THE TIMES OF INDIA, BENGALURU

MONDAY, JUNE 26, 2017 TIMES NATION 7

ON RECORD 5 DAYS TO GST PRIMER 1

Ignorance of
law is the biggest
short-term
Its pre-exam jitters at The Supertax
Indias current indirect
tax system is mired in too
many taxes and rates within

Indias auto-parts hub

challenge
Hasmukh Adhia
REVENUE SECRETARY
GSTweets
Q I made bookings for
hotels for a trip in July
and paid the full amount.
Would I need to pay extra
due to GST impact now?
A No
Q If payment is received
after GST (launch) for
bills issued in service tax,
which tax is to be paid?
Service tax or GST?
each tax category across
29 states, two half states
(Delhi & Puducherry) and
ve union territories. Goods
and Services Tax (GST)
Nations biggest automobile and ancillary belt awaits July 1 with high hopes and some apprehension seeks to do away with the
Getty Images
Pankaj.Doval@timesgroup.com Cost-efficiency will increase as complications by reducing the
Gurgaon: Days before GST is im-
companies will be allowed input
credit for services like packaging
number of taxes and rates.
plemented, the automobile hub of that is not available at present, he The form in which GST is
Gurgaon-Manesar is worried pointed out. being introduced from July 1
about getting the small sub-suppli- Not all costs will be covered,
is only the rst step towards
ers and raw material providers on though. Since diesel has been kept
board. Home to the likes of Maruti out of the GST net, there will be no simplication and unication
Suzuki, Hero, and Honda Motorcy- tax credit for the cost of running
cle and Scooter India, the belt is factories on generators for several
packed with component makers, hours every day. Vivek Vikram
of whom the larger ones are ready Singh, CFO of Sona Group, said
to migrate to the new tax regime. they would lose about Rs 15 lakh GST will
We are concerned about our on sales of every Rs 100 crore.
sub-suppliers. We have been told Its not a substantial propor- Taxes to be have 4 slabs
tion, but still a loss.
GROUND ZERO
AUTO COMPONENTS
About 20% of Singhs ven-
dors are not GST compliant,
and he said the companys
subsumed
under GST 5% 18%

A If service was by some traders that they may
not be able to do invoicing for the
provided before first 10-15 days, said Jagdeep
appointed day and Singh Rangar, promoter of Stork
the invoice was also Rubber Products that supplies
automotive rubber parts. We
generated before it, then
are loading extra stocks to avoid
service tax is applicable disruptions in production.
Source: @askGST_GoI Stork is a small-scale supplier
with a turnover of around Rs 80
crore but the Rs 9,500-crore Rico
Auto is also cautious. Its chair-
man Arvind Kapur said his com-
pany is hand-holding many sub-
suppliers and raw material pro-
viders through the transition. I
am worried about suppliers from
smaller towns such as Muzaffar-
nagar and Ludhiana. Many peo-
ple in these towns are not aware
of what to do, and how to do it.
IL I
RETA NFL
WILL AT
IO
5.77% N IMPACT ON INFLATION
SL
JUNE 2016
Gurgaon-Manesar
ANNUAL TURNOVER
40,000 cr
Automobile and ancillary
units in the region employ about
three lakh workers and have an
annual turnover of more than
Rs 40,000 crore, said Vinnie Me-
hta, director-general of Automo-
tive Component Manufacturers
Association (ACMA). It is in the
interest of the bigger players to
hand-hold smaller suppliers. If
ID
EF
EMPLOYMENT
3 lakh
the chain breaks, the entire sup-
ply network will suffer.
Besides the financial and ac-
counting systems, many IT com-
pliances also need to be updated,
said Mehta, but he expects gains
for the industry after the transi-
tion. Compliance will be better.
There will be transparency in
taxes and ease of doing business.
12% 28%
working capital requirement
would increase as a result. For Excise
every Rs 50 crore of sales, my ad- Duty
ditional working capital due to
GST will be around Rs 1 crore.
Gold and silver will attract
At Sansera Engineering,
which supplies engine parts to 3% tax while luxury goods
Central
both two-wheeler and four- Service such as SUVs and sin
Sales Tax
wheeler makers, about 100 of the Tax goods such as pan masala,
700-odd sub-suppliers are not tobacco and even aereated
GST-ready. The company expects drinks face a cess
challenges during the initial
days, including disruption of
supplies. There will also be is- Surcharge Taxes on
VAT lottery
sues on the compliance side & Cess
when it comes to some of the CENTRAL TAX
smaller suppliers. Many of them
STATE TAX
use spreadsheets, while some
have been raising manual in-
voices. These will not work now, Luxury
Tax Entertainment
said S Ramakrishnan, CFO of Entry Tax
the company. Tax
TOMORROW: Ground Zero, Surat

