Management Accountant July 2020

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in July 2020 - The Management Accountant 1

THE INSTITUTE OF www.icmai.in
COST ACCOUNTANTS OF INDIA

Statutory Body under an Act of Parliament
AWARDS 2019
CALL FOR NOMINATIONS
Last date extended for submission of Nomina on: 5 August 2020
th
Screening Commi ee 17 Na onal Awards for Excellence in
Cost Management 2019
Chairman
Mr. Sunil Bha a
Director (Finance) Eligibility to Par cipate:
Engineers India Ltd All companies (Listed or Unlisted) Including LLP
Members Categories:
Mr. Inderpal Singh Sandhu
Director (Finance), HHEC Ltd 1. Manufacturing Sector 2. Service Sector
Mr. Sham Gula A1) Private Sector - Mega B1) Banking, Financial Services and
GM (Finance), HUDCO Ltd A2) Private Sector - Large Insurance CMA Balwinder Singh
A3) Private Sector - Medium B2) Transporta on and Logis cs President
Mr. Ratnesh A4) Private Sector - Small B3) Power Distribu on and ICAI
GM (Finance), NTPC Ltd A4) Private Sector - Micro Transmission
A5) Public Sector - Mega B4) Retail & E-commerce
Mr. L.M. Kaushal
Joint Secretary & Advisor A6) Public Sector - Large B5) Hospitality & Tourism
(Cost), Ministry of Finance A7) Public Sector - Medium B6) Healthcare
A8) Public Sector - Small B7) Infrastructure and Construc on
Mr. Jayabrata Bose B8) Informa on Technology &
Advisor, Dep . of Expenditure, Telecommunica on
Ministry of Finance B9) Consul ng
B10) Start-up
Mr. A. K. Dhingra B11) Others
Former Joint Advisor, TRAI
Evalua ng Agency:- Care Ra ngs Ltd.
Mr. Subhash Agarwal CMA Biswarup Basu
Prac cing Cost Accountant Submission of Nomina on: By sending email at ecma@icmai.in
For details visit website of the Ins tute: Vice President
Mr. Upendra Tiwari https://icmai.in/icmai/news/National-Awards.php ICAI
Prac cing Cost Accountant
Ms. Priyanka Saxena 6th CMA Awards 2019

Prac cing Cost Accountant
Permanent Invitees Eligibility to Par cipate:
CMA Balwinder Singh CMAs in employment and not holding CoP for the last
President three years
CMA Biswarup Basu
Categories:
Vice President
CMA CFO CMA Achiever CMA Young Achiever
CMA Vijender Sharma
Chairman (i) Manufacturing (iv) Manufacturing (vii) Manufacturing CMA Vijender Sharma
Professional Development & Sector - Public Sector - Public Sector - Public Chairman
CPD Commi ee (ii) Manufacturing (v) Manufacturing (viii) Manufacturing Professional Development
Sector - Private Sector - Private Sector - Private &
Secretary (iii) Service Sector (vi) Service Sector (ix) Service Sector
CMA Nisha Dewan CPD Commi ee
Secretary Submission of Nomina on: Online forms or by email at ICAI
Professional Development & cmaawards@icmai.in
CPD Commi ee
For details visit website of the Ins tute:
https://icmai.in/icmai/news/CMA-Award.php
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CMA Bhawan
For any clarifica ons contact Professional Development Directorate CMA Bhawan
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2 The Management Accountant - July 2020 www.icmai.in

www.icmai.in July 2020 - The Management Accountant 3
EDITORIAL
T
Greetings!!! the necessary changes and will further ease the process of
he Goods and Services Tax (GST) regime tax filing by removing the unnecessary flaws, improve the
completes three years since it was first country’s GDP growth, ease of doing business, expansion
introduced on July 1, 2017. The biggest of trade, and industry in the country making India a
tax reform for indirect taxes in India has significant economic power. It is important to lay down a
created a single market emulating international best clear, taxpayer-centric strategy to ensure predictability
practices. The introduction of GST is a game-changer and consistency in the application of the GST laws
for the Indian economy as it has replaced multi- and procedure. Efforts should be undertaken to widen
Goods & Services Tax (GST): Recent Changes and Emerging Issues
layered, complex indirect tax structure with a simple, the tax-base, rationalize rates, and simplify the law.
transparent and technology-driven tax regime. It has Initiatives such as E-invoicing should be broadened to
integrated India into a single, common market by cover pre-filled return/refund claims as well as risk-
breaking barriers to inter-State trade and commerce. based E-Audit. The IT platform should be made more
GST aims to eliminate the cascading effect of taxes and robust for richer user experience. Input Tax Credit,
reduce transaction costs. the very soul of GST, should be freed of needless
restrictions. The data-analytics driven compliance
The journey started with the 3 Return forms GSTR1,
strategy should target the fraudsters, rather than impose
2 & 3. GSTR1 is continued to date but the other
fetters on the honest taxpayers. A more judicious
two were suspended. GSTR-2A has automatically
advance ruling mechanism and commencement of
generated for a taxpayer from his seller’s GSTR-1 as a
the GBST Appellate Tribunal would greatly benefit
reconciliation based response. Taxpayers were required
taxpayers.
to reconcile Purchase Registers with GSTR-2A.
GSTR-3 was replaced by a composite Return GSTR- The Cost Accountants have an emerging and dynamic
3B. In the year 2019, GST has gone through various role to play in the regime of GST. The CMAs may
reforms; as new GST returns announced, an extension provide the required guidance and advisory services to
of filing of Annual Return of the first year due to lack of eradicate bottlenecks in finance, production, taxation,
preparedness of the portal, e-invoicing, and so on. administration, supply chain management, etc. They are
competent enough to maintain systematic records of the
The GST Council has approved the proposal to
credit of input/output service and its proper utilization,
introduce electronic-invoice on a voluntary basis in
assist the businesses entities in providing assistance
its 37th meeting dated 20 September 2019. E-Invoice
towards GST registration, claiming tax credits, ensuring
messaging is a key factor in ensuring the seamless
all necessary legal compliances, procedural formalities
transmission of invoice information in the standard
and other administrative follow-ups; make representations
schema notified, in a secured way.
before the Appellate Tribunals for Dispute Resolution of
In the present global health crisis caused due to GST; perform audit functions like a review of record &
pandemic COVID-19 disease, the Indian Government is procedural aspects, verification of returns, reconciliation
providing statutory relief in tax compliances. The GoI between submissions to various authorities, statutory
has adopted a collective approach, including on taxation compliance & Audit, Internal Audit and System
front by easing the procedural framework. Extension of improvement.
statutory deadlines relating to GST annual returns/audit
This issue presents a good number of articles on the
certification to 30 September 2020 and postponement
cover story theme ‘Goods & Services Tax (GST): Recent
of new GST returns system and e-invoicing to 1st
Changes and Emerging Issues’ by distinguished experts
October 2020 is a welcome move and has been well
and authors. We look forward to constructive feedback
acknowledged, however, next is to address the situation
from our readers on the articles and overall development
of cash crunch; though the penal provisions on delayed
of the journal. Please send your mails at editor@icmai.
payment of taxes and filing of GST returns have been
in. We thank all the contributors to this important issue
liberalized.
and hope our readers enjoy the articles.
In the forthcoming days, revisiting the law can make

PAPERS INVITED
Cover Stories on the topics given below are invited for ‘The Management Accountant’
for the four forthcoming months
• An Overview of the Indian Economy: Policy, Reforms and Governance
• Ease of Doing Business (EoDB) score: Crucial for India to scale ambitious peak of $5 Trillion
• Transforming agricultural and doubling farmer’s income
August 2020
Subtopics
• Leveraging Technology to make India a global economic powerhouse

Driving India towards
Theme
• Strengthening industrial competitiveness: Special emphasis to manufacturing sector

5 Trillion Dollar • Energy with focus on renewable energy
Economy • Infra Development: The way forward
• Health for all
• Skilling and Education: Critical for optimizing on India’s Demographic Dividend
• Mission 5 Trillion: Driving SDG through CMAs
• Life Insurance in India: Promoting innovation and creativity for growth and development
• Recent developments in General Insurance Sector
• Insurance Risk Management: Role of Actuaries involved
September 2020
• Differential Customer Service: A key determinant of growth

Subtopics
Insurance Sector in • Disruptive innovation: A path to progress

Theme
• Insurtech: Re-shaping the Insurance Industry

India: Today’s reality
• Impact of COVID-19 in insurance sector
and the path ahead • Cyber crime Insurance: A growing market
• Securing Rural India
• Agri-Insurance in India vis-a-vis Global practices
• IRDAI Rules and Regulations: Challenges and impact on Insurance business
• Risk management practices in insurance business - Role of CMAs
• Indian Economy post Covid-19: A positive outlook

• Constraints towards induction of indigenous system
• Atmanirbhar Bharat: 5 Pillars To make India Self-Reliant
October 2020
• Intent, Inclusion, Investment, Infrastructure, Innovation: Need of the hour to bring India back on track
Subtopics
Self-Reliant India: for fast-paced growth

Theme
• MSMEs: key to self-reliant India

Pathway to a Robust
• Overhauling education structure to be self-reliant
Economy • Vocal for Local with a special emphasis to Indian pharmaceutical sector
• Challenges and prospects of self-reliance in Indian Defence sector
• Strengthening domestic industry by Streamlining the governance system
• Made in India, made for the world
• Innovation for self-sustainability: Role of CMAs
• Agricultural Pricing Policy in India: Opportunities and Challenges

• Global Agro Pricing Policy v/s Indian Agro Pricing Policy
November 2020
• Minimum Support Prices(MSP): Key to protect farmers

Subtopics
• Direct Benefit Transfer for Agri Input Subsidy

Theme
Agricultural Costing • Transformation of Agriculture to Achieve the Sustainable Development Goals (SDGs)
• Direct Benefit Transfer (DBT) for Agri Input Subsidy
& Pricing • Doubling Farmer’s Income by 2022: Ease of doing Agri Business
• Government policies and Governance Reforms in Agricultural Marketing
• Advancement in digital technology: Farming gets smart and frugal
• Nanotechnology in Agriculture
• Agricultural Costing - Role of CMAs
The Above Subtopics are only suggestive and hence the articles may not be limited to them only.
Articles on the above topics are invited from readers and authors along with scanned copies of their recent passport size photograph
and scanned copy of declaration stating that the articles are their own original and have not been considered for anywhere else.
Please send your articles by e-mail to editor@icmai.in latest by the 1st week of the previous month.
DIRECTORATE OF JOURNAL & PUBLICATIONS

CMA Bhawan, 4th Floor, 84 Harish Mukherjee Road, Kolkata - 700025, India
Board: +91 33 2454 0086 / 87 / 0184 Tel-Fax: +91 33 2454 0063
www.icmai.in

PRESIDENT’S
COMMUNIQUÉ
CMA Balwinder Singh
President
The Institute of Cost Accountants of India
chaired by Shri Kumar Vivek, Vice President,

Goods and Services Tax Network (GSTN). On the
concluding day on 7th July 2020, Shri Ajay Saxena,
IRS, Principal Commissioner (GST) Bengaluru was
the Guest of Honour for fourth panel discussion
session along with Shri R. Manga Babu, IRS, Chief
Commissioner (GST, Central Excise & Customs)
Odisha Zone. The Valedictory Session was enlightened
by Shri Ashwini Vaishnaw, Hon’ble Member of
Parliament (Rajya Sabha) Odisha as Chief Guest and
Ms. Neetu Kumari Prasad, IAS, Commissioner,
Commercial taxes, Telengana as Guest of Honour.
I would like to express my gratitude to all eminent
“Challenges are what make life interesting and speakers who have shared their knowledge in panel
overcoming them is what makes life meaningful.” discussions organized on different topics of GST
throughout the week.
– Joshua J. Marine I congratulate CMA Niranjan Mishra, Chairman,
Indirect Taxation Committee, CMA Rakesh Bhalla,
Chairman, Direct Taxation Committee and CMA
My Dear Professional Colleagues, H Padmanabhan, Chairman Regional Council &
T
Chapters Coordination Committee for taking this
o commemorate the GST Implementation Day i.e. excellent initiative.
1st July 2017, the Institute’s Tax Research Department
and Regional Councils & Chapters Coordination Launching of “Students’ Connect” e-services
Committee observed GST Day Celebration Week portal
by organizing various WEBINT (Online Interactive Session)
in the theme “Growing Stronger with Times - Sum and The Directorate of Studies has taken a unique
Substance of Goods & Services Tax” from 1st to 7th July 2020 initiative of bringing all the e-services available to
Pan-India. The inaugural day of the celebration were held in a the CMA Students under one cover in the new portal
grand way on 1st July 2020 through WEBINT. The celebrations “Students’ Connect”. Students will find this portal
continued for a week with the participation from Headquarters, very effective to search and connect various student-
Regional Councils, Chapters, ROCCs, CMA Support Centers and centric e-services already available to them. Students
Extension Centers, all coming together for this unique week long can now view, search, and explore all students’ related
celebrations through sessions handled by eminent dignitaries and e-services in one place, be it an administrative or
resource persons. academic service. Students will enjoy navigating all
sorts of e-services from anywhere to get the maximum
The Inaugural Session on 1st July 2020 was graced by Smt. benefit out of it. I congratulate CMA Biswarup Basu,
Aparajita Sarangi, Hon’ble MP (Lok Sabha) as Chief Guest Vice President of the Institute and Chairman, Training
and Shri M. Ajit Kumar, IRS, Chairman CBIC as the Guest & Educational Facilities and Placement Committee
of Honour. The first panel discussion session on “GST after for taking this initiative to support the students.
3 years” was chaired by Dr. B.V. Murli Krishna, Additional
Commissioner of Commercial Taxes, Bengaluru. The second Advisory on Auditing and Assurance
panel discussion session on “Annual Return & GST Audit u/s assignments during the Period of Lockdown and
35(5) for 2018-19 – Critical Issues” was chaired by CMA Anil Restrictions on Travelling
Kumar Gupta, Principal Additional Director General, NACIN.
The third panel discussion session on “Insight into GST” was I congratulate CMA (Dr.) Ashish P. Thatte,
Chairman, Cost Auditing and Assurance Standards

PRESIDENT’S COMMUNIQUE
Board of the Institute (CAASB) for bringing out an Advisory the theme “Yoga Routine for Sedentary Life Style”.
on Auditing and Assurance assignments during the Period I am thankful to CMA Neeraj D. Joshi, Chairman Cost
of Lockdown and Restrictions on Travelling imposed by Accounting Standards Board & WIRC and CMA (Dr.) Ashish
the Government to curb the spread of COVID-19 disease. P. Thatte, Chairman, International Affairs Committee & Cost
The Advisory addresses various issues being faced by the Auditing and Assurance Standards Board in supporting the
members in practice such as usage of e-Signatures and excellent execution of the event. I am thankful to CMA H
UDIN, Remote / Online / E Auditing and relevance of Cost Padmanabhan, Chairman Regional Council & Chapters
Auditing Standards. The advisory is available at https:// Coordination Committee, CAT Committee and AAT Board
icmai.in/icmai/news/Advisory-CAASB.php for supporting the Institute’s initiative and being the excellent
host of the event.
Advisory on Disclosures in the Audit Report in light of
the Lockdown due to COVID19 Pandemic E-Conference by Indian Chambers of Commerce
I appreciate CMA (Dr.) Dhananjay V. Joshi, Chairman, I am pleased to inform that the Indian Chambers of
Technical Cell of the Institute for considering the challenge Commerce (ICC) has organized an E-Conference on
faced by the Professionals engaged in Audit & Assurance “Quantitative Easing & Credit Risk powered by TransUnion
Function, and bringing out with another Advisory on Cibil on 2nd July, 2020. The Institute was the partner of the
Disclosures in the Audit Report in light of the Lockdown E-Conference. I was invited to deliver welcome address at
due to COVID19 Pandemic. The Advisory gives Model the E-Conference and technical session was taken by the
Disclosures that can be used by the Audit & Assurance eminent resource persons like Mr. Rajesh Kumar, MD and
Professionals considering the limitations in Audit Processes CEO, TransUnion CIBIL, Mr. Arijit Basu, MD CCG & IT,
due to Lockdown on account of COVID19 Pandemic. The State Bank of India, Mr. S.S. Mallikarjuna Rao, MD &
Model Disclosures suggested as part of this Advisory are CEO, Punjab National Bank and Mr. Atanu Sen, Chairman,
generic in nature and can be used for the purpose of any ICC National Expert Committee on BFSI, Ex-Deputy MD,
Audit & Assurance assignment including Cost Audit under State Bank of India & Ex MD, SBI Life Insurance Co Ltd. I
Section 148 of The Companies Act, 2013. I urge upon the am sure that the insights provided during the E-conference
members to make full use of the advisory and contact the would go a long way in understanding importance of
Technical Department for any clarification. The advisory Quantitative Easing & Credit Risk. I am thankful to CMA
is available at https://icmai.in/upload/Technical_Cell/TC_ Chittaranjan Chattopadhyay, Chairman Banking & Insurance
Advisory_AR_26062020.pdf Committee for excellent co-ordination of the event.
VC Meeting with Secretary MCA E-Seminars by the EIRC of the Institute

I am pleased to inform the members that I had an I am pleased to inform that the EIRC of the Institute had
opportunity to have a Video Conference meeting with Shri organized a Seminar on “COVID-19 Potential Impact on
Rajesh Verma, Secretary, Ministry of Corporate Affairs Conducting Cost Audit” on 26th June 2020 through Google
on 11th July 2020 to discuss various matters related to the Meet by the Initiative of Members in Industry Committee
profession. The excellent pace with which the activities of of EIRC. I was invited to inaugurate the Seminar as its
Institute for the members & students are being undertaken Chief Guest & CMA Biswarup Basu, Vice-President of the
even in the present pandemic situation was presented. Institute graced the occasion as the Guest of Honour. CMA
Various relaxations obtained and further required for the Pallab Bhattacharyya Chairman-EIRC, CMA Arundhati
benefit of students and members were discussed. Basu - Chairperson, Members in Industry Committee
& CMA Ashis Banerjee RCM-EIRC, were also present.
International Yoga Day 2020 CMA N Radhakrishnan Practicing Cost Accountants was
Acknowledging the importance of Yoga in enhancing the resource person. There was an overwhelming response
body, mind & soul balance, the United Nations General and also all the participants had highly appreciated the
Assembly in the year 2014 declared 21st June as International programme.
Yoga Day. Since then the day is celebrated across the On 4th July 2020, I inaugurated the WEBINT organized by
globe. The Indian Government also celebrates this day by the EIRC to support the initiative of the Institute to observe
arranging various programs relating to and propagating the GST DAY Celebration Week during 1st to 7th July 2020. The
Art & Science of Yoga. theme for the WEBINT was “Role of Cost Accountants -
I am proud to share that various Regions & Chapters of E- Invoicing & E- Audit under GST” and CMA B.M Gupta
our Institute have been celebrating the International Yoga was the resource person. CMA Biswarup Basu, Vice-
Day since the last 5 years. Currently the entire world is President and CMA Niranjan Mishra, Chairman, Indirect
facing the challenge posed by COVID-19 pandemic and in Taxation Committee was the Guest of Honour. I express my
such a situation, having a healthy body & mind is critical. gratitude to CMA Pallab Bhattacharyya, Chairman, EIRC
Yoga is definitely the way to achieve a healthy body & for supporting the initiative of the Institute as always.
mind. Under the COVID-19 situation, the Institute arranged
for an E-Yoga Session by Yoga Teacher Mrs. Saee Bapat to Interview on Ten News Live
celebrate the 6th International Yoga Day on 21st June 2020 on I had the pleasure to be the Key Panelist at Ten News Live

Webinar on “Financial Management and Cost Optimization Resolution Professionals, Auditors, Valuers, etc.
in Covid-19 Era on 1st July 2020. The programme was I request all members and students to participate any time
live streamed from ten News Digital Studio on Ten News during the day or night from your mobile phone or desktop/
Network’s social media platforms. A live question answer laptop. It takes 5-10 minutes to register and attempt the
session was also organized. It was a great opportunity to Quiz. The Quiz is open from 1st July, 2020 to 31st July, 2020.
discuss and present views on how cost optimization can take For further details please visit: https://icmai.in/icmai/news/
place in the present scenario. QuizonIBBI.php and https://quiz.mygov.in/quiz/quiz-on-
insolvency-and-bankruptcy-code/
National Webinar of Indian Accounting Association
You are all therefore encouraged to utilize this opportunity
A webinar on “Post Lockdown Economy – Challenges to get to know this new world of professional opportunities
before Business & Accountants” was organized by Indian knocking at your doors.
Accounting Association, Kolkata Branch in association
with the Institute on 4th July, 2020. I had the pleasure to be Suggestions on the Exposure Draft on Credit Insurance
the Chief Guest of event. It was great opportunity to meet
The Institute has submitted its suggestions to the Insurance
& discuss with professionals through online platform on
Regulatory and Development Authority of India (IRDAI)
the various challenges which the business & professionals
in respect of exposure draft of the working group on the
may face in the present situation and how to address those
matter of Credit Insurance which was circulated by IRDAI
challenges.
for public comments. I am thankful to CMA Chittaranjan
Chattopadhyay, Chairman Banking & Insurance Committee
Nominations for 17th National Awards for Excellence in
and other members for their efforts in timely finalisation of
Cost Management 2019
suggestions.
We are eagerly looking forward to companies/
organisations for their active participation in the 17th Suggestions on “GST Audit Manual 2019”
National Awards for Excellence in Cost Management 2019
I am pleased to inform that the Tax Research Department
to recognize the qualitative cost management practices
has prepared suggestions on “GST Audit Manual 2019”
adopted by the industry and encourage the corporate sector
which has been submitted by the Institute to the Central
to get due national and global recognition for the success of
Board of Indirect Taxes and Customs (CBIC) for its
Cost Management initiatives. For details visit the website of
consideration. Suggestions are available at: https://icmai.in/
the Institute https://icmai.in/icmai/news/National-Awards.
upload/Taxation/Suggestions-on-GST-Audit-Manual-2019.
php.
pdf. I am thankful to CMA Niranjan Mishra, Chairman
Indirect Taxation Committee and TRD team of the Institute
Nominations for 6th CMA Awards 2019:
for timely finalisation of suggestions.
CMA CFO Awards, CMA Achiever Awards and CMA
Young Achiever Awards Certificate Course on Concurrent Audit of Banks,
Credit Management of Banks and Treasury &
We shall be glad to receive more and more nominations International Banking
from the CMAs in employment to recognize the significant
The Banking & Insurance Committee has announced the
contributions of CMAs in improving corporate and also
launching of three certificate courses on ‘Concurrent Audit
recognise the outstanding contribution of CMAs for the
of Banks’, ‘Certificate Course on Credit Management of
profession, Institute and society. Nominations are invited
Banks’ and ‘Certificate Course on Treasury and International
for CMA CFO Awards, CMA Achiever Awards and CMA
Banking’. The courses have been launched by CMA Suresh
Young Achiever Awards. For details visit the website of the
Khatanhar, Deputy Managing Director, IDBI Bank in a
Institute https://icmai.in/icmai/news/CMA-Award.php.
grant e-event organized by the Institute.
National Online Quiz on Insolvency and Bankruptcy I congratulate CMA Chittaranjan Chattopadhyay,
Code, 2016 – IBBI Chairman Banking & Insurance Committee for very
meticulously finalizing the syllabus and ensuring the
I wish to inform the members and students of the Institute
implementation in the fastest possible manner.
that The Insolvency and Bankruptcy Board of India (IBBI)
has launched “National Online Quiz on Insolvency and I request the members to take the advantage of these
Bankruptcy Code, 2016” in collaboration with MyGov. courses which will be supporting their practice in the domain,
In (Government of India’s citizen engagement portal), to ensure mandatory requirement of course on ‘Concurrent
promote awareness and understanding of this landmark Audit by Banks’ in case of concurrent audit of certain banks
legislation, the IBC-2016 (‘Code’) among various and also will be knowledge enhancement for members not
stakeholders across the country. in practice.
This Quiz is aimed at introducing qualified & aspiring
Course on “Data Analytics for Finance Professionals”
corporate law & finance professionals to the various market-
oriented mechanism provided for in the Code, and also to I am pleased to share that the Board of Advanced Studies
the vast array of professional opportunities as Liquidators, has started two consecutive batches of a unique Online

Course on “Data Analytics for Finance Professionals” on Development and CPD Committee in association with
11th July 2020 with 180+ participants across India and abroad Members in Industry Committee organised WEBINT on
with participation of more than 80 corporates. I convey my “Post Covid 19 Impact on Industries-Challenges for CFOs”.
heartfelt thanks to the Chairman of the Board of Advanced During the last month, about 90 webinars on the topics
Studies CMA Debasish Mitra and his team members for this of professional relevance and importance were organised by
pioneering move among the professional bodies in India. the different committees of the Institute, Regional Councils
Due to overwhelming response, we have started further and Chapters. We are sure our members are immensely
admissions of candidates for the third batch which will benefited.
commence in the month of October 2020.
I congratulate CMA Vijender Sharma, Chairman of
The Board of Advanced Studies had organized an erudite Professional Development & CPD Committee and PD &
and highly enriching National e-Seminar on the theme CPD Directorate for ensuring excellent execution of various
“Future of Data Analytics” along with the inauguration of activities even in these trying times.
the two batches of the ‘Data Analytics Course’ on 11th July
2020. I had the pleasure to attend the same along with Vice BANKING AND INSURANCE COMMITTEE
President CMA Biswarup Basu, my Council colleagues
The Banking and Insurance Committee had conducted
CMA Debasish Mitra and CMA Dr. V. Murali. The Chief
several webinars and WEBINTs during the month of June,
Guest of the event was CMA Purvez Kesri Gandhi, CFO,
2020. The WEBINTs on ‘Impact of COVID-19 on Financial
Godrej & Boyce Mfg. Co. Ltd., Key Note speaker was
Services and Strategies for Investors: Series I and II were
Prof. Pulak Ghosh, Professor, IIM – Bangalore and Guest
conducted on 12th June, 2020 and 24th June, 2020. The
Speaker was Prof. P.K. Das, Indian Institute of Foreign
WEBINT held on 12th June 2020 was graced by Smt. Deena
Trade. A large number of audience had attended the online
Mehta, Former President of BSE and Group Managing
event and vividly appreciated the quality of the programme
Director of Asit C Mehta of Companies (Moderator of the
and its contents.
Session), CMA B. Renganathan, Executive Vice-President
and Company Secretary, Edelweiss Financial Services
I now present a brief summary of the activities of various
Limited, CMA Dr. Latha Chari, Professor, National
Departments of the Institute, in addition to those referred
Institute of Securities Markets (An educational initiative by
above:
SEBI) and Shri Pradeep Ramakrishnan, General Manager,
Corporate Finance Department of SEBI.
PROFESSIONAL DEVELOPMENT & CPD
COMMITTEE The WEBINT held on 24th June, 2020 was also graced by
Smt Deena Mehta as moderator and CMA Navneet Munot,
It may please be noted that the Institute has taken due
Executive Director and CIO of SBI Mutual Fund and CMA
initiative to support MSMEs to give them the confidence to
Dhiraj Sachdev, Managing Partner and CIO, Roha Asset
grow. In addition to MSME Help Desks of the Institute, now,
Managers LLP as panelists.
all the updates on MSMEs are available in the Professional
Development Portal on the website of the Institute. The Committee also organized the WEBINT on the
topic ‘India in the Global Economy 2021’ held on 22nd
The Professional Development Directorate is sending
June, 2020 which was graced by Dr. Charan Singh, Non-
representations to various organizations and regularly
Executive Chairman, Punjab & Sind Bank, Dr. Sugata
follows up for inclusion of Cost Accountants for providing
Marjit, Economist and Distinguished Professor, Indian
professional services.
Institute of Foreign Trade, CMA Subhash Chandra Garg,
During the month of June 2020, Assam Administrative Former Finance Secretary, GoI & IAS Officer and CMA
Staff College Society, Urban Development & Housing Kunal Banerjee, Former President of The Institute of Cost
Department, Jharkhand, The Himachal Pradesh State Accountants of India.
Industrial Corporation Limited, Sardar Sarovar Narmada
The Banking & Insurance Committee of the Institute
Nigam Limited, Airports Authority of India, Brahmaputra
organized a WEBINT on the topic “Capacity Building for the
Valley Fertilizer Corporation (BVFC) Limited, NAMRUP,
Lending Institutions Post COVID-19” on 8th July 2020. The
Uttar Pradesh Jal Nigam, Ajmer Vidyut Vitran Nigam
WEBINT was graced by CMA Suresh Khatanhar, Deputy
Limited (AVVNL), Coal India Limited, Central Coalfields
Managing Director of IDBI Bank as the Chief Guest for
Limited (CCL), Northern Coalfields Limited (CCL),
the event. CMA M. K. Bhattacharya, Executive Director
Western Coalfields Limited, Central Mine Planning And
of Indian Bank, CMA Saikat Roy, Director, West, Care
Design Institute (CMPDI) Limited, NLC Tamilnadu Power
Ratings Ltd and CMA Dr. P. Siva Rama Prasad, Former
Limited etc. considered Cost Accountants in their Tenders/
AGM of SBI were the Guests of Honour for the event.
EOIs. Please visit the PD Portal regularly for all professional
CMA Mohan V Tanksale, Former Chief Executive of Indian
updates.
Banking Association acted as the Moderator of the session.
Professional Development and CPD Committee in The WEBINT was attended by Members, Students of the
association with RCC & Chapter Coordination Committee, Institute, Bankers and Officials of Financial Institutions. The
CAT & AAT Board organised two WEBINTs on “MSME insightful and thought provoking deliberations addressed
Series” and “MSME Series “SIMPLICOST - A Cost Partha several key issues and challenges for the lending institutions
System” Q & A Session” respectively. Further, Professional

in the post Covid-19 scenario. REGIONAL COUNCIL AND CHAPTERS
I am thankful to CMA Chittaranjan Chattopadhyay, COORDINATION COMMITTEE
Chairman Banking & Insurance Committee for excellent Responding to the need for online webinars for members,
organization of knowledge enriching & learning events with students and other stake holders during these challenging
dignitaries at the helm of various institutions. times due to the continuing COVID19 pandemic the
Committee for its seventh successive month continued to
TECHNICAL DEPARTMENT hold series of WEBINTs and webinars under the dynamic
The Technical Department is taking all possible steps to leadership of the Chairman of the Committee CMA H
ensure necessary assistance to the members in order to carry Padmanabhan as summarized below.
out their statutory responsibilities. This abnormal situation
has posed peculiar challenges to the professionals and the • Webinar (students)
Institute is combining the efforts of all departments to face Initiatives in the e-learning platform for students were
the same and come out of it successfully. being carried out by the Committee much before the COVID
I congratulate the Technical Department for their efforts lockdown times and continued with topics of relevance for
in finalization of Advisory on Auditing and Assurance students preparing for examinations. Four students’ webinars
assignments during the Period of Lockdown and Restrictions were organized by the committee through eminent faculty
on Travelling and Advisory on Disclosures in the Audit during the month of June 2020.
Report in light of the Lockdown due to COVID-19 Pandemic.
• Webinar (members)
TAX RESEARCH DEPARTMENT During the month of June 2020 the committee held
In June, 2020, TRD has conducted a wide range of four webinars for members covering contemporary topics
webinars for our members and stakeholders. The Topics for relevant for members through eminent resource person of
the same include Presumptive Taxation under Income Tax repute.
Act, Income Computation and Disclosure Standard - Income I appreciate the team work and wish to place on record
Tax Act, Treatment of Various Discount in GST (Accounted the efforts of CMA Arup Sankar Bagchi, Secretary of the
In Invoice And Credit Notes), Assessment of Charitable Committee and team for timely execution.
Institution- A Comprehensive Case Study, Documentations
and Pleading for Transfer Pricing Assessment / Audit, • WEBINT
Latest Notification & Circular in GST, GST on Solar Power As mentioned in my earlier communiqué, I again
sector & Related Issues (On Input), Last Opportunities to congratulate CMA H Padmanabhan, Chairman of the
File Return for the A.Y. 2019-20 and Investment for the Committee, CAT and AAT Board for pioneering the
A.Y.2020-21 and consequences thereof, GST on Real Estate, introduction of WEBINT (interactive webinar) for the
Tax Planning - Computation of Income from Business or benefit of members, students and all stakeholders. A special
Profession and A practical aspects on Income Tax Practice. mention needs to be made for such initiatives made by CMA
All the taxation courses, like Certificate Course on GST, H Padmanabhan, Council colleague for not only hosting
Advanced Certificate Course on GST, Certificate Course on WEBINTs for his committees, department and board but
TDS and Certificate Course on Filing of Returns are being also for his active involvement in being a guiding force for
carried on seamlessly. Even live doubt clearing sessions are WEBINTs organized by other departments and committees
being conducted. Online admission to these courses for next of the Institute. These WEBINTs have been addressed by
batch has already been started. the champions from the government, business world and
The 66th and 67th Tax Bulletins have been released profession including Hon’ble Ministers and spiritual leaders
addressing issues in Direct and Indirect Taxation. Members of international repute. The Institute marched ahead with a
and stakeholders may keep a close watch in the Taxation series of WEBINTs during the month of June 2020 and I am
Portal, which is being updated regularly and including all the sure will continue to do so in the future.
latest updates provided by the Government on the Taxation
Front. DIRECTORATE OF STUDIES
The Tax Research Department has also submitted I am pleased to share that the Directorate of Studies has
representation to the Ministry of Corporate Affairs to started with subject wise series of Webinar Classes for the
authorize Cost Accountants to authenticate the statement of CMA Students on regular basis to make themselves well-
Receipt and Payment in respect of Indian Business Operation prepared before the forthcoming examinations.
of Foreign Airlines Company as required under Notification I express my sincere gratitude to the Directorate of Studies
No. 09/2020-Central Tax dated 16th March 2020. and CMA Biswarup Basu, Vice President of the Institute and
I congratulate CMA Niranjan Mishra, Chairman Indirect Chairman, Training & Educational Facilities and Placement
Taxation Committee and CMA Rakesh Bhalla, Chairman, Committee for continuous support to students in this crucial
Direct Taxation Committee for proactive actions. time.

DIRECTORATE OF CAT • NEW ROCCs
• CAT e- learning classes It is heartening to see that in spite of most of the activities
I informed in my last communiqué that on 4th June, 2020, coming at a standstill, Directorate of CAT has continued to
I inaugurated the e - learning classes for students pursuing extend its family by getting the new Regional Oral Coaching
CAT Course. Now, I am pleased to share that the classes Centres (ROCCs) on board. In a bid to do so, it has approved
under this initiative are being conducted successfully two new ROCCs in the cities of Coimbatore (S-214 and
through e-learning portal for CAT Students. Technology has S-215). The establishment of these ROCCs would strengthen
revolutionized education and it is time that the students of the already strong presence of the CAT Course in Southern
the Institute embraced this opportunity and harnessed their India.
potential to become the new age professionals of tomorrow. I appealed CAT aspirants and ROCCs in my last
I congratulate CMA H Padmanabhan, Chairman-CAT for communique to embrace online medium for taking
this watershed moment in the history of CAT Course. I admission into the CAT course. I am pleased to share that
would also like to place on records the efforts put by the my appeal has garnered a positive response and a little over
CAT Directorate executives. four hundred online admissions were done in the month of
June alone. I hope, the numbers of admission in CAT course
• WEBINT would double and quadruple in the coming months.
CMA H Padmanabhan deserves special pat on his back for
spearheading the Institute’s endeavors to be engaged with the MEMBERSHIP DEPARTMENT
Members and Students of the Institute, during these trying I congratulate and welcome all the new 244 Associate
times. He is the one, who lead from front the commencement members who were granted membership and all the 66
of the WEBINT series of webinars in April, 2020. The Associate members who were upgraded to Fellowship
WEBINT has become a part and parcel of the stakeholders during the month of June 2020.
of the Institute and its popularity can be gauged with the fact Under the dynamic leadership of CMA Vijender
that many eminent persons may it be the Union Ministers of Sharma, Chairman of the Members Facilities Committee,
Government of India, spiritual leaders and the magnets from the membership department has further streamlined and
Industry or business world have been coming on board. The shortened the period between application of membership
contribution of CMA H Padmanabhan in making WEBINT and grant of membership.
a grand success will never be forgotten. I would also like to
I would once again like to gently remind members who
place on records the efforts put by CMA Pardeep Khaneja
have still not cleared their membership dues for 2020-21
and CMA Ria Chowdhury in conducting WEBINT.
to clear the same at the earliest through online mode via
the members’ online system so as to seamlessly continue
• Association with BFSI Sector Skill Council of
enjoying the benefits of membership.
India
The links for online payment are given below for benefit
I am pleased to inform that the CAT Directorate is regularly
of members –
following up with BFSI Sector Skill Council of India for
recommending the alignment of CAT Curriculum of the • Payment without login: https://eicmai.in/MMS/
Institute under National Skills Qualifications Framework PublicPages/UserRegistration/Login-WP.aspx
(NSQF). In this regard CMA Rakesh Singh, Former President • Payment and all other applications with login: https://
and CMA R K Jain- HOD CAT attended the meeting called eicmai.in/MMS/Login.aspx?mode=EU
by the National Skills Qualifications Committee. I hope the
outcomes of the meeting will embolden the presence of the MEMBERS IN INDUSTRY COMMITTEE
CAT course throughout India. I am happy to share that the Members in Industry
Committee had been part of a series of WEBINT programs
• CAT Examination: July 2020 Term and webinars on various topics of importance and interest for
CAT Directorate issued Notification for the CAT Course our professional members. Topics such as: ‘Post COVID-19
(Entry Level) Part - I Examination - JULY 2020 term. The Impact on Industries - Challenges for CFOs’; ‘Integrated
last date to fill the online form was 10th July, 2020. I wish Target Costing Methodology to create Profitable Customer
students all the best for exams. I am pleased to share that for Value’; ‘Activity Based Costing vs. Objective Based
the benefits of the students who would write this examination Costing’; ‘Recovery and Rebound phase of COVID-19:
and to allay their apprehension of moving out of the home, the Boarding a New flight of Cost Management’; that have
Institute is planning to conduct Computer Based Test From been eagerly attended by the professional members across
Home (TFH). I am sure that with this steadfast development, the globe. These important programs had been deliberated
the CAT examinations would be held successfully. I would upon by expert resource persons having huge experience of
also like to acknowledge the dedicated efforts of CMA Nidhi various industries. Some of the dignitaries have been CMA
Verma and Shri Varun Joshi in providing excellent services Suraj Prakash, Director (Finance) BEML Ltd., CMA M.
to CAT students during this COVID-19 pandemic situation. Hariharan, Founder Director of Savoir Faire Management
Services Pvt. Ltd., CMA Dr. Girish Jakhotiya, Chief
Consultant, Jakhotiya & Associates, CMA Asim Kr.

