Exporters in India Suffer under GST Regime – Delays in Refund Processing, Malfunctioning System

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By Srinivas Raman

GST on Imports and Exports in India


The improper administration of the goods and services tax (GST) regime is adversely affecting exporters in India.

Exports are taxed under the Integrated Goods and Services Act, 2017 as per which exporters are supposed to enjoy ‘zero rated supply’, i.e. taxes and duties paid on input goods or services or final goods or services are to be refunded.

However, since the implementation of the GST, the online refund mechanism has either delayed processing or been non-operational due to technical glitches. Consequently, exporters are facing major financial and compliance related burdens. Some of the other challenges faced by the exporters are discussed below.

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India’s Bankruptcy Law Reinforced by Supreme Court Judgment

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By Srinivas Raman

India’s Supreme Court (SC) recently delivered its first detailed judgment pertaining to the interpretation of the Insolvency and Bankruptcy Code, 2016.

The most important takeaway from the SC judgment was its implications for the implementation of bankruptcy regulation in the country.

The Court clarified that the Insolvency and Bankruptcy Code (henceforth, Code) will supersede all other insolvency related laws in existence.

Additionally, the judgment highlights the importance of compliance with key provisions of the Code.

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AI and Automation Processes in India’s Economy

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By Ramya Boddupalli

AI in India


India’s internet user base is the fastest growing in the world. Digitization of the country is surging through initiatives like ‘Digital India’ and accelerating access to internet and telephony provided by India’s telecom companies.

As internet connectivity improves, the volume of commercial activity conducted through digital platforms is also increasing. These processes generate vast amounts of information, which businesses can use to improve their performance. Internet-connected technologies such as artificial intelligence (AI), automated software, and machines are used by businesses to analyze and respond to these huge amounts of raw data generated online to make informed decisions that streamline their work processes, enhance productivity, and enable radical innovation.

Yet, before we move further, we need to first understand what these new technologies are and how do they impact industry. Finally, we discuss the impact of AI and related technologies on India’s future economic growth.

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Japan’s Investments in India Unveil Growing Economic Partnership

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By Melissa Cyrill

bullet train india japan


India and Japan marked their 12th annual bilateral summit last week. A two-day blitz of investment pledges and the much hyped Mumbai-Ahmedabad bullet train, it showcased a relationship that is fast maturing into a strategic economic partnership.

The timing is also all but expected.

Both Prime Minister Narendra Modi and his Japanese counterpart, Prime Minister Shinzo Abe have promised resurgent economies to their voters.

Further, both countries are increasingly uneasy over China’s naked ambitions, despite having flourishing trade and business ties with the mainland.

These common concerns have manifestly transformed current Indo-Japanese bilateral engagement.

Japanese aid and investments into India are not just filling critical infrastructure gaps in the country, but are also directly benefit Modi’s economic reforms programs: Make in India, Skill India, Digital India, as well as Startup India.

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Joint Ventures in India: Learning from McDonald’s Experience

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By Bradley Dunseith

Joint Venture India

A troubled relationship between McDonald’s and one of their Indian partners is spoiling the American corporation’s once impressive position in India’s food and beverage industry.

McDonald’s is set to close nearly 170 outlets in northern and eastern India; 43 outlets have already shut down in Delhi. Since September 2013, McDonald’s has engaged in drawn out legal battles with their partner for north and east India: Connaught Plaza Restaurants Private Limited (CPRL).

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Anti-Profiteering under GST in India: Regulatory Measures and Compliance for Business

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By Srinivas Raman

Busting Myths about India's GST


The goods and services tax (GST) is a game changer for India’s indirect tax system, removing cascading taxes and simplifying administration.

The new regime also ensures that the tax rebate obtained by sellers or service providers under GST will be passed on to the final consumers.

Towards this end, GST legislation includes anti-profiteering measures under the Central Goods and Services Tax Act, 2017 (Act) and the Anti-Profiteering Rules, 2017 (Rules).

These measures ensure that businesses do not make excessive or unfair profits or charge unwarranted hikes under the guise of the GST. Further, it allows for tax benefits to reach consumers through suitable reduction in product prices.

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India Hikes Wage Ceiling under Payment of Wages Act

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By Srinivas Raman

India’s federal government recently increased the monthly salary ceiling from US$280 (Rs 18,000) to US$375 (Rs 24,000) – widening the ambit of workers covered under the provisions of the Payment of Wages Act of 1936.

The Payment of Wages Act is a federal law that regulates the disbursement of wages and salaries to certain categories of employed persons in India. These categories broadly cover any person employed in any factory or industrial establishment as well as any other class of establishment, which the federal government may prescribe.

The Act fixes the wage-periods, time of payment of wages, the manner and mode of making deductions (employee’s provident fund contribution, life insurance premium, fines, deductions for absence from duty, deductions for damage or loss of goods of the employer), and mandates the maintenance of registers and records. Employees who earn a monthly salary as specified under the Act are covered under its provisions.

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India-Myanmar Relations: Growing Multifaceted Bilateral Ties

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By Yogesh Dubey

Editor’s Note: India’s Prime Minister Narendra Modi made a brief official visit to Myanmar this week. This article was originally published in The Diplomatist Magazine, July 2017, and has been republished with the permission of L.B. Associates (Pvt.) Ltd., a contract publishing house.

Myanmar shares a long land border of over 1600 km (994 mi) with India as well as a maritime boundary in the Bay of Bengal. Four northeastern states: Arunachal Pradesh, Nagaland, Manipur, and Mizoram share an international boundary with Myanmar.

Both India and Myanmar share a heritage of religious, linguistic, and ethnic ties. Myanmar has a substantial population of Indian origin (estimated to be around 1.5 to 2 million). Further, Myanmar is a gateway to Southeast Asia and East Asia – regions with which India is seeking greater economic integration through its ‘Look East’ and ‘Act East’ policy. In fact, Myanmar is the only Southeast Asian country India shares a land boundary with.

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