TOI archives/RK Laxman

UR
TH
ER
? 50% prices untouched, 30% lowered, 20% increased
Dharmakirti Joshi, sured that the effective tax on all rent rates. Most mass-consump- These estimates are GST Council has inserted an anti- is expected to rise after July-Au-
chief economist & businesses put together would be tion goods have been taxed at a profiteering clause in the Act to gust. But that may have more to do
Dipti Deshpande, derived by mapping GST

165+
lower under GST than now. But the lower rate, and several essential punish companies that fail to pass with the wearing off of the base
senior economist, CRISIL impact on inflation will depend on food commodities have been ex- rates in basket of products on the tax benefit to consumers, the effect. We dont expect GST to have

O
ne of the fears about the
Goods and Services Tax
countries currently (GST), globally, is that
have GST. When consumer prices can
stay higher for longer because tax
India started its increases are passed on faster than
GST journey in tax cuts. Thus, Australia and Ma-
laysia had to take steps to curb
1986-87, only 34 inflationary pressures after intro-
countries had it ducing GST.
GST Council in India has as-
the extent to which businesses pass
on the tax changes to consumers.
When we mapped GST rates
EXPERT VIEW
with components in the consumer
price index (CPI) basketwhich
closely represents the household
consumption patternwe found
that GST rates are broadly lower
than, or even on a par with, cur-
empted.
However, for some items such
as services to higher education
institutes, utility bills, personal
care products, sugar, prepared
meals, snacks and sweets, pan, to-
bacco and intoxicants, where cur-
rent inflation is already high, the
tax incidence, too, will be higher
under GST. These items have
around 20% weightage in the CPI
basket and could see a one-time/
and services in consumer
price index (CPI)
transitory inflation hump.
For a little over half of the CPI
basket, the tax incidence remains
unchanged. The remaining third of
items see lower tax incidence, al-
lowing for price cuts at the discre-
tion of the manufacturer, who may
choose not to do so. Although the
rules to identify profiteering cases
have not been finalised yet.
Globally, anti-profiteering
measures to combat temporary
inflation during the tax transition
phase work best when implement-
ed well before implementing GST.
Australia, for instance, applied an
anti-profiteering rule a year in
advance.
Consumer price index-based
inflation, currently low at 2.2%,
a significant impact on inflation
and maintain our CPI inflation
forecast at 4% for this fiscal.
While short-term hiccups can-
not be ruled out, the efficiency
gains over the long term will en-
sure that the economy is a
net gainer in terms of
growth, inflation, ex-
2.18 % ports and fiscal health.
MAY 2017
Data source: CMIE

Agni-V can double as Delhi Metros US firms object to Indias stent rules
driverless
sat launcher if needed Continued from page 1 of doing business.
Modis visit a significant step: Israel New Delhi is pushing

O
n regulation of stent back vigorously, pointing out

Continued from page 1

trains to start costs by India, US com-
panies such as Boston
Jerusalem: Prime Minister Benjamin Netanyahu on Sunday
hailed his Indian counterpart Narendra Modis upcoming visit to
in background conversations
the predatory nature of west-
EYE IN THE SKY Israel, the first by an Indian premier, as a very
from October Scientific, Abbott, and J&J ern medical business, high-