Mukhopadhyay, Vice President and Head – Business CPE program to grant Certificate of Practice for
Finance, Tata Motors Group. The attending participants have its Registered Valuers as well as a Workshop on
expressed their eagerness and happiness to be part of these Valuation issues. All the programs are being attended
professional endeavors. by a good number of participants.
I congratulate CMA Biswarup Basu, Vice President of the
Institute and Chairman, Members in Industry Committee INSOLVENCY PROFESSIONAL AGENCY (IPA) OF
for organising series of events for learning of Industry INSTITUTE OF COST ACCOUNTANTS OF INDIA
participants and CMA fraternity. I am pleased to inform you that the Insolvency Professional
Agency of the Institute organised various webinars during
INTERNATIONAL AFFAIRS COMMITTEE the month for its members on “Australia Insolvency Reforms
• WEBINT on Opportunities for CMA’s in Various due to COVID-19” on 5th June 2020, “Panel Discussion
Countries on Insolvency and Bankruptcy Code (Amendment)
Ordinance, 2020” on 6th June 2020, Certificate course on
I am happy to share that the International Affairs
“Skill development of Insolvency Professionals” during
Committee under the Chairmanship of CMA (Dr.) Ashish
10 -14 June 2020, Certificate course on “Effective CIRP
P Thatte has successfully organized a WEBINT on the
Management” during 15-19 June 2020 and “Stakeholders
‘Opportunities for CMA’s in Various Countries’ on 27th June
Meet on MSME Insolvency Framework” on 22nd June 2020.
2020. The WEBINT not only covered the opportunities for
CMAs in six different countries but also covered the Social
I wish prosperity and happiness to members, students
and Cultural atmosphere, Cost of living and key challenges
and their families and pray for the success in all of their
that are faced by people who plan to relocate. I would like
endeavors.
to place on record my gratitude to our six expert speakers
CMA Nandkumar Prabhune, Tax Consultant, Canada,
Stay safe and healthy!
CMA Dattatreya Ghadge, Chairman, Bahrain Overseas
Centre of Cost Accountants, CMA V.R.K.M.Sai Sampath
With warm regards,
Kumar, Chief Accounts Officer, Sayona Drinks Ltd, Dar Es
Salaam, Tanzania, CMA Tamil Selvan Ramadoss, Manager
- Financial Analysis, Dubai Maritime City Authority,
Government of Dubai & Member - Public Relations
Committee, Dubai Overseas Centre of Cost Accountants,
CMA Dhiraj Kumar Jha, Business Controller, Region
Asia, Siemens Energy Sdn. Bhd., Malaysia and CMA Uday
CMA Balwinder Singh
Deshpandey, Vice Chairman, Singapore Overseas Centre of
Cost Accountants. July 12, 2020
The International Affairs Committee also conducted three
webinars during June 2020 on the topics “Global Practices
of Management Accounting” on 9th June 2020, “Why
Multinational Companies are so successful Globally?”
on 23rd June 2020 and “Inflation Accounting and Forex
Management for global business transactions” on 30th
June 2020. All three webinars were undertaken by CMA
(Dr.) Girish Jakhotiya and were well appreciated by the
members.
ICMAI REGISTERED VALUERS ORGANISATION

(RVO)
I am pleased to share that ICMAI RVO has taken the
following initiatives during the month of June 2020:
• Regular conduct of Online 50 hours mandatory
educational courses on Valuation as per the directives
of IBBI:
»» 6th Online Batch for Securities or Financial
Assets
»» 1st Online Batch for Land & Building and Plant
& Machinery
»» 100 participants have attended in these programs
• ICMAI RVO has successfully organized Online

CHAIRMAN’S
COMMUNIQUÉ
CMA (Dr.) K Ch A V S N Murthy
Chairman
Journal & Publications Committee
is based on the theme “Goods & Services Tax (GST): Recent

Changes and Emerging Issues” which was introduced as a
single, straightforward tax system to replace multiple indirect
taxes. The GST has served as an efficient tax system by
bringing in more transparency and streamlining the tax filing
“Arise, awake, and stop not until the goal is process for both the government and the taxpayers. CMAs
achieved”. have a significant role to play in this aspect. An accountant
can give suggestions to the management regarding invoicing
- Swami Vivekananda and billing. They can also have discussions regarding input
I
credit and how to utilise it and pay tax wisely.
am thankful to the Council Colleagues of the Institute October 2020 issue of the Management Accountant is
for having faith in my capabilities and assigning me based on the theme “Self-Reliant India: Pathway to a Robust
the responsibility to serve the Institute as Chairman of Economy” where the need for self-reliance and a stronger
the Journal & Publications Committee (2019-2020) focus on manufacturing locally by enterprises have been
during this one year. This will be my completion of one year stressed upon by Prime Minister Narendra Modi. It is about
in this Directorate as the chairman and I convey my sincere creating strong enterprises in India. It is about generating
gratitude to the chapters, regional councils who supported employment and empowering people to come out and create
the activities of the Journal and Publications department and solutions that can define the future of the country.
is committed to work relentlessly to meet the expectations of I request continuous support from every corner in the quest
the members, students and other stakeholders. for value creation through the activities of this department.
Many eminent authors have contributed relevant articles I am also very much confident that the office bearers of the
amid this nationwide Covid 19 pandemic lockdown in India department will provide their assistance and best efforts
and we have been able to publish the e journal on time which undoubtedly and commit for its betterment.
is available on the website (https://icmai.in/icmai/news/209. We solicit your feedback, suggestions and concerns for
php). Distinguished experts and authors contributed relevant the overall development of the Journal and Publications
and path-breaking articles and case studies for the journal Department. Please send us mails at editor@icmai.in /
that not only enhanced the quality of the publications, but journal@icmai.in for various issues relating to journal and
also gave new dimensions and directions towards socio- publications.
economic research and policy making. I would like to express my concern and support for all the
The monthly journal The Management Accountant with members, students and other stakeholders and hope you are
its modern layout as well as rich and informative contents keeping safe and healthy in these challenging times. Stay
is highly commendable and the quality of articles has also Indoor, Stay Safe and Secured.
improved immensely over the past few months. The basic
focus is to make The Management Accountant a global
brand on its own. It is needless to mention that the concerned
department has progressed towards design improvement,
and the present professional design has received accolades
from all quarters and members of the Institute.
CMA (Dr.) K Ch A V S N Murthy
Our mission is to establish this department as a premier
July 6, 2020
research body in the country to raise public awareness
about policy issues in business, trade, society and economy
and to facilitate solutions that will contribute to national
development.
July 2020 of the Journal “The Management Accountant”

CHAIRMAN’S
COMMUNIQUÉ
CMA (Dr.) Dhananjay V. Joshi
Former President and
Chairman, Technical Cell
of the Auditee companies as to the Internal Audit of Cost

Records. To bridge this gap the Technical Cell developed
and issued Guidance Note on Internal Audit of Cost
Records. The Guidance Note has been developed in such
a way that it explains the relevant information in form of
various chapters which are interlinked. It was prepared in a
I
Dear Professional Colleagues,
very short time and has been well received.
am pleased to note that another eventful term of
Symposium on “Cost Audit - Stakeholders Value
Technical Cell of the Institute is being completed on
Proposition” in Mumbai: The Technical Cell of the Institute
July 21, 2020. I am thankful to the President, Vice-
organised a Symposium on Cost Audit - Stakeholders
President and the entire Council of the Institute for
Value Proposition on 20th December 2019 at YB Chavan
posing confidence in my abilities and giving me to chair
Auditorium, Mumbai. The event was inaugurated by Shri
the Technical Cell for the second consecutive term. With
Suresh Prabhu, Hon’ble Member of Parliament, Rajya
the worthwhile contribution of the members of the cell and
Sabha, Chief Guest of the event in the presence of Guest
support of the Council, the cell has been able to contribute
of Honour Shri TS Balasubramanian, Member (Finance),
to the growth of the profession and the Institute. I would
Tariff Authority for Major Ports along with the President,
also like to appreciate the professional members of the
Vice-President, Members of Council and Regional Councils
Institute and various domain experts who have significantly
of the Institute. Eminent speakers from Regulatory, Industry,
contributed to the activities of the Cell.
Social Organisations, Government and Practice addressed
Friends, the Technical Cell met four times during this the participants. The event was also graced by the Former
term and held many meetings of small groups of Technical Presidents, Chapter Representatives and around 500
Cell formed to discuss and finalise various issues. During delegates from Industry and Practice. The symposium was
the time of the COVID-19 calamity, the Technical Cell met successful in highlighting the importance of the Cost Audit
on web platform and carried out the activities successfully. Mechanism to the country’s economy and Industrial growth.
The way members of the cell contributed even while
This was the third event in the series of awareness
working from home is commendable and I am sure that their
program on Cost Audit. The Technical Cell is in process of
dedicated services will be available to the cell in the future
bringing out a publication on the proceedings of all the three
terms also. During this term, besides dealing with its own
events. The publication contains the speeches by dignitaries,
agenda, the Technical Cell could give support to the CASB
important quotes by regulators and industry and photographs
in resolving various professional and Technical matters. My
of the three events.
vision for Technical Cell is to see it as a major contributor to
all the Committees and Boards of the Institute by providing Monograph Advantage India 2020: The Technical Cell is
necessary guidance and support in resolving professional, in the final stage of developing a Monograph on Advantage
technical and students’ related matters. India 2020 depicting the real picture of India’s geographic,
demographic, economic, cultural, political, social, industrial
The purpose of this communique is to bring forth
and regulatory advantages over the other democracies across
the agenda of the technical cell whether completed or
the globe. The Monograph will showcase India’s prowess to
continuing, before the Institute and also to apprise the
be able to gain from the current crisis by becoming the most
members of the developments and initiative taken by the cell
preferred industrial and manufacturing hub of the world.
during the term. I would like to present before you some of
India has the abundance of natural resources, cutting edge
the following major activities, initiatives and contributions
technology, talented manpower, proactive Government,
of the Technical Cell during the term 2019-20:
vigilant regulatory, booming infrastructure and political
Guidance Note on Internal Audit of Cost Records: willpower to attract the foreign companies to invest in India
Under the Companies (Cost Records and Audit) Rules 2014 and setting up their industrial units to promote ‘Make in
Cost Auditor has to comment on “Adequacy of the System India 2.0’. All we are doing is to put in place the combined
of Internal Audit of Cost Records” in his Cost Audit report, efforts of professionals, engineers, managers, policymakers
however there was no technical literature available on the and Government with a focussed mind-set and proactive
subject. Due to this there was a gap in the understanding approach to grab this opportunity. This Monograph will be a

CHAIRMAN’S COMMUNIQUE
landmark initiative in the direction of restoration and further netting off.
development of the Indian Economy. 5. Reconciliation Items: The Cost Accounting
Upload of Responses by the Technical Cell to the Queries Standards require certain items to be treated as non-
of members / stakeholders: As decided by the Technical cost items like foreign exchange gain/loss, bad debts
Cell, the queries resolved by it have been uploaded on the etc. The Technical Cell examined the matter and
Technical Cell portal of the website of the Institute for the advised that there is a need to lay down Principles
information of the general members and stakeholders. This for income and expenses not to be considered in cost
also serves as FAQs on different topics. It is pertinent here statement and which will be taken to Profit & Loss
to inform the members that the query resolution mechanism Reconciliation.
of the Technical Cell has been working very satisfactorily 6. Issues relating to Capacity Determination: The
and till date the Technical Cell has resolved more than 100 current definitions and principle of measurement
queries of the members and stakeholders. laid down in CAS-2 for Licenced Capacity, Installed
capacity, Practical or Achievable Capacity, Normal
Guidance on important and emerging Technical Capacity, Idle Capacity, Capacity Utilisation, etc.
Matters: needed to be reassessed to provide a more realistic
1. Assessment of Impact of implementation of Ind and practical approach. Specifically in case of
AS on Cost Accounting Standards: The Technical Normal Capacity there has been a mismatch between
Cell has taken up the exercise of doing an impact the definition & calculation logic as given in CAS-
analysis and consequent revision of the Cost 2. The Technical Cell in association with the CASB
Accounting Standards on account of implementation has completed the discussions on the issue and it is
of IndAS and emergence of many other issues. Two expected to be resolved very soon by the CASB.
marathon meetings of two days each were organised 7. Streamlining of Definitions in various CASs: The
by the Technical Cell to discuss the issue with domain Technical Cell examined the issue and advised that
experts. The Technical Cell has compiled its report for each term there should be only one definition,
and shared it with the Chairman, Cost Accounting whether it appears in all standards, publications,
Standards Board of the Institute for taking the matter documents, guidance note, technical guides etc.
forward with assurance of all future help by the issued by the institute. The work on this matter is
Technical Cell. going on by the CASB and is expected to be resolved
2. Impact analysis of introduction of ‘IndAS 116 – very soon.
Leases’ and ‘IndAS 115 – Revenue Recognition: 8. Representation to Ministry on relooking of
The Technical Cell received queries from various Cost Reporting Mechanism: The Technical Cell
corporates regarding treatment of various costs in advised the Institute that the framework of cost
the Cost Accounting Records and their presentation/ reporting needed relook in the light of the changing
disclosure in the Cost Statements so as to give true environment of business. The Cost Rules were issued
& fair view of the Cost of Product/Activity relating in 2014 and after almost 6 years of issuance there
to the assets taken on lease by the Company, arising existed a need to revise the same to incorporate the
from the implementation of IndAS 116 and on the interim developments. The areas which have become
Impact of IndAS 115 on the Revenue from contracts irrelevant now need to be replaced with the new
with customer effective from the financial year emerging trends. The Cost Audit Report needs to be
beginning on or after April 01, 2019. Technical upgraded by enhancing its importance. Performance
Cell held widespread discussions on the matter and Appraisal Report should be revamped in the current
resolved the matter by giving advice to the querist scenario and needs to be reintroduced. On the basis
organisations. of the recommendation of the Technical Cell, the
3. Treatment of Finance Cost: The Technical Cell Institute sent a representation to the Ministry of
is under consultation with experts and practicing Corporate Affairs to look into the matter and the same
members with regard to treatment of Finance Cost in is under consideration of the Ministry.
Cost Records. 9. Contents and formats for Disclosure of Cost
4. Treatment and netting off of Interest debits and Audit Report in the Annual Report: Technical
Interest credits: As per the existing practice & Cell suggested that in order to improve the Board
principle, Interest Expense is being treated as Cost Governance and also to indicate the sustainability of
in Cost Statements; whereas the Interest Income the Company, some indicators showing the efficiency
is treated as a non-cost Item and taken to Profit & and profitability of the Company should be included
Loss Reconciliation Statement. The Technical Cell in a specified format in the Annual Report without
examined the principle and prima facie is of the view compromising the confidentiality of the cost audit
that the netting off of Interest debits and credits is data. In order to carry out this task, the small group
principally accepted for the operational activities has already prepared and submitted its report to the
and there should be co-relationship to be established Technical Cell and the same is under consideration
between interest debits and interest credits for this of the cell.

CHAIRMAN’S COMMUNIQUE
History book of Cost Audit: I take pride in informing many responsibilities in the functioning of the Cell and
that the Technical Cell will very shortly come out with a made my job easier. I appreciate the role of the Technical
publication titled “History Book of Cost Audit in India”. The Cell Secretariat comprising of CMA Tarun Kumar, CMA
proposed book will have Parliamentary debates and Question Pankaj Jalan and Mr. Pranav Sharma in providing active
Answers, extracts from annual reports of relevant Union support to the Technical Cell and holding good coordination
Ministries, Cost Accounting Record Rules and notifications with the members and experts in carrying out the activities
issued by the Ministry since the beginning of cost audit, of the cell in a structured manner.
reports of special purpose committees appointed by MCA Friends I have always maintained that any positive change
from time to time, industry specific Cost Accounting Record in the fortunes of the profession will be brought out by our
Rules, compilation of important articles relating to cost own efforts and commitment. I am fully committed to this
audit mechanism and alike information. The comprehensive cause and would wholeheartedly continue to support the
publication will serve as Bible of Cost Audit for the CMA Institute in this direction.
profession and the other stake holders of the system.
Sometime it is felt that some eminent members of the
In the various endeavours of the Technical Cell and Institute, who should have been contributed to the cause of
its publications, a large number of CMAs provided their the Institute and profession with much more vigour, are not
valued support as resource persons. The Technical Cell has contributing at their fullest. There could be so many reasons
certainly acknowledged their efforts and support in those behind this. But I would like to remind them that the Institute
publications. The support was spontaneous and to the best is nothing without the active and constructive support of
of their abilities. I am highly obliged by their devotion for each member. There are so many avenues available for the
the cause of the profession and express my sincere gratitude members to support the Institute; by way of being resource
to all of them. persons for development of Technical Guides, Notes and
I expressed my sincere gratitude to CMA Balwinder Papers; taking web classes; arranging for recruitment drives;
Singh, President, CMA Biswarup Basu, Vice-President mentoring the budding cost accountants; garnering support
of the Institute for their encouragement and appreciation of MPs / MLAs / Industry etc. on critical issues; help the
of the efforts of the Technical Cell. CMA Devendra Institute in developing good relations with policy makers /
Kumar, Advisor (Cost) provided required support from decision makers and regulators etc. to name a few. I urge
the Government side on many technical issues. CMA upon all the members to come forward and contribute their
D.C. Bajaj, CMA Chandra Wadhwa and CMA Kunal bit to the cause of the Institute and the profession so as to
Banerjee all Former Presidents of the Institute provided ensure the growth of the CMA profession.
much needed and most valued advices on various technical I pray for the wellbeing and prosperity of all the members
issues. CMA P. Raju Iyer, CMA Neeraj D. Joshi, CMA and their family and wish all-round success in their
Ashwin G. Dalwadi, CMA Rakesh Bhalla, all Council endeavours.
Members acted as a link between the Technical Cell &
the Council and without their support the Technical Cell With regards,
could not have achieved what it has achieved during the
term. Veteran PCMAs CMA T.S. Khurana, CMA S.
Mukherjee, CMA Narhar Nimkar provided matured
outlook in addressing the various complex issues. CMA S.
J. Joshi provided the industry perspective in the discussions. CMA (Dr.) Dhananjay V. Joshi
CMA Ravi Sahni and CMA Vijay Joshi proactively took June 27, 2020
Technical Cell (Cost Audit & Statutory Compliances) (2019-20)

Chairman
CMA (Dr.) Dhananjay V. Joshi, Former President, ICAI
Members
Shri Devendra Kumar, Advisor (Cost) CMA D. C. Bajaj, Former President, ICAI
CMA Chandra Wadhwa, Former President, ICAI CMA Kunal Banerjee, Former President, ICAI
CMA P. Raju Iyer, Council Member, ICAI CMA Ashwin G. Dalwadi, Council Member, ICAI
CMA Neeraj D. Joshi, Council Member, ICAI CMA Rakesh Bhalla, Council Member, ICAI
CMA S. Mukherjee, Practicing Cost Accountant CMA Ravi K. Sahni, Practicing Cost Accountant
CMA Narhar Nimkar, Practicing Cost Accountant CMA Vijay Joshi, Practicing Cost Accountant
CMA S. J. Joshi, Cost Accountant in Industry CMA T. S. Khurana, Practicing Cost Accountant
Permanent Invitees
CMA Balwinder Singh, President, ICAI CMA Biswarup Basu, Vice-President, ICAI
Secretary
CMA Tarun Kumar, Additional Director (Technical), ICAI

ICAI-CMA SNAPSHOTS
MSME HELP DESK ONLINE SERVICES
BY THE DIFFERENT CHAPTERS OF THE INSTITUTE
Mysuru Chapter Raipur Chapter
Noida Chapter Thrissur Chapter

ICAI-CMA SNAPSHOTS
Howrah Chapter Bengaluru Chapter
Bhubaneswar Chapter Coimbatore Chapter

ICAI-CMA SNAPSHOTS
Hyderabad Chapter Lucknow Chapter
Kozhikode Malappuram Chapter Madurai Chapter

COVER STORY
GST:
ALLOW DUE ‘CREDIT’ OF
THIS ‘NOTE’
Abstract
It is normal trade practice to refund the

money in case of dispute in a transaction
entered into by two parties and raise the
credit note as a documentary requirement.
Sometimes the settlement may take
substantial time and even years. By that Deepak Kumar
Senior Manager – Finance
time, the GST would already have been Pramerica Life Insurance Limited
discharged by the supplier and ITC must Gurugram
have been claimed by the recipient on
the same. However, when the amount is
refunded upon settlement of dispute, GST evolvement of GST is unprecedented and commendable.
law may not allow to adjust the liability From taking decisions by GST council, whether meeting
physically or virtually through video conferences, to
paid earlier by simple reason of not raising communicating the decisions swiftly by releasing press
credit note within time limit prescribed notes and issuing notifications thereafter, to addressing
under the law. This may cause hardship technical glitches, the GST implementation has been quite a
to the payers as tax component returned success given the size of Indian economy.
becomes cost to them. This may be avoided It is also pertinent to note that wherever the assessees
faced difficulty in complying with the provisions of GST,
by bringing about a small change in GST the CBIC have come up with instructions guiding its field
law and making it in line with erstwhile staff not to harass honest taxpayers and also extending due
Service tax regime. Let’s explore further. dates of various compliance deadlines from time to time.
The prompt action taken by the authorities is appreciable.
However, since the GST law is still evolving and inching
towards maturity, there are certain areas where it still needs
A
Story so far improvement to make it fair and easy.
s the GST has turned ‘3’ this July and is still One such area where the law does not play fair with the
taking baby steps to move forward with CBIC/ taxpayers and favors the revenue is issuance of credit notes
finance ministry closely holding its hand in under GST law. Let’s discuss the issue in detail in subsequent
guiding the way forward, it can also not be paragraphs.
ignored that it has come a long way since its implementation
in July 2017. Credit notes but without credit
The kind of response shown by various stakeholders at Sometimes the assessees are required to return the amount
helm in resolving issues around the implementation and

COVER STORY
charged from the customers due to various reasons (e.g. Illustration: Suppose, supplier A has supplied services
dispute in agreement and consequent court orders, important worth INR 1,000/- to recipient B on 20 March 2019. GST
business commitments). Such amounts are sometimes charged on the invoice was INR 180/- at the rate of 18%. A
required to be returned even after more than 6 months from discharges this liability and correspondingly B takes ITC for
the end of financial year i.e. beyond September of subsequent the same amount.
financial year. The amount so paid is required to be returned Now in the month of June 2019, it is discovered that for
along with GST amount originally charged due to court order some reasons the services were deficient and A issued credit
or honoring business relationships. Accordingly, credit note note of INR 200/- with GST of INR 36/-. A reduces his output
is issued for the total amount i.e. taxable amount plus GST. tax liability for the month of June 2019 with INR 36/- and
Since the law does not allow benefit of GST on credit B reduces the amount of ITC availed by it for the month of
notes issued post September of subsequent financial year, June 2019. The transaction, to the extent GST of INR 36/-, is
the said GST amount becomes cost to the supplier. nullified as both A and B had complied with the law within
prescribed time.
Analysis of Legal Provisions Now suppose, the deficiency in services is not discovered
Position under GST law till September 2019 and only discovered on 10 October
The provisions1 related to issuance of credit and debit 2019. In such scenario, A would not be eligible to adjust
under GST are summarized below: his liability for the month of October 2019 even though
he is required to pay the total amount of INR 236/- to B in
Time limit to order to honor his long term business relationship with B.
Section Deals with Main principle report in GST This additional INR 36/- will become cost to A as his output
returns liability will not be adjusted.
Conditions of However, where was discovered that the value of services
34(1) issuance of …may issue -- was INR 1,200/- and not INR 1,000/-, A would still require to
credit notes pay tax on additional INR 200/- by raising debit note on 10
Tax liability October 2019 because there is no time limit prescribed for
Credit notes issuance of debit note.
may be
Declaration to be reported
adjusted The impact of the above provisions is that whenever tax
of credit in the month
provided that ought to have been charged is more than what was actually
notes in GST of issuance
34(2) incidence not charged, debit note can be issued any time resulting in
return and not later than
passed on to
treatment of September increase of tax liability of the dealer. However, same is not
other person
GST following the the case with issuance of credit notes wherein the dealer
and within time
end of FY can adjust/reduce the tax liability only if the credit notes are
prescribed
issued within prescribed timelines i.e. up to September of the
Issuance of following financial year.
34(3) …shall issue --
debit notes
The above said provisions are contradicting and are not in
Tax charged sync. It has the impact of favoring the revenue department
Declaration on debit notes No such time and against the dealers.
of debit notes to be added limit, debit note Further, it has been reiterated in a clarification2 issued
34(4) in GST return in output tax to be reported
and treatment liability for the in the month it
by CBIC that the credit notes should be issued within the
of GST month in which is issued time specified in section 34(2) of CGST Act in order to avail
it is issued benefit of adjustment in tax liability by the dealer. In case
the credit notes are issued after the prescribed time limit, the
circular clarifies as under:
It is pertinent to note that in case of credit notes, the law
states that the registered person who has supplied the goods/ 3(B)(c) However, if the time limit specified in sub-
services may issue the credit notes under section 34(1) if section (2) of section 34 of the CGST Act has lapsed,
certain conditions are met. Whereas, for issuance of debit a credit note may still be issued by the supplier for
notes under section 34(3), the law provides that the registered such return of goods but the tax liability cannot
person shall issue the same. be adjusted by him in his hands. It may further be
noted that in case time expired goods are returned
Further, the timeline prescribed for issuance of credit notes beyond the time period specified in the sub-section
is restricted to the September following the end of financial (2) of section 34 of the CGST Act and a credit note
year as per section 34(2) but there is no such restriction for is issued consequently, there is no requirement to
issuance of debit note as stated in section 34(4) and the same declare such credit note on the common portal by
can be issued any time in the subsequent periods when it is the supplier (i.e. by the person who has issued the
found that taxable value or tax charged in the invoice was credit note) as tax liability cannot be adjusted in this
less than what actually it should have been. This can be case.
understood with the help of an illustration.
1
Section 34 of CGST Act, 2017. 2
Circular No.72/46/2018-GST dated 26 October 2018

COVER STORY
It is clarified in the above paragraph that credit notes can Provided also that if any payment or part thereof, made
be issued even after expiry of time limit prescribed under towards an input service is refunded or a credit note is
section 34(2) but the tax liability will not be allowed to be received by the manufacturer or the service provider who
adjusted. Such credit notes are called financial/commercial has taken credit on such input service, he shall pay an
credit notes which are not required to be declared in the amount equal to the CENVAT credit availed in respect of
returns as tax liability cannot be adjusted. the amount so refunded or credited.
The concept of financial/commercial credit notes is also Thus, if output liability of provider was reduced then
clarified by CBIC in another circular3. The said circular correspondingly CENVAT credit entitlement of the recipient
reiterates the above position only. was also reduced by way of above provision. In this way, the
Continuing the above illustration, A could still issue credit provisions were made to be revenue neutral irrespective of
note after the time limit prescribed under section 34(2) for the time when the credit note was issued.
INR 236/- without charging GST separately on INR 200/-
. This shall be called financial/commercial credit note as Comparison between GST vis-à-vis Service tax regime
clarified above. In this way too, A shall have to pay back INR It may be noticed that provision related to issuance of credit
236/- to B whereas B is not required to make any adjustment notes under Service tax regime are identical to provisions
in credit already availed. This again results in loss to A for outlined under section 34(1) of CGST Act. However, there
INR 36/- because he has already discharged such amount was no upper timeline prescribed for issuance of credit notes
and is not eligible to adjust his output liability. under erstwhile Service tax laws as provided under section
From the above discussion, it may be inferred that the 34(2) of CGST Act.
provisions related to credit and debit notes under GST law Hence, it is clear that such provision in GST law has been
have been drafted to act in favor of revenue and against the brought out intentionally to deprive the dealers to avail the
dealers. benefit of tax adjustment on account of credit notes.
Now we shall proceed to discuss the provisions related to
issuance of credit notes in erstwhile Service tax regime. Conclusion
Given the above backdrop, the government should
Position under erstwhile Service tax law recognize that the provisions relating to issuance of credit
It is pertinent to note the provision related to issuance of and debit notes under GST are not in sync and suffer
credit notes under erstwhile Service tax law. Rule 6(3) of from basic fair-play component. There might be genuine
Service Tax Rules, 1994, is relevant at this juncture and is reasons because of which monies have to be returned to the
reproduced below: recipients even after time limit to issue credit notes under
GST is expired.
6(3) Where an assessee has issued an invoice,
or received any payment, against a service to be Moreover, since the provisions under Service tax laws
provided which is not so provided by him either wholly were beneficial to the taxpayers and were also revenue
or partially for any reason or where the amount of neutral, the same may be brought into GST law as well by
invoice is renegotiated due to deficient provision of way of an amendment to section 34(2) in line with section
service, or any terms contained in a contract, the 34(4). This will provide a huge relief to the taxpayers given
assessee may take credit of such excess service tax the current scenario of liquidity crunch across industries.
paid by him, if the assessee,- By continuously evolving and improving the law, GST
(a) has refunded the payment or part thereof, so can be said to be successful when it really attains maturity in
received for the service provided to the person from the times to come.
whom it was received; or
(b) has issued a credit note for the value of the
service not so provided to the person to whom such ca.deepak.kumar@icai.org
an invoice had been issued.
Further, CENVAT credit was required to be paid back4 if
it was availed earlier:
3
Circular No. 92/11/2019-GST dated 7 March 2019
4
Third proviso to Rule 4(7) of CENVAT Credit Rules, 2004.
Kind Attention !!!
UGC Approved List of Journals has been revisited by UGC-CARE (University Grants Commission - Consortium for
Academic and Research Ethics) w.e.f. 14.06.2019. We are in the process of getting enlisted in it and will inform as soon
as we get enlisted.

COVER STORY
GOODS & SERVICES TAX:

ISSUES & CHALLENGES
Abstract
GST was essential for the Indian

Economy, there are lots of shortcomings
relates to technical issues, invoicing, ITC,
accounts & records, returns etc, In Indian
CMA Krishnendu Prasad Ray economy, the MSME plays a vital role , the
Retd. General Manager (Finance) professional like CMA & CA are required
NEEPCO Ltd. to spend considerable energy and time
Shillong to comply with GST requirements. It is a
simple taxing process, remove multiple
“T
Fundamentals: tax system; corruption free tax system.
he main aim of GST, which Prime Minister Its object is to achieve revenue target and
Narendra Modi termed as Good and Simple growth of economy. Let concentrate some
Tax, is to simplify the taxation process,
reduce the burden of taxes (which will issues & challenges after introduction of
eventually happen automatically) and ensure compliance of GST in our country.
tax payment.”
In the emerging economic scenario, the introduction of a If the Value Added Tax (VAT) is a major improvement over
unified Tax system was felt and this pushes the Government the sales tax system, then the Goods and Services Tax (GST)
of India to introduce GST by replacing the multiple tax is the next logical step towards a comprehensive indirect tax
structures of Central and State Taxes. reforms in the country and to make Indian economy more
GST is a consumption based tax i.e. tax will be payable in vibrant and competitive.
the State in which goods and services are finally consumed.
But, separation of taxation of goods and services requires The important objectives of the GST as follows:
splitting of transactions that leads to more complexities in 1. Removal of cascading of effect of taxes; 2. Reduction
administrating and compliances costs etc. of the compliance cost of the tax payers; 3.Introduction
It was a challenge to integrate the various central and of seamless flow of credit, 4.Minimisation of time for
state taxes into the GST system and make it a success in compliance, 5. Removal of multiple taxes, 6. A transparent
reformation of tax system in the country, some of which are and corruption free tax regime, 7. Increase competition
narrated below: at Domestic and International Market, 8.Increase in
revenue collection ; 9.Minimum impact of tax on inflation;
1. To make the entire tax system of both Central & State
10.Simplification of tax structure ;
into a single frame;
2. To avail of full credit for inputs tax collected (ITC) GST & its issues:
and to plug the misuse of ITC;
On July 1st, 2017, India had taken a giant step towards
3. To remove the economic distortions caused by the a new order in its taxation history i.e. introduction of GST
GST (Goods & Service Tax), which is a consumption in exchange for a large future gains. Initially there were
tax based tax on VAT (Value added tax) principle, numerous errors, higher tax rates; number of tax slab i.e. (0,
4. GST is an improvement over the previous system of 0.1, 0.25, 1, 1.5, 3, 5, 7.5, 12, 18 and 28 percent), mismatch
VAT and disjointed service tax; and complex taxation system which were a burden on
5. GST requires sound accounting policies, transparency; various issues to the tax payers, to deal with, it requires a lot
of knowledge and training etc.
6. To administer and to ensure proper compliance that
requires a support of a robust electronic controls; The items like Petroleum products, power, and real estate
are kept outside the said tax ambit.
7. To bring down the peak rates of taxation and enhance
revenue earning. Let throw some light on the burning two issues that

COVER STORY
currently plague the following: dealers failed to take the credit within stipulated time,
1. The technical issues on GST i.e. filing Returns & the Government has received the tax .
Forms ; If this credit is not allowed, it will be tantamount to
2. The other issues i.e. taxpayer’s grievances; double taxation on a single transaction because:
a. At the first stage, the purchaser has paid the
1. Technical Issues on GST i.e. Filing of Returns and tax to the Seller ;
Forms related thereon b. At the second stage, department is not giving
The technical issues in handling the GST may be categorize him the credit so he is required to pay it again.
as follows: i.e. It is a hardship to those dealers though GST itself is at
a. GST return filing issues and; initial stage was not fully stabilised.
b. Forms related issues and its consequences thereon; vii. September Return Due Dates
The GST council and the Finance Ministry‘s attention is Extension of the Claim and Unclaimed ITC is
required immediately on the issues in order to make the GST required before matching the invoice; it is wrong
more effective. to the taxpayers to submit claim of the ITC (Input
Tax Credit) before matching the invoice, for the date
GST Returns related issues: being shortened of October 20th.
In the GST system, there are number of Returns i.e. GSTR viii. Credit Reversal
1, 2, 3, 3A, 3B, 4 / CMP08, CMP02, 5, 6, 7, 8, 9, 9A, 9C, 10 To keep a note of the credit of purchases which the
& 11 and this is apart from some other various Forms and a payment has not been given to the suppliers may
dealer has to file minimum 37 returns annually. indulge an extra burden on the organization within
i. Allow the revised returns to remove technical the 180 days that must be reversed.
mistakes
The GST is a new one to the corporate as well as in Forms related issues:
the Indian business environment. It is very essential i. GSTR 2A Availability
to allow a chance to remove the mistakes in filing of Downloading and viewing monthly the annual
returns etc so that dealers are fearless in handling the GSTR 2A (if the recipient is of normal registration),
new GST requirements. creates difficulties and also to match the returns with
ii. Interest on Gross Tax, Section 50(1) the books of accounts with 2A returns. Further, the
It is better to collect the interest on Net due payment compliance of Rule 36(4) on a mandatory basis also
instead of Gross tax amount in case of delay in filing creates a problem.
the returns. ii. GSTR 3B Issues
iii. Waiver of late fee due to delay in submission of Under this return type, there is no scope of either
returns modification or amendment opportunity and in such
Late fees for delayed submission of returns are a very case, the changes are to be made and it invites one
big problem. The dealers who did not file their returns month period time for the amendment and as a result,
are waived. If a late fee is waived for the defaulters, its interest liability for the said month.
the late fees collected from the dealers who are iii. GSTR 1 Issues ( Furnishing details of outward
regular in submitting returns should be refunded. supplies)
iv. Accept the payment of tax in bank as the date of It is a difficult task in modifying the details of the
payment to the government credit note, debit note or B2C sales while filing the
The day one, tax deposited in the Bank and it is GSTR 1.
transferred to the Government exchequer but the iv. TRAN 1 Form
interest is charged till the date of set off of the tax. The department issues notices in Trans 1 in Form
Setting off the tax is just a technical procedure but 603 to everyone which is a troublesome for the
charging interest till that date is not justified. real taxpayers because said notice requires all
v. Removal of illogical and impractical provision in the previous records to be available which makes
RCM ( Reverse Charge Mechanism), Section 9(4) everyone a tiresome issue for the taxpayer to provide
The RCM is a just technical issue and zero revenue the details again.
effect in most of the cases, once the dealers has made v. Issues on E-way Bill
default in paying but they have paid the full tax as per E-way bill is required for movement of goods and
their tax liability. can be generated GSTN portal. To generate E way
vi. Input credit time expired please give one more bill through internet makes the dealers disappointed.
chance to dealers :-Section 16(4) A simple e-way bill generation procedure which has
Section 16(4) provides that input credit can only been effective from April 1, 2018.
be taken up to a definite period, but the numbers of vi. GSTR 10 & Cancellation of Registration

COVER STORY
Once the dealer cancelled their registration and the to file their returns regularly, that invites tax
application of surrender of RC, the submission of evasion ;
GSTR 10 has no value. Hence, it should be made b. But the present GST structure has no mechanism
optional for the dealers. for checking discrepancies found between GST
Returns for July-Dec and Final Returns.
2. Other Issues on GST i.e. Tax Payers Grievances
c. The discrepancies and e-way bill failure invites
i. Issues for Small Traders the menace of tax evasion through under-
In case of the SME, the following difficulties need invoicing.
attention: Vii. Issues on the Fiscal Gap & the Government
a. The handling the GST records and filing etc The Government is looking to improve revenues
invites an additional operational expenditure; requirement to the tune of Rs 1 lakh crore per month
b. High rate of GST rate on some products forces but the revenue shortfall gap is big problem to the
the potential buyers to opt for unregistered Centre and also in managing the budget every year.
dealers. viii. Issues on the IT system
c. It is also difficult to assign MRP to handmade It will be difficult to expect from small-scale business
products or locally made products. The firms to make the transition to an online IT platform
artisans are finding difficult to follow the MRP and expect no errors in return filing. It is a difficult
formalities or do any paperwork required. task for them to get experienced hands with IT
d. The small turnover organizations are exempted solutions. Further, the cost of SRP is a major concern
to pay GST, but the dealers find themselves hard for micro-small-medium scale enterprises.
to collect exemption certificate in need. ix. Make GST A Simple Tax
ii. Agricultural Commission Agent & Joint GST is the vehicle to help the smooth running of the
Development Agreement Issues economy and its purpose should be to help the Trade
The tax liability has to be paid on the commission and Industry and the ultimate aim is to make strong
according to the taxable goods but when the goods economy of the country. GST should be the “As
are rated NIL and the commission is not taxable, it Simple as Possible”.
would be relevant for the taxpayers to agree upon
exact scope of services under the JDA to determine Challenges under GST
its tax liability. The roll-out of the Goods and Services Tax Act (GST) in
iii. Service sectors threshold limit India is followed by the beginning of the following;
GST is “One nation One Tax” and exemption was up 1. Online GST Registration ;
to Rs.20.00 Lakhs both for Goods and Services but 2. E-filing of GST Return filing ;
this threshold limit was enhanced to Rs. 40 lakhs and
3. Digitalization of tax-related tasks;
is only for Goods including interstate trade. Small
service provider should also be given benefit of the 4. Regular Amendment & issue Notifications in order
same to a certain level to make it “One Nation One to bring the system in a comfortable situation ;
Tax”. In order to cope up with various technical and other related
iv. Issues for E-commerce Companies problems thereto, the Cost Accountants & the Chartered
Accountants who are engaged themselves in handling the
The 1 percent Tax to be collected at source while
GST issues, are constantly facing various challenges i.e.
payment to the sellers in e commerce business.
Hence, E-commerce giants like Flipkart, Amazon 1. Using the online GST mechanism ;
etc also have not escaped the after effects of GST 2. Keep track of various Returns & related Forms ;
rollout. The capital blockage will hamper day to 3. Alignment of their books & records in order to meet
day operational costs due to TCS (Tax Collected at the new GST requirements;
Source) provisions.
4. Keep track of various Amendments & Notifications;
v. Issues of Tax Collection
This led to the increased efforts and time by the CMA’s
The glitch in GSTN Network resulted massive and the CA’s that leads to the following activities in order to
tax evasion. The benevolent composition scheme, the GST compliance:
windows for filing quarterly returns, raises concerns.
1. Registration Process: Incorporation of customers’
The numbers of registered taxpayers has increased
details i.e. (a) customer’s address, (b). GST Number
but it had very little impact on Revenue generation.
etc,
vi. Issues of Tax Evasion
2. Class of activities : Manufacturing, trade or supply
Due to complex nature of returns and forms, the chain etc
following difficulties are noticed:
3. Classification of Goods & Services; (a) HSN Code
a. A considerable numbers of dealers are not able (Harmonized System of Nomenclature) for products,

