.12.2017 gime. They have already filed (Vide CBIC orders bearing Nos. 3/2017- GST, dated 21.9.2017, 7/2017-GST dated TRAN-1 Form 28.10.2017and 9/2017-GST, dated 15.11.2017.Further the last date for filing the revised GST Tran-1 form was also extended up to 27.12.2017 vide CBIC orders bearing Nos. to 2/2017 – GST , dated 18.09.2017, 8/2017-GST, dated 28.10.2017 and 10/2017-GST , dated 15.11.2017). No Further Extension.

2 Taurus Chemicals (P) Ltd are No exemption from filing GSTR-1. registered with GSTIN and Every registered person, shall mandatorily file GSTR-1, except an Input Service availing the facility of ITC. Distributor, a non- resident taxable person and a person paying tax under com- In this context they wish to position levy or under section 51(TDS) or section 52(TDS), reflecting the details inform that they have been of outward supplies of goods or services or both effected during a tax period availing ITC also on GST being on or before the tenth day of the month succeeding the said tax period and levied by Banks, Telephones such details shall be communicated to the recipient of the said supplies (by Dept. But nowhere in GSTR2A way of auto populated GSTR-2A). their levies and collections of GST are appearing in GSTR- It may be noted that in the recent FAQs released by the CBIC in r/o “Financial 2A. In this connection, they Service”, the following clarification has been issued at point no. 11 regarding wish to know whether any the uploading of outward supplies by the Banks/ insurers/ financial Institutions. exemption for filing of GSTR-1 or GSTR-3B. As you are aware, “ Under Rule 54(2) of the CGST Rules, 2017, a banking company or a financial once they file GSTR-1 only the institutional including a NBFC or an insurer can issue an invoice or any other amounts appear in GSTR-2A document in lieu thereof whether or not serially numbered and whether or not containing the address of the recipient but containing other information as mentioned under rule 46. There is no restriction on the invoice/ document being a consolidated invoice/ document but it must bear an identification number, which need not necessarily be serially numbered. The recipient of service will get the credit for GST so long as the bank, etc. uploads the details of the invoice/ document under that number with GSTIN of the recipient in its statement of FORM GSTR-1”.

In view of the above, Banks, Insurers/ Other Financial Institutions/Telecom Ser- vice Suppliers shall upload the details as prescribed under law in the relevant columns of GSTR-1.

The Tax payers may persuade their supplier Banks/ Insurers/Other Financial Institutions to upload the invoice details to take ITC without any difficulty.

32 Aug, 2018 | FAPCCI Review 27 S.No Question Reply 3 After the introduction of refund In order to liquidate the pendency, “ Special (drive) Refund Fortnight” was option on the web site, Ind- launched from 15.03.2018 to 31.03.2018 and 31.05.2018 to 16.06.2018 Tech felt happy that the period wherein all the refund claims pending as on 30.04.2018 have been cleared. of misery is over. They got no- 459 claims were sent to State tax offices for payment of SGST component. tice 41/2017 which said that re- fund will be made after manual So far 378 claims received from SGST –most of which were already dis- verification. bursed. Today they are almost close to one year and they have to All claimants may note that the refund application in FORM GST RFD –O1A receive their refund of SGST will not be processed unless a copy of the application, along with ARN and right from July which amounts all the supporting documents are submitted to the Jurisdictional tax office. to almost 20 lakhs and CGST and IGST refund is to be re- Mere online submission is not sufficient. ceived from Dec till date which amounts to another 15 lakhs. Specific instances where the refund claim is pending with Central GST One year passed, still the Com- authorities for considerable period may be brought to the notice of the mercial Tax Office is not given concerned Commissionerate for necessary action. head of account for making the SGST refund.

4 Botanic Healthcare Private The disbursement of SGST component and / or disposal of Claims before Ltd are facing refund from SGST authorities, the matter may be taken up with the concerned of the State State portion (SGST) after tax. sanction also not received from July to dec-17 so far. Kindly take up the State Tax Authorities for disposal.