I
ndia also has the capability
to launch anti-satellite
weapon (ASAT), which is
meant to destroy enemy satel-
lites. Only the US, Russia, and
China are known to have de-
veloped these weapons. How-
ever, Isro has no intention of
engaging in such an anti-sat-
ellite weapon project. Tapan
Misra, director of Space Ap-
plications Centre, said, Isro
follows international norms,
which prohibit member
space agencies from milita-
rising outer space.
Ravi Gupta, defence tech-
nology expert and former di-
rector (public interface),
DRDO, said, Technological
capabilities indigenously
evolved in the process of de-
velopment of Agni-V ballistic
missile can be readily em-
Cartosat-2C earth is latest
addition to 12 satellites being
used for military purpose
Most of these
sats are placed in
near-earth orbit &
some in geo orbit
PAN camera in
Cartosat takes black
and white pictures
of earth. Its PAN
camera covers swathe of 9.6
km and its spatial resolution
is 0.6 metre
Cartosat images used
by Army to target terror
launchpads across LoC
in September 2016
ployed for satellite launch on
demand if needed. The 5,000-
km-plus missile has capabili-
ties of reaching well beyond
altitudes characteristic of rel-
evant satellites with pay-
Gsat-7 is a dedicated
military satellite used by
Navy to shore up real-time
communication
among its warships,
submarines, aircraft
and land systems
India also has
capability to build
anti-satellite
weapon. However,
Isro, being a signatory of
Outer Space Treaty, wont
engage in such a project
Ex-DRDO director says
Agni-V can be used for
launching sat in near-earth
orbit during emergency
loads. Similarly, these tech-
nologies, combined with tech-
nolgies developed for ballistic
missile defence system can be
used for developing an anti-
satellite weapon system.
TIMES NEWS NETWORK
New Delhi: In over three
months, Delhiites will be able
to travel in Delhi Metros first
driverless trains on the Ma-
genta Line from Janakpuri
West to Noida Botanical Gar-
den. The Magenta Line, which
missed its June deadline and is
going to miss its September de-
adline too, is going to be
thrown partially open to pub-
lic in October, the Delhi Metro
Rail Corporation (DMRC) said.
The trial runs on two sec-
tions of the corridor of phase
III, between Kalkaji and Bo-
tancial Garden (13 km) and Ja-
nakpuri West to Terminal 1
IGI Airport Metro station (10
km) are in progress, a DMRC
spokesperson said.
have thrown a hissy fit, argu-
ing that such government in-
tervention would inhibit
their investment in cutting-
edge technologies and warn-
ing Indias $5 billion medi-
cal-technology market
would lose out on latest medi-
cal advances.
They are backed by many
US lawmakers for whom the
pharma lobby is one of the
biggest sources of funding.
Several lawmakers recently
wrote a stern letter warning
that the sudden and unprece-
dented nature of the decision
(on stents) threatens citizens
access to the newest and most
innovative medical technolo-
gies and raises strong con-
cerns about the business envi-
ronment in India.
significant step in strengthening bilateral
lighted by an ongoing case in
relations that are on a constant upswing. PM
the US where pharma bro
Modi is scheduled to land in Israel on July 4 for a
Martin Shrkeli a drug indus-
three-day visit. Next week, the Indian PM, my
try executive who famously
friend, Narendra Modi will arrive in Israel, This
hiked the price of HIV drugs
is a historic visit to Israel. In the 70 years of the
by 5,000% is on trial for secu-
countrys existence, no Indian Prime Minister has ever visited
rities and wire fraud.
and this is further expression of the state of Israels military,
Modi also has his task cut
economic and diplomatic strength, Netanyahu said.
out for attracting US manu-
This is a very significant step in strengthening relations
facturing jobs to India at a
between the two countries, the israeli Prime Minister added.
time when the Trump ad-
ministrations emphasis is to
In a follow-up letter, law- far from the reformer he had keep jobs in the US and grow
makers also complained promised to be. them as part of its America
about continued barriers, Many sectors of the In- First initiative. The initia-
high tariffs, inadequate pro- dian economy remain high- tive clashes with Modis own
tection of intellectual prop- ly and unjustifiably protect- Make in India programme.
erty rights, and inconsistent ed, and India continues to be Such conflicting econom-
and non-transparent licens- a difficult place for Ameri- ic agendas belie the rather
ing and regulatory practices can companies to do busi- more agreeable mood on the
-- charges underscored by a ness, they wrote, noting geo-political front where
story in the Economist jour- that India was ranked 130th both sides pretty much ap-
nal that said PM Modi was out of 190 countries for ease pear to be on the same page.