COVER STORY
(b). SAC Code (Services Accounting Code) for especially for the exporter due to another technical
services in the invoices etc , reason.
4. Sales Policies, Billing & Invoicing: (a) Invoicing 13. Communication: Communication with the vendors
(b) Issuance of documents such as a Debit note & or dealers plays a very important role in order to
Credit note, (c) Receipt Vouchers, (d) Bill of Supply follow up the invoices missed or not uploaded in the
& E-Way Bill under the various circumstances. portal and reconciles the differences, if any.
Suppliers terms & conditions; 14. Audits of GST: Make ready the necessary facilities
5. Logistic Model: GST is a destination based tax and details in order to timely completion of audit ;
resulting there is an impact of logistic % taxes to be 15. Fines & Appeal: Filing an appeal against any
levied: strategize the supply is very important; , decision aggrieved by the dealer,
6. Returns Management : The volume of administrative
work of the CMA’s and the CA ‘s has also been Conclusion
increased due to mandatorily filing of several returns, It is a bold step of the Government of India i.e.
based on following: Introduction of the GST in July, 2017 in the country amidst
a. The constitution of the firm ; a lot of deliberation but it is a fact, GST was essential for the
b. The sales turnover of the business; Indian Economy and whole economy is dependent on the
success of the GST.
c. Books & Accounts ;
The gross revenue collection out of GST since the year of
7. GST Software: Apart from manually furnishing
implementation is stated below:
details & entering all invoices & bills into different
tools or company’s software or spreadsheet to adhere Financial Year: 2017-18: Rs. 7.41 lakh crores;
to the GST mechanism, Financial Year : 2018-19: Rs.11.77 lakh Crores;
Financial Year : 2019-20: Rs.12.22 lakh Crores; :
8. Reports & Associated activities: Moreover, the
The GST is not fully settled in the country and once
following activities also invite attention:
difficulties will be over and the Trade and Industry of the
a. Creation of GST reports; country is able to participate fully in the growth in economy
b. Cross-verification of company’s purchases, sales as expected.
& ITC details; To make it a success, the GST Council needs to pay
c. Correction of mismatches etc; attention on the taxpayer grievances and other associated
d. Reconciliation of data between the seller and problems. Attention is necessary to make it simple to
his supplier to be done on monthly or quarterly understand and easy to implement as well as cost effective
basis depending on the turnover of the company to the majority of the tax payers.
in order to claim full ITC and avert unnecessary The stringent procedures against evasion of tax are
payment of taxes. required in order to plug the loopholes of tax evasion. The
e. Upload of information to Government’s GST Government, GST Council, bodies of trade and commerce
portal. and also the professional share their hand to make the GST
a success and to improve the economic scenario of the
9. Timely submission of documents: To comply with
country.
the GST return system, the tax payers has to resort
new methods in order to upload all the invoices and
References
other related documents into the portal regularly on
real-time basis in GST ANX-1, filing of TRAN 1 & 2 1. Fundamentals of Goods & Services Tax: FCA Vineet
Gupta & Dr. N.K.Gupta ;
etc. ; 2. Taxmann’s All about GST : V.S.Datey;
10. Track of Invoice details : The uploading of regular 3. www.aktassociates.com;
invoice may sometimes invite complications i.e. 4. www.blog.sagininfotech.com
losing the regular credit of the goods purchased from 5. www.taxguru.in
a quarterly return filer if the seller misses to upload or 6. www.asianage.com
misses to uploaded the invoices on a regular basis; 7. www.taxveda.com
8. www.moneycontrol.com
11. Matching of invoices & ITC : 9. www.cleartax.in
a. Matching of the invoices uploaded by the 10. www.paisebazar.com
supplier in order to claim Input Tax Credit (ITC) 11. www.cmie.com
and this is apart from matching the invoices with 12. www.thehindu.com
the books of account on a daily basis, 13. www.thehindubusinessline.com
14. www.theeconomictimes.indiatimes.com
b. Chasing the suppliers who missed to upload 15. www.legaldocs.com
the invoices that is required to claim accurate 16. www.cbic.gov.in
or wrong ITC is different problem to the tax 17. www.pwc.in
payers;
cmakpray@gmail.com
12. Refunds: It is a challenge to file refund claim

COVER STORY
APPLICABILITY OF GST
ON THE
POWER TRANSMISSION
Abstract
Under the new GST regime, while various

goods & services have been covered for
charging GST under various rates, certain
goods & services have been excluded from
the GST regime.
CMA Rashmita Mukherjee
Officer (Finance & Accounts)
Transmission and distribution of electricity
NERLDC, Power System Operation Corporation Limited by transmission and distribution utility
(POSOCO), Shillong is exempt from GST. India being the
third largest producer and third largest
G
INTRODUCTION consumer of electricity, the impact of no
ST was introduced w.e.f the midnight of 1st GST on above is to be noted with regard
July 2017 in India on the supply of goods to the 3 sub sectors of power sector- power
& services. Under the GST regime, various
indirect taxes were subsumed, thus eliminating
generation, transmission and distribution.
cascading effect of taxes. This led to the “One Nation One This article analyses the impact of GST on
Tax” concept. the Power Sector as well as educate the
GST was introduced as divided into various tax slabs for reader about generation, transmission and
collection of tax- 0%, 5%, 12%, 18%, 28% based on the type distribution of electricity.
of goods or services.
While most of the goods and services are covered under
Finally, overall impact of no GST on power
the GST regime, certain goods & services are exempted sector and consumers has been analysed.
from GST (those covered under exemptions).
ELECTRICITY - A GOOD OR A SERVICE? be “goods” as per the UCC.

A customer’s electric meter measures the amount of The Hedger Court focussed more on the existence of a
electricity sent from the electricity provider and consumed transaction as opposed to the characteristics of electricity.
by the consumer. So, electricity can be termed as “goods”,
it being ‘moved electricity’ being used to generate the APPLICABILITY OF GST ON ELECTRICITY
customer’s bill. [Under the Uniform Commercial Code As per Notification 12/2017-Central Tax (Rate), the
(UCC), “goods” means all things which are movable at the Central Government has exempted the intra state supply
time of identification to the contract for sale] of certain services. Similar exemption has been provided
On the other hand, it can be argued that if electricity exists under Section 6 of the IGST Act, 2017 vide entry no. 26 of
in a high voltage transmission line, then electricity will not Notification No. 9/2017-Integrated (Rate) dated 28.06.2017.

COVER STORY
As per the above notifications, transmission/distribution related with transmission of electricity.
of electricity by transmission & distribution utility is Based on the above, PGCIL and POSOCO are not
exempted from GST. GST is levied on activities ancillary paying GST on its electricity transmission services.
to transmission of electricity (provided by Distribution Transmission companies like Power Grid and
companies to consumers) like Application fees for releasing POSOCO, while raising bill for the above services,
connection of electricity, Rental Charges against metering are not charging GST as these being covered under
equipment, Testing fees for meters/transformers, capacitors “electricity transmission services” performed by an
etc, Labour charges from customers for shifting of meters or “electricity transmission or distribution company”.
shifting of service lines, Charges for duplicate bill.
For an organisation/entity/person to claim
exemption under GST for electricity, the following
APPLICABILITY & IMPACT OF GST ON POWER
two conditions must be satisfied:
SYSTEM
a. There should be transmission or distribution
India is the world’s third largest producer and third largest
of electricity
consumer of electricity. The power sector can be further
classified into 3 sub sectors including power generation, b. It should be performed by an electricity
transmission and distribution. transmission or distribution utility
Electricity generationis the process of generating Electricity distribution is the final stage in the
electric power from sources of primary energy like delivery of electric power; it carries electricity from
coal, water etc. Companies like NTPC, NHPC are the transmission system to the individual consumers.
some generators of electricity in India.The total Electricity distribution in general, is exempt
installed capacity of India’s power generation, upto under GST and GST is not applied on distribution
March 2020, is 370 GW out of which 64.14 % is (Distribution companies billing electricity to
from Thermal & Nuclear and balance 35.86% is from ultimate consumers). However, GST is levied on
hydro and renewable sources. Electricity generation the developmental charges levied by the distribution
is outside the GST regime. companies.
Electricity transmission is the bulk movement
OVERALL EFFECT/IMPACT OF NO GST ON
of electrical energy from a generation site, such as
POWER SECTOR & CONSUMERS
a power plant, to an electrical substation through
interconnected lines which facilitate this movement The power sector is a mesh of contracts for engineering,
(transmission network). Powergrid Corporation of procurement, construction to generate electricity, boost
India Limited (PGCIL) &Power System Operation energy efficiency and shore up renewable power.
Corporation Limited (POSOCO) are two major Also, power generation has grown rapidly in the recent
companies playing a vital role in transmission of years, which is a considerable shift from fossil fuels based
electricity to state users and consumers. electricity generation towards renewable sources of power
Powergrid Corporation of India Limited (PGCIL) generation.India has huge potential for electricity generation
is a Public Sector Undertaking and also Central from renewable sources of energy with its huge diversity of
Transmission Utility engaged in power transmission sources for hydro power, solar power, wind power, biomass
business by maintaining inter-state transmission power, geothermal energy, tidal power and other renewable
system. resources.
The power transmitted through the transmission Due to exclusion of electricity from the GST regime, the
lines constructed by Power grid or any other user is power producers cannot claim credit for the tax paid (5%
required to be controlled and monitored to a certain GST on coal) on the huge amount of coal required daily and
level of frequency in order to maintain grid stability. its transportation cost while having to pay tax for buying the
Power System Operation Corporation Limited coal required daily. Thus, they charge more for electricity
(POSOCO), which had been formed to perform the generation, the effect of which passes on to the ultimate
functions of National Load Despatch Centre (NLDC) consumers. Though Indian households are not charged GST
& all Regional Load Despatch Centre (RLDC) to on their electricity bills, still Indian consumers ultimately
facilitate transmission of electric powers within & lose and have to pay more out of their pockets for electricity
across regions &transnational exchange of power consumption.
vide Notification dated 27th September, 2010, is
performing the function of optimum scheduling and REFERENCES
despatch of electricity while carrying out real time 1. cbic-gst.gov.in
grid operations. Thus, POSOCO performs the work 2. cea.nic.in
of mainly scheduling, having no commercial role in 3. powergridindia.com
execution of contracts entered into with the licensees 4. posoco.in
or generating companies. Hence, POSOCO may be
covered under Exemption list for GST applicability rashmita@posoco.in
and thus may not be liable to pay GST on the services rashmita08mukherjee@gmail.com

COVER STORY
IMPLICATIONS OF GST:
A PERCEPTIONAL STUDY OF
TRADERS
Manjunatha H. R.
Assistant Professor
Akshara Institute of Management Studies
Shivamogga
Abstract
Tax system plays a stupendous role in the economic activities and growth of any country.
Within the broader tax system, indirect taxes constitute major source of public revenue. The
Government of India replaced the Value Added Tax (VAT) with Goods and Services Tax (GST)
which is reckoned as a unique tax system integrating central and state tax administration.
Founded on the philosophy, ‘one nation, one tax system, it has brought in drastic changes in
the country impacting different sections of economy including traders. In this backdrop, an
attempt is made here to examine the perceptions of select traders on a few dimensions of GST.
G
Introduction exports. However, the new tax system demands a well-
ST which has replaced state VAT, Central Excise, designed and robust IT system for realizing its potential in
Service Tax and a few other indirect taxes is reforming indirect taxation in India.
a broad-based, single and comprehensive tax To some extent, GST is expected to avoid the adverse
levied on goods and services. It is a destination- phenomenon of double taxation. Implementation of GST
based taxation system levying tax on final consumption. It is ensures that India provides a tax regime that is almost
expected to reduce compliance costs, broaden the tax base, comparable to the rest of industrialized world. Introduction
foster a common market across the country and promote of GST has done much more than just allocating the tax

COVER STORY
burden from one sector/group in the economy to another. analysing the opinions obtained from the respondents, a few
It also provides an unbiased tax structure as it is neutral to descriptive statistics are used.
business processes and geographical location.
Perception of Traders towards GST – An Analysis
VAT Vs GST System – A Comparison In the light of the above, an attempt is made to analyse
GST helps in achieving uniformity in taxes across the and present the perception of traders selected for the study
territory even with the place of manufacture or distribution. on a few dimensions of GST with a special focus on the
Consequently, international cost competitiveness of implications as compared to VAT. This analysis of perception
domestic goods and services is ensured. It ensures greater is made under five heads wherein under each head two
transparency in taxing as well as ensures tax compliance variables are considered.
across the country with precise accuracy. New tax regime
removes some of the drawbacks of the old system like (1) Awareness about GST and Opinion about GST
cascading, double taxation and complexity. This new regime Rates:It may be noted here that the GST Rates vary between
is also more beneficial to end users. A hypothetical example 16 and 28% depending upon the nature of products, etc. The
presented below gives an idea about the benefits to the responses were obtained from the trader-respondents about
customers under GST as against VAT (Table – 1). two aspects viz., awareness about GST and also whether they
feel GST rates are reasonable. These responses are presented
Table – 1: VAT Vs GST – A Hypothetical Example below (Table – 2) followed by a brief analysis.
Amount Amount Table – 2: Awareness about GST and Opinion about

VAT GST
(Rs) (Rs) GST Rates
Price of
Price of Goods 60,000 60,000
Goods
GST Rates are Aware of GST
Add: Excise duty at CGST at Reasonable
7,500 5,400 Yes No Total
12.5% 9%
Sub-total 67,500 SGST at 9% 5,400 Yes 61 0 61
No 1 0 1
Add: VAT at 14.5% 9,788
Not responded 13 0 13
Amount Total 75 0 75
Amount payable by payable
77,288 70,800
the customer by the Source: Survey Data
customer
It is obvious from the above that all 75 respondent-traders
are aware of GST and possess adequate knowledge about
It is obvious from the above that the customers were GST. Of course, this is obvious as they (i.e., traders), directly
paying, under VAT system, both excise duty and VAT, and or indirectly, deal with GST. However, what is important is
therefore, for price of goods worth Rs. 60,000, the customer 61 traders out of 75 accounting for 81⅓% of total traders
was required to pay Rs. 77,288. That means, on price of selected felt that the GST rates are reasonable. This is a good
goods worth Rs. 60,000, the customer was required to pay sign as the traders are happy about the GST rates. Out of
tax to the tune of Rs. 17,288. On the other hand, under GST, the remaining, 13 traders have not provided their opinions
for the same goods, the customer is required to pay only Rs. about the GST rates, and the remaining lone respondent felt
70,800 which includes Rs. 10,800 of tax. The difference in negatively.
tax between the two systems amounts Rs. 6,488 (i.e., Rs.
17,299 – Rs. 10,800) in favour of GST. (2) Transparency in GST and Support for GST:The
respondent-traders were requested to provide their views
Objectives, Methodology, etc about two more aspects viz., whether the GST system
In the light of the above, an attempt is made in this paper to is simple to understand, transparent in its operation and
examine the implications of GST on traders. For this purpose, easy to implement, and whether they support GST system
opinions were obtained from 75 traders of Shivamogga city when compared to VAT. The responses obtained from the
which is one of the business hubs of Karnataka State through respondents are tabulated below (Table – 3).
the administration of a well-structured questionnaire. For
selecting the respondents, random sampling technique is Table – 3: GST – Transparency and Supporting
used. In the process of analysing the perception of traders,
the study also makes an attempt to sketch out the comparison Support GST
between VAT and GST. The study is based on the material GST as Simple,
collected from both the primary and secondary sources. Transparent and Easy Yes No Total
Primary data are collected from the sample respondents
who are the traders trading varieties of goods and services. Yes 15 3 18
And the necessary details are also collected from secondary
No 45 0 45
sources such as journals, websites, etc. For the purpose of

COVER STORY
Table – 5: Awareness about GST and Opinion about
Not responded 12 0 12 Trader-friendly
Total 72 3 75
Aware of GST
Number of Respondents
Source: Survey Data who felt, Yes No Total
It is obvious from the above that 72 out of 75 respondent- GST is beneficial 61 0 61

traders accounting for 96% supported the introduction/
VAT is beneficial 14 0 14
implementation of GST system by the Government of
India. And only the remaining three respondents working Total 75 0 75
out to 4% of the total number of traders selected for the
survey did not support the introduction/implementation
of GST. Surprisingly, though 72 respondents supported Source: Survey Data
the implementation of GST, 45 respondents accounting
It is apparent from the above, out of 75 respondent-
for 60% felt that the system is not simple to understand,
traders, 61 (81⅓) felt that GST system is beneficial to traders
not transparent in its operation and not easy to implement.
when compared to VAT. On the other hand, 14 respondents
Out of the remaining, 15 respondents (20%) supported the
accounting for 18⅔% felt that VAT was more beneficial than
view that the system is simple, transparent and easy. And
the GST system.
the remaining 12 respondents accounting for 16% did not
respond to these questions. Only three respondents (4%) who
did not support GST implementation felt that the system is (5) Rating for GST System:The respondents were also
simple, transparent and easy to implement. requested to assign rank, on a 10-point scale, the GST system.
The responses obtained from them show that majority of the
(3) Support for GST and Trader-friendly: Besides respondents (48 respondents out of 72 who supported GST
asking the respondents as to whether they support GST or not, system accounting for 66⅔ %) assigned7th and 8thranks in
they were requested to provide their opinion about whether terms of importance. On the other hand, three respondents
the GST system is beneficial to traders. The responses who did not support GST system assigned 4th to 6th ranksto
received from them about this query are summarised below GST system from the point of view of importance.
(Table – 4). From the above analysis of responses of traders, it is
obvious that majority of them are aware of GST system, they
Table – 4: GST – Trader-friendly and Supporting support GST system and they also feel that the GST system
is beneficial to the traders than the earlier VAT system.
Number of Respondents Support GST COVID-19 and GST Swing

who felt,
Yes No Total COVID-19 has been spelling devastating effects on
different sectors of the economy besides hardships to
GST is Beneficial 61 0 61 innumerable people throughout the world including India.
And the Government of India has been designing and
VAT is Beneficial 11 3 14 introducing packages after packages to rejuvenate different
sectors of the economy. Some of these developments are
Total 72 3 75
summarised below:
1. Disunion between essential and non-essential goods
Source: Survey Data
may percolate to GST during covid-19.
Out of 75 respondents, 61 respondents (81⅓%) felt that 2. The Government has recognised the crucial role of
GST system is beneficial to the traders. On the other hand, ATM in further the cause of financial inclusion. The
11 respondents opined that the VAT was beneficial to the ATM industry has pitched for a stimulus package
traders. It may be observed from the above that out of 72 along with several relaxations including lowering of
traders who supported GST system, 61 respondents working the GST rate.
out 84.72% were of the opinion that GST system is beneficial 3. The Government has given a relaxation to taxpayers
to the traders. for GST compliance for filing annual returns and
audits increasing the time duration. Date of filing
(4) GST – Awareness and Beneficial:Besides awareness GSTR 3B has been extended from November 2019
about GST system, the respondents were requested to to March 2020 for the state of Jammu and Kashmir.
provide their opinion as to whether they feel it beneficial to 4. Changes are made to the Insolvency and Bankruptcy
traders. The responses received from them are tabularized (IBC) clarifying that the resolution professional
below (Table – 5). shall be liable to take a new registration in each of
the states or union territories where the corporate

COVER STORY
debtor was registered earlier, within the 30 days of its some extent, the costs of goods and services on the other. It,
appointment or by June 30, 2020, whichever is later. directly or indirectly, adds wealth to the retailers.
5. GST officers have to audit and assess taxpayers via However, it is necessary for the Government to focus on
video-conference instead of undertaking physical rationalization of tax rates and to make it clearer and easier
visits amid the coronavirus pandemic, and the current as it merges all goods and services taxes into one GST.
guidelines need to be reviewed for this, according to Besides, awareness about threshold exemption limit needs
experts. to be created among retailers as many of them have not
• Large and medium units are compulsorily under responded on threshold exemption limit.
premises-based audits.
References
• For small units, desk-based audit has been
1. AkankshaKhuran and Aastha Sharma. (2019). Goods and
suggested. Services Tax in India – A Positive Reform for Indirect Tax
• Non-cooperative taxpayers or any inherent System.International Journal of Advanced Research. 4 (3),
weakness of the internal control system, officers 499-505.
could shift back to the premises-based audit. 2. Goutam Bhattacharya. (November 2017)Evaluation
and Implementation of GST in Indian Growth: A Study.
6. The parliamentary panel suggested to lower the GST International Journal of Commerce and Management
for auto sector at least till the revival of the sector, and Research, 3 (11), 65-68.
uniform road tax across all states against the backdrop 3. https://economictimes.indiatimes.com/gst
of negative growth in the automobile production. 4. https://cleartax.in/s/gst-news-and-announcements
5. Rekhaand Dev Karan. (February 2018). An Overview of
Concluding Remarks Goods and Services Tax (GST) in India. International Journal
of Business and Management Invention. 7 (2), 13-18.
GST which is the biggest reform in indirect tax system
6. ShilpaRani. (September 2017).Goods and ServicesTax (GST)
in the country is perceived even by the traders as a better and its Impact on Indian Economy. International Journal of
substitute for VAT. It is also viewed as benefiting traders Advanced Research and Development. 2 (5), 209-212.
more than the earlier VAT system. It is expected to have 7. Yogesh Kailashchandra Agrawal. (October. 2017).Goods and
positive impact on the Indian retail industry. It is also Services Tax and Its Impact on Indian Economy.IOSR Journal
beneficial for the Government to administer. It is expected of Business and Management. 19 (10), 26-30.
to improve the indirect tax revenue of both the Central and
manjugowda.ry@gmail.com
State Governments on the one hand, and minimizes, to

(Statutory Body under an Act of Parliament)
www.icmai.in
The Institute Welcomes Government Nominees to its 20th Council

The Institute of Cost Accountants of India has received two government nominations to the 20th Council from the
Ministry of Corporate Affairs, Government of India, in pursuance of the provisions of
the Cost and Work Accountants Act, 1959.
Shri Makarand Lele Shri Mukesh Singh Kushwah

We welcome them and are sure that their presence and guidance will help the Institute to move ahead to achieve a new
heights and function effectively for the cause of the CMA profession.

COVER STORY
IMPLEMENTATION OF
GST E-INVOICING SYSTEM:
A NAVIGATION
Abstract
In GST, E-Invoice, E means ‘Electronic’

which indicates the contribution of
computer because it generates an invoice
electronically. In simple words, e-invoicing
is a practice under which invoices are
digitally generated in an approved format
and the GST invoice information can be
Shilpa Narang
circulated electronically within the group Assistant Professor
of apprehensive individuals. The invoice Institute of Innovation in Technology and Management
information automatically gets saved in GGSIP University
the software decreasing the need for fresh Delhi
entries.
“GST is transparent and fair system that prevents black money and corruption and promotes
new governance culture.”
- Narendra Modi
G
Goods and Services Tax Act: An Introduction Composite Supply in Goods and Services Tax means that a
ST is an indirect tax which is launched in supply consist of two or more goods and services, which are
replacement of many other indirect taxes in physically bundled and supplied with each other in ordinary
India. The Goods and Service Tax (GST) course of business. Products supplied with two or more
Act was passed on 29th March, 2017 by goods and services are sold as a combination, out of which
the Parliament. GST came into consideration on 1st July, one of the products is a principle supply and the combination
2017; Goods & Services Tax Law is a comprehensive, multi- will not be separated from each other. A supply of goods
stage and destination-based tax that levy on every value and services is a composite supply when the following
addition. In simple words, Goods and Service Tax (GST) is conditions are true:-
an indirect tax levied on the Mixed Supply and Composite • Supply should be between two or more goods and
Supply of goods and services. This law is a mixture of all the services.
taxes which existed earlier in India. • It should be naturally bundled because it is provided

COVER STORY
in the normal course of business. the delivery of goods and services is not in the same
• The combination of goods and services cannot be location.
separated.
General Components of GST
Mixed supply is a combination of supply where two or
more goods and services are combined together to make a CGST- CGST is collected by the Central Government
single price. Each of these products can be sold separately through Intra-State sale.
and are not dependent on each other. In this supply the tax SGST- SGST is collected by the State Government
rate will depend on the product which has the higher price. through Intra-State sale.
For example-A Diwali gift box consisting of canned foods, IGST- IGST is collected by the Central Government
sweets, chocolates, cakes, dry fruits, and aerated drink and through Inter-State sale.
fruit juices supplied for a single price is a mixed supply. All
are also sold separately. Since drinks have the highest GST E-invoicing under New GST
rate of 28%, drinks will be treated as the main product on
GST e-invoice is referred as the digital invoice for goods
which GST will be charged.
and services provided by the business firm produced by
the government GST portal. The concept of GST e-invoice
E-Invoice in Goods and Services Tax Act: An
generation system has been launched for the reduction in
Introduction
GST evasion. The GST officers have decided to provide the
“E-invoice system is being designed so that it can handle businesses with a system through which they can generate
approximately 1 crore invoices in a day, which is more than ‘e-invoice’ for every sale on the government GST portal.
the current daily average reported in GSTR-1. If needed, it This system is applicable only to those whose turnover
will be possible to enhance this capacity to even 10 crore threshold is above the limit mentioned by the government.
invoices in a day,”
Pankaj Dikshit, Senior Vice President-IT Infrastructure Purpose of E-invoice under GST
at GSTN To observe the movements of goods for monitoring any
tax evasion, e-way bill system has been introduced in GST
The government in December 2019 stated implementation system. Under this regime, wherein any registered person
of e-invoicing in a phased mode. Taxpayers with a turnover prior to movements of goods via conveyance would notify
of over Rs 500 crore can implement it on voluntary (trial) detailed information about each transaction to the tax
basis from January 1, 2020 while those with a turnover of department.
over Rs 100 crore can adopt it (on voluntary trial basis)
from February,1 2020. It shall be made mandatory for all Current Scenario of issuing E-Invoice
taxpayers with a turnover of over Rs 100 crore from April
In today’s time businesses issue invoice through many
1, 2020.
software’s and the details of those invoice are recorded in
“Experts assume discrepancy in e-invoicing can knock GSTR-1return. Information of invoice is further available on
businesses in an immense way, hence it is vital that GSTN is GSTR-2A for the recipients to cross check the transactions.
fully ready-to-go for this” Apart, from this transporters have to generate e-way bill by
- In an interview with ETCFO, Dikshit however importing invoice in excel. Keeping the new return system
highlighted the readiness of GSTN in mind, an annexure form GST ANX-1 will take place in
GSTR-1 return. But the process of generating and uploading
Objective of the Study- an e-invoice will remain the same.
• To determine the core stand point of implementation
of e-invoice in GST Act. Process of getting an E-Invoice
• To state the amendment of GST E-invoice and its Process of getting an E-Invoice in GST is-
impact on business. 1. Taxpayer must make sure to use the reconfigured
ERP system according to PEPPOL standard. He
Common Levy and Charge of GST must manage with the software service provider to
1. Intra Supply of Goods and Services integrate the standard set for e-invoicing and must
maintain the mandatory parameters. It should be
This supply of goods and services happens when both
competent of generating the JSON file for multiple
the supplier and buyer have the same location. In this
invoices at the same time. Those taxpayers not having
supply, seller needs to collect both CGST and SGST
the software will be provided with the offline utility.
because the delivery of the goods and services is in
At a future date when e-invoicing is applied to small
the same location.
taxpayers, they can select from 8 different accounting
2. Inter Supply of Goods and Services and billing software’s all engaged with the GSTN.
This supply of goods and services happens when the 2. The taxpayer must later raise a normal invoice on the
location of supplier and buyer is not same. In this particular software. He must give all the necessary
supply, seller needs to collect IGST only because details such as, billing name and address of the

COVER STORY
customers, GSTN of the supplier, total transaction different taxes quarterly, annually, half-yearly, etc. when
value, Item rate, GST rate applicable, tax amount, etc. there are more departments, the more is the harassment.
3. Upload the details of invoice especially in mandatory In present, the total tax levied by the central and the state
fields onto the IRP using only the JSON file. It can be governments comes up to 32%, but with the execution of
done in two ways like, GSPs or APIs software. Here, GST, the business owners have to pay a lower tax of 18-
the IRP will act as central registrar for e-invoicing. 22 percent. Additionally, they do not have to pay taxes for
There are several modes to interact with IRP such various departments.
as web-based, API-based, SMS based, mobile app-
based, etc. Conclusion
4. IRP will authorize the details of B2B invoice, checks E-invoicing as a concept is undeniably the next level
whether there is any duplications and generates an frontward in India’s GST journey. E-invoicing denotes
e-invoice reference number for reference. There are the system which operates with B2B invoices uploaded
four parameters in this: electronically and authorized by a nominated portal.
• Seller GSTIN The espousal of e-invoicing standards will certainly impact
the standardization of invoices for easy and speedy data
• Invoice number
access and retrieval without any impact on its physical or
• FY in YYYY-YY printed appearance. To sum up, taxpayers will continue to use
• Document type (INV/DN/CN) their existing ERP systems to generate their invoices just as
5. IRP generates the e-invoice reference number, it has a they have done before, however, with the new standard being
digitally sign in the invoice and creates a QR code in embraced by the specific software in place, data exchange
Output of JSON for the supplier. However, the seller process and readability at present becomes easier.
of the product will get the e-invoice through email, if
email is provided in the invoice. GST goods service tax!!!
6. IRP have to send the authenticated payload to GST Grows service trading….
portal for their GST returns. In addition, all the details Act of tax…
will be forwarded to the e-way bill portal, if it is Tax for buy…
applicable. ANX-1 of seller and ANX-2 of the buyer
Economy developing…
will be auto-filled for the relevant tax period. In turn,
it will determine the tax liability. Harmony integrating…
Comforts gaining
E-Invoice – Invoice Registration Portal Luxuries draining
CGST Notification 69/2019 advises an e-invoicing portal People are paying…
that will admit e-invoices, confirm the invoice and produce
India is raising…
a unique Invoice Reference Number. The approved list of
websites of this e-invoice portal includes: -Sharmistasree
- www.einvoice1.gst.gov.in
References
1. GST in reality is ‘Good and Simple Tax’: Top quotes
- www.einvoice3.gst.gov.in from GST rollout launch. (2017, June 30). Retrieved
- www.einvoice4.gst.gov.in from https://indianexpress.com/article/india/goods-
- www.einvoice5.gst.gov.in and-services-tax-rollout-narendra-modi-arun-
jaitley-pranab-mukherjee-parliament-4729802/
2. Impact of GST on Small and Medium Enterprises.
(n.d.). Retrieved from https://www.dbs.com/in/sme/
- www.einvoice8.gst.gov.in businessclass/articles/economic-outlook/impact-gst
- www.einvoice9.gst.gov.in 3. Nawani. (n.d.). Q.1 – What do we mean by GST
- www.einvoice10.gst.gov.in e-Invoicing? Retrieved from https://blog.saginfotech.
com/gst-e-invoice-generation-system
This portal is also known as Invoice Registration Portal 4. ClearTax. (2020, March 30). E-invoicing under GST
(IRP). The first IRP approved by the Government of India - What is GSTN’s e-Invoicing Software? Process,
is the National Informatics Centre (NIC). Implementation. Retrieved from https://cleartax.
in/s/e-invoicing-new-gst-return-system
Impact of GST E-Invoice on Business
GST is proposed to bring every indirect tax under one roof.
For businesses, owners or manufacturers have to maintain
different taxes and have to scamper to various departments shilpaarora2487@gmail.com
to fulfill all the tax-related documents. Some businesses file

COVER STORY
THE DUAL GST MODEL IN

INDIA:
EMANATING OPPORTUNITIES
AND CHALLENGES
Abstract
GST model in India is a switch over

from the origin based taxation system
to the destination based. It has also
systematically shifted the federal fiscal
Dr. Pramod Kumar Pandey relation between the Centre and the States
Associate Professor to cooperative federalism. It is expected
Presidency University to have direct impact on fiscal disciplines
Bengaluru of the States. For the transition period the
revenues of the State Governments are
protected however scene after five years
are dark and unpredictable. The paper
B
Introduction
efore GST came into operations Indian discusses the mechanism and implications
indirect system was suffering from various of tax revenue sharing between the Centre
shortcomings. Bagchi, A., (1994) denoted trade and the States under dual GST model and
taxes existed in India as archaic, irrational
and complex necessitating immediate reforms. Further emanating opportunities and challenges
Chelliah (2006) described then prevailing indirect tax laws therefrom.
as irrational and bringing cascading effects. The existing
confusions and complexities were acting as barriers in ease
of doing business.
taxes, most of the countries in the world have implemented
Goods and Services tax (GST) was introduced in India two rate structure; standard and preferential. However, in
with effect from 1st July 2017. GST is an integrated system India five rates structure has been devised for goods and
of taxing goods and services at national level. It is grounded seven rates structure for services. GST is not just combined
on the notion of “one country one tax.” Starting from France VAT and services tax rather it binds most of the multiple
in 1954 it has now spread around in 160 countries in the indirect taxes into one unified whole. It incorporates many
world. It takes its form from Value added tax (VAT) which distinguishing features that makes it unique in the world.
first appeared in the form of Modified value added tax
(MODVAT) in the year1986. Thereafter, it was introduced in GST has been implemented to overcome many problems
services tax in the year 1994 and then, in the sales tax at the including rampant tax evasion practices, cascading effects,
States level in the year 2006. multiplicity of taxes and complex procedures. GST is based
on the premise of destination principle which encourages
One of the common problems of consumption taxes is that geographic fragmentation leading towards generating more
it may turn out to be regressive if tax rates are not structured tax revenue. It thus taxes only final consumption and other
properly. To defeat this regressive nature of consumption

COVER STORY
stages of production and distribution are only treated as mere on marginal propensity to consume and thus to some extent
pass through (Thirteenth Finance Commission Report, GOI, this argument is valid. However to equate the revenue
2009). of manufacturing or exporting State with consuming the
GST is the next logical step leading towards comprehensive direction of consumption should be towards taxable goods
tax reform in the country which is expected to bring gains and services. In other words, if majority of consumption
for trade and business, consumers and the Government goes towards nontaxable goods and services, sufficient
collectively (First discussion paper on GST, 2009). Further revenue generation cannot be guaranteed for manufacturing
Government of India (2014) described the GST as the and exporting States.
historic reform introduced with the objectives of widening Further for initial five years, the revenues of the States
tax base, bringing overall tax rate at lower level, ensuring are protected because of transfer of GST compensation by
better compliance and avoiding cascading effects. However, the Centre to the States. However, the scene after five years
GST has brought a paradigm shift in power structure in fixing are dark, and unpredictable. Mukherjee (2020) identified
tax rates and more particularly revenue sharing mechanism Karnataka, Punjab, Goa, Odisha and Chhattisgarh as major
between the Centre and the States. States where the impact of withdrawal of GST compensation
would be substantial. On analyzing the amount of GST
2. New Centre and State relationship emanating from compensation released by the Union Government for
Cooperative federalism principle financial year 2017-18 and 2018-19, it can be seen that all
Before GST introduced in India, article 246 of the these ten States are among top manufacturers and exporters
Constitution of India had brought into application the (Figure-1).
federal principle by clearly distributing the power to tax
goods and services between the Centre and the States by Figure-1: Top ten States having higher total share of
virtue of corresponding lists in seventh schedule. However, GST compensation for the Financial Year 2017-18 and
our constitution was amended vide 101th Amendment Act, 2018-19
2016. As per article 246A, of the Constitution of India,
Parliament and State legislature have powers to make laws
with respect to Goods and Services tax imposed by Union
or by the State and the Parliament has exclusive power to
make laws with respect to Goods and Services tax for supply
of goods or services or both in the course of interstate trade.
Further, Article 269A explains that in case of inter-state
supply, tax shall be levied and collected by Government
of India and apportioned between Union and States in the
manner provided by parliament on recommendations of Source: Author’s computation based on data collected
GST Council. Here the GST Council has been entrusted with from pib.gov.in
the role of facilitator in grand bargain process between the
Centre and the States (Kelkar, 2019). Bagchi (1994) had apprehended that this dual model
The concept of “cooperative federalism” emanates from of GST might confine taxation powers to the Central
report of Thirteenth Finance Commission, Government of authorities only. Now under present system, GST rates are
India (2009) which implies a system wherein both the Centre decided by GST council and hence controlling powers of the
and the States work together in harmony to achieve the States has been transferred to GST council. As a result, the
common national goal. It is made operationalized by a system States have lost their autonomy in fixing rates. Mukherjee
wherein each transaction is to be taxed simultaneously by (2020) also pointed out that as compared to Union, the
the Central Government and the States at the same tax rate State Governments have lesser power to generate additional
and on the same tax base. revenue to meet shortfall of the tax revenue and thus revenue
protection through GST compensation plays important role
3. Revenue sharing between the Centre and the States in motivating the States.
in India: mechanism and implications
Flavor of GST flows from the philosophy of cooperative 4. Challenges and opportunities emanating from GST
federalism where both the Centre and the States join to for the Union and the State Governments
work for the nation. GST being a destination based tax, the By virtue of section 7 of GST (compensation to States)
major cause of concern for the States remains the revenue Act, 2017 the Union Government shall compensate to the
sharing mechanism under it and more particularly when it States for any loss of revenue during the transition period
is a case of either manufacturing or exporting State (Panda, at projected annual growth rate of 14%. However, the
2019). Despite ambiguity, it has however been argued that growth rate in GST collection on year on year (YOY) basis
producing and exporting States will also be benefitted is ranging in between 4% to 6% only and even negative in
from GST because both the production and exports have September, October and March 2020 (Figure-2). Now, NRR
the capacity to generate income and thus boost revenue of 14% in these circumstances is going to huge burden on
growth (CBIC, GOI, 2019). Since, consumption depends the exchequer of the Union Government. In these scenarios,

COVER STORY
probably exploring a new design of GST compensation to References
States may not only provide a proper revenue protection 1. Acharya (2005): “Thirty Years of Tax Reform in
for the States but may also relieve the burden of Union India”. Economic and Political Weekly, Vol. 40
Government (Mukherjee, 2020). No.20, pp. 2061-2070
2. Bagchi (1994): “Reform of domestic trade taxes in
Figure-2: Growth rate in GST collection YOY basis
India: issues and options”. New Delhi: NIPFP
3. Chelliah (2006): “Reforming India’s Tax Base for
Economic Development”. In JHA R. (Ed.), The First
Ten K R Narayanan Orations: Essays by Eminent
Persons on the Rapidly Transforming Indian
Economy (pp. 5-16). ANU Press.
4. Goods and Service Tax concept & status (2019):
Central Board of Indirect Taxes and Customs
(CBIC), Department of Revenue, Ministry of
Finance: Government of India
5. Kelkar (2019): “Towards India’s New Fiscal
Source: Author’s computation based on data collected Federalism”, Working Paper No. 252, New Delhi:
from pib.gov.in National Institute of Public Finance and Policy
6. Mukherjee, S. (2020). Possible Impact of
As per the report of World Bank (2018) however, the Withdrawal of GST Compensation Post GST
consecutive twin shocks of GST and demonetization Compensation Period on Indian State Finances.
have rendered the consumption level to go down in India. New Delhi: NIPFP.
Postponing GST on five petroleum products is creating
7. Panda, M. (2019). “Resource Sharing between
cascading effects. If five petroleum products is included
Centre and States and Allocation across States:
in GST, the burden of the States will become unbearable.
Some Issues in Balancing Equity and Efficiency”.
Thus, there is a vicious cycle. It can further be noted that
Delhi: Institute of Economic Growth
after implementation of GST, the State Governments are
permitting more and more alcoholic liquor shops. For 8. Poddar, Ahmad (2009): “GST Reforms and
example, as per report of The Hindu, (13 September 2017) Intergovernmental Considerations in India”.
Telangana has licensed 2216 liquor shops during the year Working Paper No.1/2009-DEA, Department of
2017-19. Noticeably the social costs of demerit good like Economic Affairs Ministry of Finance: Government
alcohol is a substantial and harmful to the society. Now, of India, PP 17-18
only two and half years are left for the GST compensation 9. Sebastian (2018): “India’s Goods and Services Tax:
for the States. Arguably there is huge disparity in per capita Salient Features and post-implementation issues”,
income in different States of India which always poses the International VAT Monitor, pp. 74-80
challenges for bringing balanced regional growth (Kelkar, 10. The Empowered Committee of State Finance
2019). Thus, there is a challenge for the States to bring up Ministers: (2009): “First discussion paper on GST
the consumption level in short time span to increase GST in India”. New Delhi: Government of India.
revenue. However, there is opportunity also if the States
11. The Hindu (13 September, 2017): “TS Government
are able to increase consumption levels since GST has the
permits 2216 liquor shops”, special correspondent
potentiality to minimize tax evasion to a great extent.
report: Hyderabad
5. Concluding remarks 12. The World Bank (2018): “India Development
Update: India’s growth story March 2018”. New
The aim of any revenue sharing system should be bringing
Delhi: The World Bank Group
balanced growth across all the States and Union territories.
However, GST being a destination based tax and hence 13. Thirteenth Finance Commission (2009): Thirteenth
it may shift some revenue from the producing States to Finance Commission Report (Report no 1):
the consuming States. At the same time since exports are Government of India
treated zero-rated under GST, the exporting States may also
face loss of revenue. This, loss will be unbearable if five
petroleum products are brought within the purview of GST.
pramodkumar@presidencyuniversity.in
It is thus high time to work upon a new design of revenue
sharing for relieving both the Centre and the States from
fiscal pressures and ensure balanced growth across the
different provinces. GST is a great reform, however, to ripe
its full benefits some adjustments are needed both from the
Centre and the States front to make it a success.
.