5 While filing GSTR3b, wrongly The excess ITC can be reduced by EDIT facility if it is not off-set (utilized)or the claimed excess Input, instead Return (GSTR-3B) was not filed. of actual Input. Now, Credit If the excess ITC was utilized by filing return, an amount equal to the excess ITC register shows excess input as claimed and utilized, along with interest @ 18% can be paid while filing the next compare with the books of ac- Return; as mentioned issue was clarified vide Cir.No. 26/26/2017- GST dtd. 29th counts, kindly let us know the December, 2017. procedure to revert the excess Mere availment of ineligible/ excess ITC although inadvertent and not credit and match the books. utilized- attract penal action under Sec. 122(2)(a)- Rs. 10,000/- or 10% of ineligible ITC, whichever is higher.- cannot be treated as minor breach to avoid penalty. 6 Jeevaka Industries Pvt. Ltd. In terms of Sec. 34(3) of the CGSTA, a debit note shall be issued by the supplier to a. raising Of Credit / regularize the following kinds of situations. Debit Notes Against Sales / (i). The supplier has erroneously declared a value which is less than the actual value Purchases: of the goods or services or both provided. There is a lot of confusion in (ii). The supplier has erroneously declared a lower tax rate than what is applicable applicability of GST in bulk for the kind of the goods or services or both supplied. purchases from PSUs and (iii). The quantity received by the recipient is more than what has been declared in Private Sectors due to different the tax invoice. interpretation of Section 15 of (iv). Any other similar reasons. CGST Act, 2017. It should be either As per the explanation appended to sec. 34(4), the debit note includes free from such ambiguity i.e. GST is applicable in all cases of Debit supplementary invoice also. On the other hand, Sec. 34(1) of the CGSTA allows / Credit Notes on bulk purchases supplier to issue credit note to cover the following contingencies: OR it should be allowed to (i). The supplier has erroneously declared a value which is more than the actual continue as per pre GST regime value of the goods or services or both provided. when such Debit / Credit Notes (ii). The supplier has erroneously declared a higher tax rate than what is applicable were kept out of the purview of for the kind of the goods or services or both supplied. VAT / CST. To substantiate further, (iii). The quantity received by the recipient is less than what has been declared in the usually Debit / Credit Notes are tax invoice. to be raised by the Seller under (iv). The quality of the goods or services or both supplied is not to the satisfaction of the present regime, in case the the recipient there by necessitating a partial or total reimbursement on the invoice seller does not do so, what is the value alternative? (v). Any other similar reasons. In view of the above legal provisions it is obligatory to raise the debit/credit note depending on relevant circumstances, BY THE SUPPLIER.

28 Aug, 2018 | FAPCCI Review 33 S.No Question Reply 6b Non-Updation of GSTR1 Filing GSTR-1 is mandatory on the part of every Supplier of Goods or Services It has been observed that or some of the suppliers of Goods both, as per the Sec. 37 of CGSTA filing GSTR-1, except ISD, NRI, TDS, TCS & and Services are yet to upload composite Scheme supplier. their GSTR1 since July’2017 re- sulting into non-availability of The genuineness of the ITC taken on the inputs/ Capital Goods/ input services input credits to the recipient in from such supplier(s). The site GSTR-3B can be proved by producing other documents to support procure- is yet to be opened for GSTR2 ment; where in the consumer will payment to suppliers; receipt of inputs/input services; inventory; consump- have the option to incorpo- tion etc. rate such missing bills of the defaulted supplier(s) and get Hence, in the current scenario, non- filing of the GSTR-1 by the suppliers by those accepted by the seller by itself putting their personal effort. does not disentitle ITC, if taken genuinely. Thus, the credit availed while filing GSTR3B for the respec- There is no link between GSTR-2A & GSTR-3B (temporary simple return de- tive month and credit available signed as per GSTR2A differs. Under to cater to the immediate need before the revised simplified return is put in this circumstance, what is the alternative to the consumer/ place). recipeint when the input credit This matter is expected get resolved shortly, on implementation of simplified has already been availed while return(GSTR-3) filing GSTR3B for the corre- sponding month and GSTR1 of the supplier(s) not updated.

