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Confused about GST rates, many refrain from doing business




New Delhi/Noida, July 1 : After the countrywide launch of the Goods and Services Tax (GST) on Friday midnight, many businessmen in Delhi-NCR on Saturday seemed confused about the new indirect tax regime, with some even refraining from buying and selling any products.

However, there were some who found different ways of generating bills, while a number of businesses with updated software generated bills with GST levied on their products.

Some eateries were seen handing out bills displaying state GST as well as central GST applied on the sale.

Noida’s Kay Dee Electronics Manager Naresh did not sell any product on the first day of the new tax regime, saying there was no clarity on its imposition.

“We are waiting for the complete information from the GST Council about levying of the taxes. Only after receiving it, we will resume our business. There’s a lot of confusion about the rates,” Naresh told IANS.

Similar was the condition of several other shopkeepers. They also waited to have some clarity to be able to go ahead with the transactions.

“Very few customers have been visiting us, but they are also being sent back as we haven’t been able to understand the new law as of now,” said Anand Kumar from a handloom emporium.

“We will resume as soon as we get a clearer picture about it,” he said.

Kumar expressed disappointment and questioned the government’s “hasty move” of implementing the policy.

“Why so much hurry to implement this policy, which is not clear to the majority in the country?” he said.

On the other hand, there were proprietors using the cash memo and providing hand written bills after levying GST.

When asked if they had complete knowledge of the GST regime, a shopkeeper of CS Electric Company here said that the information available online was helping him make bills.

“We are reading about the GST rates online to be able to make invoices,” 45-year-old Ram Gyan Mahto said.

Raymond Manager Pawan Aggrawal told IANS: “We are not generating bills right now. Customers have been taken into trust that they would receive bills on mail once our system is updated.”

“Those not comfortable with mails have given us their phone numbers, so they can come and collect it later,” the 51-year-old said.

Aggrawal appreciated the new tax system, saying: “It will remove the variation of prices that existed. Now onwards, there will be just one tax on everything all over the country,” he said.

A Firefox bicycles outlet has promised its customers to send bills later through WhatsApp, mail and other options, as they are also waiting for the software on their systems to be updated.

Many eateries and restaurants said that they had updated the system soon after the launch of GST and were comfortably generating invoices for the customers.

“We had updated the software before 8 a.m. today (Saturday) as people usually start rushing in early in the morning,” Kamlesh Jha from Bikanerwala told IANS.

Aggarwal Bikaneri’s Palwal Kumar said: “We were aware that there is going to be a tax of 12 per cent on snacks and 5 per cent on sweets. We were prepared to follow the new system.”


Key equity indices open in red



Sensex down

Mumbai, Sep 25: The key Indian equity indices opened on a negative note on Tuesday, owing to a weak rupee and rising crude oil prices.

At 9.30 a.m., the wider Nifty50 of the National Stock Exchange traded at 10,918.85 points, lower by 48.55 points or 0.44 per cent from its previous close.

The BSE Sensex which had opened at 36,350.25 points, traded at 36,183.86 points, lower by 121.16 points or 0.33 per cent from its previous close of 36,305.02 points.

So far, it has touched an intra-day high of 36,454.03 points and a low 36,180.16 points.


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Dena Bank board okays merger with Bank of Baroda, Vijaya Bank



Merger of Bank

Mumbai, Sep 24 : The Dena Bank board on Monday approved the merger proposal with Bank of Baroda and Vijaya Bank proposed by the government last week.

The government last Monday announced the merger of three state-run banks — Dena Bank, Vijaya Bank and Bank of Baroda — that will make it the country’s third-largest bank with a combined business of Rs 14.82 lakh crore.

In a stock exchange filing, Dena Bank, the smallest of the three banks proposed to be merged, said the consolidation would enable creation of a bank with business scale comparable to global banks and capable of competing effectively in India and globally.

Dena Bank has a total business size of Rs 1.73 lakh crore and is also under the Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI) on account of its high non-performing assets (NPAs), or bad loans, which for the Indian banking system as a whole have crossed the staggering level of Rs 10 lakh crore.

Read More : Merger of BoB, Vijaya, Dena banks in 4-6 months: BoB MD

“To be more efficient in the changing environment, the banks in the public sector space need to be bigger to meet the credit needs of a growing economy, absorb shocks and have the capacity to raise resources without depending unduly on the exchequer.

“Consolidation would enable creation of a bank with business scale comparable to global banks and capable of competing effectively in India and globally,” the filing said.

“Amalgamation of our Bank with Bank of Baroda and Vijaya Bank would result in a strong amalgamated bank, equipped with financial cushion to deal with post-amalgamation requirements during the stabilisation phase.”

While making the merger proposal last week, Finance Minister Arun Jailtey said the consolidated entity’s capacity to absorb a weaker bank guided the decision “to propose this merger to the boards”.

The government said the amalgamated entity will have a net NPA ratio at 5.71 per cent, which is significantly better than the public sector banks’ (PSBs) average of 12.13 per cent, and declining further.

“The combined business of amalgamated entities would make it second-largest PSB of the country,” Dena Bank said.

This is the second such exercise in the last 18 months. In the previous mega merger, five associate banks and the Bharatiya Mahila Bank became part of the state-run State Bank of India on April 1, 2017, making the country’s largest lender among the world’s top 50 banks.


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Sensex ends 536 points lower, Nifty below 11,000-mark



Sensex down

Mumbai, Sep 24: Slump in the financial stocks along with a weak rupee and high crude oil prices dragged the S&P BSE Sensex down 536 points on Monday and the NSE Nifty50 lost nearly 170 points to close below 11,000-mark — slipping into the red for the fifth consecutive session.

On the other hand, the rupee weakened during the day to trade around 72.59 (4.15 p.m) per US dollar against the previous close of 72.20 per greenback.

With all the major sectors contributing to the sell-off, top sectoral losers were banking, auto and finance.

At 3.30 p.m, the wider NSE Nifty50 provisionally closed at 10,974.90 points, lower 168.20 points or 1.51 per cent from the previous close of 11,143.10 points.

The BSE Sensex, which had opened at 36,924.72 points, provisionally closed at 36,305.02 points, lower 536.58 points or 1.46 per cent from the Friday’s close of 36,841.60 points.

The Sensex touched an intra-day high of 36,945.50 points and a low of 36,216.95 points.


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