COVER STORY
A STUDY ON THE IMPACT OF

GST ON THE ECONOMY OF
INDIA
Abstract
Goods and Services Tax (GST) came

into effect from 1st July’2017 through the
implementation of the One Hundred and
First Amendment of the Constitution of
India by the Indian Government. The GST CA Sk. Shakeel
Ph.D Scholar
replaced multiple taxes such as Central
University of Calcutta
Excise Tax (CST), Service Tax, Value Added Kolkata
Tax (VAT) and Entertainment Tax levied by
the Central and State Government. It is a
comprehensive, multistage, destination-
based tax. In this study we analyze the
impact of GST on Indian Economy. The
present study attempts to evaluate the
impact of GST on GDP growth rate,
Consumer Price Index (CPI), Revenue
and Fiscal Deficit of India. The study also
highlights the role of a CMA with regard Dr. Sukamal Datta
to GST. Principal
Naba Ballygunge Mahavidyalaya
Kolkata
G
Introduction to modify, reconcile or to procure any law or regulation
ST is a single National uniform tax levied all based on the context of goods and services tax in India. The
over India on all goods and services. In GST GST council is responsible for any revision or enactment of
all indirect taxes such as Excise Duty, Central rule or any changes of the goods and services in India and
Sales Tax (CST) and Value Added Tax (VAT) for effective monitoring of GST, a network has been created,
etc have came under one umbrella. Introduction of GST is a named as Goods and Services Tax Network (GSTN) which
very good step towards a comprehensive indirect tax reforms is formed for creating a sophisticated network, accessible
in India which is expected to lead India in the economic to stakeholders, Government, and taxpayers to access
growth. The tax rates, rules and regulations are governed by information from a single source (portal). It is accessible to
the GST council. GST council is an apex member committee the tax authorities for tracking down every transaction. Table
1 shows the journey to GST.

COVER STORY
Table 1: Journey to GST
Year Details
2000 Vajpayee Government started discussion on GST by setting up an empowered committee.
Announcement to GST for the first time was made by the then Union Finance Minister, during budget of 2007-08
2006
that it would introduce from 1st April 2010.
2009 First discussion paper was released by the Empowered Committee.
2011 Constitution (115th Amendment) Bill introduced and subsequently lapsed.
2013 GSTN, a private company was set up to provide the IT backbone for GST.
2014 The Constitution (122nd Amendment) Bill was introduced in the Lok Sabha.
In August, The Constitution (One Hundred and First Amendment) Act was enacted.
2016
In September, 1st GST Council Meeting was held.
In March, GST Council Recommends the CGST, SGST, UTGST and Compensation Cess Act.
In April, The CGST, IGST, UTGST and Compensation Cess Acts passed.
In May, GST Council recommends rates and rules.
2017 In June, All States except J&K passed their SGST Act.
On 30th June, 8th GST Council Meeting held.
On 1st July, GST Launched.
On 8th July, SGST Act passed by J&K; CGST and IGST Ordinances promulgated to extend GST to J&K.
(Source: www.gstcouncil.gov.in, The GST Saga)
Research Objective growth rate of GDP, GVA, GNI, NNI and annual change in
1. To study the impact of GST on GDP growth rate, CPI, GDP.
Revenue Collection and Fiscal Deficit.
Table 2: GDP, GVA, GNI, NNI growth rate and
2. To find out the role of CMA with regard to GST.
Annual change in GDP
Research Methodology Annual
The present study is conclusive and descriptive. The study Year GDP change in GVA GNI NNI
was conducted on secondary sources of data collected from GDP
books, articles, journals, e-sources, etc. 2018-19 6.81 -0.19 6.63 6.89 6.92
2017-18 7.17 -1.00 6.94 7.24 7.04
Analysis and Findings 2016-17 8.17 0.17 7.88 8.18 8.12
The impact of GST on India Economy can be seen
2015-16 8.00 0.59 8.03 7.99 8.02
by looking at three macroeconomic fundamentals .i.e.,
GDP growth rate, Consumer Price Index (CPI), Revenue 2014-15 7.41 1.02 7.15 7.48 7.53
Collections and Fiscal Deficit. 2013-14 6.39 0.93 6.05 6.31 5.98
2012-13 5.46 0.22 5.42 5.14 4.54
1) Impact on GDP Growth
2011-12 5.24 -3.26 5.22 5.45 5.00
One of the focus areas of the Government is to assess the
impact of GST on Indian economy. GST expands the tax 2010-11 8.50 0.64 8.03 7.96 7.83
payer base which will bring revenue for the Government 2009-10 7.86 4.78 6.86 7.86 7.53
and subsequently it will raise public investments and 2008-09 3.09 -4.57 4.31 2.91 2.24
thereby having an impact on GDP. GST will also reduce
2007-08 7.66 -0.40 7.38 8.05 7.77
cascading effect of multiple indirect taxes which will make
Indian products competitive in the international market 2006-07 8.06 0.14 8.05 7.99 7.83
leading to increase in export which will again impact GDP. 2005-06 7.92 0.00 8.28 7.90 7.74
Initially the economy witnessed a slight dip in the GDP on
implementation of GST. However, GDP growth picked up (Source: https://m.statisticstimes.com) (GVA- Gross Value
gradually within first year of implementation of GST. The Added, GNI- Gross National Income, NNI-Net National
GDP growth rate for 2018-19 was 6.81%, while in the year Income)
2017-18 the actual GDP stood at 7.17%. Table 2 shows

COVER STORY
Chart 1 : GDP, GVA, GNI, NNI growth rate and Annual change in GDP
Findings: 6.63%, 6.89% and 6.92% respectively. The GVA, GNI and
GDP at constant (2011-12) prices in the year 2018-19 is NNI show a declining trend from the year 2016-17.
estimated at 6.81 percent as compared to the growth rate
of 7.17 percent in 2017-18. The growth in GDP in 2018- 2) Impact on Consumer Price Index (CPI)
19 was lowest since 2014-15. The moving average of GDP CPI is a macroeconomic indicator of inflation and used as
shows a rise from the year 2012-13 to 2016-17 and from a tool by Central banks for inflation targeting and monitoring
2016-17 it started declining i.e., from 8.17% in 2016-17 price stability, and as deflators in the national accounts. A
to 6.81% in 2018-19 which is matter of concern. Since the large number of products in the Consumer Price Index (CPI)
implementation of GST in the year 2017-18 the GDP, GVA, basket being exempt from GST compensated for the rise in
GNI and NNI has shown a fall. The annual change in GDP the tax rates on other items. Table 3 shows the Consumer
has become negative from 2017-18 onwards. Overall GVA, Price Index (CPI) or Average Inflation India year wise.
GNI and NNI growth rate in 2018-19 at constant prices are
Table 3: Consumer Price Index (CPI) or Average Inflation India - by year
(Source: https://www.inflation.eu)
Findings: moved to 7.66% in the year 2019.

From Table 3 it is observed that from 2001 to 2010 the CPI
shows an increasing trend as a sign of continuous inflation 3) Impact on Revenue Collections and Fiscal
in each year. But from 2010 to 2017 (except 2013) there is Deficit
declining trend in CPI which shows a control on inflation. Fiscal Deficit is the difference between the total income of
The CPI in 2017 stood at 2.49% moved up and arrived the Government (total taxes and non-debt capital receipts)
at 4.85% in 2018 after the implementation of GST and it and its total expenditure. It occurs when the Government’s

COVER STORY
expenditure exceeds its income. This difference is calculated as a percentage of GDP of India. GST will increase the total
taxes collected by the Government thereby increasing the total income of the Government which will reduce the Fiscal
Deficit. GST plays an important role in increasing the revenue collections of the Government. Table 4 shows quarter-wise
collections of GST.
Table 4: Quarter-wise GST Revenue Collection (` in crores) (All States and Union Territories)
Year 2017-18 2018-19 2019-20

July- Oct- Jan- April- July- Oct- Jan- April- July- Oct- Jan-
Quarter Sept’17 Dec’17 Mar’18 June’18 Sept’18 Dec’18 Mar’19 June’19 Sept’19 Dec’19 Mar’20
CGST 30427.63 42850.33 45902.69 50457.92 46948.40 49716.80 55745.10 57342.06 52273.90 57135.09 60693.44
SGST 45304.05 62338.34 64218.32 69393.70 64507.58 68354.70 76542.05 78608.46 71844.29 77610.67 81169.64
IGST 51981.90 70599.07 70564.74 78972.10 73224.49 76419.62 79634.92 82252.16 73478.19 79953.49 83739.19
CESS 13909.71 20875.10 21534.87 21685.65 21570.20 21284.87 22748.57 22868.84 21077.71 21175.46 23184.68
TOTAL 141623.29 196662.84 202220.62 220509.37 205800.67 215775.99 234670.64 241071.52 218674.09 235874.71 248786.95
(Source: https://www. gst.gov.in)
Findings: Chart 2: Taxes as a percent of GDP

From Table 4 it is observed that in the year 2017-18
the total GST collection has increased on comparing each
quarter, so it shows an increasing trend in the collection of
GST in 2017-18. While in the year 2018-19 it can be seen
that the collection on GST shows a fall from quarter April-
June’18 to July-Sept’18 and then it shows a rise in collection
from quarter Oct-Dec’18 to April-June’19 and again in
July-Sept’19 quarter there is a fall in collection of GST. (Source: Economic Survey 2019-20) (Here PA represents
So, necessary step is required to be taken for increasing the Provisional Actual, BE represents Budgeted Estimate,
collection in July-Sept quarter as in every year this quarter CIT- Corporation Tax, ToI- Taxes on Income other then
shows a fall in GST collection. While January-March Corporation Tax, UED- Union Excise Duties)
Quarter shows the highest collection in each year.
From Chart 2 it is observed that GST as a percent of GDP has increased from 2017-18 to 2018-19 i.e., from 2.6% to 3.1 %
indicating a higher revenue for the Government. It can be seen that after the implementation of GST, the Customs Duty and
UED as a percent of GDP has fallen i.e., from the year 2017.
Table 5: Showing Revenue receipts, Gross Net Tax receipts, Fiscal Deficit, Revenue Deficit and Primary Deficit
Details 2014-15 2015-16 2016-17 2017-18 2018-19 (PA) 2019-20 (BE)

Revenue Receipts (in `
11.01 11.95 13.74 14.35 15.53 19.63
Lakh Crore)
Gross Tax Receipts (in
12.45 14.56 17.16 19.19 20.80 24.61
` Lakh Crore)
Net Tax Receipts (in `
9.04 9.44 11.01 14.42 13.17 16.50
Lakh Crore)
Fiscal Deficit ( as a %
4.1 3.9 3.5 3.5 3.4 3.3
of GDP)
Revenue Deficit ( as a
2.9 2.5 2.1 2.6 2.4 2.3
% of GDP)
Primary deficit ( as a %
0.9 0.7 0.4 0.4 0.4 0.2
of GDP)
(Source: https://www.indiabudget.gov.in, Economic Survey 2019-20)

COVER STORY
From Table 5 it is observed that gross tax receipts and consumption GST collection is also lower. GST would be
revenue receipts shows an increasing trend from the year instrumental in economic distortions, which in turn, would
2014-15 and fiscal deficit and revenue deficit has started to provide necessary impetus to Indian Economic growth.
fall from the year 2017-18 i.e., after the implementation of In this study we mainly focus on three macroeconomic
GST. fundamentals .i.e., GDP growth rate, Consumer Price Index
(CPI), Revenue Collections and fiscal Deficit. Though
Role of a CMA GST has positive impact on Fiscal Deficit and has also
A CMA can- increased the total taxes and revenue of the Government
but the GDP factor is still to be worked on and necessary
»» Interpret the proposed GST law and may provide
measures are required for improving GDP growth rate and
required guidance and advisory services to eradicate
one such measure is to increase the exports. CPI inflation is
bottlenecks in finance, production, taxation,
required to be controlled for which the Government has been
administration, supply chain management, etc.
rationalizing the GST rates on items of daily use by common
»» Maintain systematic records of credit of input/output people for removing the tax burden from lower income
service and its proper utilization. group and also to curb leakage of revenue the Government
»» Assess the impact on business plans, contract has introduced E-Way bill system but yet there is long way
review for cost reduction/price revisions, transaction to go, and GST plays a significant role for improving the
structuring by mapping existing business model. Indian Economy.
»» Assist the businesses entities in providing assistance
towards GST registration, claiming tax credits, References
ensuring all necessary legal compliances, procedural 1. Economic Survey 2019-20.
formalities and other administrative follow ups. 2. https://gst.caknowledge.com
»» Make representations before the Appellate Tribunals 3. https://www.indiabudget.gov.in/economicsurvey
for Dispute Resolution of GST.
4. https://indiabudget.gov.in
»» Perform Audit functions like review of record
5. https://gstcouncil.gov.in
& procedural aspects, verification of returns,
reconciliation between submissions to various 6. https://www.pwc.in
authorities, statutory compliances & Audit, Internal 7. https://www.services.gst.gov.in
Audit & System improvement. 8. https://www.blog.saginfotech.com
»» Aid technician in designing of software modules like 9. https://karvy.com
ERP, SAP, Tally, etc
10. https://taxguru.com
Conclusion 11. https://cleartax.in
The growth of collection of GST and the growth of Indian 12. https://www. gst.gov.in
Economy both are positively correlated to each other. In 13. https://services.gst.gov.in
the present scenario when the whole world is struggling 14. https://www.pwc.in
due to COVID 19, Indian Economy went down, factories
are temporarily shutdown, some businesses have been
compelled to close and unemployment is increasing day
by day. As a result of it collection of GST is lower. Though caskl2013@gmail.com
GST is a good source of Government revenue but due to less dattasukamal2@gmail.com
OBITUARY
The institute and its members deeply mourn the demise of CMA Syamal Kumar
Datta (M/4872) a Practicing Member who left for heavenly abode on 09th June, 2020.
He was retired as project Head of Finance from NTPC.
May God bless the family have the courage and strength to overcome the loss.

COVER STORY
DECODING THE IMPACT OF

GST LAW ON
INDIAN SHARE MARKET
OPERATIONS
Elizabeth Joy
Research Scholar
PG Department of Commerce and Research Centre
Bharata Mata College, Thrikkakara
Dr. Tessy Thomas CMA (Dr.) Joy Joseph Puthussery

Assistant Professor Dean of Studies
PG Department of Commerce and Research Centre Naipunnya Institute of Management and Information
Bharata Mata College, Thrikkakara Technology, Koratty
Abstract
The present study focuses on unravelling the implications of GST on the share broking
business, which constitutes a substantial component of financial services in the Indian
financial market. It brings a comparison of the pre and post GST impact on the share broking
services. The authors find that the act resulted in both benefits and hazards to the whole sector.

COVER STORY
G
I. INTRODUCTION secondary data obtained from the reports of share brokers,
oods and Service Tax, being a consumption professionals, etc.
based taxation system, brought radical changes
in the indirect tax regime of the country. The IV. RESULTS AND DISCUSSION
law demanded substantial transformations in Chanakya (2nd Century BC) propounded that tax should be
the procedural and compliance level of various sectors. As equitable, convenient to pay, easy to calculate, inexpensive
service sector constitutes around 54.04% of the country’s to administer and not to inhibit growth. Adam Smith (1776)
GVA (Ministry of Statistics, 2019), GST had a major impact conceptualised the famous Canons of Taxation which
on it. The previous Service Tax enacted through Finance Act, constitutes Equity, Certainty, Convenience and Economy.
1994 got subsumed with GST law. Though conceptually the Thus any taxation system should follow these fundamental
two appears to be similar, GST reduced the cascading effect principles. Past studies on the implications of introduction
of the Service Tax law. of modern taxation system reveals that it results into heavy
Financial services, a growing sector and a major burden on tax payers. The three elements of this burden are
constituent of service industry, gained greater concern when the tax itself, the efficiency costs and the operating costs
the law was introduced. The trend seen globally is that (Evans, 2008). Thus, the present work on the impact of GST
there is complete or partial submission of financial sector on broking business can be analysed from three angles:
to GST. In areas where partial taxing is imposed, fee based A. Compliance Burden,
activities are charged to GST but with restricted Input Tax B. Compliance Cost, and
Credit (ITC). In India also the financial sector is partially
C. Expenditure
taxed under GST.
The growing preference of share markets as an investment
option makes the share broking business a prominent
financial service. To check if GST has an impact on share
broking business it’s necessary to evaluate the chargeability
under the act (Kothari, 2017). Section 9 of CGST Act
imposes tax on supply except for the exempt supply, zero
rated supply or non-taxable supply. Supply, as defined in
Section 7 of the Act, “consists of all forms of supply of
both goods and services”. Goods are defined in Section
2(52), “to include any movable property other than money
and securities”. Services are defined in Section 2(102), “to
include anything other than goods, money, and securities but
includes activities relating to use of money or its conversion
by cash or other mode from one form to another form for
a separate consideration”. This reveals two important
Figure 1: Impact of Taxation System
results. Firstly securities like shares, bonds, etc. doesn’t fall
under the definition of either goods or services and hence (Source: Primary Source)
are outside the ambit of GST, making them non-taxable
supplies. Hence no GST is charged on the purchase, sale A. COMPLIANCE BURDEN
or trading of securities in share market. Secondly, the share Compliance Burden means any requirement imposed on
trading services provided by brokers, investment advisors, tax payers related to registration, filing of return, payment of
etc. for which separate consideration is charged in the form tax and claiming the ITC. Additionally, any tax law including
of brokerage, fees, etc. would be subject to GST, as they processes required by such law, that makes compliance by
would take the nature of supply of services. tax payers overly difficult due to complexity is compliance
burden (Evans C et.al, 2019).
II. OBJECTIVES OF THE STUDY A study conducted by KPMG opines that the compliance
The present study aims at the following burden has increased under GST on the basis of survey
1. To evaluate the overall impact of GST on the share conducted among 232 CEOs, co-founders and CTOs of
market investors. companies (KPMG, 2019). A thorough evaluation in this
respect with special reference to the share broking firms was
2. To analyse the implications of GST on stock broking
conducted by the authors.
business of the country.
(i) Registration: The concurrent dual GST model, where
III. METHODOLOGY AND DATA COLLECTION tax is levied by both central and state government, expands
the registration requirement under GST to each state where
The study is conceptual in nature. The research explains
a taxable supply is offered, from the earlier Centralised
both the positive and negative effects of GST introduction
Registration scheme. This would increase the burden of
on share broking services in India. The study evaluates pre
filing returns for all the registered branches. Also the new
and post GST situations in the sector. The provisions under
requirement leads to maintenance of separate financial
various relevant sections are interpreted. The study uses

COVER STORY
records. The state wise registration would result in charging (i)Administrative cost: The procedural and compliance
GST on transactions between branches, though later on requirements under GST increases the administrative costs
credit can be claimed. of the business. It required upgradation and redesigning of
(ii)Return filing: Filing returns is a tedious task under existing Enterprise Resource Planning (ERP) and accounting
GST. The monthly returns of GSTR1, GSTR 2B and GSTR softwares. GST follows a cent percent online system thus
3B and annual return (GSTR-9) should be filed under GST. resulting in structural changes in all the businesses. Tax
The compliance burden has increased due to the periodicity administrative costs also hike due to continuous amendments.
of returns, number of returns, changing formats and level of (ii)Invoicing: Normally invoice is issued in case of
details required in each. Comparing with the previous regime taxable supply of service under GST within 30 days from
of Service Tax, where only half yearly returns were required the date of supply of service. The law relaxes the provision
one can imagine the level of effort and time required now. by allowing financial institutions to issue document in lieu
(iii)Adjudication: Under GST since more than one of the tax invoice. It mandates that the document to be issued
adjudicating authorities will be involved, each authority at the end of every month, physically or electronically, and
may hold different opinions on the same underlying issue. should contain the prescribed information. Since broking
This differences will prolong the adjudication procedure. firms fall under the definition of Financial Institutions, the
Unfavourable adjudications result into appeals, and hence above provision will be applicable to it. Thus, the new law
adds to the compliance costs. has reduced the time limit for the issuance of invoice as
under Service Tax, it was to be issued only within 45 days
(iv)Place of supply: The place of supply of stock broking
from the date of completion of taxable service.
services provided domestically is specified in Section 12
of IGST Act, as the location of recipient of services, as per (iii)Training cost and Consultancy charges: Every
the records of supplier of service, provided the services change results into updatations and when the change is in
are linked to their accounts. Otherwise it is the location of taxation matters it demands professional consulting. The
supplier of services. In case of services rendered to foreign business houses have to go through consultations which
investors consisting of FIIs or FPIs, the place of supply shall continues even now owing to the never ending circulars,
be the location of service provider as per Section 13(8) of notifications, and change of applicable laws. It also
the Act as share broking services would take the nature of necessitates continuous training to work force.
intermediary services. As per Section 2(13) of IGST Act, (iv)Penalties: If penalties are evaluated GST would be
2017, an intermediary means, “a broker, agent or any person called a penalising tax as many penalties are charged per
who arranges or facilitates the supply of goods or services or day. Taking an example, the Act charges Rs. 25 per day for
securities between two or more persons and not on his own CGST and SGST each if the returns are not filed on due
account”. Since Place of Supply lies in India, these services dates. Likewise all the penalties charged under GST is more
lose their status as an export of services and hence GST is burdensome than that under the Service Tax provisions.
chargeable. These provisions were replicated from Service Researches unveil the fact that compliance costs are
Tax. significant for indirect taxes like VAT, GST, etc. Studies
(v)Valuation under GST: The Act considers the suggest that compliance costs are high in absolute terms as
Transaction value as the value of supply as per Section 15 well as relative to tax yield, GDP or administrative costs of
of the CGST Act, 2017, provided the supplier and buyer are Government. Most studies confirm that size of a business
unrelated and price is the sole consideration. But the CGST is a key determinant of compliance costs (European
(Determination of Value of Supply) Rules, 2017 should Commission, 2004).
be used in case of violation of the specified conditions. In
case of stock broking business, the transactions between the C. EXPENDITURE
various business verticals of the share broking business and Increase in GST rates doesn’t affect the supplier of service,
those between brokers and sub brokers are subject to these i.e. share broking businesses as it’s a destination based tax.
rules as they fall in the definition of Related Persons, as per But the operational and non-operational expenses incurred
Explanation to Section 15 of CGST Act. by the business were subjected to rate hikes affecting the
share broking business, being a recipient.
B. COMPLIANCE COSTS
(i)Input Tax Credit: Under the Service Tax regime, the
Compliance burden automatically adds up to the industry was not allowed to claim the VAT and sales tax paid
compliance cost of the business. Most research have failed on goods. With the onset of GST, the taxes paid on goods
to focus on the compliance costs of taxation until Sandford could be claimed by a service provider. Thus, stock broking
(1973) referred compliance costs as the hidden costs of business can set off CGST, SGST, UTGST and IGST as per
taxation system. Compliance costs are those costs incurred the ITC provisions under the Act subject to the Blocked
by tax payers in meeting the requirements laid upon them in Credit provisions under section 17(5) of CGST Act, 2017.
complying with a given structure and level of tax (Sandford, Also the concept of Input Service Distributor further reduces
Godwin and Hardwick, 1989, p.10). Thus compliance costs, the cascading impact.
in case of GST, is the sum of administrative costs, invoicing
(ii)Refund: Refund of tax paid in respect of services
requirements, training and consultation costs and penalties
exported can be claimed by the business. Under Service
(Eichfelder and Hechtner, 2017).
tax, the time limit for filing refund claim of CENVAT credit

COVER STORY
on inputs used for export services is one year. But under REFERENCES
GST the time limit is extended to two years, thus being a 1. Smith. A, (1776), An Inquiry into the Nature and Wealth of
favourable change. Nations
2. Pope, J. (1993). The Compliance Costs of Taxation in
Australia and Tax Simplification: The Issues. Australian
V. SUGGESTIONS AND CONCLUSION Journal of Management, 18(1), 69-89.
GST is a revolutionary movement in the tax regime of our 3. European Commission, (2004), Taxation Papers:
country which solved many issues connected with the earlier European Tax Survey, Working Paper 3/2004, Directorate
indirect taxes. But the lack of a planned implementation –General Taxation and Customs Union, Luxemburg
brought hardship to the country. On this basis, the researchers’ 4. Evans, C. (2008). Taxation Compliance and Administrative
analyse the impact GST brings on share market operations. Costs: An Overview. Tax Compliance Costs for Companies
in an Enlarged European Community. 447-468
Interestingly, GST is both a boon and bane for share broking 5. Kothari.V (2017), GST on Financial Transactions,
businesses. The enhanced ITC helped the sector to reduce its Chartered Secretary, The Journal of Corporate
tax expenditure. But the compliance burden and compliance Professionals, 31- 34
costs intensified in the GST era. 6. Eichfelder, S., & Hechtner, F. (2017). Tax Compliance
The following suggestions are made by the authors to the Costs: Cost Burden and Cost Reliability. Public Finance
Review,46(5),764-792
authorities and the share broking businesses:
7. B.Vandana, B.Yogendra (2019), Banguar’s Comprehensive
1. It’s high time that the GST council reduces the Guide to Indirect Tax Laws GST, Coustoms & FTP As Per
compliance burden and compliance costs of this Old & New Scheme for CA Final, Aadhya Prakashan
taxation system by addressing base issues like 8. Evans. C, Highfield R, Tran-Nam B, Walpole .M (2019)
the return filing, clarity of provisions, website Diagnosing the VAT Compliance Burden: A Cross Country
maintenance, etc. Assessment, International VAT Monitor, IBFD
9. CGST Act, 2017 Central Board of Indirect Taxes and
2. There is necessity to provide specific place of supply Customs website[Online].Available:http://www.cbic.gov.
provision in case of services rendered to foreign in/resources//htdocs-cbec/gst/cgst-act.pdf
investors by share broking businesses. Treating these 10. (2017). Economic Times Website. [Online]. Available:
services as exports makes them zero rated supply and https://economictimes.indiatimes.com/markets/stocks/
this would attract more investments. news/brokers-body-asks-govt-to-reduce-gst-scrap-
stt-dividend-tax/articleshow/61804379.cms?utm_
3. The share broking businesses can take separate source=contentofinterest&utm_medium=text&utm_
registration for their branches in order to enjoy the campaign=cppst
benefits of ISD and ITC provisions. 11. (2019). Economic Times Website. [Online]. Available:
4. With respect to application of valuation rules, since https://economictimes.indiatimes.com/markets/stocks/
news/what-india-needs-to-do-to-become-5-trillion-
principal agent relationship exist between the stock economy/articleshow/70069619.cms.
brokers and sub brokers, Rule 29 of the CGST 12. (2019). KPMG website. [Online]. Available : https://home.
(Determination of Value of Supply) Rules, 2017 can kpmg/xx/en/home/media/press-releases/2019/07/how-hard-
be applied. is-it-to-comply-with-vat-gst-obligations.html
5. The sector can take the advice of professionals for
proper tax compliance and tax planning. elizabethjoyp@bharatamatacollege.in
hodcommerce@bharatamatacollege.in
dr.joy@naipunnya.ac.in
Source: https://www.mohfw.gov.in/pdf/OfficesGuidelines11thJune.pdf

COVER STORY
GST RELIEF MEASURES

DURING GLOBAL PANDEMIC
(COVID-19)
KritikaTekwani Dr. Rinku Raghuvanshi

Research Scholar Associate Professor
Bhartiya Skill Development University Bhartiya Skill Development University
Jaipur Jaipur
Abstract
In light of the spread of the COVID-19 pandemic, various countries got affected by this
including India. It causes a huge loss to the lives and the economy of every country. The
outbreak of novel coronavirus also put a negative impact on every sector of the Indian economy.
The financial sector of India is also influenced by this situation. The government of India has
taken various steps to prevent the spread of this virus. Lockdown is one of the measuring steps
taken by the Government. This study has addressed the various indirect tax amendments of
GST. Researchers have also suggested some tax relief options given by the Government.

COVER STORY
T
Introduction Crisis: A Case of India’s Real Estate Sector” attempts to focus
he Corona Virus Disease is a pre-eminent health on the impact of coronavirus especially to the real estate of
crisis. Various countries have provided relaxation India. Researcher has reported that during the lockdown
in compliance. Singapore has increased the time unavailability of the raw material, labor, and other supplies
limit until 11thMay 2020. Italy has also increased affected the process of housing projects. This study pointed
the deadline for VAT return until 30th June 2020. Similarly, the RBI;s announcement of relaxation given to financial
France has also extended the due dates of the return, which markets, exporters, and, banks. RBI has given the relaxation
ranges from 30th June to 30thSeptember 2020 and also to the exporters in the repatriation limit from 9 months. The
deferred payment of tax. Spain has also given the six-month researcher has quoted the results of the NAREDCO report
time limit extension. The Indian Government has also which states that prices of the property will decrease by 10-
provided the taxation assistance to businesses affected due 15% and this sector will be in the loss of one lakh crores.
to new virus. Ministry of Finance has extended the due dates Dev, S. M., &Sengupta, R. studied, “Covid-19: Impact on
of filing the returns. The income tax return due date has also the Indian economy” and reported that the Indian economy
been increased up to 30thNovember 2020. has been badly affected by the lockdown. Researchers have
also given concentration to the economy before the pre
Literature Review lockdown. They found that previously economy was also
As this disease is new in the world, fewer studies have stuck but with the spreading of this disease, all the segments
been conducted so far related to its impact on the fiscal of the economy are dreadful. This research paper also focuses
sector. Researchers have reviewed some research papers to on the policies suggested by the Central Government and
know the implication of this virus on countries economy, Reserve Bank of India for the boost of the Indian economy.
review of some papers has been given below. Gumber, A., &Bulsari, S. studied, “COVID-19 Impact
Balajee, A., Tomar, S., &Udupa, G.in their study entitled, on Indian Economy and Health” and found that lockdown
“Fiscal Situation of India in the Time of COVID-19” and results in closure of businesses which put an adverse effect
found that the Central government has declared a fiscal on industries. This study reported that the healthcare industry
package of Rs. 1.7 trillion for mitigating the effects of shut is under immense pressure. This paper also discussed the
down of the economy. Researchers have also suggested that nudge theory, which should be implemented in the healthcare
subsidy rationalization can reduce the fiscal deficit. This system.
study forecasted that fiscal deficit will be as high as to 8.4%. Haines, A. studied “Singapore Announces Tax Measures
Cano, M. C. in his research entitled, “Taxpayers Say to Manage COVID-19” and found that the Singapore
Governments Can Do More to Fight COVID-19”. This study Government has given the tax concession in corporate tax
concluded that the current steps taken by the Government along with the rebate in Goods and Services Tax. This paper
are not enough to improve the economy. Researcher has has also concentrated the measures to boost the economy
found that tax concession, subsidy, and, rebate given by the and alleviate the results of the new virus.
Government are only the temporary solutions to affected Schleich, T., &Paquet, J. in their study entitled, “Policy
business or industries. These measures will help only in Update–Tracking the Global Policy Response to COVID-19”
the short run of the business but not in the long run. This have focused on the North American Policy report during
research paper has suggested that Governments should do this crisis. Researchers have reported that the Government
more efforts for the enhancement of the economy. of Canada has increased the GST credit limit to 5515 million
Chakraborty, L., & Thomas, E .studied, “COVID-19 and Canadian dollars. This study found that the Canadian
Macroeconomic” and suggested the innovative sources of Government has deferred the payment of indirect tax (30
financing to reduce the deficit. This paper also discussed the billion Canadian dollars) till June for giving the benefit to
relief packages announced by the finance ministry. This paper self-employed persons and businessmen. Researchers have
reported that 40% of the relief amount is for construction also covered the area of fiscal and monetary policy.
welfare fund and district mineral fund. Researchers have Venkateswaran, A. researched, “The Impact of Covid-19
also focused on the monetary policy of RBI and found that on India” and focuses to know the attitude and awareness
the repo rate has been reduced by 0.75 base points, the level of new viruses among the public. Researcher has
reverse repo rate has also been reduced by 0.90 base points, also focused on the role of Government, politician, and,
and, CRR (Cash Reserve Ratio) has been cut to 3%. healthcare officers. This study also suggested that tax
China, K. P. M. G., & Lu, L. studied, “China Announces concession should be given to small industries, GST relief,
Tax Relief Measures to Tackle Coronavirus Disruption” and guarantee of wages, and, easy accessibility of credit. This
found that the Finance Ministry of China has extended the research found that coronavirus put a destructive effect on
VAT return filing date to 28 February. The State Taxation every country of the world.
Authority of China is solving the tax matters through e-tax Every study concluded that it put a negative impact on each
bureau. This study has also found that tax authorities have sector. Researchers have been found that various researches
exempted the various consumer services from value-added have been done on coronavirus, but none of the studies has
tax. These services are laundry, medical, catering, housing, been done related to GST amendments or relaxation during
etc. this Covid-19 pandemic.
Chopra, R. in his study titled, “Battling the Coronavirus

COVER STORY
Objective January to
CMP-08 07th July 2020 NA
This research paper aims to study the major relaxation of March 2020
GST during global pandemic. ITC-03 2019-20 31 July 2020
st
NA
* Chhattisgarh, MP, Gujarat, Maharashtra, Karnataka,

Research Methodology
Goa, Kerala, TN, Telangana, AP, Puducherry, Lakshadweep,
This research study is based on qualitative data, which Daman & Diu and Dadra & Nagar Haveli, Andaman and
has been collected from the literature, websites, reports, and, Nicobar Islands.
notifications/circulars issued by the Government.
** HP, Punjab, Uttarakhand, Haryana, Rajasthan,
UP, Bihar, Sikkim, Arunachal Pradesh, WB, Jharkhand,
Relaxation in GST Compliances During Covid-19
Odisha, J&K, Ladakh, Chandigarh, Delhi, Nagaland,
Circumstances
Manipur,Mizoram, Tripura, Meghalaya, and Assam.
To counter the impact of this new virus on the economy
GSTR-3B is a monthly return, which includes the
Government has taken various measures. Relaxation package
consolidated details of inward and outward supplies. GSTR-
of GST is one of the measures. Due to sudden lockdown
1 is a bill wise detail of outward tax supplies, which has
taxpayers and professionals are facing various challenges
to be filed monthly or quarterly basis depending upon the
for fulfilling the tax activities. The Central Government
turnover limit of a business. GSTR-4 is a quarterly return,
has introduced various concessions and relaxation in GST
which is filed by the composition tax person. GSTR-5 is
compliances to provide relief to affected persons. All the
a periodic tax return, which is filed by the non-resident
GST relaxations have been discussed below.
foreign taxpayer. GSTR-6 is a monthly return filed by the
Due Dates of GST returns: The Central Government ISD (Input Service Distributor). GSTR-7 is a monthly tax
has taken this lead to give more time to taxpayers for filing return, which is filed by the tax person who deducted the
the returns. As per the notifications number 30/2020 to TDS (Tax Deducted at Source). GSTR-8 is a monthly tax
36/2020 issued by the Government in the view of the novel return, which is filed by the E-Commerce Service Operators
coronavirus, the time limit of indirect tax returns has been who collect the TCS (Tax Collected at Source). CMP-02 is
extended. Table 1 shows the list of all the returns and their filed by the tax persons who want to opt for the composition
extended due dates. scheme under GST. CMP-08 is a summary of the tax of a
Table 1: Extended Due Dates of GST Returns quarter, which is filed by the composition tax person. ITC-
03 is a return form, which contains the ITC (Input Tax
Returns Period Extended Turnover Credit) reversal amount. It has been paid through e-cash or
Dates
e-credit ledger.
February to Waiver of Late Fees: Late fees for filing the returns
GSTR- 24th June 2020
April 2020 Turnover >5Cr.
3B has also been waived by the Government, till the date of
May 2020 27th June 2020 extended due dates of tax returns.
February to 29th June 2020 Waiver for the Interest: The Government has also waived
GSTR- March 2020 the interest, if all the return will be filed by the extended
5 Cr.≤Turnover>1.5Cr.
3B
April 2020 30th June 2020 due dates. If a taxpayer unable to file the return within the
extended deadlines then interest will be levied at the rate of
12th July 2020
(Group-1 9% and 18%.
States)* Opting Composition Scheme: Due to this crisis the
May 2020
14th July 2020 central government has issued an advisory which states that
(Group-II registered taxpayers who already in the composition scheme
States)** are not required to register themselves again for the financial
February year 2020-21. The date for opting composition scheme has
GSTR- 30th June 2020
2020 Turnover ≥1.5 Cr.
3B also been increased to 31 March 2020, for new taxpayers
March 2020 03th July 2020 who want to opt the composition scheme through GST
March to CMP-02.
GSTR-1 30th June 2020 All Turnovers
May 2020
Reduces the Compliances: As per the rule 67A a
GSTR-4 2019-20 15th July 2020 NA registered taxperson can file his nil amount tax return
March to (GSTR-3B) by typing a short message from a registered
GSTR-5 30th June 2020 NA
May 2020 mobile number. This return will be verified through the
March to EVC (Electronic Verification Code). Through this no login
May 2020 required, just by SMS return will be filled.
March to EVC Return Filing of Companies: Previously GST
May 2020
return-3B under section 39 of the companies were filed
March to through DSC (Digital Signature Certificate) only, but now
May 2020
the indirect tax returns of companies can be filed by EVC
CMP-02 2020-21 30 June 2020
th
NA
also till 30 June 2020.