Non-Conversion of GSTR2A into Introduction of the simplified GST-Return is on the top of the Agenda of GST 6c Excel Format Council; which would address these issues. The GSTR2A available in the site can be downloaded in win. Meanwhile these difficulties are brought to the notice of ADG Sys. Chennai. zip format and can further be converted into a text file through GST site. At the face of the screen the problems faced in such formats are as under: i. The file cannot be copied and pasted into an excel format. Due to non-conversion into excel, it has become a tedious job to reconcile keeping in view of the volume of input invoices i.e. a two-three hours job is taking around three days to conclude; ii. The column consists of only GSTN and not followed by the name of the supplier; iii. The width of the “invoice number” column is too short to show the complete invoice number of suppliers and in order to find the invoice number, once again we have go to the respective supplier detail and collect the information(s), time consuming matter; iv. The downloaded format consists of only the “Invoice Value” and no break-up of the tax component i.e. IGST / CGST / SGST; v. It has also been observed that, in some cases, the supplier has

34 Aug, 2018 | FAPCCI Review S.No Question Reply uploaded only the taxable value and not the invoice value; vi. Under this circumstance, how to keep track and reconcile the data of what we are availing as Input Credit and what will be available at a later stage through GSTR2A. What, we feel that GSTR2A should get auto-populated by 15th of the following month i.e. before filing of GSTR3B as otherwise, it is difficult to keep track of the same. Further, the Circle Office may please be held responsible for getting the returns updated or else, e-way bill generation be blocked; As Above 6d Amendment in Filed GSTR1 While filing GSTR1 in offline method we fill in GSTN and name of the party along with other details like invoice value, invoice number, invoice date, tax rate etc. Now, while uploading the filled in data, we feel that the site does not verify the correctness of GSTN and corresponding name of the recipient, resulting into non-credit to the correct recipient. Under this circumstance, we would also like to know that in case we require to amend GSTN and Party’s Name against a corresponding invoice, what is the option that we need to follow?

7 At present the payment of Cess In terms of section 17(2) of the CGSTA, Compensation Cess paid on input supplies is on Inwards i.e. on Coal taken as not allowed as ITC to the registered person who makes outward supplies which are input credit by Net Matrix Crop exempted from payment of Compensation Cess. Care Limited. Whereas their [ As per Section 17(2) of the CGSTA { which was made applicable to Composition Cess product does not attract Cess. Act, 2017[CCA] by virtue of Sec. 11 of the CCA} where the goods or services or both In view of this they are unable are used by the registered person partly for effecting taxable supplies including zero- to adjust the input credit of rated supplies under this Act or under the Integrated Goods and Services Tax Act and Cess and accumulating the partly for effecting exempt supplies under the said Acts, the amount of credit shall be Cess amount from 01-07-2017. restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies]. How to make use of input credit of Cess? As the outward supplies made by the supplier in the case mentioned above do not attract C. Cess, ITC of C. Cess paid on input supplies would not admissible. It is therefore advised to reverse the ITC availed immediately along with interest @ 18 %.

In fact, taking/ availing ineligible credit of compensation Cess is a violation of Sec. 17(2) of CGSTA which attract penalty under Sec. 122(2) ibid- Rs. 10,000/- or 10% of the amount involved which never is higher;

- Where there is fraud etc. Penalty is Rs. 10,000/- or an amount equal to ITC, whichever is higher.

Aug, 2018 | FAPCCI Review 35 S.No Question Reply

8 Porus Laboratories Pvt. Ltd- (a) There is no provision for revision of return under GST law. However, incorrect Some Issues in GST Returns: particulars/ details in GSTR-3B can be rectified by making suitable modifications in the a. Revised returns facility is not subsequent returns. there b. TRAN1 we had submitted In this context, the Circular baring No. 26/26/2017-GST dated 29.12.2017 issued by the but it has been not validated CBIC may be referred. in time. We had made so many correspondence with GST (b) Nearest GSK may be consulted with specific details of the issue so that the portal, but there is no use. same could be resolved. In case there is a genuine difficulty which cannot be resolved, Kindly suggest how to it would be taken up with ADG Sys. Chennai. overcome this issue.

9 Refund under GST: With respect GSTN related issue and it is referred to ADG Systems, Chennai. to filing of refunds under GST, it has been clarified by CBIC circular 37/11/2018-GST, that the filing frequency of refunds can be any no.of months as per the choice of the exporter. The only restriction put in is that the selected months should not be spread across more than one financial year. However, the GST portal is facilitating to file refund claim on monthly basis. No claim can be filed together for two or more months. As a result of this, in case of exporters who have accumulated credit in one month but the corresponding export in another month cannot claim refund of the said credit for the reason that as export turnover for the said month is zero. Therefore, many of the exporters are not in a position to fully claim the input tax credit. It is suggested to make appropriate changes in the GST portal at the earliest. In the mean time an appropriate manual facility of accepting the refund claims shall be ensured to facilitate the filing of long pending export claims.