On his 50th birthday, Jain monk is getting

Both sections will be offe-

How Isro is safeguarding red for necessary safety in-

spection to CMRS (Commis-
sioner of Metro Railway Safe-

Indias space assets in orbit ty) after successful signalling

Surendra.Singh
@timesgroup.com
New Delhi: With Isro suc-
cessfully launching 31 satel-
lites in one go from Srihari-
kota last Friday, the number
of spacecraft missions
launched by the agency has
till now crossed 90. However,
not all these spacecrafts are
operational now but are still
in space. Isros main priori-
ty is not only to keep satel-
lites functional in orbit, but
also protecting them from
space debris.
Space debris is the collec-
tion of defunct man-made
objects in space old satel-
lites, spent rocket stages and
fragments from disintegra-
tion and collisions. These
space debris can be danger-
ous as they travel at a speed
of up to 30,000 km an hour,
which turns even tiny pieces
Isro to launch 3rd
sat in one month
I sro will launch its
communication satellite
GSAT-17 from the European
spaceport of Kourou in
French Guiana on June 29.
This will mark its third launch
in a single month. On June 5,
the GSLV Mark III was
launched followed by the
PSLV C-38 flight on June 23,
which deployed 31satellites
in one go. TNN
of junk into deadly shrapnel
that can damage satellites,
space shuttles and even
space stations.
However, Isro relies on a
slew of methods and sys-
tems to safeguard its space
assets. The agency is a mem-
ber of Inter-Agency Space
Debris Coordination Com-
mittee (IADC), which makes
global efforts to reduce man-
made and natural space de-
bris. IADCs key objective is
to exchange information on
space debris among member
space agencies.
Tapan Misra, director of
Ahmedabad-based Space
Applications Centre (SAC),
said, IADC alerts us when
any of our satellite is in dan-
ger due to debris. We then
manoeuvre our satellite to
avoid collision.
Isro also banks on its so-
phisticated Multi-Object
Tracking Radar to track
space debris. Misra said,
The radar, developed at our
centre, can track 10 objects si-
multaneously of size 30cm by
30cm at a distance of 800km.
In case of objects of 50cm by
50cm size, the radar can track
at a range of 1,000km.
trials. The sections will be
opened for public after all the
clearances, the spokesper-
son said. This line is planned
to be opened in stages between
October 2017 and March 2018,
the spokesperson said.
By March 2018, DMRC
plans to complete the phase-
III expansion of its network
with the commissioning of
not only the Magenta Line but
the Pink Line (Majlis Park
Shiv Vihar) too. Last week,
DMRC carried out the first tri-
al run on the Pink Line betwe-
en the Shakurpur and Maya-
puri Metro stations.
The Magenta and Pink Li-
nes will be the first ones to ha-
ve driverless trains. These tra-
ins have high levels of auto-
mation and run on the Unat-
tended Train Operation
(UTO) mode. While initially
train operators will be present
in the trains, gradually, DMRC
will shift to the UTO mode.
followers to spend a night at cemetery
Hemali Chhapia &
Bhavika Jain TNN
Mumbai: Fab at fifty parties
are taking on a new shade.
And Jain monks are leading
the way for the big five-O. One
of them is observing his 50th
birthday in a Hindu cemetery
while another is celebrating
the golden jubilee of his taki-
ng diksha (renunciation) with
a three-day bash to promote
Jainism and nationalism.
Thousands of followers of
these spiritual leaders are
booking themselves into all
corners of India. About
100km north of Jaipur, in
Udaipurwati near Shikhar,
close to 2,500 people have be-
en given tickets to enter a
Hindu cemetery for the 50th
birthday of Tarun Sagarji
Maharaj Saheb.
On Monday, the Digam-
bar monk will walk up to the
parikramas of the cemetery.
Digambar Tarun Sagarji Maharaj
smashaan and lecture his
disciples gathered there on
the meaning of life.
People spend their birth-
days in hotels, at picnic
spots, many times in a temp-
le. But I feel in the pulsating
life that they are living, it is
difficult to comprehend its
true meaning amid all the no-
ise, said Tarunsagarji. Hen-
ce, 50 invitees will be goaded
to spend at least one birthday
of their lifetime in the silen-
ce of a cemetery. His student
Bharamachari Satish said
people would also make 50
ji Maharaj, 72, has also been
Babulal Jain-Ujjwal, a ve-
ritable fount of information
on Jainism, said that most
monks birthdays dont have
so much fanfare around
them. Their followers usu-
ally decide to host a lecture
by the monk, which is follo-
wed by lunch.
In another event, devote-
es of the Digambar Jain sa-
int Vidya Sagarji Maharaj
have organized a grand
three-day celebration to
mark the completion of 50 ye-
ars since he took the lifetime
promise of monkhood.
Programmes will be held
at Dongargadh in Chhattis-
garh from June 28-30and mo-
re than 1 lakh people are ex-
pected to attend the event, in-
cluding the chief ministers
of Chhattisgarh and MP.
Besides spreading the va-
lues of Jainism, Vidyasagar-
making a dedicated effort to
propagate nationalism and
nation-building. He has emp-
hasized on calling India as
Bharat and also addressed is-
sues like achieving 100% vo-
ting in elections.
This is also the year
when the Champaran Saty-
agraha by Mahatma Gandhi
covering Swadeshi and Jan
Jagaran completes its 100 ye-
ars and so we will be starting
activities of nation building
again, said Brahmachari
Sanjay Bhaiyaji, one of the
monks disciples.
During the year-long ce-
lebrations, many activities
related to social welfare, cul-
tural and religious program-
mes will be organized in va-
rious towns and cities.