COVER STORY
Unclaimed Transition Credit Date Extended: The will help taxpayers, professionals, traders, and all the
Central Government has extended the date of TRAN-1 till concerned persons. It will reduce the time pressure for filling
30th June 2020.A registered person, who has not taken the the indirect tax returns. This research study also suggested
transition input or unclaimed ITC by not filing the TRAN-1, that the Government should also waive the tax liability for
will be allowed until 30th June. the next six months and also exempt the late fees, interest,
Validity of EWB: As per the notification no. 40/2020- and penalties for the last quarter (2019-20 F.Y.).
Central Tax, the validity of an E-Way Bill has increased till
31st May 2020. It will apply to those e-Way Bills, which References
have been generated before 24th March 2020, and its expiry 1. Balajee, A., Tomar, S., & Udupa, G. (2020). Fiscal
is in between 20th March to 15th April 2020. Situation of India in the Time of COVID-19. Available
at SSRN 3571103.
IRP/RP Registration Time Limit Extended: As per
the notification no. 39/2020- Central Tax, the time limit of 2. Cano, M. C. (2020). Taxpayers Say Governments Can
registration of Interim Resolution Professional (IRP) and Do More to Fight COVID-19. International Tax Review.
Resolution Professional (RP) has been increased to 30th 3. Chakraborty, L., & Thomas, E. (2020). COVID-19 and
June 2020 or within 30 days of the appointment of IRP/RP Macroeconomic. Economic & Political Weekly, 55(15).
whoever is later. 4. China, K. P. M. G., & Lu, L. (2020). China Announces
Tax Relief Measures to Tackle Coronavirus Disruption.
Merchant Exports: A merchant exporter has to export
International Tax Review.
within the 90 days of invoice date, but due to lockdown they
are unable to export. In view of this the Central Government 5. Chopra, R. (2020). Battling the Coronavirus Crisis:
A Case of India’s Real Estate Sector. Purakala, 31(4),
has issued a circular, which states that merchant exporters 1133-1147.
will get the extension to 30th June 2020. It will applicable to
6. Dev, S. M., & Sengupta, R. (2020). Covid-19: Impact
those exporters whose 90 days period comes in between 20th
on the Indian Economy (No. 2020-013). Indira Gandhi
March to 29th June 2020. Institute of Development Research, Mumbai, India.
Validity of LUT: As per the circular 137/7/20, the validity 7. Gumber, A., & Bulsari, S. (2020). COVID-19 Impact
of a LUT (Letter of Undertaking) has also been extended. A on Indian Economy and Health: The Emergence of
LUT, which has been expired on 31st March 2020, it will be Corona-Economics.
valid up to 30th June 2020. 8. Haines, A. (2020). Singapore Announces Tax Measures
to Manage COVID-19. International Tax Review.
Conclusion 9. Schleich, T., & Paquet, J. (2020). Policy Update–
In the time of this global health crisis, the Indian Tracking the Gobal Policy Response to COVID-19.
Government is providing statutory relief in tax compliances. Policy.
The Central Government has extended the date of filing the 10. Venkateswaran, A. (2020). The Impact of Covid-19 on
tax returns including direct and indirect tax returns. This India. Studies in Indian Place Names, 40(71), 1581-
paper seeks to study the modification made by the Central 1589.
Government in GST due to the situation of a health crisis.
This study concludes that these amendments or relaxations kritika.tekwani@ruj-bsdu.in
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COVER STORY
ADVANCE RULING UNDER GST

REGIME
A SIMPLER AND QUICKER WAY
TO AVOID LITIGATIONS AND NON
COMPLIANCES OF LAW
Maruvada Bapu Venkatesam

Qualified CMA
Hyderabad
Abstract
Now-a-days, there is an increase in the violations of laws. Most of such violations arise due
to lack of knowledge on such laws. This has increased cost of litigations as well as wastage
of time because of involving in such litigations as it takes years to put a fullstop to such
litigations. So, the Central government has taken a step to establish legal bodies which are
called Advance Ruling authorities wherever necessary under respective Acts. Such authorities
so established provides guidance on transactions for which such application is made to them,
thereby avoiding litigations and non-compliances of law which arise due to lack of knowledge
on such laws.
I
n India, most of the violations of laws are due to Advance Ruling. An advance ruling means written opinion
lack of knowledge on such laws. This paved way to or decision by an authority which was empowered to render
establishment of authorities under respective laws it with reference to tax consequences of a transaction of
which can decide over the transactions in litigation proposed transaction or assessment of such transactions
well before in advance before commencing of such thereto. The concept of advance ruling was first introduced
transactions. Such authorities are known to be Authority for in the year 1993 in Income tax Act through Finance Act

COVER STORY
brought in that year. Such authorities for advance ruling of such non-compliances thereto.
are considered to be independent adjudicatory bodies. The • Access to authority and obtain ruling in timely and
rulings issued by authorities for advance ruling are generally transparent manner
binding on applicants and departments.
Under the Goods and Services Tax(GST) regime, the Matters specified for ruling:
advance ruling helps applicant in planning and performing Section 97(2) specifies matters to be dealt by Authority
his activities which are liable to payment of GST well in for Advance Ruling (AAR) whereas Section 100(1) specifies
advance and within the scope of law. It helps assesses in matters to be dealt by Appellate Authority for Advance
avoiding litigation costs which arise in future due to non- Ruling (AAAR). Such sections are contained in CGST
compliance of such law. Advance ruling can be obtained for Act, 2017.These authorities are legally constituted bodies.
a proposed transaction and also for a completed transaction Hence, AAR and AAAR have the power to regulate their
own procedure.
Objectives of Advance ruling:
Matters in relation to determination of Place of
The broad objectives for setting up a mechanism for supply of goods or services or both cannot be decided
advance ruling are: by the advance ruling authorities as such matters are
• To provide certainty in taxability and tax liability well specified in IGST Act, 2017 and no such provision with
in advance to the activity proposed to be undertaken relation to advance ruling has been specified in the IGST
• Attract Foreign Direct Investments into India Act, 2017. Moreover, the ruling given by AAR or AAAR
shall be confined to the state or union territory in which such
• Reduce non-compliances of law in advance and costs
applicant resides.
The following are the matters that are specified for ruling in GST Act, 2017:
Authority for Advance Ruling (AAR): which applicant resides.

Sections 95-106 of Chapter XVII of CGST Act, 2017
discuss about advance ruling. Procedure of obtaining ruling from Authority for
As per Section 96, the authority for advance ruling shall Advance ruling:
be constituted under respective State Goods and Services The Applicant desirous of making an application shall
Tax Act (SGST) or Union territory Goods and Services Tax apply in common GST portal in Form ARA-01 and shall be
Act (UTGST). Such authority so constituted shall be deemed accompanied with a fee of Rs. 5,000/- to be deposited in
to be constituted under CGST Act. This is the reason behind manner specified in Section 49 i.e.; through electronic cash
confinement of decision to such state or union territory in ledgers. The application must be filled and verified properly

COVER STORY
before submission in common portal and must accompany and verified properly before submission in common portal
all the relevant supporting documents and such application and must accompany all the relevant supporting documents
must be electronically signed through Digital Signature including copy of ruling pronounced and communicated
(DSC) or through Electronic Verification Code (EVC). by AAR to the appellant and such application must be
AAR composes of two members, one member CGST and electronically signed through Digital Signature (DSC) or
one member from SGST/UTGST. They will be appointed through Electronic Verification Code (EVC).
by Central government and State governments respectively. Similarly, if the officer of concerned jurisdiction is
Such members so appointed shall not be below the rank of aggrieved by the ruling pronounced by AAR, such officer
Joint commissioner. Upon receipt of application for ruling, may file an appeal to AAAR in Form ARA-03 in common
AAR shall examine the application along with documents portal and no fee is to be deposited for such appeal made
accompanied to such application. Where in if AAR found by the officer. The application shall be verified by an officer
that the application is incomplete in any manner or the authorised in writing by such officer.
matter to be decided is already pending or decided in any Where in if AAAR found that the appeal is incomplete
proceedings in which such applicant is involved, AAR in any manner, AAAR may reject the application. AAAR
may reject the application. AAR shall give the applicant an shall give the appellant an opportunity of being heard
opportunity of being heard before rejecting such application. before rejecting such appeal. If the appeal is complete in all
If the application is complete in all respects, then AAR respects, then AAAR accepts the appeal. Upon admission or
accepts the application. Upon admission or rejection, AAR rejection, AAAR passes an order of admission or rejections
passes an order of admission or rejections stating reasons stating reasons thereto, if any. Before admission or rejection
thereto, if any. Before admission or rejection of application, of appeal, AAAR shall call for furnishing of relevant
AAR shall call for furnishing of relevant information and information and records from the concerned officer and
records from the concerned officer. AAR, if necessary.
Upon successful admission of application, the ruling The time limit for filing an appeal to AAAR is 30 days
shall be pronounced within 90 days from date of receipt from date of communication of ruling from AAR to the
of application. AAR shall examine the application and appellant or concerned officer as the case may be. However,
further information or records furnished by applicant or if AAAR is satisfied that appellant is prevented by a sufficient
concerned departmental officer and must hear the applicant cause from presenting the appeal within said period, AAAR
or his authorized representative and jurisdictional officers may allow appellant to file appeal within further period not
of CGST/SGST before pronouncing such ruling. A copy of exceeding 30 days.
every order shall be signed by members of AAR and to be
Upon successful admission of appeal, the ruling shall be
sent to applicant and to concerned officer.
pronounced within 90 days from date of receipt of appeal.
If there is any difference of opinion within the members of AAAR shall examine the appeal and further information or
AAR, the matter shall be referred to Appellate Authority for records furnished by appellant or concerned departmental
Advance ruling. For such referral, no extra fee is to be paid officer and must hear the appellant or his authorized
by the applicant. representative and jurisdictional officers of CGST/SGST
before pronouncing such ruling. A copy of every order shall
Appellate Authority for Advance Ruling (AAAR): be signed by members of AAAR and to be sent to appellant
As per Section 99 of CGST Act, 2017; the appellate and to concerned officer.
authority for advance ruling shall be constituted under The ruling pronounced by AAAR will be final and no
respective State Goods and Services Act (SGST) or Union further appeals are allowed to be made because the Act didn’t
territory Goods and Services Act (UTGST). Such appellate provide for appellate mechanism for rulings pronounced by
authority so constituted shall be deemed to be constituted AAAR. In the case of JSW Energy Ltd, Bombay High Court
under CGST Act. declined to examine even merits of the case, merely because
AAR composes of two members, one member CGST and the GST law didn’t provide for any appellate mechanism for
one member from SGST/UTGST. They will be appointed rulings pronounced by AAAR. Also, it has been further noted
by Central government and State governments respectively. that any examination of merits of case would tantamount the
Such member appointed by Central government shall be Article 226 of Indian constitution.
Chief Commissioner of Central Tax or officer with equal Further, if there is any difference of opinion within the
rank and member appointed by state or union territory members of AAAR, no advance ruling shall be pronounced
shall be Commissioner of State or union territory having and the applicant will be refunded back his fees. Similarly,
jurisdiction. AAAR shall also consider referral from AAR in case of
If the appellant is aggrieved by the ruling of AAR, he can difference of opinion of members in AAR. If there is no
file an appeal to Appellate Authority for Advance Ruling difference in opinion of members of AAAR regarding such
(AAAR).The appellant desirous of making an appeal shall referral from AAR, then the ruling is pronounced. Otherwise
make an appeal in common GST portal in Form ARA-02 and the ruling will not be pronounced even by AAAR and
such form shall be accompanied with a fee of Rs. 10,000/- applicant will be refunded his fees.
to be deposited in manner specified in Section 49 i.e.;
through electronic cash ledgers. The appeal must be filled

COVER STORY
Application of Rulings obtained and time limits: and concerned officer. Moreover, no appeal can be filed
The rulings obtained shall be binding on the applicant regarding such order made by AAR/AAAR.
and only applicant shall use the ruling and no other party
shall use the ruling. However, GST authorities may use the Powers of AAR and AAAR:
rulings provided facts of the case are identical or similar to The AAR and AAAR shall have the same powers as of
original case in which such ruling is pronounced. The ruling Civil Court under Civil Procedure Code,1908. The following
is binding unless there is an amendment in law or change are the powers of AAR/AAAR (list being illustrative):
in the facts. Act didn’t specify any time limits regarding • discovery and inspection of documents and records;
ruling applicability. The AAR/AAAR may specify in such • enforcing the attendance of any person and examining
ruling the time limit for which it applies to. If no time limit such person on oath;
is specified, then the ruling shall be valid until there is • issuing commissions and compelling the production
amendment in law or change in facts of case. If applicant of books and other records
has specified that such ruling is for completing a transaction,
then the ruling is applicable till such transaction is complete. Role of CMAs in advance rulings:
The advance ruling application to AAR or appeal to AAAR
Rectification of Mistake in ruling:
shall be made by person or his authorized representative. As
AAR or AAAR has power to rectify mistake apparent per the CGST Act, 2017; the term Authorized representative
from records within 6 months from date of pronouncement includes relative, regular employee, Cost Accountant
of ruling. Such rectification may be done on suomoto basis (CMA), Company Secretary (CS), Chartered Accountant
or on application by officer or on application of applicant/ (CA) or any person with prescribed qualifications.
appellant. If the rectification leads to increase in tax liability
Hence, the CMAs are recognised officially by the Act to
or decrease in input tax credit availed, then such order may
act as authorized representatives for filing application or
be rectified upon giving an opportunity of being heard to the
appeal for ruling. Not only in this role, but also the Cost
applicant or appellant.
Accountants in practice are officially recognised as Tax
Auditors under GST. Therefore, now-a-days the Cost
What if the ruling is obtained by Fraud,
Accountants have an emerging and dynamic role to play in
Misrepresentation or Suppression of Facts?
the regime of GST. Thanks for the system and law of GST
The ruling shall be declared as void-ab-initio by AAR for officially recognising Cost Accountants.
or AAAR if it is obtained due to fraud, misrepresentation
or suppression of facts. Once ruling become void, all the References:
provisions of the Act shall apply as if no ruling is made with
1. www.cbic.gov.in
regard to such matter. Before declaring the ruling as void-
2. www.gst.gov.in
ab-initio, applicant/appellant must be given an opportunity
of being heard. Copy of such orders shall be sent to applicant
rajamaruvadabapu@gmail.com

DIGITAL TRANSFORMATION
DIGITAL TRANSFORMATION –
SIMPLICITIES OF THE
SIMPLE TASK
nothing but driving changes in business, operating and revenue
models by leveraging digital competencies. The irony is that
DT is generally a misunderstood or partly understood subject
by stakeholders and employees across hierarchical levels of
any entity. The point that is quite often not accepted with open
mind is that integrating digital tools for DT and abandoning
and / or modifying legacy policies, systems and processes are
the first two critical steps for digital transformation.
Objective of this paper, therefore, is to revisit and bring out
simplicities of the simple task of DT and bring out various
CMA (Dr.) Paritosh Basu actions needed for implementation with informed judgment
Senior Professor without fear of unknown. It will also deal with the approach
NMIMS School of Business Management and steps which business managers need to follow with the
Mumbai open mind for creative destruction.
Digital Transformation Revisited
I
Introduction and Objective Jon Kabat-Zinn, a famous professor of medicine and
propagator of mindfulness said, “You can’t control the waves,
n the 10th column, published in June 2020 volume of
but you can learn to surf!” This pearl of wisdom aptly
this Journal, several emerging dimensions of digital
describes the contemporary situation when Novel Corona
transformation in the new world order post Covid-19
Virus has caused waves and high tides of cruellest crisis in
Pandemic have been dealt with. That volume has
the history of mankind. The clarion call of present time is to
identified key functional areas of certain industry sectors
first learn surfing for revival and survival, and then grow. One
for digital transformation, and correlated digital tools
of the most critical tasks for saving the entity from drowning
befitting transformation requirements of those functions.
is implementation of DT befitting the emerging way of living
Implementation is, however, the critical task that also needs
and operating in the new world order. This is a journey and not
metamorphosis of various other facets of any organisation.
a destination to be reached just for once.
In a lay man’s language digital transformation (DT) is

4 Ds, 2 Ps and 1 T for DT De-risk as suggested by McKinsey1; 2 Ps, i. e, People and
Any organisation can lay the foundation of digital Process and 1 T, i. e., Tools. Those can briefly be discussed in
transformation on 4Ds, viz., Discover, Design, Deliver and the following graphics:
Source: https://which-50.com/four-ds-digital-transformation-according-mckinsey-company/ //
Source: Unknown
If the above graphics are to be understood in actionable not penalising them for the same. Instead incentivise
terms the following measures can be listed for orchestrated every attempt irrespective of success or failure so
planning and execution across hierarchical levels, length and that the environment is congenial for innovating and
breadth of the organisation: delivering the best.
• Integration of digital technologies with functional • Unwavering commitment of funds and other resources,
areas that will bring metamorphosis in the process as well as extending help and support to the dedicated
of conducting business operations with the ultimate DT team by every single functional area of the
objective of improving stakeholders’ relationship and organisation.
experience management. Therefore, digital transformation is an orchestrated
• Challenging the status quo of policies and standard combination of people, process and technology for
operating practices for driving towards the inevitable discovering, designing, and delivering with risk enabled
metamorphosis. process management what the stakeholders want. Through
• Training of existing human capital with different deductive logic one can explore out of the above narratives
capabilities and redeployment for dealing with digital five essential elements of digital transformation, viz.,
tools consciously being mindful of the requirement stakeholders’ relationship and experience, operational agility,
of cultural change and removing fear of unknown to culture and leadership, workforce enablement and integration
embrace the new. of digital technologies for revival and sustainable growth with
prosperity. The author reiterates that DT should be considered
• Conducting experiments with digital technologies to as a journey and not a destination because it is a task in eternity.
assess suitability vis-à-vis the specificities of the needs
of business and its stakeholders with the ultimate Data and DT
objective of incremental contributions for profit and
profitability. Antonio Grasso, the founder of Digital Business Innovation
Srl. was asked an interesting question and that was, “What is
• Approaching the long-drawn task with a mindset of that one no one talks about in digital transformation but is very
creative destruction of long-standing business policies important.” The reply was equally fascinating. He said, “Well
and processes in favour of relatively new digitally in my opinion many people create abuzz around it and the most
driven practices that are still being defined, adopted, of them think about the Digital Transformation as something
and stabilised. you can achieve or generate in a business environment.
• Providing the DT team, a free environment with That’s wrong. Digital Transformation is a consequence of two
committed assistance for innovative applications of phenomena. Digitization and Digitalization, both enabled by
various digital tools, if not ‘innoventing’ new tools, the Digital Diffusion’ (Source – Twitter)
and establishing collaboration with man and digitally This diffusion of digitization and digitalization is at the
operated machines, which are artificially intelligent. core of the tasks in this era of DT. Making meaning out data
• Ensuring data privacy, cyber security, and information and drawing inferences for strategic planning and deciding
safety as an integral part of the entity’s policy and tactics for execution are the two critical drivers for attaining
processes for risk-enabled performance management. competitive advantages. An attempt has been made to simplify
• Permitting implementation team to make mistakes and this mission in the following lines that defines a series of

simple tasks: beyond technology, bearing in mind that technology
• Innovation: Come out from the aura of this buzz will serve only as an enabler. Identifying the problems
word. Conduct exploratory analysis for identifying and imperatives of business in contemporary business
hitherto unattended / unresolved problems and latent ecosystem, what actions are to be initiated to stay ahead
demands of society from the perspective of the of competition, generating higher value additions,
business domain and beyond. Apply ground-breaking and dos and don’ts for change management are more
thoughts to determine cost-effective ways for meeting important tasks. Selection of the digital technology that
those demands and solving problems with a win-win will best suit to implement those strategic initiatives
approach for both customers and the business entity. is relatively an easier task and for that professional
This may cause disruptions to existing players. services for digital scientist can be availed of.
• Digitization: Convert all analogue data, generated 2. Create a dedicated DT Strategy Team - Allow them
by operating machinery and legacy systems, devices, to make mistakes. This point has been elaborated in a
physical documents, etc. into digital data and records. previous segment of this article
Take steps to ensure that all data to be used in the 3. Focus on SR&XM - Take into consideration relationship
process of business transformation are relevant, and experience management of all stakeholders.
generated from first-hand sources and trustworthy. Overemphasizing customers’ relationship and
• Digitalization: Use digital technologies befitting the experience management, leaving all other stakeholders
needs for changing business, operating and revenue away from business strategies, may drive the business
models with the objective to generate more turnover into lopsided areas for digital transformation.
and achieving maximisation of value creation as well 4. Be in PDP Loop - The first ‘P’ is physical spaces for
as minimisation of value destruction. For example, operations. Gather all available data from physical
brick and mortar business models is added with and spaces where operations are conducted, e. g., markets
/ or replaced by virtual marketplace for eCommerce. for inputs and output products, manufacturing, service
• Digital Transformation: Embark upon the journey delivery and logistics operations, financial markets,
with strategically planned tasks for managing changes human capital management, etc. The next ‘D’ stands
and applying digital technology to stay ahead of for digital. Gather all data and securely store in digital
competition with an agile mindset. Take all possible form for analytical studies using tools like AI and
measures for training / upskilling of workforce and ML. Objective would be to make cognitive meaning
inculcating digital agility. out of data and drawing inferences for formulation of
business strategies and tactics for implementation of
It is evident from the above that two major tasks for
the same. The second ‘P’ is again physical. It indicates
digital transformation are Digitization and Digitalization as
that the strategies and tactics decided at step ‘D’ are to
opined by Antonio Grasso. A simple example for this can
be taken to those named physical operating areas for
be drawn from manufacturing industries. Lots of analogue
implementation and thus close the loop. This process
data are generated in industrial units by various counters,
should be repeated with evolution and emergence of
flow meters, etc. to count / measure throughputs, output
newer business ecosystem
generations, and consumption of utilities like steam, power,
chilled water, etc. Voluminous data are also generated in 5. Digital Journey - Take DT as a journey without
physical records maintained by workmen / supervisors any distraction. At best there can be milestones for
including for maintenance of machines, consumption of spare monitoring and controlling implementation. DT should
parts and deployment of technicians. However, such data are not be also considered as a tool for beautification of
not digitised with the help of IoTs and APIs, and stored for business and brand building. Beautification and
conducting analytical studies that may provide meaningful Destination oriented thoughts on DT will make the first
help in planning, monitoring, controlling, deriving trends and pillar, í.e., ‘Why of DT’ weak. The weakest pillar will
patterns, etc., and drawing inferences by cross functional data determine the combined strength and efficacy of the
analyses. All these when done can help in making strategic edifice of digital transformation.
decisions and execution thereof which may in turn help in
maximisation of value generation and minimisation of value Four External Pillars
creation.
The four external pillars for DT are essentially the
stakeholders of business as ideated by Tek Siong2 (July 2019).
Pillars of Digital Transformation
Not many narratives are needed to appreciate the importance
Study of several papers of research scholars and digital of these pillars keeping in mind that they are the sources from
scientists reveal the following five internal and four external which data will be available and generated.
pillars of digital transformation:
1. Partners in business ecosystem, i. e., customers,
vendors, service providers, bankers, financial
Internal Pillars institutions and so on,
The five internal pillars can be explained in the form of 2. Employees and their experience from external
tasks for leadership team on which the edifice of digitally environment,
transformed business can be built:
3. IoTs and APIs used for connecting with external devices
1. Define the Why of DT - Have business strategies and systems, including those of the stakeholders, and

4. Stakeholders experience and feedback which are also • Harvest - Mechanize the process of metadata collection
to be gathered and stored in digital form for analyses from various isolated systems for data management
and drawing inferences. and logically gather and store at a single source.
• Structure and deploy sources - Link metadata of physical
Layers of Digital Transformation elements and from physically maintained data sources
For simplifying the task of DT it is essential to understand to specific data models, operating terminologies,
and appreciate the layers of DT. The following seven layers definitions, and reusable design standards.
have conceptually been borrowed from Lauren Cahn (June • Analyse - Understand and appreciate what characteristic
2019) 3. A few of these may sound to be a bit of repetition features the data has, how any data is related to the
of some of the earlier points, albeit stated with different models for business, operations and revenue, and how
narratives for understanding from diverse contextual aspects purposefully those could be used for cross functional
of DT: analysis that may help informed judgement while
1. Data aggregation - Aggregation of business relevant taking decisions without fear of unknown.
data from reliable sources, including conversion • Map data flows - Identify where to integrate data and
of analogue data to digital form and store for easy track how it moves and transforms.
retrieval.
• Framework for Data Governance – Articulate Policies,
2. Data management - Categorising and organising the Standards and SOPs for data management at the
digitised data and making it ready for application of organisation level and ensure with insightful oversight
further processes. that those are followed in real life practices.
3. Workflow automation - Application of algorithms • Socialize – Share data with external stakeholders and
and utilising the data for the business process to be people in general, as well as provide access rights for
envisioned. employees and business associates to data sources on a
4. Process component - Application of algorithms and need to know and need to use basis.
start utilising the data for the business process.
5. Platform interface integration - Integrating the digital Conclusion
system with the core systems for smoother operations. Digital transformation is a silent revolution with inherent
6. End to end processing - Conducting end to end need for cultural change internally within the organisation. It
processing and ensure error free transformation. is a journey in search of the unknown excellence. Efforts have
been made in the above discourse to simplify various facets
7. Front end software - Integrating with the front end of
of the journey with DT and tasks that are to be performed
stakeholders’ devices so that she / he can get seamless
to make DT to happen with total success. Prima facie a few
services in a technologically collaborated mode.
terminologies and narratives may appear to be a little technical
These seven points are to be revisited every time there or unknown. These could not be explained due to shortage
is a change in business ecosystem, if not at least annually of space. If the reader familiarises with those by knowledge
coinciding with the timing for formulating every annual mining from cyberspace, gathering take home points from
business plan for the organisation. this paper will become that much easy. The author would urge
In this journey of DT with data one must be inquisitive about upon the readers to also read his previous columns in this
and careful in understanding and managing various fountains Journal to know about what all are happening in the world of
of data which is also called the Meta Data. In the following digital transformation in this Industry 4.0 which has now been
section let this be understood with clarity. disrupted by Covid-19 Pandemic.
Meta Data Management Webliography

A simple definition of meta data drawn from Wikipedia Only webliographical references have been quoted below
is “Metadata is «data that provides information about for economy of words and space.
other data”. In other words, it is “data about data.” Many 1. https://which-50.com/four-ds-digital-transformation-
distinct types of metadata exist, including descriptive metadata, according-mckinsey-company/
structural metadata, administrative metadata,
2. https://www.excelroot.com/post/4-pillars-to-unlock-
reference metadata and statistical metadata.” It is said in
sme-digital-transformation-success
lighter vein that in any organisation many types of expenses
walk on two legs. In other words, expenses are incurred for and 3. https://www.exelatech.com/blog/7-layers-digital-
by employees, e. g., salaries and wages, travelling expenses, transformation
welfare expenses, etc. Therefore, creation and maintenance 4. https://erwin.com/blog/digital-transformation-
of meta data for employees at different hierarchical levels is strategy-best-practices/
important.
Mariann McDonagh, (July 2019)4 suggested the following
steps for meta data management:
Paritosh.Basu@sbm.nmims.edu
• Discover - Discover, detect, and probe metadata from
different operating processes and sources of meta data
storage.

DIGITAL OBJECT IDENTIFIER (DOI)
Issue: June - 2020 [Vol. 55 No. VI]
Issue Page
Name of The Article Name of Author/s Volume Issue DOI Numbers
No. No.
WE HAVE ONE EARTH AND ONE
CMA (Dr.) P V S Jagan
CHALLENGE ‘THE CLIMATE Vol.55 Jun-20 6 27-28 10.33516/maj.v55i6.27-28p
Mohan Rao
CHANGE’
CMA (Dr.) Niranjan
ENVIRONMENTAL ACCOUNTING Mahendranath Shastri
Vol.55 Jun-20 6 29-32 10.33516/maj.v55i6.29-32p
& ITS MULTI DIMENSIONAL IMPACT Vanshika Shaw
Mannat Oberoi
STRUCTURAL FRAMEWORK OF
ENVIRONMENTAL ACCOUNTING: A Dr. Parameshwar
Vol.55 Jun-20 6 33-36 10.33516/maj.v55i6.33-36p
CONCEPTUAL ANALYSIS OF GLOBAL Abhishek N
REPORTING INITIATIVES (GRIs)
ESG DISCLOSURES AND INVESTING CMA Rajiv V. Shah
Vol.55 Jun-20 6 37-40 10.33516/maj.v55i6.37-40p
IN INDIA - AN OVERVIEW Aayush Saraogi
ENVIRONMENTAL ACCOUNTING
AND SUSTAINABILITY ANALYSIS OF Dr. Mohammad Khwaja
Vol.55 Jun-20 6 41-45 10.33516/maj.v55i6.41-45p
SELECT PETROLEUM COMPANIES IN Moinoddin
INDIA – A STUDY
– A CASE FOR A COMPREHENSIVE Dr. Inchara P M Gowda Vol.55 Jun-20 6 46-49 10.33516/maj.v55i6.46-49p
ACCOUNTING STANDARD
WHY WE NEED INDUSTRIES
Deepak Kumar Mehto Vol.55 Jun-20 6 50-52 10.33516/maj.v55i6.50-52p
TO HELP SUSTAIN NATURE
LEVERAGING LEAN
MANUFACTURING TO ENABLE
CMA Udandrao
ENVIRONMENTAL MANAGEMENT Vol.55 Jun-20 6 53-57 10.33516/maj.v55i6.53-57p
Lakshmana Rao
ACCOUNTING (LEAN TO GREEN) -
ROLE OF CMA
M V L Jagath Sanjana
Maruvada Bapu Vol.55 Jun-20 6 58-61 10.33516/maj.v55i6.58-61p
AND AUDITING - ROLE OF CMAs
Venkatesam
A STUDY ON THE ROLE OF
AND ENVIRONMENTAL AUDITING CA Sk Shakeel Vol.55 Jun-20 6 62-66 10.33516/maj.v55i6.62-66p
IN ACHIEVING SUSTAINABLE
DEVELOPMENT
SUSTAINABLE ENVIRONMENTAL
DEVELOPMENT AMIDST THE
CMA Kalyani Karna Vol.55 Jun-20 6 67-71 10.33516/maj.v55i6.67-71p
DARKNESS OF COVID-19 - ASHA KI
KIRAN!
DIGITAL TRANSFORMATION IN THE
NEW WORLD ORDER POST COVID-19 CMA (Dr.) Paritosh Basu Vol.55 Jun-20 6 73-77 10.33516/maj.v55i6.73-77p
PANDEMIC
SIMPLICOST - A COST PARTHA CMA Mahadevan
Vol.55 Jun-20 6 78-84 10.33516/maj.v55i6.78-84p
SYSTEM FOR MSMEs Gopalakrishnan
COVID LEARNINGS FROM THE COST CMA (Dr.) Sreehari
Vol.55 Jun-20 6 85-89 10.33516/maj.v55i6.85-89p
BEHAVIOUR OF INDIAN INDUSTRY Chava
CMA Krishnendu Prasad
EMERGING TRENDS IN INTERNAL
Ray Vol.55 Jun-20 6 90-94 10.33516/maj.v55i6.90-94p
AUDITING & GOOD GOVERNANCE
Dr. Gour Gopal Banik
PATH TO FINANCIAL INCLUSION:
THE ASSESSMENT OF SHG N.P.S.V.N.Murthy
BENEFICIARIES IN DISTRICT CMA Nerella Gurunadha Vol.55 Jun-20 6 95-99 10.33516/maj.v55i6.95-99p
CENTRAL CO-OPERATIVE BANK, Rao
KAKINADA, ANDHRA PRADESH
THE DOCTRINE OF “LEGITIMATE
Hareesh Kumar
EXPECTATION” UNDER COMPANY Vol.55 Jun-20 6 100-103 10.33516/maj.v55i6.100-103p
Kolichala
LAW
ENTRY-EXIT GAS PIPELINE
TARIFF CHARGING METHOD -
CMA Neeraj Pasricha Vol.55 Jun-20 6 104-106 10.33516/maj.v55i6.104-106p
ITS ADAPTABILITY IN INDIAN
SCENARIO

AGRICULTURE
CITY COMPOST –
NEED TO INCENTIVISE
USE FOR SUSTAINABLE
AGRICULTURAL GROWTH
Siba Prasad Mohanty CMA Abhay Kumar

Chairman & Managing Director Dy. Manager Finance
HIL (India) Limited RCF Limited
Delhi Delhi
“Let us try to protect our Mother Earth by reducing the use of chemical fertilizers and products.
I want to demand something from my farmers today. I cannot let my Mother Earth be degraded.
I want to appeal to all my farmers to reduce the use of chemical fertilisers by 30-40 Percent.
The Prime Minister Mr. Narendra Modi from the ramparts of Red Fort in his Independence Day speech on
August 15, 2019
Abstract
The share of agriculture sector is 15.87% of GDP in India (2018-19). The development of
agriculture based product only increases percentage of GDP by using scientific method to
recycle its waste product into more productive commodity. Organic farming is well- known for
wellbeing of land fertility and agriculture product. In this context organic fertilizer produced
especially from biodegradable solid waste also known as city compost produced.