10 Whether SEZ has to Pay GST The supplies to the units located in SEZ/SEZ developer are to be treated as supplies on RCM, when Notified Goods in the course of inter-state trade or commerce and accordingly the provisions of IGST / Services under Sec 9(3) of Act, 2017 are attracted. CGST Act are Supplied? In terms of Sec. 5(3) of the IGST Act, in respect of specified categories of supply of goods or services or both, the tax is required to be paid on reverse charge basis by the recipient of such goods or services or both. Supplies of goods and supplies of services which attract levy of IGST under reverse charge were notified under Not. Nos. 04/2017-IT® dated 28.06.2017 and 10/2017-IT® dated 28.06.2017 respectively. A perusal of these notifications reveals that in respect of the specified goods or services, the liability to discharge tax is shifted to the recipients as specified under the said notifications. Accordingly, if a specified person supplies goods or services or both which attract levy under RCM to a SEZ unit/ SEZ - developer, then such SEZ unit/ SEZ developer shall have to pay tax in respect of the notified goods/services under reverse charge and avail ITC of the tax so paid. The recipient SEZ-units/SEZ developer however can claim refund of the ITC accumulated, if any, when the same are utilized for the outward supplies that are exported under 16(2) of IGSTA.

36 Aug, 2018 | FAPCCI Review S.No Question Reply

11 If Supplies are made on FOR The GTA engaged for supply on FOR basis attract GST under RCM in the hands of the basis, the Supplier makes GST supplier of Goods; and GTA is an input service. Hence, GST paid under RCM on GTA input Payment Twice: Once when service is available as ITC instantaneously. Hence Revenue neutral. availing GTA Services on RCM basis and again on Supplies Further, the cost of transportation the goods incurred for supply on FOR basis and (including Goods + Freight) recovered as a part of the price of the Goods, forms a part of the transaction value in on composite supply basis. terms of the Sec. 15(2)© of CGSTA; and the GST paid on the component of Therefore it is tantamount to transportation as part of the value of the Goods supplied on FOR basis(otherwise Double Taxation. also the supply of Goods and the supply of GTA for transportation on FOR basis is a composite supply; and thus GTA attract the tax@ the same rate as that of the Goods supplied) which is recouped by the supplier. Hence, it cannot be treated as double taxation; and the supplier in no way is put any additional burden.

Common portal related issues

12 After login into the portal, This is not a common problem related to portal; this might have happened due to too it redirects to home page many people trying to file the returns on the portal at the same time. So especially during 2-3 days it is advise to file the returns well in advance to avoid congestion on system. before the due date.After Saving of data is required to be done for each table of GSTR-3B and not at once for all clicking save GSTR 3B data, the tables together. instead of saving all data, instead of saving all the data So please ensure saving of data at each Table before proceeding to the next table. will disappear and the same Please provide proof in the form of the screen shots to take up the issue with ADG, have to be entered again Systems, Chennai. The data up-dation in GSTR-3B is at good speed. Delay at times may be due to local At the time of making payment, internet connection speed or too many people using the network at once. the portal is not accepting To facilitate the tax payers and enable them to use all the features, the portal suggests some of the bank accounts for the tax payers to update to new version. If the data is provided in wrong format because example Union Bank of India of copy and paste problems, the portal throws the error of Invalid JSON Structure and therefore usage of the updated version is advisable. Takes very long time to update It is not possible, as the offline utility will not accept if the same invoice is entered more data in 3B For every month it’s than once. Further details/screenshots may be submitted for studying the matter. asking to create Json file with Open the downloaded zip file directly in the offline tool instead of extracting the JSON new version even though it is file and open the json file. an updated version. Invoices It is noticed that where the issue involves the correction in the system/ software, reply gets duplicated in offline tool may not be sent but it is being considered. However the reply is being sent immediate after uploading excel template where the issue can be clarified. Downloaded data of GSTR 1 will not open properly in offline tool with a message “file does not exist’ GST helpdesk is not much useful as we are being asked to raise grievance on the portal for which reply is never sent.