AGRICULTURE
Introduction State Agriculture Universities, Department of
T
he Union Ministry of Urban Development Agricultural Corporation and farmers welfare will
has launched its new publicity campaign under carry out information, education, communication,
the “SWACHH BHARAT MISSION” aimed at field demonstration etc. to educate farmers.
encouraging people to convert kitchen waste into compost • Ministry of Urban Development will take right
for scientific processing of municipal solid. measures to increase setting up of compost plants
The campaign entitled ‘Compost Banao, Compost across Indian states.
Apnao’ has Superstar of the Century Mr Amitabh • According to the circular of Department of
Bachchan as its brand ambassador. The scientific processing Agriculture dated 08th March, 2016 , top fertilizer
of solid waste in all urban areas is one of the key initiatives supplier company will be primarily responsible for
being carried out under Swachh Bharat Mission. the marketing of city compost in the states where
The regular, committed and increasing use of city compost they lead.
is a boon to the entire mankind. Many health related hazards • Department of Agriculture also circulated the detail
vanish and at the same time it improves in cities and villages procedure for submission of bills and for claiming
healthy life, healthy soil and increases employability with market development assistance (MDA) payment
sustainable agriculture in India. City compost reduces the regarding sales of city compost dated 03rd June ,
adverse effect of greenhouse gases especially methane. 2016. This circular has proforma for claiming
The use of city compost has become important to improve on account payment of MDA & balance payment
physical and biological property of soils carbon essential of MDA. Here, compost producers are allowed to
component of fertility. market their product directly to farmers and claim
MDA of Rupees 1500/= MT.
Benefits of Application of City Compost • The first payment as per notification is 50% on
As it is clear, Indian soils losing their fertility in terms of account, with proforma B1, for quantity certification
carbon content and other biological nutrients, application of by the municipality.
organic fertilizer will increase productivity and nutrients. • The balance payment is released after receipt of
High carbon content of city compost improves the soil the quantity certification i.e. proforma B2 from the
quality as well as efficacy of fertilizers through which we concerned state government as per FCO specification.
gain high yield and ultimately high gains to our farmers. The clause “The state government shall also certify
The important thing about the use of organic fertilizer is that the bags containing city compost released by the
that they release their nutrients very slowly in comparison unit also has the stamp of quality certified on each
to inorganic fertilizer and the complex molecule in it not bag” has been removed.
leaches away with the first rain.
Availability & Sale of City Compost
Promotion Policy of City Compost
The current annual capacity of city compost manufacturing
Department of Fertilizers, Ministry of chemicals & units in our country is about 15,00,000 MT, however our
Fertilizers, vide their circular dated 10th February 2016 country has the potential of 54,00,000 MT.
brought forward the promotion and policy of city compost.
Due to the initiatives taken by the Government of India,
Salient features were –
several fertilizer producing companies have also come to the
• Market Development Assistance (MDA) Rs. 1500 fore and started afresh, marketing of city compost. Earlier,
per MT of city compost will be given for scaling up this activity was restricted to a few companies. In 2015-16
production & consumption of the product. a steady decrease in sale of city compost was visible due
• The MDA will be channelized through marketer, to glut like situation cropped up in the fertilizers market. In
fertilizer companies and marketing firms will also 2017-18 (Table1), the situation has some what changed and
support city compost with chemical fertilizers the sale was showing upward sign. This upward sign was
through their dealers. because of the following reasons:
• Companies are eligible to get 50% of amount on i). The MDA scheme Initiative taken by Government of
the basis of first point sale from respective fertilizer India.
marketing companies at the district level. The ii). Frequent and timely follow up by Department of
balance amount is released on receipt of retailer’s Fertilizers.
acknowledgement & certificate of quantity and
iii). Initiative by fertilizers companies to boost the sale
quality by respective state governments.
of city compost.
• Many Govt. and other Organisations like ICAR,
iv). Promotional activities by fertilizers companies.
S. Company Table -1 Sale of City Compost (MT)

No Name 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
1 KRIBHCO 37600 41500 23130 24459 19929 12234 20866 26979 39632

AGRICULTURE
2 RCF 0 905 0 0 0 2023 12448 35621 40329
3 NFL 1198 9594 0 0 0 3260 11785 21315 25045
4 MFL 0 0 0 0 0 1745 8651 8088 12040
5 IPL 344 114 0 0 182 1323 7421 14214 11707
6 Coromandel 140460 123082 91828 63330 17343 20099 7133 23296 23899
7 GNFC 0 0 0 0 0 7025 6647 12991 4005
8 TCL/YARA Nil 365 7175 14402 16933 1262 6506 0 331
9 NFCL 0 0 2535 3692 2387 5602 6069 528 0
10 FACT 5198 3866 5773 4871 4421 4177 6000 9371 13103
Green Star/
11 Nil 3500 3500 3045 524 3920 5685 5530 3774
SPIC
12 MCFL 0 0 0 0 0 3743 5492 5600 5654
13 Grasim 0 0 0 0 0 1338 4656 4322 2833
14 GSFC 0 0 0 0 9082 768 3544 7162 7009
15 IFFCO 0 0 0 0 0 2543 3449 1529 2460
16 CFCL 0 0 0 0 0 2875 1969 1715 1413
17 ZACL 1080 577 1042 5433 0 2098 1839 987 1287
18 PPL 0 0 0 0 0 15 1493 2684 5934
19 Others 1717 996 441 183 236 901 1917 10893 15271
Total 187597 184499 135424 119415 71037 76951 123570 192825 215726
Source: www.mfms.nic.in
Quality of City Compost such situation arises it will result into improper composting,
There is no systematic method of segregation and also result in carryover of pathogens to soil, creating health
formation of urban and villages waste into organic and hazards. For making foul/obnoxious smell free city compost,
inorganic components. They all go in waste without their the city waste has to be properly decomposed to make it
proper use. In summer and winter the moisture present in free of any thing that leads to unworthy of use as well as to
the waste somewhat adjust into final formation, but the keep them in godown. Before coming to the market, the city
problem of high moisture content arises during rainy season. compost also passes through several testing parameters so as
This causes impediment to forming compost for which to fulfill FCO specification (Table2).
equal quantity of moisture coupled with temperature. If
Table 2. City Compost Specification (As per FCO, 1985)

1 Moisture, per cent by weight Maximum 25
Minimum 90% material should pass through
2 Particle size
4.0 mm IS sieve
3 Bulk density (g/cm3) <1.0
4 Total organic carbon per cent by weight, minimum 12.0
Total nitrogen (as N), phosphate (as P2O5) and potash (as K2O), per cent
5 1.2
by weight, minimum
6 C:N ratio <20
7 pH 6.5-7.5
8 Conductivity (as dS m-1) not more than 4.0
Heavy metal content (as mg/kg), minimum
Arsenic (as As2O3) 10.0
Cadmium (as Cd) 5.0
Chromium (as Cr) 50.0
9 Copper (as Cu) 300.0
Mercury (as Hg) 0.15
Nickel (as Ni) 50.0
Lead (as Pb) 100.0
Zink (as Zn) 1000.0
Source : FCO 2018. Fertilizer Control (Order) 1985 as amended up to January 2018. FAI, New Delhi

AGRICULTURE
Maximum Retail Price (MRP) of City Compost potential.
The MRP of city compost prevalent in the market is Rs.
4000/ MT (Rs. 200/bag). While some Fertilizer producing Suggestion 2:
Companies have, the MRP at Rs. 3000/MT (Rs. 150/bag). In order to promote the wide use of city compost, the prices
The purpose of the above-said is to promote and enhance must be below Rs.4000/MT (Rs. 200/bag) to Rs. 1000/MT
sales of city compost. Despite this price, the farmers are still (Rs. 50/bag), for which the present subsidy amount could be
reluctant to accept and use them rampantly. The farmers’ increased from Rs. 1500/MT (Rs. 75/bag) to Rs. 4500/MT
feedback is the price of city compost should not be higher (Rs.225/bag). If farmers keep on using the city compost to a
than Rs. 800-1000/MT (Rs. 40-50/bag). Only then it will wider extent than many companies as a long term CSR may
be acceptable. adopt city compost promotion act.
To overcome the deterrent cost economics for using city Concerted and increased Efforts are needed in sale and
compost, suggestions are as follows: promotion of city compost which will be continued by
fertilizers marketing company so that farmers can accept it
Suggestion 1: with arms open wide. Meanwhile, larger perspective shall
City compost must be subsidized to an extent for 3 always be to increase the organic carbon content of the soil in
consecutive years to follow to reap the benefits of its usage. order to enhance the fertilizers use efficiency, by making city
This subsidy might be taken that slowly and slowly in a compost usage by farmers more affordable and attractive.
phase-wise manner. The same thing may be adopted when
it comes to promoting gypsum for bringing that the soil
Going down the memory lane, the Prime Minister Narendra Modi in one of his monthly
address to the nation, in Mann Ki Baat, mentioned the rollout of the GOBAR-Dhan
(Galvanizing Organic Bio-Agro Resources) Yojana in the 2018-19 Budget.” In this budget,
emphasis was laid on ‘waste to wealth’ and ‘waste to energy’ through bio-gas for villages under
‘Swacch Bharat’ initiative ‘GOBAR-Dhan’ has been rolled out,” PM Modi said.
The objective of the GOBAR-Dhan scheme is primarily to ensure cleanliness in villages

and to generate wealth and energy by converting cattle dung and solid agricultural waste into
compost and bio-gas.
Conclusion Edition. FAI, New Delhi.

Chemicals, pesticides and fertilizers increased the 5. www.mfms.nic.in
production of crops at the cost of health, soil and environment 6. www.fert.nic.in
degradation. Besides, all their costs are too high to be
7. Marketing of organic fertilizers – Issues and
affordable for the poor and needy farmers. Constant change
Strategies. Indian Journal of Fertilizers 13(9), 88-
in environment also forces farmers to opt for city compost as
102.
the global change in environment results in less precipitation.
So, keeping all these in views the advantages of city compost
on agriculture have been inevitable. The Government is also
aware of the repercussions of chemicals, pesticides and
fertilizers. So, there have been efforts by both Government
spmohantypuri@gmail.com
of India and fertilizers companies to promote sale of city
compost to a wide and remote level. This will prove to be a cmaabhay@gmail.com
boon for the environment and public at large.
References
1. Indian Journal of Fertilizers, Issue- October 2014
2. Fertilizers marketing News Vol.49, May 2018 , No.5
3. FCO 2018. Fertilizer Control (Order) 1985 as
amended up to January 2018. FAI, New Delhi.
4. FAI. 2017. Fertilizers Statistics 2016-17, 62nd

ECONOMIC IMPACT COVID-19
EXPLORING THE ECONOMIC

IMPACT OF COVID-19
INDUCED LOCKDOWN -
A STUDY WITH SPECIAL
REFERENCE TO SOME
SELECTED INDUSTRIES IN
INDIA
Dr. Prasanta Paul CMA Kaushik Banerjee

Associate Professor in Commerce Secretary
Prafulla Chandra College The Institute of Cost Accountants of India
Kolkata Kolkata
Abstract
This paper deals with the economic impact of COVID-19 which shattered the lives and
livelihoods of people throughout the world causing unimaginable and unexplainable plights
and miseries to the humankind specially the millions of people of lower-income group and
people working in the unorganised sector. All the 188 countries of the world have been affected
and the global economies have been slowed down to almost standstill situation. Impact will
be felt by India’s most vulnerable in terms of job loss, poverty increase and reduced per-
capita income which in turn will result in a steep decline in gross domestic product, sales,
revenues of the companies. Incomes of the common men have been dented by the ‘lockdown’,
the resultant of this deadly disease. The common policy decisions of lockdown have been
taken by all the countries because of the non-availability of medicines and treatments of
the pandemic. Fiscal and monetary policy measures based on each countries’ financial
conditions and parameters have been taken by the respective governments to ease out the
problems of the people expecting that the science would be able to discover vaccines and
treatment within 6 to 8 month till then a new world order would emerge where everyone
would have to follow the health and medical guidelines for keeping themselves away from
the tentacles of COVID-19.

Introduction
Table no.1
Total population, confirmed cases of Covid-19, number of deaths, fatality rates and deaths per 100K population1
Total Population
Country Confirmed Cases Deaths (Fatality Rate) Deaths per 100K population
(Estimated 2020)
U.S.A 33,10,02651 20,10,391 1,13,757 (5.66%) 34.4
Brazil 21,24,83,982 8,02,828 40,919 (5.01%) 19.3
Russia 14,59,31552 5,11,423 6829 (1.37%) 4.68
India 138,00,04385 2,97,535 8498 (2.9%) 0.62
U.K 6,78,68549 2,91,413 41279 (14%) 60.8
A
pneumonia of unknown cause detected in Methodology
Wuhan, China was first reported on 31st This paper is an explanatory and commentary type in
December of 2019. World Health Organisation nature and based on the data and information collected
declared a Public Health Emergency of from various secondary sources like journals, websites and
International Concern on 30th January 2020 and name was newspapers etc. A global picture has been drawn by the
given COVID-19, a global pandemic the world had witnessed compilation of data considering the severity of the pandemic
on 11th February 2020. Science is working day and night to and the economic impact on the economy in general and
combat the speed of this challenging disease and it is also on the four selected industries in particular. The selected
working to develop innovative treatments and vaccines to industries are; automobile, oil and gas, transport, travel and
arrest the number of deaths internationally. In the meantime, tourism industry as these are highly related to one another
disease has spread its tentacles and has affected almost 188 and linked with the movement of the people and the goods.
countries throughout the world that can be easily understood The data procured from the different sources have been
through the following information of number of confirmed compiled and graphically presented to get a clear view of
cases (7,653,993) and number of deaths (4,25,903)2. The the situations Apart from that, the data from various sources
number of mortality rates in different countries is different. were also analysed with the help of some mathematical tools.
Mortality rates are higher in older population and mortality
rises as hospitals become less equipped. More people with Impact on Gross Domestic Product of India
milder cases are identified and hence lower the mortality
Table No.2
rate. Little evidence showing a slowdown in new cases and
global official deaths have been almost half of a million. Annual GDP Growth3 in %
New cases are continuing to moderate in Europe and North
Year Rate Change
America with the focus shifting more and more to Latin
2012-2013 5.5 -----
America and India. In India, the mortality rate reported as
2013-2014 6.4 1.1
of now below 3 per cent but the plights and miseries of the
2014-2015 7.4 1.0
artisans and workers in unorganised sector and specially
that of the migrant workers are beyond imagination and 2015-2016 8.0 0.6
explanation. 2016-2017 8.3 0.3
2017-2018 7.0 -0.7
Objectives 2018-2019 6.1 -0.9
2019-2020 4.2 -1.9
1. To understand the severity of COVID-19 and its
impact on the lives and livelihoods of people.
In 2019, Gross Domestic Product of India was 3.202
2. To analyse the impact of COVID-19 induced trillion ranking 5th in the world when the GDP growth was
lockdown on the gross domestic product in India. 4.2 % (2019-2029). Indian Central statistical office on May
3. To explore the impact of COVID-19 on some selected 2020 show that India’s Gross Domestic Product grew 3.1%
industries in India. during January to March this year. “The GDP growth in the
4. To have an insight into the role of governments, financial year 2019-20 came in at 4.2 % against 6.1% in the
non-government organisations and individuals in financial year 2018-19. It could get worse as restrictions and
combating the disease and resultant miseries of the lockdown continue to constrain people’s movements, hurting
people. economic activity. The nationwide lockdown kicked in from
5. To suggest some remedial measures to save the and March 25 and its actual impact on the economy will show
the economy. up in the subsequent months when business screeched to a
standstill”.4 The real or inflationary adjusted GDP growth
rate has been reached at 3.1%, the lowest in last 44 quarters.

So, a grim picture of Indian economy has been coming out 136 million jobs cost and total of 174 million unemployed
from the above table. On 29th may 2020 in the website of and putting 120 million people into poverty and 40 million
International Monetary Fund in economic outlook report into abject poverty.7
stated that the COVID-19 pandemic is inflicting high and
rising human cost worldwide and the necessary protection
Impact on Automobile Industry in India
measures are severely impacting economic activity as a
result of the pandemic. The global economy is projected Automobile industry in India is one of the important
to contract sharply by - 3% in 2020, much worse than that drivers of economic growth and April 2020 will be
of 2008 and 2009 financial crises. So, the Indian reality remembered as the darkest month in the history of Indian
has been corroborated by the IMF’s prediction on global automobile industry. This industry in India is in the 4th
economic scenario. position in the world in terms of manufacture of cars and
it is the seventh largest manufacturer of commercial vehicle
Table No.3 in 2017. The industry accounts for 7% of countries GDP,
49% of manufacturing GDP, 15% of GST and employs over
% Annual Growth of several sectors in India 5
3.7 crore people directly or indirectly have been in the grip
Q4 (2019- of an intense slowdown for 15 months which only been
Sectors 2018-2019 2019-2020 exacerbated by the coronavirus - induced lockdown.8 The
2020)
Agriculture 2.4 4 5.9 industry is witnessing a revenue loss of rupees 2300 crore per
day. Autocar India reported that study has soon the decline
Industry 4.9 0.9 -0.6 of global vehicle sales in March 2020 is 39% and in terms
Manufacturing 5.7 0.03 -1.4 of sales unit it is 55.5 lakh units compared to 90.3 lakh units
Services 6.1 1.3 4.4 a year ago due to nationwide lockdown in various countries
for arresting the spread of coronavirus and this industry will
be required special assistance from the government to get
Only agriculture sector is the exception and industry,
back to shape.9
manufacturing and services sector recorded declining trend
and decimated from 4.9% to 0.9%, 5.7% to 0.03% and from
Impact on Travel and Tourism Industry in India
6.1% to 1.3% respectively. Eight core sectors showed a
decline of growth rates where 86% in cement output followed The world travel and tourism Council predicted that
by steel industry by 83.9%. Only two sectors that witnessed 50 million jobs are at risk globally and it is the biggest
a single digit drop are crude oil 6.4 % and fertilizer 4.5%. challenge that could adversely affected by up to 25% this
So, the overall industrial production has been at all time low year. Corporate India is working from home, air and rail
and taken a toll on economic activity these are the results of connectivity have been shuttered, the hotel industry will
COVID-19 induced lockdown. have to face a loss of revenue of around rupees 1.10 lakh
crores. BW Hotelier stated that in the world context of
Table No.4 global growth is ‘negative 3%’ with India’s projections of
‘no growth’ zero per cent by Barclay’s and ‘negative 0.4%’
Core Industry Sectors (COVID-19 Impact)6
by Nomura providing no succour of hopes a quick recovery,
especially for this sectors which contributes about 10% of
(% Annual Growth Rate)
Industry India’s GDP and employing directly and indirectly more
w.r.t 2018-2019
than 40 million people.10
Coal -15.5
Crude Oil -6.4 Impact on Oil and Gas Industry in India
Natural Gas -19.9 Oil and gas industry in India contributes 5.2 % of global oil
Refinery Product -24.2 demand. Indian Oil market is highly input dependent which
imports 84% and gross imports 53% of the annual domestic
Fertilizer -4.5 demand. The COVID-19 has made the oil and gas industry
Steel -83.9 in India sit up.11 The growth of India’s petroleum demand
Cement -86.0 has been severely dented the consumption of fuel. In March
2020 the consumption fell 18% to 16083 thousand tonnes
Electricity -22.8
(TMT) as compared to the same a year ago. Other than LPG,
the demand for all petro products declined in March 2020
International Management consultancy firm Arthur D which resulted a loss of revenues of the companies. Indian
Little stated in their report that the worst of COVID-19 Oil Companies specially the Exploration & Production
will be felt by India’s most vulnerable in terms of job loss, Space (upstream) like, ONGC and Oil India are facing tough
poverty increase and reduced per capita income which in turn times because of increased pressure to sell their products
will result in a steep decline in the Gross Domestic Product at lower prices. As per the data of Reserve Bank of India,
that means a GDP contraction of 10.8% in the financial year India’s current account deficit (CAD) stands at 2% of GDP
2020-21 and GDP growth of 0.8% in the financial year 2021- in December quarter the financial year 20 as compared to
22. Unemployment may rise 35% from 7.6% resulting in 2.7% in the same quarter in the financial year 2019. Sanjoy

Kumar Kar in an article “the oil industry survive COVID-19 reach the people during the period of crisis and about 4000
effects?” in energy world.com stated that it has been trains were run by Indian Railways.
observed that 84% of the COVID-19 infections and 94% of
human casualties through COVID-19 happened to be in top Other Initiatives
22 well consuming nations with GDP of 68 trillion dollar. Non-governmental organisations in 13 states and union
So it is needless to mention that the restricted economic territories distributed foods to 30.11 lakh people. Apart
activities in these countries will lead to economic slowdown from providing food, the non-governmental organisations
followed by severe global recession. Lockdown resultant also provided shelter homes or relief camps to the 39.14%
restricted movement of people and goods within the country, of 10.37 lakh affected people. Though there is no official
grounding of international flights and global travel ban have estimate of numbers of how many individuals have helped
led to huge reduction of fuel consumption which forced the the institutes but the reports to media confirmed that many
industry to stand to a spot of alarming condition. individuals by their personal capacities contributed and
donated money, provided meals and shelters and arranged
Impact on Transport Industry in India buses and even charter flights to reach them homes for the
It is one of the most affected victims of COVID-19 and needy people who have been severely affected by this global
the pandemic will have a long term effect on people’s travel pandemic. Many corporate houses of India also contributed
behaviour because of the risk of communities spread of the huge sum of money either to the PM care relief fund or to
virus. The government issued guidelines with increasing the various Chief Ministers’ emergency relief funds to tide
restrictions and as a result of this, a drastic fall in public over this crisis.
transport usage in many cities is evident. All the modes of
transport like Air, Rail, Road, Water transport have been Suggestion and Conclusion
affected because of the resultant lockdown and it has affected For a country like India where a higher percentage of
the millions of people. It is estimated by the Moneycontrol workers with less privileged healthcare system likely the
2020 that Indian Railways will lose around Rs.12500 crore impact of lockdown on the lives and livelihoods of the people
to 6500 crore from passenger traffic and Rs.600 crore from are more detrimental than the fallout of the disease itself.
freight services. Because of the grounding of all flights both Like Germany, Italy, France, Spain, United Kingdom etc.,
the domestic and international it is expected that a loss of India also have loosen the restrictions of lockdown in order
about 3 to 3.6 billion US dollar for Indian aviation industry to save the livelihood of the people as the daily cases rising
in June quarter.12 Within cities local transport operators such on the one hand and the world being in the grip of recession
as, Metros, City buses, Auto rickshaws, Taxi cab aggregators on the other have forced and pushed the policy-makers in a
have also stopped operation and they will continue to get quandary. As the treatment, medicine rather solution to cut
affected by continued norms of social distancing.13 off the disease is unknown to the world and every country
is trying their level best to combat the spread of the disease
Government Initiatives in their own ways with the help of the guidelines of World
The most common policy initiative has been a lockdown Health Organisation. In the economic front similarly every
from time to time for a period of almost 10 weeks. Initial country has taken monetary and fiscal measures based on
responses were based on modelling the direct impact of their own economic conditions and parameters to ease out
COVID-19 but not other impact to the well being of the the economic downturn, the resultant of the global pandemic.
economy or society. But, both the central government and Special assistance from the government would be required
the state governments took several measures to combat the for every sectors of the economy in general including the
pandemic as well as to save the people from the economic selected industries considered in this study for bringing them
distress. Several monetary and fiscal measures including back to shape.
the stimulus package for (MSMEs, NBFCs, EPFO, PDS, In India, apart from other initiatives taken, the government
Housing, Education, Coal, Power, Defence, Agriculture also injected 20 lakh crores of money into the economy
and Allied sectors etc.) various sectors have been taken by through various fiscal and monetary measures but the
the government to strengthen the economic pillars of the various renowned economists including the Nobel laureates
country.14 Tracing, Testing and Treating the people affected and the corporate bosses suggested direct cash transfer to
by the deadly disease has been one of the utmost priorities the destitutes for creating demand in the economy. The
of the government and to help to trace the affected person, government has not yet taken that path rather the government
ArogyaSetu App has been developed. Awareness campaign has taken various measures for boosting the supply side of the
for use of masks for the individuals, use of PPE for the economy and expecting that the fallout would be the rising
persons who are directly in contact with the patient, cleaning demand. But at this juncture, it can be said that the economy
of hands, use of sanitizers, banning of public spitting etc. needs a four wheel drive car type of system because neither
were done by the government to help the public not to the front wheel drive car type nor the back wheel drive car
get affected by this pandemic. Several state governments type of system will be able to pull out the wheels of the
supplied foods to 54.15 lakh people during the lockdown of economy from this deep muddy covid stuck situation and so,
68 days and the governments also provided 22567 shelter the direct cash transfer to the needy and destitute persons as
homes 60.86% of 10.3 lakh needy people. The government suggested by the economists as well as the decisions taken
also arranged special trains for the migrant workers to help by the government through stimulation package of 20 lakh

crore of money both are needed to propel the economic story/after-zero-sales-in-april-auto-industry-wants-full-
wheels of the country. In the meantime, it can be expected exemption-from-lockdown3/1/402649.html
that science will be able to discover vaccine and medicine 9. https://www.google.com/amp/s/hospitality.
for treating the people and preventing the people and a new economictimes.indiatimes.com/amp/news/travel/covid-
world order would emerge with all the hopes and aspirations 19-effect-wttc-predicts-50-million-potential-job-loss-in-
of the people where all the flora and fauna of the universe travel-and-tourism-industry-globally/74650387
would be safe and flourish in their own way. Needless to 10. https://energy.economictimes.indiatimes.com/
mention that the medical and heath guidelines regarding energy-speak/will-the-oil-industry-survive-covid-19-
infection preventing measures and social distancing are to effects/4125
be followed seriously in this neo-normal situation. 11. https://www.google.com/amp/s/energy.economictimes.
indiatimes.com/amp/news/oil-and-gas/covid-19-
References impact-indias-petroleum-consumption-falls-to-10-year-
1. https://coronavirus.jhu.edu/data low/75064474
2. https://covid19.who.int/ 12. https://www.moneycontrol.com/stocks/company_info/
sector_info.php?sub_sector=Transport%20&%20
3. https://m.telegraphindia.com/business/lockdown-
Logistics
extension-to-have-deep-impact-on-indian-economy-
report/cid 13. https://www.google.com/amp/s/m.economictimes.com/
industry/transportation/airlines-/-aviation/indian-
4. https://www.google.com/amp/s/www.moneycontrol.com/
aviation-sector-may-incur-3-3-3-6-billion-loss-in-june-
news/business/economy/business-insight-decoding-gdp-
quarter-capa-india/amp_articleshow/74813509.cms
numbers-5335531.html/amp
14. https://www.manifestias.com/2020/05/19/atmanirbhar-
5 & 6. https://www.google.com/amp/s/m.
bharat-20-lakh-crore-stimulus-package/
economictimes.com/news/economy/indicators/amp_
articlelist/344531568.cms
7. https://www.adlittle.com/en/india-surmounting- paulprasanta@hotmail.com
economic-challenges-covid-19 kaushik123ban@gmail.com
8. https://www.google.com/amp/s/m.businesstoday.in/lite/

(Statutory Body under an Act of Parliament)
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Research Bulletin, Vol. 46 No. II July 2020 (ISSN 2230 9241)

Call for Research Papers/Articles
We invite you to contribute research paper/article for “Research Bulletin”, a peer-reviewed Quarterly Journal of The Institute of Cost
Accountants of India. The aim of this bulletin is to share innovative achievements and practical experiences from diverse domains of management,
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meaningful insights into the management content both in Indian as well as global context.
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Papers are invited on the following topics, but not limited to:
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COVID-19 PANDEMIC-
ECONOMIC IMPACT,
RECOVERY & SUSTAINABLE
GROWTH FOR INDIA
Abstract
The Covid 19 crisis has greatly impaired

the world economy including India.
However based on the intrinsic strength
and some suggested reforms, focused
policy directions along with concentrated
implementation and monitoring, India is
poised to make a faster recovery from the
same. The Stimulus package announced
is also commendable considering India’s
CMA Padmanabhan Satyes Kumar precarious Debt to GDP ratio. But we
Ex Deputy General Manager (Finance) BHEL
Haridwar
should sooner get back to the path of a
sustainable growth provided we remain
sincere for implementation of the course
corrections indicated in the opportunities
and learning from the crisis.
C
ovid-19 has forced complete lockdown and Disrupted global supply chain, depressed demand, loss of
massive economic disruptions in more than 200 income, consumer psychology to spend less on discretionary
countries thus impairing the world economy in items etc. may result in a world recession of a magnitude
a massive way. similar to the Great Depression of 1930s especially as most
economies dependent on global trade.
A) Impact for World: World GDP vs. Covid-19 numbers are as under.
Table 1: World GDP Top Countries vs. Covid-19 cases up to 31/5/20 (ref #1)
GDP in Trln $ % of World Covid-19 cases % of World
Sl. Country Deaths Death %
(2019) GDP on 31/5/20 Total
1 USA 21.14 23.60% 1734040 28.62% 102640 5.92%
2 CHINA 14.14 15.50% 84588 1.40% 4645 5.45%
3 JAPAN 5.15 5.70% 16884 0.28% 892 5.28%
4 GERMANY 3.86 4.20% 181815 3.00% 8511 4.68%

5 INDIA 2.94 3.20% 190535 3.15% 5394 2.83%

6 UK 2.83 3.10% 274766 4.54% 38489 14.01%
7 FRANCE 2.71 2.98% 148524 2.45% 28746 19.35%
8 ITALY 1.99 2.19% 233019 3.85% 33415 14.34%
9 BRAZIL 1.85 2.04% 498440 8.23% 28834 5.78%
10 CANADA 1.73 1.90% 90516 1.49% 7092 7.84%
11 RUSSIA 1.64 1.81% 414878 6.85% 4855 1.17%
12 REST OF WORLD 30.57 33.78% 2189898 36.15% 107653 4.92%
WORLD TOTAL 90.85 100.00% 6057853 100.00% 371166 6.13%
Inference: Top 11 countries (with 66% of the world GDP) better agricultural output might result in faster recovery
have 64% of Covid-19 cases (71% of deaths) and resulting compared to other economies dependent on global trade.
lockdown disrupted economic activities all over the world.
The redeeming factor, however, is that the minimal B) The Way Forward for Indian Economy Based on
destruction to the physical infrastructure makes recovery Segmental Analysis of GDP till now
faster provided geo political tension which may lead to war
and further blow to world economy is avoided at all cost. As detailed under Table 2 below, the components of
Indian Position: lockdown from March 2020 resulted in the Indian GDP indicate the challenges and scope for the
drastic impact on the short term. However, advantage of huge recovery of Indian economy.
domestic market, reduced crude prices and expectation of
Table 2: GDP of India - Breakup Percentage of various Segments ( Ref #2)

GDP 19-20 GDP FY 19-20
Expenditure side of GDP Supply Side breakup of GDP
18-19 Prov. 18-19 Prov.
Private Consumption 57% 57% Agriculture, Forestry & Fishing 14% 15%
Govt. Expenses 11% 11% Manufacturing 18% 17%
Gross Capital Formation 32% 30% Mining & Quarrying 3% 3%
Change in Stock 1% 2% Power & Utilities 2% 2%
Net Exports (Exports-Imports) -5% -2% Financial, Real Estate & Professional services 22% 22%
Valuables 2% 1% Trade, Travel, Tourism, etc. 19% 19%
Construction Services 9% 8%
Misc/Discrepancies 2% 1% Public Admin, Def. & others . 13% 14%
TOTAL 100% 100% TOTAL 100% 100%
Crucial inferences to note from the above are as under: 5. However the Net Exports, which is minus 4%
level may reach a positive level in FY 20-21 due to
1. The Service sector bias, unlike the manufacturing
lower crude price and increased efforts for import
sector orientation of countries like China and South
substitution.
Korea, would delay the recovery as everything from
Call centre, Hotels, Airlines, Business Support
C) Specific GOI Stimulus for Revival are:
Services, Trade and Travel etc. have been massively
disrupted by lockdown.
I) Short Term Support /GOI Spending & Tax Relief
2. The slow growth rate in Agriculture and the stagnation (Ref #3)
in Manufacturing, in my opinion, have stressed the
need as well given a chance for focused correction. Number and Amount
Sl. Beneficiary
3. Also the Private consumption (now almost 57%) Rate (Rs Cr.)
will be impaired due to higher unemployment.
4. The gross capital formation and governmental Women JanDhan 20.40 cr @500pm
1 30,600
expenditure will be hit as public debt to GDP is A/c for 3 months
already at 70% level.

II) Other Support Measure for Liquidity Boost:
Food Security Free ration for 80
2 45,000
Scheme crore people Details of Loans/ Liquidity
Sl Amount (Rs. Cr )
Initiatives
Extra 200 cr 1 RBI Measures for liquidity 8,01,603
3 MNREGA 40,000
mandays @202
Collateral free loans to MSME
2 3,00,000
Rate inc. From Rs 182/day guaranteed by GOI
4 5,000
MNREGA to Rs 202/day 3
Kissan Credit Cards for 2 crore
2,00,000
additional farmers
Frontload Rs
PM Kissan
5 2000 for 8.7 cr 17,400 4 Discoms liquidity from REC/PFC 90,000
Samman
farmer
5 Liquidity support for NBFC/MFI/HFC 75,000
Construction
6 3.5 crore 35,000 Housing loan subsidy scheme
Labour 6 70,000
extension for middle class
Free gas Funds of Funds & Support for MSME
Ujjala Gas 7 70,000
7 for 8 crore 5,000 distressed loans
Holder
beneficiaries Additional farm loans through
8 30,000
NABARD
Elder/Widow/ One time grant of
8 3,000 PF Withdrawal (5000) & Reduction in
Divyng 1000 for 3 crore 9 11,750
PF rates (6750)
Lumpsum Hawkers loan (5000) & SHG
Health Infra. 10 11,000
9 Provision for all 15,000 Additional loans ( 6000)
Covid
states
Total Loans and liquidity measures Rs 16,59,353 Cr.
From District
10 Covid Exp 10,000
Mineral Funds The above measures adds up to nearly Rs 21 lakh crore
which is roughly 10% of GDP.
PF Members of 24% contribution
11 3,000
SME for 3 months
III) Other Initiatives & Reforms Measures Announced
Interest subsidy By GOI
MUDRA loan
12 for SHISHU 1,500
holders Apart from the above, GOI has also taken additional steps
loans
to boost the economy like:
Free Ration for 2 1. Advance release of SDRF to State governments Rs
13 Migrant Workers 3,500
months
11,000 cr. in April.
Insurance of Rs 2. MSME’s outstanding dues ordered to be released
14 Health Workers 50 lakh for 22 5.000 within maximum 45 days.
lakh
Tax relief given 3. State government annual deficit limit -raised from 3%
Income Tax of the state GDP to 5%.
15 in March last 7,800
payers
week 4. Ways and Means Advances of the states increased by
Further 60%.
16 PF Members contribution paid 2,800
5. Radical changes in the definition of MSMEs including
by govt
exclusion of export turnover enables even big units
Reduction on eligible for policy benefits.
17 Tax payers 50,000
TDS rates 6. Radical reforms in the agricultural marketing
including withdrawal from the Essential Commodity
New Fund for
18 Agriculture Infra 100,000 Act 1952 would enhance farmer’s income.
infra expendityre
7. Defense production -greater degree of indigenous
Animal level to curtail imports.
19 Rural Allied areas husbandary, 50,000
Fisheries etc. 8. Strategic sector opened for private sector and limiting
the number of PSUs. Also PSUs in non strategic
Health Infra in Additional Viable sectors to be privatized.
20 8,100
Pvt. Gap Funding
9. Commercial production of coal & other minerals
Rs.437,700 opened for private sector.
Total
Cr 10. Insolvency laws to be amended for suitable relief for
MSMEs as well as exclusion of Covid-19 related debt
from the scope of “Default” under IBC.
In my opinion, though the Opposition and some

economists say that the stimulus does not have much to suggestions as under would not only to redress the
boost the demand factor, given India’s precarious Debt immediate impact but also to speed up long term goal of a
to GDP ratio, GOI & RBI has finalized a well balanced 5 Trillion dollar GDP:
stimulus package as of now.
Also, as the impact of the crises is only emerging, it I) Agriculture , Forestry, Fishing and Allied Sector :
is only prudent to keep something in reserve to meet the
future eventualities. 1). Since Agriculture is State subject there should be
a consultative approach for evolving unanimous
D) Further Suggestions for Focused Sustainable policy.
Growth of Indian Economy 2). MSP trends (Table 3A) indicate hardly any growth
and hence focused rectification needed.
In addition to the measures already initiated, further
Table 3A- MSP for Paddy & Wheat in last 10 years ( Rs per Quintal) (Ref#4)
FY Paddy MSP % Inc. Wheat MSP % Inc. Productivity Paddy (kg / hectare) Prod Wheat (kg//hectare)
2016-17 1510 4% 1525 5% 3200 2494
2017-18 1590 5% 1625 7% 3367 2576
2018-19 1770 11% 1735 7% 3507 2659
2019-20 1835 4% 1840 6%
2020-21 1888 3% 1925 5%
Average % 6% 6% 5% 4%
3). MSP to curtail import of oilseeds to be enhanced for Telangana 6877 4377 64%
better incentive (Table 3B) (Ref #5)
Odissa 6784 4474 66%
2019-20 2020-21 % Increase Rajasthan 25511 17521 69%
Crops
MSP MSP in MSP
Andhra 9047 6236 69%
Soyabean 3710 3880 5%
Sunflower 5750 5885 4% 5) Tax holidays/incentives for encouraging Corporate
sector participation in farming & food processing
Groundnut 5090 5275 3% industries needed for scaling up agricultural
Paddy 1835 1888 3% growth.
6) Integration of the various rural schemes like
Wheat 1840 1925 5%
MNRGA, Food Security scheme, Rural roads
Cotton 5515 5825 5% construction, Housing for all, potable water projects,
micro irrigation schemes etc. to ensure overall
Bajra 2000 2640 32% poverty reduction. Table 5 ( Ref #7)
Urad Dal 5700 6000 5%
% below
In-spite of the stated objective the hike of just 3%-5% MNRGA MNRGA
National
may not be adequate. State Deployed vs. mandays in
Poverty
Demand % 2018-19
Line
4) Specific Area Development for increasing the
percentage of cultivated area in deficient states: All India 22% 85% 268.00 crore
Table 4 (All figures in Thousand Hectares) (Ref#6) Bihar 34% 77% 12.34 crore
Cultivable % land UP 29% 84% 21.21 crore

States Cultivated
land used Odissa 33% 86% 8.30 crore
All India 181886 1401190 77% Chatisgarh 40% 80% 13.86 crore
Meghalaya 1056 283 27%
Jharkhand 37% 75% 4.53 crore
Jharkhand 4343 1385 32%
Rajasthan 15% 83% 29.42 crore
Uttarakhand 1549 700 45%
Madhya
Tamil Nadu 8112 4819 59% 32% 78% 20.30 crore
Pradesh

too low for the following states calling for focused
West Bengal 20% 88% 33.83 crore
policy to correct the same:
Assam 32% 87% 5.33 crore
Table 6: Unempl. Rate vs. Employment in
Manufacturing as % of Total Employment (Ref#8)
7) Since RBI repo rate is 4%, NABARD’s gross rate @
Unemployment Mgf/ Total
9% for crop loans needs to be reduced. States
Rate 2017-18 Employment
8) Organic farming/medicinal crops to be encouraged.
All India 6.0% 12%
Sikkim (98%) & Meghalaya (17%) can be benchmark
for other NE states (4%), HP (2%) and Uttarakhand Karnataka 11.4% 12%
(0.3%) (Ref#7) Uttar Pradesh 6.4% 11%
9) Areas under Forestry to support legal utilization Telengana 7.6% 12%
for promoting Indian brands of furniture for Tamil Nadu 7.6% 20%
better royalty and employment prospect subject to
compulsory reforestation by such industry. Rajasthan 7.8% 9%
10) Incentivize projects and schemes for large scale fish Odissa 7.1% 7%
farming & export oriented units. Jharkhand 7.7% 9%
11) Cooperative farming convergence with SHGs. While Haryana 8.6% 19%
there is almost 50% growth of SHGs (18.32 lakh
in 15-16 to 26.98 lakh in 18-19) SHGs related to 12) FDI in technology deficit segments to be leveraged
farming to be further incentivized. with the joint venture prospects with big PSU
(e,g,EOI recently floated by BHEL). However
12) Encourage export oriented ventures and dedicated
technology transfer clause to be ensured.
farms including possible tie up with desert countries
for their long term food security at committed price. 13) Renewable energy/transportation e.g. International
Solar Alliance has huge export potential. Incidentally
II) Manufacturing, Mining, MSMEs, Foreign EU confirmed their recovery plan will be
Investments . accompanied with green efforts to achieve Climate
neutral continent by 2050. Germany announced
1) District-wise monitoring of the Covid is a learning
doubling of the capital subsidy of Euro 6000 per car
curve to be replicated for tracking Industrial
in their Stimulus packages.
developments too.
14) Idle land with PSUs needs to be recouped by
2) Growth of industries and manufacturing to be
governments to supplement their non tax revenue.
integrated with various schemes e.g. Smart City
projects, PM Awas Yojana, Infra investments etc.
III) Service Sector Reforms and Consolidation:
under Atma Nirbhar Abhiyaan.
1) Statutory limits on the Managerial remuneration to
3) Aspirant district approach to be enhanced for
be rationalized to create more employment. Kotak
lowering of all India growth disparities.
Mahindra Bank cut for top managers pay to retain
4) Strengthening of statistical/other demographic all jobs/ salary of those below CTC of Rs 25 lakh.
details for focused planning of governmental Tata companies also announced 20% cut for top
policies/ support schemes in emergencies such as management. Cognizant announced to cut some
current lockdown. highly paid seniors positions to increase entry level
5) Strategic investments/FDI in Rare Earths minerals posts so that overall cost is down while manpower
to be expedited as 90% of the world need is now met number is increased.
by China and hence this has huge export potential. 3) At 14% of the GDP, the Govt. Administrative and
6) Also it should be ensured that export of value added Defense spending can be reduced by limiting senior
products to replace ore exports. post and increasing ground level staff.
7) Productivity, Quality, Price-Rationalization & 4) The current crisis gives more frontline opportunity
EVA factors – core factors for competition needs to youngsters in the health and police departments
constant improvements at global standards. and reduction of staff in the 50 plus age should
8) Skill/deficit mapping/expansion of vocational curtail manpower cost.
training- aligned to / adopted by big companies. 5) Social security scheme for service sector persons
9) Redeeming environmental repairs seen during under the category of Trade, Travel, Tourism and
lockdown to be consciously preserved. Broadcasting services needs to be expedited.
10) MSME specific credit, labour policy, managerial 6) More policy incentives for expansion of the
competence, market reforms to be monitored. manpower intensive units like call centre and service
centre to expand the employment propensity.
11) Despite industrial growth, unemployment rate is high
& share of employment in Manufacturing sector is

IV) Other suggested measures for Structural Textile, Electronics, Plastics and Toys, Phase II may
Correction in the Economy give specific push for Gems & Jewellary, Pharma and
1) Our Debt to GDP and Tax to GDP both needs to be Steel etc.
improved through long term measures. 4) Indo Pacific nations consisting of USA, Japan,
2) Tax to GDP can be improved by focused effort to India, Australia, South Korea, New Zealand, Vietnam
broaden the taxpayer’s base and unavoidable increase will not only extend mutual cooperation in the fight
of tax rate on super rich citizens. against Covid but also share their capabilities for
medium term economic recovery. They will make all
3) GST rate revision and rationalization seems to be
cooperation amongst these 7 nations for restructuring
inevitable to broaden the revenue.
and reorganizing their required supply chains but also
4) Perennial burdens of direct/indirect subsidies and converge the same with other multilateral groups
expenditure of government to be cut. such as the G20 and the East Asian Summit . (Ref #
5) Per capita GDP ($2000) will be only $3000 even if 11)
we attain GDP of $5 Trillion due to high growth
rate of population and hence population policy is of Conclusion
significant concern. The unprecedented pandemic and the resultant lockdown
will definitely have economic damage in the short run.
E) Recent Strategies and Real times Flexible Solutions However, the sooner we can shift from the current Disaster
to Sail over Covid-19: Management Act (DM Act) and get into “Economic
Management” (EM) acts, the lesser will be the damaging
1) Strategic shift in Economy – Mr. N impact on the long run. Actual success of the policy
Venkatraman,CEO of Deloitte India believes that initiatives would really hinge on war-footed implementation
India must now intelligently restructure its economy of the recovery acts and effective monitoring of the same.
in line with the following major objectives:
The Covid-19 crisis has challenged not only the medical
a. Development should be Plural and focused for as well as the administrative set up but also questioned
Rural; the resilient power of the Indian economy and once again
b. Regional developments to be balanced ; India SHALL OVERCOME.
c. Leveraging India’s strength and policies for
attracting FDIs References
d. Modernizing Agriculture, Rural value-addition 1. Ref#1-World Bank Data on Country wise GDP of
& aspirations to increase rural consumption. 2019 & WHO Situation Report 133 dated 1/6/20
GOI’s recent policy initiatives for sectors like 2. Ref #2-RBI’s Annual report for FY 18-19 and
Food processing, pharmaceuticals, defense MoSPI’s Provisional figures for GDP of 19-20
production, electronics, leather industries 3. Ref #3-Press Information Bureau (PIB) details of
and textiles are welcome beginning. Focus March and May 2020- Ministry of Finance, GOI
to remain on those investments that generate 4. Ref #4 -MSP for Paddy and Wheat as per data
growth, value and scale of production. (Ref. #9) available on FCI web
5. Ref #5- MSP declarations by Ministry of Agriculture
2) Reliance Industries limited experiments with rejig
on 1st June 2020
of their product mix in their Oil to Chemicals (O2C)
business and quickly change their exports quantum is 6. Ref #6 to Ref#8 -MoSPI compilation for Sustainable
an example of out of box solution. Development Goals Rpt dated 31st March 2020:
As the global price for refined petro products 7. Ref #6- Page 231- Area sown vs. Cultivable Area;
plummeted, RIL quickly increased their petrochemical Page 232- Organic Farming data state-wise%
products in place of the refined petro products and 8. Ref #7- Page 204,208 and 327 on Poverty and
also finalized next 6 months export orders to optimize MNREGA for 2017-18
capacity utilization in lockdown period and increase 9. Ref #8- Page 340-Unemployment rate; Page 355-
profit. Employment data in Manufacturing Sector
PPE producing units taken over by RIL also enabled 10. Ref #9- Economic Times “Global Supply Chain…
opportunities given by Covid. (Ref. #10) India Must” dated 26/5/20
3) Atma Nirbhar Bharat (Self Reliant Bharat) is 11. Ref #10- Economic Times “RIL’s smart switch to
aimed to give emphasis on local manufacturing, local offset Covid hit” dated 28/5/20
market and local supply chain so that the disruption
12. Ref #11- Economic Times “Indo Pacific Nations for
seen due to snapping of imports during such times
sustained engagement” dated 16/5/20
can be avoided as well as more employment is
generated through local activities. Phase I of the
scheme would encourage sectors such as Medical satyeskumar@yahoo.com

IMPACT OF ‘WORK FROM

HOME’ ON EMPLOYEE
PERFORMANCE /
PRODUCTIVITY IN SOFTWARE
INDUSTRY DURING COVID 2019
LOCKDOWN -
RESULT OF PERCEPTION
SURVEY IN INDIA
Dr. Prabir Kumar Bandyopadhyay

Professor
SIBM, Pune
Abstract
The issue of ‘Work from home’ has been studied by several researchers but most of the
studies enquired from the psychological aspect associated with ‘Work from home’. A few
have studied to examine its effect on employee productivity / performance. Whatever findings
have been reported in the extant literature are based on studies for limited number of people
at work from home. This is the first time the whole world is giving a try to implement ‘work
from home’ with large scale employee involvement. Particularly in software industry, the
practice is being followed by all most all the software industries in India during the ongoing
lockdown for the COVID 19 pandemic. In order to quickly get the views of the software
professionals on the impact of ‘work from home’ on employee productivity / performance a
short survey was carried out. As it is a perception based and self-reported study the result
is not quantitatively substantiated but it gives an idea to take call as to whether such a
practice could be a new normal in the IT industry. Descriptive statistics have been used as the
responses are very limited. But nevertheless, the study period is very current and responders
have given real-time feeling hence it is more reliable. The result shows that at least, if not
increased, the employee productivity level has not been reduced.

E
Introduction improves collaboration and helps to transfer good practice
ver since the high-speed internet technology across projects. Informal conversations, often around the
has cropped into business arena, industries coffee machine, can trigger new ideas.” Pathak et al. (2015).
particularly IT and ITIL sectors trying to get The result of the policy reversal is yet to be found.
some jobs done by employees working from
home. The drivers of this move are employee satisfaction COVID 19 Lockdown
through work-life balance and reduction in overheads by Government of India ordered nationwide lockdown
reducing number of people working at the office. Working initially for 21 days on 24 th March 2020. This was extended
from home is particularly feasible in this sector as it does not till 3rd May 2020 and most likely will be extended but may
need regular face to face interaction and interaction can take not be a full lockdown. But certain states of India like
place on virtual mode, even sharing the screens of lap tops Maharashtra imposed lockdown since March 14 2020.
or desk tops. Working from home was not for all at a time. The anecdotal evidence suggests almost 100% software
It is for some people for a few days in a month or week. But companies are working from home from middle of March
it is increasing. As for example, in 2009 more than 20 % of 2020. This is a great opportunity for the companies and the
German firms were working from home for a few days in a researchers to study the phenomenon, work from home,
month (Rupietta, K et.al 2018). particularly in the IT and ITEL sector.
As per Gallup employees working remotely for some Therefore, the present research was undertaken to study
times have gone up from 39% in 2012 to43% in 2016 (Mann the impact of work from home on employee productivity
et al.2017). based on self-reporting perception of the employees.
But to what extent working from home affects employee The primary research question is:
productivity is not clear from the extant literature and How the perceived employee productivity is affected due
not many literatures is available in this space. The results to work from home in software industry?
presented in different papers are also conflicting with each
The sub questions are:
other.
What is the segment wise impact on the productivity-
Dutcher (2012) and Bloom et al. (2014) reported significant
Product development companies and IT services companies?
increase in productivity when employees work from home,
based on a laboratory experiment involving limited number What are the causes for the change, if any, in productivity
of subjects. It cannot be generalised. Bloom et al. (2014) level?
conduct RCT (Randomised Controlled Trial) involving
control group and experimental group using Chinese call Methods
centre employees and found that the employee productivity I have given importance to specificity in literature search.
was higher where employees were working from home. The The key word used: Software, Productivity, Performance,
increased productivity was explained by a “quieter working Work from home, Telework, Remote work, Review, Meta-
atmosphere at home. Moreover, employees take fewer analysis. PROQUEST, EBSCO and Google scholar database
breaks at home”. Call centre work is by design a very routine are used. By using PICOC (People, Intervention, Outcome
type of work. It may be noted that Dutcher (2012) finds that and Context). I have finally got only 10 papers in last ten
working from home decreases the productivity if the task is years (from January 2009 to April 2020), which were
repetitive but productivity is improved when working from relevant and specific.
home if the work is more creative. On the contrary Hodari A short questionnaire was designed in Google Form and
J (2015) finds that people are more creative when working circulated thrice among 250 HR executives from Indian
with their co-workers at office physically due to better social software companies. And the survey link was also uploaded
interaction and deep relationship, which is possible only in LinkedIn and Facebook. The survey was launched on 31st
when people are physically working together. March 2020 and closed on 29th April 2020.The response was
Gajendran and Harrison (2007) finds that only a small very poor. Only 35 responses obtained. So, the results are
portion of the employees permanently working from home indicative only. Descriptive statistics have been used for
and majority spend only a few days in month work from analysis.
home. In such a situation it is difficult to know the effect of
working from home as a policy on employee productivity. Result and Analysis
But factoring the frequency of working from home they The analysis of the survey responses indicates the below
empirically found working from home improves employee points:
productivity, which is statistically significant.
1. The majority of the organisations belong to the group-
It is interesting to note that Yahoo, Google, Best Buy Combination of products and services (Fig 1.). A few
Co. and Hewlett-Packard reversed their policy of working are product type-about 17% and 34 % are service
from home as they find employee creativity is reducing. type.90 % of the organizations are having work from
The assumption behind such a move is “When people work home policy in place (Fig.2).
together in an office they communicate better.They are also
likely to understand better and appreciate interdependencies
within their projects. Seeing colleagues face to face also

Fig. 1 Type of organizations
Scale: Highly inadequate: 1 Perfect: 5
2. 90 % of the organizations are having work from home

5. About 30 % feel there is no change in productivity /
policy in place (Fig.2)
performance level while work from home. And about
45% (20 % agree and 25% strongly agree) feel the
Fig. 2Work from home policy
productivity has improved while working from home
( Fig. 5).
Fig. 5Work from home increased performance/productivity
3. While organizations have policy of working from

home but not all encourage work from home. The
survey findings suggest that 23 % strongly agree and
43% agree with the statement “Your organization
encourages work from home” and 17 % disagree Scale: No change: 1 Highly: 5
with the statement (Fig.3).
6. In response to the question, “Do you think employee
Fig. 3Work from home encouraged performance/productivity has decreased during
‘work from home”, 37 % feel no change in
productivity level while working from home. 54 %
feel there is a slight decrease in productivity while
working from home (Fig.6).
Fig. 6Work from home decreased performance/productivity
4. About 60% feel VPN (Virtual private network)

capacity is adequate (Fig.4).
Fig. 4 VPN Capacity

7. From point 4 and 5 we may safely conclude that deployment of work from home in software industry, which
productivity level at least has not changed while will be cost saving for the company by reduced requirement
working from home. It cannot be concluded that the of office space and employees will also be happy. This will
productivity level is increased while working from also increase their carbon foot print. In fact, several IT
home. industries in India is seriously considering work from home
is a new normal as per various media report.
By analysing the open-ended question:
“Give two most important reasons as to why References
employee productivity has improved, decreased or 1. Rupietta, K., Beckmann, M. Working from
not changed for ‘work from home’ “the below points Home. Schmalenbach Bus Rev 70, 25–55 (2018). https://
may be inferred: doi.org/10.1007/s41464-017-0043-x
2. A N N A M ARI E M ANN AND A M Y AD K I N, ,
Saving commuting time and the avoiding travel
America’s Coming Workplace: Home Alone, Business
associated tiredness came out as a major factor Journal,March 15,2017. Available at https://news.gallup.
for favouring work from home and it goes in line com/businessjournal/206033/america-coming-workplace-
with the factors mentioned in the extant literature. home-alone.aspxaccessed on 25th April 2020.
Flexibility to choose when to work and define one’s 3. Dutcher, E. Glenn, ‘‘The Effects of Telecommuting on
own work environment help improve productivity. Productivity: An Experimental Examination. The Role of
Work from home help concentrate on work better than Dull and Creative Tasks,’’ Journal of Economic Behavior
working at office and also motivated to work longer and Organization, 84 (2012), 355–363.
hours. This may be a temporary effect as at present 4. Bloom, Nicholas, Renata Lemos, Raffaella Sadun,
there is a lockdown and there is hardly any option Daniela Scur, and John Van Reenen, ‘‘The New Empirical
to go out. Instead of sitting idle at home, working Economics of Management,’’ Journal of the European
more time may be a better option. Another important Economic Association, 12 (2014), 835–87
factor,which have not yet appeared in the extant 5. Jamie Hodari, Is Working Remotely Sapping Your
literature is that they are able to pursue their other Creativity? Workspaces, April 27, 2015
interests which in turn increases their productivity. 6. Gajendran, R. S., & Harrison, D. A. (2007). The good,
For some of the responders, the organizations were the bad, and the unknown about telecommuting: Meta-
not ready to switch over to work from home initially, analysis of psychological mediators and individual
consequences. Journal of Applied Psychology, 92(6),
resulting less productivity at the beginning. The
1524–1541. https://doi.org/10.1037/0021-9010.92.6.1524
network band width and non-availability of electricity
7. Pathak, A.A., Bathini, D.R. and Kandathil, G.M. (2015),
is an impeding factor to maintain the productivity
“The ban on working from home makes sense for Yahoo: It
level. needs the innovation and speed of delivery that come from
office-based employees”, Human Resource Management
Conclusion International Digest, Vol. 23 No. 3, pp. 12-14. https://doi.
Because of paucity of data I could not examine the industry org/10.1108/HRMID-03-2015-0052
segment wise impact on productivity due to work from
home. Though the survey was very limited but it gives a clear prabirbandyopadhyay@sibmpune.edu.in
direction that companies may thin for introducing large scale
Source: https://www.mohfw.gov.in/pdf/OfficesGuidelines11thJune.pdf

TAXATION
CAPITAL GAINS – INCOME

TAX & TDS PROVISIONS;
WITH SPECIFIC REFERENCE
TO NRI’s
CMA T. S. Khurana
Practicing Cost Accountant
Chandigarh
Abstract
Taxability of NRI’s on Capital Gains is a big issue, when more & more Indian youngsters
are venturing into foreign lands for greener pastures. More so, TDS provisions relating to
such cases are bit harsh. However, the tax authorities offer opportunities to NRIs to reduce
TDS Liability, if a specific process is followed. Few paragraphs on the issue will be quite
informative for effected NRI’s & Professionals involved in Income Tax practice.
TAXABILITY OF CAPITAL GAINS (LAND/ Both), if it has been held for more than 2 years, shall be
C
BUILDING or BOTH) treated as Long Term Capital Asset (Ref. section 2(42A).
apital Gains from Immovable Property i.e., Before 01.04.2017 the period of holding was 3 years instead
Residential House Property (being Land of 2 years. This cut-off date is the date of sale of property.
or Building or Both, whose income is taxable
under the head “Income from House Property), INCOME TAX RATES
generated/earned are subject to Income Tax in India. It has Tax Rates are different for LTCGs & STCGs. LTCGs are
lot many intricacies, as far as different categories of tax taxed at a fixed rate of 20%, where as STCGs are taxed at
payers are concerned . normal rates of tax slabs. Besides these basic rates, Surcharge
& Education Cess are also chargeable, at the applicable
WHETHER LONG TERM OR SHORT TERM rates from time to time. However, these Income Tax rates
First of all you have to ascertain, whether Capital Gain (including Surcharge & Education Cess) are same for both
is Long Term or Short Term. Effective from 01.04.2017, NRIs & Resident Citizens.
Residential House Property (being Land or Building or

TAXATION
TDS PROVISIONS b. TDS is to be deducted on Sale Value of Capital Asset
TDS provisions are bit different for both Indian citizens & not on Long/Short Term Capital Gain.
selling the immovable property and NRIs.These TDS c. TDS is to be deducted by the Purchaser of property,
provisions are bit harsh for NRIs. Reason behind this seems from the sale proceeds being paid to the seller, at the
to be the intention of the department to cover/collect tax at time of making payment.
the highest slab, as tax collection from NRIs at latter stage d. Purchaser shall deposit the tax with the department
may not be an easy job. Department don’t mind allowing (Challan No.ITNS 281; Nature of payment – 195
refund at a later stage, if excess TDS was deducted. Other Sums).
e. Purchaser has to file TDS Return in Form 27Q,
TDS FOR INDIAN RESIDENTS
within one month, from the close of quarter, in which
The provisions of TDS under I.T Act are very simple for TDS was deducted. Full details of the Purchaser of
Resident citizens, which have been summed up as under : Property, Seller of Property & all relevant details
a. Rates of TDS (u/s 194-IA;on Sale Value of Property/ of the property in question/consideration, are to be
Immovable Asset) : provided in this Return.
- If Sale Value of Property is below Rs.50,00 f. Late filing of TDS Return may attract a penalty (u/
lakhs : Nil s271-H) of Rs.10,000.00, which can be extended upto
- If Sale Value of Property is above Rs.50,00 Rs.1,00,000.00.
lakhs : 1% g Purchaser shall also issue TDS Certificate on Form
b. This TDS rate is same, irrespective of whether it is 16-A (u/s 203(1) to the NRI Seller, confirming the
LTCG or STCG. deposit of TDS with the department, against his PAN.
This certificate needs to be issued within 15 days,
c. TDS is to be deducted by the Purchaser of property,
from the due date of filling of TDS Return.
from the sale proceeds being paid to the seller, at the
time of making payment. g. Seller is entitled to claim credit of the TDS, at the
time of filling his/her Income Tax Return.
d. Purchaser shall deposit the tax with the department,
within 7 days from the close of month, in which tax i. TAN number (u/s 203-A) is required to be taken by
was deducted. the purchaser of property. He can apply TAN online
on Form No.49-B.His PAN number will not be
However, practical situation is all together different.
sufficient for this purpose.
Unless proof of payment (copy of challan/receipt) is
enclosed along with registration papers, Registration j. TAN number may be surrendered to the department (if
of property is normally not accepted by the Registrar. it is not required subsequently), after TDS return has
In view of this, practically, purchaser has to deposit been filed & Form 16-A, issued to the NRI Seller of
TDS before he gets the property transferred in his property. TAN cancellation request may be submitted
favour. to concerned/jurisdictional Assessing Officer (TDS),
on plain paper.
e. Purchaser has to file Form 26QB, providing full
details of the Purchaser of Property, Seller of Property
TDS ON REDUCED RATES - NRI CASES ONLY
& all relevant details of the property in question/
consideration. There is provision for NRIs Selling Property to opt for
Reduced Rates of TDS, which is as under:
f. Form 26QB can be filled at the time of making
payment of tax by purchaser of the asset. Concerned Assessing Officer can issue a Certificate (u/s
197) to the applicant (NRI seller of Property), for deduction
g. No TAN number is required (u/s203A) to be taken by
of TDS at Reduced Rates in case of Capital Gains, may be
the purchaser of property. His PAN number will serve
LTCGs or STCGs, if the following procedure is adopted :
the purpose.
1. Online application can be filled on Form No.13,
h. Seller is entitled to claim credit of the TDS, at the
for issue of Certificate (under section 197) for
time of filling his/her Income Tax Return.
NO DEDUCTION or DEDUCTION OF TAX
AT LOWER RATE. Form No.13 requires lot of
TDS FOR NRI’s (NON-RESIDENT INDIANS)
information and refers to many documents like,
In case of NRI’s selling property in India, provisions of ITRs of last 5 years, Any outstanding Tax Liability
TDS (section 195) under Income Tax Act are not so simple, of Income/Wealth Tax, Self Assessment Tax paid &
as detailed here under : TDS/TCS in the relevant previous year etc. If ITRs
a. Rates of TDS (on Sale Value of Property): were not filed electronically, copy of ITR needs to
- LTCG’s 20% & be attached. If no ITR was filed during any of these
years, Computation of Income for that year needs to
- STCG’s 30%.
be uploaded, along with Form-13.
(Besides these basic rates of tax, Surcharge &
2. Some relevant documents like: Documents
Education Cess is also applicable at the prevalent
establishing ownership of property, Sale Agreement
rates).
etc., needs to be filed along with Form-13. These are

TAXATION
required for verification by the Assessing Officer. - In case the Capital Gain (may be Long term or Short
3. ITO may take 30 days from the date of application, to term) is from sale of Industrial Undertaking which
issue the certificate. is compulsorily Acquired by the Government (u/s
54D), Land or Building for Industrial purposes, can
HOW TO REDUCE YOUR TAX LIABILITY be purchased within a period of 3 years, from the
date of sale. This is subject to the condition that
There is reasonable scope for tax savings or reducing
such industrial unit sold should have been used for
one’s tax liability for the Income generated/earned under the
industrial purposes, for more than 2 years
Income Head Capital Gains, may be long term or short term.
- Industrial Undertaking shifting from Rural to
(a). IN CASE OF RESIDENTIAL HOUSE
Urban area (u/s 54G) or shifting from Urban area
PROPERTY
to SPECIAL ECONOMIC ZONE (u/s 54GA),
Exemption can be claimed from Capital Gain by investing the Capital Gain (may be Long term or Short term)
the amount of Capital gain (may be upto100% or less) in any arising from sale of Industrial Undertaking (Land,
of the following investments, subject to conditions detailed Building OR Plant & Machinary), can be invested in
here under: purchase of Land, Building or Plant & Machinary for
- Long Term Capital Gain can be invested in Purchase Industrial purposes, within a period of 1 year before
of one Residential House (Sec.54), with in 1 year or 3 years after the date of sale.
before or within 2 years after the sale of property. - In case the Long Term Capital Gain is from sale of
- LTCG can also be invested in Construction of one R/ Capital Asset (other than a Residential House
House (Sec.54), within 3 years from the date of sale Property (section 54F), the amount can be invested
of property. Construction should be completed within in purchase of one Residential House (1 year before
a period of 3 years. However, date of commencement or 2 years after) or construct a new house (with in 3
of construction is irrelevant, which could even be years after), from the date of sale of property
before date of sale also. - Any Commercial or Industrial property (excluding
- LTCG if invested in a Flat, date of Allotment of Flat, covered u/s 54D, 54G & 54GA, as explained above)
under self financing scheme of any Government shall be covered under this section.
agency/department or Co-op. Society, shall be treated - Exemption under section 54F can only be availed,
as construction of house for the purpose of exemption if the assessee don’t own more than one residential
under this section. house, excluding the new house. He should also not
- Long Term Capital Gain can also be invested (subject purchase any other house with in 2 years or construct
to a maximum of Rs.50,00,000.00) in Capital another house within 3 years from the date of sale of
Gain Bonds (Section 54EC) of National Highways property.
Authority of India (NHAI) or Rural Electrification
Corporation (REC), under Capital Gains Scheme. OTHER IMPORTANT POINTS
These Bonds are issued for 5 years and can also be Re- - Exemption can be taken back, if the newly
deemed after 5 years from the date of sale of property. purchased property is sold within 3 years, from the
You may invest in these bonds within 6 months or date of purchase.
before last date of filing ITR, whichever is earlier.
- New House purchased or constructed, should be
Exemption under this section is also available in
situated in India only.
respect of any Long Term Capital Asset (Residential
house, Agricultural land, Commercial property or any - In case of compulsory acquisition, the time limit of
other Asset). 1 or 2 years shall start from the date of compensation
received only and not from the date of acquisition.
(b). IF THE ASSET SOLD IS OTHER THAN - In case where assessee could not make investment till
RESIDENTIAL HOUSE PROPERTY the date of filling of ITR, the amount can be kept in
There are cases when the asset sold is other than a a bank account, as per “The Capital Gains Account
residential house. Such cases can be clubbed under 3 broad Scheme-1988” and the same can be withdrawn, at the
categories, i.e., Agriculture Land, Industrial Units and Other time of making the investment. In such cases also,
Assets, like any Commercial or Industrial building/shop/ you can claim the deduction.
Shed etc. Exemption to these categories are admissible, as
detailed hereunder: REFERENCES
- In case the Capital Gain (may be Long term or Income Tax Act & Income Tax Rules.
Short term) is from sale of Agriculture Land (u/s
54B), Agriculture Land (Rural/Urban area) can be
purchased within a period of 2 years, from the date of
khuranats@rediffmail.com
sale. This is subject to condition that agriculture land
sold should have been used for agriculture, for more
than 2 years

NATURAL RESOURCE ACCOUNTING
NATURAL RESOURCE
ACCOUNTING:
THE WAY AHEAD
CMA (Dr.) Virendra Vasant Tatake

Director
Indira Global Business School, Pune
Abstract
Natural resources are that exist without any actions of human being. The natural resources
are the foundation of any nation and if not protected properly, the nation cannot sustain for
a long time. The business organizations in every nation should realize the importance of
natural resources and its effective utilization. With the increased awareness regarding Natural
Resource Management (NRM), the process of Natural Resource Accounting (NRA) has also
become important than ever before . The process of NRA is not just recording the natural
resources in monetary terms, but its interpretation also. One should clearly understand that
process of natural resource accounting cannot be done in isolation for effective results. It
has to be linked with Natural Resources Sustainability Information and with Community
&Household Consumption and Production Decision Framework. For effective linkage
among these components, Environmental Management System (EMS) and Environmental
Management Accounting (EMA) should be in place. Accounting Professionals including
CMAs can be a part of the creators of EMS and EMA within an organization.
N
Introduction: or stocks valued in monetary terms. The basic objective of
atural resource accounting (NRA) is the the natural resource accounting is to provide information on
process of collecting,recording, analyzing and the state of natural resources and the changes affecting them
summarizing data related to natural resources so as to make concerned people aware about the related facts.
within an accounting framework. It has become The terms ‘natural resource accounting’ is also termed as
more important than ever before considering the growing ‘green accounting’ or ‘environmental accounting’ by many
needs of the mankind.It should be noted that the process researchers. Natural resource accounting can be applied at
of natural resource accounting also covers interpretation a macro-economic level i.e. at national level as well as at
and reporting of the relevant data. The process of natural micro level also. Thus it can have top down approach or
resource accounting may involve either physical quantities bottom up approach depending upon need of the problem.

The ultimate aim of the natural resource accounting was the lack of adequate and systematically organized data.
should be creating linkages between the environment and
the economy. Components of Natural Resource Accounting
The process of natural resource accounting includes
History three major componentsiii. The first component is Natural
There has been lot of academic and research work in this Resource Accounting Framework, the second one is Natural
area. There have been activities in many countries to establish Resources Sustainability Information and the last component
natural resource accounts of various kinds. It was started in is Community / Household Consumption and Production
the World Commission on Economy and Development’s Decision Framework.
report (WCED, 1987)i wherein the importance of natural All these three components reflect changes in the status
resource accounting was highlighted. The conference in of environmental resources. Figure one shows relationship
Rio de Janeiro in 1992 (UNCED) also highlighted the need between these three components.The first component
of green accounting. The process of revising the system (natural resource accounting) defines the accounting
of national accounts (SNA) considering environment framework and its link to various external factors that
accounting was discussed in Commission of the European change over time. This system ensures the linkage between
Communities, 1993. This commission considered and Market prices of exports or imports affecting household
discussed cost of establishing even rudimentary resource production. It also establishes relationship between savings/
accounts, and in particular the demand it put on educated investment and government actions in the form of policy
man-power in the developing countries undertaking the change, institutional arrangements or regulation. The second
exercise. component Natural Resources (Timber) Sustainability
Initially, efforts were made to establish resource accounts Information gives the details of natural resources opening
for energy, fish and land useii. In later stage, less detailed stock , closing stock and consumption .
accounts were made for minerals, forests and sand and The last component Community /Household Consumption
gravel. Thus, the ambition level of the accounting project and Production Decision focuses on wellbeing of the
was quite high from the outset, covering a large number mankind, production and income alternative using lesser
of different resources. The main reason for this was, of natural resources and using non-land-based livelihood. It
course, a generally growing concern for the scarcity and also focuses on effective utilization of assets like agricultural
mismanagement of these resources, but also a belief that one land,forests and non-land based livelihood.
of the greatest stumbling blocks for a rational management
Figure 1
(https://www.researchgate.net/figure/Components-of-natural-resource-potential)

Awareness in the corporate world Environmental Cost (FY 2018)
Many corporates have realized the importance of NRA and Toshiba Group Unit: - Million Yen
have initiated steps regarding the same. For example,Canon Category Description Investments Costs
has established a Canon Group Environmental Charter
iv
to help optimum utilization of resources. The company Business area Reduction in
2395 6306
costs environmental impacts
has already started Green Action and categorized its
environmental costs into R&D cost, production and sale Upstream/
Green procurement,
downstream 355 636
cost, and marketing cost.The company does analysis of costs
recycling, etc.
three financial years with regard to environmental costs and
benefits. The outcome has indicated that the program was Environmental
education, EMS
successful since the gain is increasing. Administration
maintenance, tree 133 2626
Costs
Another example is of IBM vwho conducted similar planting on factory
analysis, reflecting that the company has savings and grounds, etc.
benefits from its green programs exceeding the initial costs Development of
and expenditures. R&D costs
environmentally
637 13279
conscious products,
Environmental costs and benefits – Example of etc.
Toshibavi Support for local
Public environmental
Toshiba initiated the environmental accounting online relations costs activities, donations,
9 20
wherein total environmental costs are broken down into etc.
several by business segments. After collecting data, yearly Environmental
data are compared with the previous year to analyze the damage Restoration of polluted
20 151
trend. Environmental costs include the cost for reduction restoration soil, etc.
in environmental impact, green procurement and recycling, costs
Environmental education, EMS maintenance, Total 3549 23018
In the year 2018 their total environmental costs increased (Source - https://www.toshiba.co.jp/env/en/management/
by 23% as compared to last year. The breakdown of account.htm)
environmental costs by business segment shows that the
social infrastructure business incurred the largest costs, Above table indicates the details of amount which is
followed by the electronic device business and then by the invested and spent by Toshiba group in environmental
energy business. The total amount of environmental benefits damage restoration and related research work. To maintain
was 6.7 billion yen. The breakdown of the total is as follows: and to interpret this huge data professionals in accounting
actual economic benefits were 2.8 billion yen and assumed and costing are highly required who can utilize can utilize
economic benefits were 3.9 billion yen. their professional skills to conduct the analysis. Following
are additional details provided by Toshiba indicating the
The details published by Toshiba are as follows. monetary benefits derived from environmental initiatives.
Category Description Reduction in environmental impacts Monetary benefits ( million yen )

Energy -423568(GJ) - 2502
(A) Actual Waste 41139(t) 4841
Directly measurable costs Water 597015(m³) 457
Benefits
Total 2796
Reduction
(B) Assumed Monetary value of reductions in in amount
154 (t) 3915
Benefits environmental impacts. of chemicals
discharged
Total Monetary benefit 6711
(Source - https://www.toshiba.co.jp/env/en/management/account.htm)
Toshiba Group proudly mentions that they adopt environmental accounting to quantitatively understand environmental
conservation costs and benefits, and utilize the quantitative data as guidelines for business activities.
Role of CMAs participants, practitioner, and analyzer in the course of

NRA is relatively new concept and there are no set rules natural resource accounting.
for its accounting. Cost and Management Accountant The natural resources are the foundation of any nation
(CMA) can play a vital role in it .CMAs can act as initiator, and if not protected properly, the nation cannot sustain for a

long time. The business organizations in the nation should information, can provide the best consulting service in the
realize the importance of natural resources and its effective course of creating the new system.
utilization. Further, business organizations should acquire CMAs can be part of Environmental Management
relevant and comprehensive understanding and information Accountingviiiteam which focuses on identifying and
regarding the ecosystem and natural conditions. CMAs estimating the costs of environment-related activities.
can play direct role in promoting all such elements which Depending on the type of organization, environmental
are the part of sustainability report. According to a report impactsix could include production effluent, recycling, water
by KPMG in 2016, there are almost 400 instruments for and power consumption, and carbon footprint etc. It monitors
sustainability reportingvii in place in more than 60 countries, the use and cost of resources such as water, electricity and
including U.S., France, Spain, and Australia. fuel, so costs can be reduced. It also tries to benchmark
CMAs can provide guidelines on the verification, activities against environmental best practices
validation, and assurance of environmental and sustainability NRA supported by EMA will benefit the organization in
for reporting purpose. following ways.
With the increased emphasis of environmental impact and 1) Improving income of the organization through consumer
corporate social responsibility, the stakeholders also see the awareness of products and services’ environmental impact
environmental disclosure performance as an indicator of
2) Reducing wasteful consumption of input resources
an organizations’ ability to sustain in the long run and an
influential factor of its image and credibility. 3) Reducing the cost of failure
4) Improving the image of the organization
Practitioner of NRA
CMAs can use their professional knowledge and Conclusion
experience in traditional financial accounting, cost Natural resource accounting has gained attention and
accounting and management accounting to conduct importance in recent time. The society as a whole is becoming
environmental accounting. Many organizations introduce aware of environmental issues. NRA is an integral part of this
this type of accounting approach to collect data with awareness process as everything needs to be converted into
respect to the investment and cost for its environmental monetary terms. NRA helps the company to comply with the
programs. In addition, they aim to analyze the data in order accounting rules as well as to keep the momentum high by
to further evaluate the investment results and the cost-benefit providing the gains achieved through various environmental
pertaining to managerial decision making.Once costs and awareness initiatives. Professional accountants can play a
benefits are measured and recorded, companies can measure major role in the process of setting up an Environmental
and evaluate the environmental programs based and cost and Management System. Accountants can be a great source of
benefit analysis. CMAs can provide their expertise in this knowledge and information on environmental related issues
process.Since the ultimate goal of a business organization is as well as on the effectiveness of processes and procedures
to maximize the shareholder value, CMAs have to carefully in the organization.
evaluate the effect, cost and benefits of all such green
programs in order to maintain investors’ satisfaction. References
1.
i
https://sustainabledevelopment.un.org/content/
Establishment of environmental management systems documents/5987our-common-future.pdf
(EMS) 2.
ii
Alfsen et al., 1987, Alfsen and Bye, 1990, Statistics
In the process of natural resource accounting, CMAs can Norway, 1981, Lone 1987, 1988
be a part of the creators of the environmental management 3.
iii
https://www.researchgate.net/figure/Components-of-
systems within an organization. As like traditional natural-resource-potential
information management system such as financial 4.
iv
https://global.canon/en/environment/charter.html
accounting information system, cost management system 5.
v
https://www.ibm.com/thought-leadership/in-en/smart/
and human resources management system, environmental index
management system records involve all aspects related to 6.
vi
https://www.toshibatec.com/company/csr/environment/
the environment. management/account.html
CMAs can play important role in establishing the basic 7.
vii
https://www.sustainability-reports.com/new-trend-
system support and information support in order to conduct report-about-sustainability-reporting-instruments
future accounting record and analysis. In addition, they can 8.
viii
Toshiba. 2014. Environmental Accounting [Online].
act as channels to communication and exchange information https://www.toshiba.co.jp/env/en/management/account.
with outside environmental information system. htm [Accessed 12 4 2016].
Since this system has to be in compliance with legal 9.
ix
https://www.cgma.org/resources/tools/cost-
requirements and environmental regulations, CMAs can be transformation-model/environmental-management-
involved to practice due diligence examinations. In addition, accounting.html
this system consists budgeting, cost evaluation, and other
estimation related to financial information, CMAs who are
Director@indiraegs.edu.in
equipped with solid foundation in financial accounting and

GREEN ACCOUNTING
STANDARDS AND TAXABILITY
OF CARBON CREDIT
CERTIFICATE
Abstract
In Green Accounting, unlike developed

countries, Indian companies are lagging
behind in booking of costs on envirnoment
under appropriate heads in in absence of
Accounting Standards. Moreover, there is
insufficient Disclosures on Envirnoment CMA (Dr.) Subir Kumar Banerjee
in Annual Accounts. Except few elite Director
Excel Realty N Infra Limited
companies, Indian corporates are shying Mumbai
away from disclosures on reduction of
carbon emission. On the contrary, in USA
and in EU including U.K. have sufficient
I
Accounting Standards under GAAP and
IFRS coupled with Disclosure Norms of n the commercial world, Envirnoment has two
SEC and EU Securities Market Regulation. aspects. One is (1) Green Accounting also known
as Envirnomental Accounting and the other is (2)
Carbon Credits is a financial offer Carbon Credit. We will elaborate here one by one.
in form of a certificate to an emission
prone company for reduction of the (1) Green Accounting
emission of Green House Gases and also Green Accounting is same as Environmental Accounting.
Conventional accounting ignores the environment
carbon dioxide. This certificate is known and pollution emission cost. In its contention, it skips
as Certified Emission Reduction (CER) destruction of resources of nature. On the contrary, Green
certificate. This certificate is tradable Accounting focuses on impairment of natural resources
in MCX in India and European Climate and pollution reduction expenses. To cut the matter short,
Green Accounting eyes on cost of deterioration and quality
Exchange, Chicago Climate Exchange, booster expenses of environment of a company or a nation.
NASDAQ OMX etc. The aspects of When Annual Account of a country’s GDP or a company
Taxation of Carbon Credit under GST and does ignore cost of environment from all perspectives, they
Income Tax have been debated here. look pale and are severally criticized.