E-way bill related issue:

Details of Transporter name, 13 In case of trans-shipment of goods before deivery to the recipient, the transporter ID and approx distance in the needs to update the details of conveyance (i.e. vehicle number etc.) in part-B of the E-way bill portal is designed E-Way bill. Since only part-B of the E-Way bill requires to be updated, the same can be to be included as part of Part done even if part-A is frozen. A of E-way bill. However, in case of change in transport, transshipment etc, the details once entered are not being allowed to be modified as Part A is freezed and cannot be updated after initial submission.

Aug, 2018 | FAPCCI Review 37 Tamarind Industry

S.No Question Reply

Tamarind is classified as 14a The applicable rate of GST depends on the fact as to whether the Tamarind being Tamarind Fresh and Tamarind supplied is fresh or Dried. Dried in Tariff schedules. Dried Tamarind is a processed one, which is mainly used by common people, for making Tamarind fresh is Nil rated and food. Tamarind Dried is charged at Fresh Tamarind is with or without the husk and is unprocessed. 5% 14b There is no clarity on what is As Above Tamarind Fresh and Tamarind Dried, hence there is wide distortion and confusion in Tamarind Industry across the country which needs to be addressed urgently

14c Further, cold storage charges on Policy Matter. Tamarind stored in Cold storage is charged to GST as Tamarind Detailed representation may be submitted with data & justification, for forwarding is not included in the definition suitable comments to GST policy wing- for appropriate consideration and submission of Agricultural produce. to GST Council. The definition of agriculture produce needs to be relooked and the inclusion of Tamarind as agriculture produces should be considered.

“Adoption of Block chain Technology in Agriculture & Food Processing Industry” rogram on “Adoption of Block chain Technology in Agriculture & Food Processing Industry” held on 13th PJuly, 2018 at Federation House, FTAPCCI, Hyderabad. The program was intended to create awareness on benefits of adopting block chain technology in agriculture and food processing industry. Sri Hrishikesh Nashikkar, Blockchain Global Centre of Excellence, Broadridge India Financial Services Pvt. Ltd., and Sri U.K. Raghu, Managing Director, Aircave Technologies Pvt. Ltd. spoke on the subject. Sri Gowra Srinivas, President FTAPCCI in his Welcome Address said that even though Agriculture is the most significant sector in rural areas and provides livelihood for 70 per cent of the world’s poor, it is much unorganized due to very small size of landholding and provides the biggest functions within itself, as well as with customers. disconnect between supplier and retailer. He stated that the block chain technology can eliminate middlemen, help In the Technical Session Sri Hrishikesh Nashikkar has producers, manufacturers and even consumers to verify the given an overview of Block chain Technology. accuracy of data from farm to fork. The technology helps Sri U.K. Raghu explained in detail how to adopt Block tracking the asset or goods across supply chain there by chain Technology in Agriculture & Food Processing Industry. eliminating the problems related to inaccuracy of information, He also explained how the technology can save farmers and loss due to spoil of goods or delay in delivery etc. from Crop failures and debts improve agriculture GDP and Sri Ramakrishna P. Musunuri, Chairman of the Information increase employment generation. He stated that the block Technology, e-Commerce and Start-ups Committee, FTAPCCI chain technology can improve the Food-Safety and health. said that Blockchain is a very powerful tool for everyone in He suggested that all the stakeholders should share their the food production system, from the producers of animal corresponding business data with their Blockchain network and plant nutrition and supplements through to the end which is a collective decision of all. He also presented some consumer. It brings visibility, as information is shared and success stories and case study on poultry business. replicated simultaneously, increasing trust, accountability Sri Kulkarni, Joint Director FTAPCCI proposed Vote of and transparency. It will alter how the agriculture industry Thanks. .

38 Aug, 2018 | FAPCCI Review Aug, 2018 | FAPCCI Review 39 RNI Reg.No.8396/64 Postal Reg.No.HD/720/2017-19

Printed and published by T.Sujatha, Joint Director on behalf of the Federation of Andhra Pradesh Chambers of Commerce & Industry, Federation House, FAPCCI Marg, Red Hills, Hyderabad-500004 Ph : 23395515 and printed at ORION Printers Private Limited, 40 11-6-871 Baig Island, Red Hills, Hyderabad-4 Ph:23370461; Editor : T. Sujatha, Joint Director Publication Received on July 31, 2018