Why Green Accounting Accounting Standards of Corporate Green accounting can
Calculating the economic activity under National Income be divided into two disciplines:
Accounting or under Corporate system of Accounting is 1. Corporate India Green Accounting and
erroneous in view of the reasons below: 2. Corporate Global Green Accounting,
a. Environmental aspects are absent in the Conventional
accounting, . Why Accounting Standards are important?
b. Destruction of natural resources is nowhere in Normal Accounting standards guarantee that the Financial
system of Accounting, Accounts from different companies are comparable. Since
c. Conventional economists think that that fossil fuels, all companies adopt the identical guidelines, accounting
water, wind, sunlight, forests, animals, minerals, standards lift the financial statements’ credential up and
valuable metals and even tides are resources allow for more business decisions based on accurate and
and endowment of nature and are free. They are uniform accounting data. In absence of any Accounting
wrong since quality of all such things have a direct standards, bases of Accounting information become erratic,
connection with quality of our life. booking heads of expenses are not appropriate and financial
performance of companies can not be graded on merits and
d. The expenses incurred on upkeep of the environment
hence problematic.From Table 1 below, you can guess
is wrongly perceived as investment in the System of
that when there is no Accounting standards on Green
National Income Accounting (SNA)
Accounting as in India, all the expenses on Envirnoment
e. Reduction of natural resources is an irreparable be it Statutory Cost or Upfront Cost,Contingent Cost, Image
process and can not be substituted. Measures to Cost or Voluntary Cost can not be booked under uniform and
ascertain and combat this environmental disaster appropriate heads of Account. This is because in India there
are priority and should be given importance in is only conventional format of accounting under Companies
Conventional Accounting. Act,2013 and nothing separate for Green Accounting.
(Please see Table 1)
Accounting Standards of Corporate Green Accounting
Table1 - Such Systematic Booking of Envirnomental Costs Under Appropriate Heads Not Possiable In Absence Of
Accounting Standards
Statutory Cost Upfront Cost Contingent Cost Image Cost Voluntary Cost
Notification Site studies Future Cost Corporate Image Training
Reporting Permitting R&D Penalties/ Fines Vendor Relation Audit
Monitoring/testing Engineering Remediation Investor Relation Envirno. Report
Studies/modeling Procurement Property Damage Lender Relation Recycling
Record keeping Installation Legal Expense Insures Relation R&D
Training Equipment Resource Regulator Relate Landscaping
Inspections Materials Damage Supplier Relation Financing NGOs
Protective equip. Labor Economic Loss Worker Relation Monitor Testing
Medi- surveillance Supplies Personal Injury
Environ. insura
Source- https://shodhganga.inflibnet.ac.in/bitstream/10603/28706/9/09_chapter4.pdf
Indian Accounting Standards of Corporate Green However, in 2016,Institute of Cost Accountant of

Accounting India, issued Guidance Note which provided guidance on
As on date, in India, financial reporting or auditing recognition, measurement, presentation and disclosure of
standard on social, environmental or sustainability related costs relating to CSR activities, as defined in Section 135 of
issuesby Institute of Chartered Accountants of India the Companies Act 2013. It covers Envirnomenal Cost so
do nor exist.In absence of The Accounting Standards far as per requirement of Section 135.
of Corporate India’s Green Accounting ,conventional In 2011, SEBI made it mandatoryfor listed companies to
financial accounting structure in India lacks the platform to announce on Environmental, Social and Governance (ESG)
book environmental cost under correct heads of Account measures adopted by these companies, as per the main
which has been already explained in Table 1 above. Such points articulated in the ‘National Voluntary Guidelines
routine accounting format as per Companies Act,2013is on Social, Environmental and Economic Responsibilities
hardly any match to support the data needed by different of Business’. The Companies Act 2013 made a provision
stakeholders regarding environmental expenses, liabilities, under Section 135 on Corporate Social Resposibility. Under
environmental risks . It also includes their investments, SCHEDULE VII of Companies Act, 2013, activities
social costs and measures adopted by companies to dwarf which may be included by companies in their Corporate
global warming and boost sustainability. Social Responsibility Policies Activities among others

relating to:—“(iv) ensuring environmental sustainability, data on the environmental issue. Barring few exceptions, the
ecological balance,protection of flora and fauna, animal practice of Green Accounting has not been welcomed by
welfare, agroforestry,conservation of natural resource Indian Corporate World. Companies feel it a burden on the
and maintaining quality of soil, air and water [including bottomline of the companies rather than it contributes to the
contribution to the Clean Ganga Fund set up by the Central welfare of the human being and next generation whom we
Governmentfor rejuvenation of river Ganga].” will leave behind after some years.
That is all about Indian Accounting Standards on Green Based on such requirements of SEBI, JSW Steel
Accounting. A very few firms in India submit necessary Limited made disclosure as below (Please Table 2 below)
Table 2 - Envirnomental Performance of JSW STEEL Limited during 2014- 2017
Particulars Units 2014-15 2015-16 2016-17 Comments
Environmental Million
1091 5027 5421 - --------
Expenditure Rupees
Solid Waste Tons
318 1485 1921 ----------
Disposed Per Year
Specific Water
m3/tcs 4.57 4..52 3.61 (m3 = cubic meter, tcs=tones of Crude Steel)
Consumption
Specific Dust
Kg/tcs 1.50 1.24 1.06 (kg=kilogram, tcs=tones of crude steel)
Emission
NOx =Nitrogen Oxides,
Specific NOx
Kg/tcs 0.90 0.98 1.24 Kg. =Kilogram
Emissions
Tcs= Tones of Crude Steel
Specific Energy (Gcal=Giga calorie,
Gcal/tcs 6.72 7.71 6.29
Consumption tcs = tones of crude steel)
Source-https://www.researchgate.net/publication/332902793_A_Case_study_of_Environmental_Accounting_in_India_
with_reference_to_JSW_Steel
Global Accounting Standards of Corporate Green says that there are three levels where companies can
Accounting work on, depending on the amount of data that they
In USA, the FASB is a board of accounting veterans have for calculating the fair value.
that formulates Accounting Standards for public companies 3. FAS 141-R: Business Combinations. Standard
and nonprofit organizations. Those standards follow the is meant for environmental aspects.That standard
Generally Accepted Accounting Principles, or GAAP.While points out that when a company takes over assets and
Accounting in EU is governed by International Accounting liabilities of other company, consisting of contingent
Standards Board (IASB) which vetoes International assets and liabilities including environmental items,
Financial Reporting Standards (IFRS). have to value based on their fair value. Such
valuation at fair value or otherwise varies on the
USA Accounting Standards of Corporate Green type of contingency. It should be on fair value in
Accounting case of contractual contingency.In case, there is no
The Financial Accounting Standards Board (FASB) has contractual contingency and possibility of event is
been explaining different environmental standards and certain, it is to be valued at fair value. However, if
publishing explanations to clarify those standards. Those such possibility is not a certainty then valuation at
standards are relating to environmental matters and can be fair valueis ruled out. In that case,companies need
summarized as : FAS 5, FAS 157 and FAS 141-R . not recognize it and append it in the form of notes.
1. FAS 5: Accounting for contingencies .
U.S. Securities and Exchange Commission (SEC)
It saysthat “disclosure should be made when an Envirnomental Compliances -
entity believes its environmental liability for an
A Form 10-K is an annual report as per regulations
individual circumstance or its environmental liability
of the U.S. Securities and Exchange Commission
in aggregate is material.”
(SEC). These regulations exhaustively shows a
2. FAS 157: Fair Value Measurements. This standard company’s financial position. The relevant items on
was meant for clarity on the fair value theory, on Envirnomental aspects are Item 101, 103 and 303.
environmental obligations, and otherobligations. It
Item 101.

“Appropriate disclosure also shall be made as to (IFRS).
the material effects - - - -- ------ enacted or IFRS 1: First-time Adoption of IFRS. Environmental
adopted regulating the discharge of materials into the assets, liabilities and provisions have to be presented
environment, or otherwise relating to the protection at their fair value.
of the environment,---------------------”.
IFRIC 3: Emission Rights.

Item 103. IFRS 6- This standards are related to only in
environmental scheme,
Legal Proceedings: “Notwithstanding the foregoing,
an administrative or judicial proceeding (···)---------- IFRIC 5 -Exploration for and Evaluation of
---------------- -- regulating the discharge of materials Mineral Resources; Rights to Interests Arising from
into the environment or primary for the purpose of Decommissioning, Restoration and Environmental
protecting the environment shall not be deemed Rehabilitation Funds.
ordinary routine litigation incidental to the business” IAS 1: Presentation of Financial Statements.
Companies that operate closer to environment, have
Item 303. to present an environmental report.
Management discussion and analysis: here, the IAS 37- Provisions, Contingent Liabilities and
company should explain regarding the financial Contingent Assets. This standard can be easily related
position which will include data on the environmental to environmental concepts.
contingencies. IAS 38 - Other Standards centered their issue in
aspects that are related to environmental issues,
EU (including UK) Accounting Standards of Intangible Assets. It deals with emissions rights,
Corporate Green Accounting among other things.
International Accounting Standards Board (IASB) IAS 41 - Agriculture. It deals with a specific sector
monitors International Financial Reporting Standards which is akin to environment.
Table 3 - Unilever Envirnomental Global Data,2018, 2019
Source – Unilever Limited Annual Account,2019

(2) Carbon Credit on the MCX, however, we still need to frame required
What are Carbon Credits to corporate? policies for smooth trading of certified emission reductions
(CERs), carbon credit. For boosting the market for carbon
Carbon Credits is a financial offer to an emission prone
trading, Forward Contracts (Regulation) Amendment Bill
company for dimuntion of the emission of Green House
has been placed in the Parliament. This new bill will assist
Gases, and also carbon dioxide. Such reduction of emission
the traders and farmers to use NCDEX as a base for trading
of Green House Gases is achieved through a number of ways
of carbon credits.
like using of wind and solar energy, forest regeneration,
employing of energy efficient machinery, landfill methane
Which countries are fascinated in carbon credit and
capture, etc.
why?
Thus, in case a company wants to surpass its given limit of
• Carbon markets are lucrative for countries that
carbon-dioxide emission, it can do so only if it compensates
have problems in reaching target of the deep
another company that has required credits in the balance. It
decarbonisation set in the Paris Agreement, which
is actuallythe financially making up of the damage done to
promised to stick to the global average temperature
the environment by this particular offending company.
increase below 1.5ºC.
In India, Coal India tops the list the highest CO2 emission
• Such countries are mostly Brazil, India and China.
followed by Reliance Industry, NTPC and ONGC. Mining,
Chemical, Electricity, Non-metallic minerals, Transport • Though the US is in the way to pull out from the
Equipment are the front-runners in the list of most pollutant Paris treaty, it also has a major interest in global
industries. carbon market.
Actually, one Carbon Credit is equal to dimuntion of
India’s concerns
one metric tonsof carbon dioxide emissions. This incentive
scheme of Carbon Credits play a crucial part in terms • Indian corporates have recorded in official list 1,669
of backing the environment in as much as boosting the projects under CDM and rewarded 246.6 million
bottomline of the companies who are in carbon trading. In credits; another 526 projects were recorded in official
India, we already have a excellent market for such trading. list under the ‘voluntary’ market and these have
fetched 89 million credits.
Certified Emission Reduction (CER) Certificate • Thus, in all, Indian companies got roughly 345
A dimuntion in emissions gives right the companyto an million credits. Under CDM, they are termed
incentive in the form of a Certified Emission Reduction ‘certified emission reductions’, or CERs.
(CER) certificate.
TAXABILITY OF CARBON CREDITS UNDER GST
Whether Certified Emission Reduction (CER) are LAW
tradable? GST is levied on goods or services or both.Thus, for
The CER is tradable and its owner can deliver it to a levying GST, the CER/Carbon Credit should be goods or
company/organisation which is short of Carbon Credits to services. Section 2(52) of the Central Goods and Services
compensate an adverse position on carbon credits. Tax Act, 2017 (“CGST Act”) says the term “goods” as
“goods means every kind of movable property other than
Now if a company has excess carbon credits, then it
money and securities but includes actionable claims,
may dispose of them to one who is in short to take up
growing crops, grass and things attached to or forming part
production through an Emissions Trading market like the
of the land which are agreed to be severed before supply or
European Climate Exchange, Chicago Climate Exchange,
under a contract of supply.”
NASDAQ OMX etc.
As per definition of “services”, “services means anything
Figure 1 - European Climate Exchange Carbon Price other than goods, money and securities but includes activities
(London,UK) relating to the use of money or its conversion by cash or by
any other mode, from one form, currency or denomination,
Trading Price on 21st February,2020 to another form, currency or denomination for which a
separate consideration is charged.”
Thus, it is evident that both money and securities have
been placed out of purview of goods and services. Thus,
CERs to be exempted fromlevy of GST, it should be
either “money” or “securities”. The term “money” as
per Section 2 (75) of the Central Goods and Services Tax
In India,the price of 1 Metric Tonne GHGE(equivalent Act, 2017 (“CGST Act”) (75) reads as - “money” means
to trading 1 Carbon credit) has ranged from INR 800 to the Indian legal tender or any foreign currency, cheque,
900 in the recent past.In India, the Multi Commodity promissory note, bill of exchange, letter of credit, draft, pay
Exchange (MCX), is the country’s main commodity stock order, traveller cheque, money order, postal or electronic
exchange, wherefutures trading in carbon credits happen. remittance or any other instrument recognised by the
Though we are likely the biggest market for carbon credits Reserve Bank of India when used as a consideration to settle

an obligation or exchange with Indian legal tender of another of carbon credit is a receipt of revenue or capital nature.
denomination but shall not include any currency that is held To boost environment protection and to avoid confusion
for its numismatic value”; over capital vs. revenue receipt, with effect from 1st April
Thus, it is evident thatCERs are neither money not also 2018, a section 115BBG was brought in to charge any income
they are any other instrument recognised by the Reserve from transfer of carbon credit, at the discounted rate of 10%
Bank of India. (plus applicable surcharge and cess) on the gross amount
For taxability of CER, there are two opinions. First of such income provided .no expenditure or allowance in
opinion considers CERs as “goods” and hence taxable as respect of such income shall be allowed under the Act.
GST, and second opinion considers CERs as “securities” Contrary to such legislation,the Bengaluru bench of the
and accordingly GST is not payable on CERs. Income Tax Appellate Tribunal ( ITAT ) recently decided
To term CERs as “goods”, it should be “movable,” “ that the Sale of Carbon Credits would not fall under
marketable” and not “money” or “securities”. Income Tax as it is a capital receipt as per the Income Tax
Act. In this case, Assessing Officer additionally charged
Supreme Court In Vikas Sales Corporation vs
Rs.6,35,04,451/- against the assessee, M/s. Ambuthirtha
Commissioner of Commercial Taxes handled the aspects
Power P. Ltd, in view of sale of carbon credits by deciding it
of taxability of “replenishment licenses or R.E.P. licences”
as revenue receipt. The assessee put relianceon an previous
issued under the EXIM policy which enables exporters to
order of the Tribunal wherein the bench held that the sale of
import the required materials for producing the finished
carbon credits is not taxable as it is a capital receipt.
products for export. It was decided that such Import Licence
is easily transferable and is equivalent to goods as per GST. To conclude on Tax issues on CERs, it is seen that
both GST@12% and Income Tax @ 10% are double
In Yasha Overseas vs. Commissioner of Sales Tax and Ors.,
swords for players of Carbon Credit. Such Taxation will
the Supreme Court decided that DEPB is identical to REP
kill enthusiasm of corporates/organizations for reducing
licenses and considered as goods since it is transferable and
emission. Such reluctance will be counterproductive for the
has market value and have an inherent value.
cause of environment protection. By definition, CERs may
Accordingly, it is concluded that CERs like R.E.P. be item subject to several taxation, however, when question
licences and DEPB,as explained above, are considered of environment protection comes, a rethinking on imposition
as “goods” as they have marketability,inherent value. of both GST and Income Tax by concerned authorities
and mobility hence easily transferable.Further,Central should be definitely done.
Government vide the Circular No. 34/8/2018-GST dated
01.03.2018 and Circular No. 46/20/2018-GST dated References
06.06.2018, fixed the imposition of GST on PSLCs and 1. http://www.pbr.co.in/2018/2018_month/June/4.pdf
RECs @ 12% and by default on CERs.
2. https://taxguru.in/income-tax/taxability-carbon-credits.
Further,the Central Government vide Notification No. html
S.O.3068(E) dated September 27, 2016 notified carbon 3. https://taxguru.in/goods-and-service-tax/levy-gst-carbon-
credits as goods for the purposes of clause (bc) of section credits.html
2 of Securities Contract (Regulation) Act,1956.i.e. to be 4. https://www.taxscan.in/income-tax-sale-carbon-credits-
treated as commodity derivative which is not a security. itat/25678/
Accoringly, CER is taxable under GST. 5. https://www.researchgate.net/publication/332902793_A_
Case_study_of_Environmental_Accounting_in_India_
TAXABILITY OF CARBON CREDITS UNDER with_reference_to_JSW_Steel
INCOME TAX ACT 6. https://shodhganga.inflibnet.ac.in/
Income-tax Department has been earlier considering the bitstream/10603/28706/9/09_chapter4.pdf
income on transfer of carbon credits as Business Income
and taxable @ 30%. However, there were different views subirkumar.banerjee@gmail.com
by the Courts on the subject whether the income on transfer
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HR
TALENT MANAGEMENT AND

RETURN ON TALENT (ROT)
FROM THE LENS OF
ENGINEERING
CONSULTANCY
Dr. P. K. Chatterjee Partho Pratim Chatterjee

Senior General Manager (I/c) Co-Founder and Technical Advisor
MECON Limited Aditya Bioinnovation Private Limited
Ranchi Nagpur
Abstract
Human talent plays an indispensable role in business of intellect services like engineering
consultancy, management consultancy, legal consultancy, financial consultancy, tax
consultancy, health care, etc. In such industries, the relevance of people (talent) management
is un-debatable and its practice quintessential as talent constitutes the central force and forms
the nucleus of the business. Congruously, in engineering consultancy, a Consultant’s identity
in the industry is established through its people (engineers) involved in rendering detailed
engineering and project management consultancy (DEC-PMC) services to Clients. However,
managing talent from recruitment to retention is not a cakewalk. This calls for resorting to
contemporary practices encompassing a myriad of novel facets. In this back drop, the paper
dwells upon issues like understanding role of human capital (engineers), talent management
system, talent life cycle, return on talent (ROT), etc. to achieve HR objectives and organizational
goals in the context of engineering consultancy.
E
Engineering Consultancy (EC) basically the people (Engineer) based idea imparting services. An
ngineering consultancy (EC), as the name suggests, engineering Consultant plays advisory role as the owner’s design
implies rendering intellect services to Clients as a engineer and participatory role as owner’s site engineer during
connoisseur in imparting value added engineering & the project engineering and project management consultancy
technological advises and recommending appropriate (PMC) phase respectively. [Chatterjee & Chatterjee, 2019 Jan]
course of action to implement the recommendations. It is The scope of services of an engineering Consultant include the
entire gamut of activities related to setting up of projects in green

HR
as well as brown fields. The engineers of Consultant are expected beliefs and strengthens Client’s perception. A series of moments
to play the role of a partner, reviewer, facilitator, executor, etc. to of truth leads to Client elation or annoyance. The engineers usher
give shape to the ideas into realities in line with the best industry cutting edge and ultimately create service differentiation which
practice. In EC, the relationship between the Consultant and the results in Client delight, referrals, repeat orders or orders on
Client seldom ends. It is an ongoing process which continues till nomination basis. If consultant’s engineers are not persuasive,
project completion phase and helps determine Client’s choice the then, for the Client, the organisation is not persuasive. Variance
next time around. For engineering consultant, the name of the on these traits by any one of them at any instance has the potential
game is ‘manage a strong Client base and flourish’. Instead of to either gain Client’s trust or have the opposite effect. It is the
running after the clients, consultants need to run along with them. moment where the Consultant’s image is built or .....?? and
[Chatterjee and Prasad, 2003 July – December]. Engineering provides/deprives future business opportunity.
consultancy have a number of unique features which makes Engineers are the cynosure of the engineering consultancy
its marketing idiosyncratic. Features like multi-disciplinary and are organization’s greatest assets. They give birth to
knowledge and expertise based profession, co-existence of innovative ideas which results in quality services, processes &
service provider (Consultant) and service receiver (Client), effort economy, time & cost economy, Client elation, etc. Only
inseparability, Client’s participation; co-operation and role when these engineers of the Consultant deliver the services in
contribution, variability/heterogeneity, intangibility, etc. makes quality way, with utmost concern for Client and completion of
marketing of engineering consultancy distinct. [Chatterjee and the project in time-without cost over-run, the likelihood of Client
Prasad, 2002 Jan- March] patronage and placing additional responsibilities increases. To
run with Clients and to solicit Client’s co-operation, it is essential
Role of Human Capital (Talent) in Engineering that Consultant’s engineers are talented, have Client centric mind
Consultancy set, have an attitude to work in consonance with Clients team and
Human capital (talent) plays an indispensable role in business enjoy their confidence. Like any other physical and financial
of intellect services like engineering consultancy, management asset, they have value creation ability. In engineering consultancy,
consultancy, legal consultancy, financial consultancy, tax brand is built by all the people (engineers), whereas branding is
consultancy (Indirect & direct), health care, etc. In such services, by few personnel of the corporate communication department.
the relevance of people (talent) is un-debatable and its practice [Chatterjee and Chatterjee, 2019 Jan]. In addition to personnel
quintessential as people form the nucleus of the business and belonging to marketing department (full time marketers), each
constitute the central force in the marketing mix. Congruously, in and every engineer of Consultant, irrespective of the discipline/
engineering consultancy, a Consultant’s identity in the industry department they belong to, is a man of marketing (part time
is established through its engineers involved in rendering marketers) in a subtle way.
detailed engineering (DEC) and project management consultancy Thus, aspects like nature of service (intellect), unique
(PMC) services. The engineers are considered to be an intrinsic features, the associated quality elements, limited Client base,
part of the project by the Client from concept to commissioning strategic dependence on a few Clients, ongoing relationship with
and even during the post implementation phase. Client, etc. establishes the indispensable role the engineers play
In engineering consultancy, engineers are the face of the and augments the need for strong talent management system
Consultant, their knowledge, competence, skill, expertise, encompassing a myriad of novel facets like understanding role
attitude, personal traits, etc. are organization’s USPs (Unique of human capital, talent life cycle, ROT, etc. to achieve HR
Selling Proposition). For Client, Consultant’s engineers are objectives and organizational goals.
the most sought after marketing mix. Being intrinsic part
of the project/service offering, they work in a close-knit and Talent Management System (TMS)
synchronous manner with Client’s project team during different TMS is an effective tool for creating a symbiotic relationship
phases of project. It may be at design & engineering office between talent and the organization to dramatically accelerate
of the Consultant, or at the office of the statutory authorities performance improvements. TMS is an important functional
for defending the project report, or at works/shop floor of area of management to enhance the human value that can be
Contractor-vendor-equipment manufacturer during inspection, delivered. TMS It deals with following four broad elements:
or at project site of the Client, etc. The Consultant’s team who (i) Attracting right talent towards the organization (ii) Keeping
work for the project and render services to Client are perceived or retaining talent (iii) Managing talent (iv) Identifying
to be an essential stanchion of the service offerings, as they talent. [Chowdhury, 2002] Attracting right talent (engineers)
being directly involved in service offerings. In fact, in Client’s describes how to become a strong magnet for talent (engineers).
opinion, Consultant’s engineers, who are either at the front line Keeping or retaining talent describes how to create and
or supporting the front line from behind the scene are the product/ maintain conducive working environments in which talents
service. They view the engineering Consultant through the can productively pursue the joy of work and financial benefits
disposition of these engineers and judge engineering Consultant’s from contributions to achieve corporate objectives. Managing
performance by their performance. If these personnel don’t meet talent describes how to treat talents as an important business
the Client’s expectations, neither does the service. [Chatterjee resource and create opportunities and freedoms for talents to
and Chatterjee, 2019 May]. stretch for their dream, for the things that make big differences
Engineers involved in service transaction creates moments of for the organization. Identifying talent describes ways to
truth [Carlzon, 1987]. Their expression, attitude, competence, identify visible and hidden talents, say, by noticing the obvious
knowledge, talent, etc. creates an impression, reinforces Client’s talents, by using a performance-based identification tool, using

HR
a test-based identification tool, etc. The important sub-elements but not differentiable at the boundary/ transition zone between
within talent management are recruitment & selection, training, each of the individual phases. Phase I can be represented
re-training and development to keep tab on contemporary issues numerically by the formula y = k1w, where k1 is productivity
and to cope up with the environmental changes, proper job constant for a talent in phase I and tending to zero. Phase II
specification & allotment, empowerment, motivation (monetary can be represented numerically by y= 0.5 k2 w2 where is k2 is
& non-monetary), mechanism to recognise and applaud great the productivity constant for a talent in phase II and tending to
work, opportunities to help achieve fullest potential, career a sizeable finite value (varying value) depending upon talent’s
planning & path visibility, personal development & growth personal traits. Phase III can be represented numerically by y
prospect, transparent working environment, job satisfaction, = n where n is numerically constant and its value is equal to
proper compensation preferably above industry practice, etc. 0.5 k2 (wcutout)2. However, it is prudent to mention that unlike
product life cycle (PLC), the 4th stage (i.e. decline phase) is
Talent Life Cycle (TLC) not apposite in the case of TLC as talent is non-depreciating and
Like a product/brand having life cycle (PLC), a talent has a non-plummeting in nature.
life cycle too which can be used to analyze talents (engineers) However, from recruitment to retention and managing talent
of various disciplines/ departments. The TLC concept may is not enough. To achieve HR goals, in addition to understanding
help CHROs interpret talent and industry dynamics, conduct TMS and apprehending TLC, calculating contribution (return)
planning and control. A talent’s performance/productivity by the people/talent in terms of ROT is mandatory.
passes through few distinct stages, each posing different
challenges, opportunities and problems to the organization. Calculating Return on Talent (ROT)
The phenomena of cut-in work experience and cut-out work Mathematically, ROT is the ratio of contribution (return) by
experience are observed in TMS. Cut-in work experience the people/talent and total capital invested in the people/talent
means the work experience beyond which the productivity with an aim to achieve qualitative and quantitative business
rises rapidly whereas Cut-out work experience means the work goals. It quantifies the payback from investment in talent and
experience beyond which productivity remains more or less shows whether right people (HR) are being recruited and how
stagnant. The productivity of an employee during the trainee effectively they are being utilized to achieve organization’s
stage (initial phase) is usually negligible (Clustered as Phase I- qualitative and quantitative business objectives.
Introduction phase). Introduction phase is a period of slow rate
ROT has different version/definition for different person. It
of knowledge growth. Concrete outputs are almost non-existent.
is the ratio of knowledge generated & applied and investment
After the completion of on the job trainee period (classroom
made in the talent. Without investment in talent, an organization
as well as shop floor/field), the productivity starts increasing
becomes motionless. ROT measures the return on human
rapidly. This can be termed as cut-in work experience. Now
capital instrumental in achieving organization’s qualitative
onwards, productivity continuously goes on increasing usually
and quantitative business goals. The qualitative goals that
with the square of work experience in years till a peak is attained
directly influence business success could be the engineering-
(Clustered as Phase II- Growth Phase). Growth is a period of
technology leader in the market in terms of innovativeness
rapid knowledge enhancement and upward drift as employee
& contemporariness (i.e. state of the art technically efficient–
has momentum through own initiative, diligence, enthusiasm,
economically viable- environmentally sustainable service).
word of mouth, appreciation/ accolade, cohort/ peer learning,
These include innovation, growth, service quality enhancement,
interaction with seniors-colleagues-subordinates, etc. After
zero service defect, new product-service development, new
that, the productivity remains more or less stagnant for quite
patents-trademarks-copyrights, Client delight, Client loyalty,
some years till retirement i.e. it does not change much with
Client retention, repeat orders, orders on nomination basis,
time (Clustered as Phase III - Maturity Phase). Maturity is a
negligible Client defection, increased employee morale &
slowdown in knowledge acquisition/assimilation rate because
hence productivity, improved learning rate, employee retention,
of biological constraints. This can be termed as cut-out work
negligible employee attrition, etc. The quantitative goal
experience. The productivity function (w.r.t. time in number
parameter that directly determines/quantifies business success
of years worked) in Phase I and Phase III are usually linear
include increased market share, competitive position: market
in nature whereas in Phase II it is quadratic in nature. The
leader, new brands, revenue turnover growth, PBT/ PAT growth,
productivity function is continuous throughout all the 3 phases
EPS growth, market capitalization, etc.
Mathematically, ROT is given by the following formula:
ROT = Knowledge Generated and Applied by the Talent [Chowdhury, 2002]
Invested in Talent
ROT = Return (Benefits) on Talent [Banerjee, 2013 March]
Total Cost in Talent
Taking a lead from the above academicians , ROT could be redefined as given below.
ROT = Contribution (Return) by the People (Talent)
Total Capital Invested in People (Talent)
ROT = Revenue Earned by the Talent – Total Invested Capital in Talent
Total Capital Invested in Talent

HR
ROT = E–C
C
ROT = E- (CP + CT + CI + CC + CR + CO)
(CP + CT + CI + CC + CR + CO)
Where,
E = Revenue earned by the Talent (earning per respective employee)
C = Total capital invested in Talent = (Cp + CT + CI + CC + CR + CO)
CP = Cost of identifying and recruiting candidate/Talent
CT = Cost of training, re-training & developing Talent
CI = Cost of required environment in which Talent can work (Infrastructure Cost- H/w & S/w, specialized
chatbots, AI, IoT, ML, ICT, deep learning, data analytics cloud computing, edge computing, analytics & data mining,
simulation & computational modeling, etc.
CC = Cost of compensation to the Talent
CR = Cost of retaining the Talent) (Personal & spouse rewards, recognition, special perks, career aspirations as
motivator, etc),
CO = Overhead Cost apportioned to the Talent
All the above cost data can be had from the financial module of SAP.
The ROT computation helps management to monitor/ make people proud to work and stay to achieve better efficiencies
evaluate performance of the talent, determine the profitability and output from employees. When integrated into all functional
of their investment in people (talent), to forecast opportunities areas of management, a strong TMS encompassing employee
in a congenial atmosphere, etc. which reflects the profitability value proposition, employee analytics, People Capability
of the organization. To make investment more profitable, Maturity Model Integration (PCMMI) V2.0 to achieve maturity
organization must constantly calculate ROT, continuously level 5, etc. will help retain top performers and attract the best
improve ROT and nurture, develop, and refresh talented people. external talent. It is important to comprehend that it’s the people
The ROT calculated should be then compared with the ROT rate of the organization who develop ideal organizational culture
prevailing in the organization’s other similar strategic business from vision to reality. A robust HR vision is required to achieve
units (SBUs), ROT rate prevailing in the same industry, ROT optimum business performance/ objectives, be it for current or
rate prevailing in the similar industry, etc. for drawing inference. future.
ROT has an uniqueness. Unlike, return on physical asset,
which is a scalar quantity, ROT is a vector. It has both magnitude References
and direction. [Banerjee, 2013 March]. A high talent, directed 1. Banerjee, Prof. Shyamal, (2013), Return on Talent, The
Management Accountant, Volume 48, No.3, March, p 267-268
to a right or priority direction, will yield return which may be
important or even relevant. Such talents which are valuable 2. Carlzon, Jan, (1987), Moment of Truth, Ballinger Publishing
Company, Cambridge, Mass as cited in Das Ranjan, Strategic
and incredible assets of the organization may become non Management of Services: Framework and Cases, Oxford
performing asset (NPA), if not utilized properly and will affect University Press, Delhi, p 9
organization’s health growth. If talent management is conducive, 3. Chatterjee, P. K. and Prasad, Prof. A., (2002), Customer
personnel moral will be high and personnel turnover will Orientation in B2B Marketing - Making it Happen in
be negligible or minimum, that too the inevitable ones. ROT Engineering Consultancy Sector, Vikalpa, Indian Institute of
Management, Ahmedabad, Vol. 27, No. 1, January – March,
can be both a quantitative and qualitative measure, based on
pp 35-43
managerial viewpoint. For quantitative measurement, pricing of
4. Chatterjee, P. K. and Prasad, Prof. A., (2003), Strategic Issues for
talent in the form of skills, expertise, experience, knowledge, KAM Implementation in Industrial Marketing, Vision, The Journal
etc. would be required. While qualitative measures may be in of Business Perspective, Management Development Institute,
terms of organizational profile drawn on the basis of opinions Gurgaon, Vol. 7, No. 2, July-December, pp 25-35
of the Clients, industry associations, multi lateral funding 5. Chatterjee, Dr. P.K. and Chatterjee P.P., (2019), Marketing
agencies, etc. of Engineering Consultancy Services : A Global Perspective,
American Society of Mechanical Engineers , January, New York,
USA, pp 5-6, p 48
Conclusion
6. Chatterjee, Dr. P. K. and Chatterjee Partho P., (2019) Marketing
People (Engineers-Talent) are the cynosure of the engineering of Engineering Consultancy Services: Competing Through
consultancy business. As their role is vital and indispensable, People (Engineers), AIMA Journal of Management Research,
it warrants distinct attention. For CHROs of engineering May, Volume 13 Issue ¼, pp 1-22
consultancy organization, TMS is not a cakewalk for HR team 7. Chowdhury, Subir, (2002) The Talent Era: Achieving A High
Return on Talent, Prentice Hall Inc. New Jersey, NJ07458, pp
as it is no longer fettered to merely hiring, appraising and 84-85, 145
compensating people/employees. TMS must define the people
essence of the organization- how it is unique and what it stands ckpradeep61@meconlimited.co.in
for in the industry. It must encompass the principal mission that ckpradeep61@gmail.com
cppartho@yahoo.co.in

CASE STUDY
PRODUCTIVITY
MEASUREMENT
USING PRODUCTIVITY
ACCOUNTING MODEL:
A CASE STUDY OF
REFINERIES SECTOR
COMPANIES INCLUDED IN
NIFTY 50
CMA (Dr.) Meenu Maheshwari CA Priya Taparia

Assistant Professor Research Scholar
Department of Commerce and Management Department of Commerce and Management
University of Kota University of Kota
Kota Kota
Abstract
Research Issue: Productivity is the relationship between output and one or more of the
physical or monetary inputs used in the production process. It is denoted as a ratio of monetary
value of output to the monetary value of input. In the present research, an attempt has been
made to measure, analyse and compare intra company and inter company productivity of
Refineries sector companies from 2010-11 to 2017-18 i.e. for eight years.
Research Findings: Intra company comparison has been drawn with the help of chi- square
test and results indicate that hypothesis drawn is accepted in all the cases of refineries sector
companies. This means that the overall productivity indices of the Refineries sector companies
for the study period are approximately same and can be represented by straight line trend or
line of best fit. Inter company comparison has been drawn with the help of Kruskal Wallis One
Way Analysis of Variance Test and results indicate that null hypothesis isaccepted which means
that there is no significant difference in the overall productivity ratios of the companies.

CASE STUDY
P
Introduction 2. To suggest ways for the improvement in material,
roductivity serves as the benchmark to ascertain labour, overhead and overall productivity.
the efficiency of any type of organisation. As
efficiency should get reflected in productivity Sample and Collection of Data
measures, it can be considered as an effective This research is based on the secondary data. The data
proxy for efficiency. According to International labour and informationhave been obtained from the annual reports
organisation, “the basic principal of productivity is to make of theselectedsampled refineriessector companies viz.,
the best use of limited factors of production, like- land, BPCL, HPCL, IOCL, RIL included in Nifty 50.The index
capital, labour, raw material and management etc. so that numbersused in the study have been collected from the
maximum production becomes possible on to minimum various bulletins published by Reserve Bank of India on its
economic and social costs.” website.
The most integral purpose of the productivity analysis are
comparing an enterprise with its competitors, determining Selection of Base Year
the relative performance of the department and workers and The study covers a period of eight years i.e. from 2010-11
comparing relative benefits of various types of inputs for to 2017-18. The year 2010-11 has been taken as the base
collective bargaining and gain sharing. year. The revaluation of output and input is done as per the
Productivity is the relationship between output, may it be base year.
a physical or measured in monetary terms and one or more
of the physical or monetary inputs used in the production Model to be used
process. It is expressed as a ratio to reflect how efficiently In the present research, Productivity Accounting Model
resources are used in creating outputs. Hence, this study has been used for measuring productivity because it
aims to measure productivity in terms of material, labour, considers all the elements of output and input, ignoring the
overheads and in aggregate. effect of inflation.
Review of Literature Hypotheses

Many studies on productivity trends in India and abroad Keeping in mind the objectives of the research, following
have been carried out over the last few decades. Few studies hypotheses have been developed and tested.
are being summarised below:
Reddy and Naidu (2013) in their research paper studied Intra Company Comparison- Non Parametric Chi-
the productivity trends of 12 Indian cement companies for the Square Test
period from 2000 to 2009. The labour, capital productivity,
capital intensity, labour, capital productivity indices and Null Hypothesis (H0): There is no significant difference
capital intensity indices have been calculated to determine in the material, labour, overhead and overall productivity
the efficiency of an individual factor input. indices of the sampled company for the study period and can
be represented by straight line trend or line of best fit.
Deb and Ray (2014) have analysed in their paper total
factor productivity growth in Indian manufacturing sector.
Inter Company Comparison- Kruskal Wallis One Way
The paper compares the pre and post reform performances
ANOVATest
of Indian manufacturing related to total factor productivity
growthfrom1970-71 to 2007-08.
Null Hypothesis (H0): There is no significant difference
Maheshwari and Taparia (2019)investigated in their in the material, labour, overhead and overall productivity
paper the material productivity of automobile sector ratios of sampled companies.
companies included in Nifty 50. The study analysed the
material productivity of eight years from 2010-11 to 2017- Calculation of Index Numbers and Conversion Factors
18.
Index numbers published by various RBI Bulletins and
Research Gap: As per the above reviews and many more conversion factors accordingly have been used,forthe
studies studied related to the topic, there is no study on revaluation of data on the base year’s prices for eight years
productivity of refineries sector companies included in Nifty from 2010-11 to 2017-18.Here the year 2010-11 has been
50 for this particular study period and by measurement of taken as base year. Backward Splicing technique has been
productivity by productivity accounting model. used for calculating the index numbers of 2010-11.
Research Methodology Following formula has been used to calculate conversion

Main Objectives of the Research factors:
The main objectives are being summarized as follows:-
Index number of the base year
1. To measure, analyse and compare the intra company
and inter company overall including material, labour Index number for the current year
and overhead productivity.

CASE STUDY
Table 1: Index Numbers and the Conversion Factors for Revaluation of Data
Source: Authors Calculation with the help of RBI Bulletin

Revaluation of Output
The output of the companies has been revalued by multiplying the output values with the conversion factors based on
wholesale price index. Output includes sales, other income and change in the inventories of finished goods, work in progress
and traded goods.
Revaluation of Input
The respective input values have been revalued bymultiplying the input values with the conversion factors.
Labour- revalued by Consumer Price Index,
Power and Fuel- by Fuel and Power Index
Rest of the Cases- by Wholesale Price Index
Depreciation and Amortisation-Not revalued.
In the present research assets approach is followed for calculating the capital employed or investment. Fixed assets have
been taken on the historical values as shown in the balance sheet of the respective company.
Base Year Rate of Return:The base year rate of return based on industry standard for intercompany comparison has been
calculated with the help of the following formula:
RI = R1 + R2 + R3 + R4(Rate of Return of Sector Companies)X100 = 5.55%

AI1 + AI2 + AI3 + AI4(Average Investment of Sector Companies)
Productivity: Productivity indicates that how much has been produced as output by a unit of input. It has been shown
inAppendices.
Table 2: Hypothesis Testing and Interpretation of Productivity
If the calculated value of chi square is less as compared to the table value hence null hypothesis is accepted. This reveals
that the productivity indices of the company for the study period are approximately equaland can be represented by straight
line trend or line of best fit.
Kruskal Wallis One Way ANOVA Test

The productivity of all the samples is combined and arranged in increasing order, given a rank number and value of H is
calculatedand result indicated in table 3.

CASE STUDY
Table 3: Kruskal Wallis One Way ANOVATest of Refineries Sector
The null hypothesis is rejected by applying H Test on material, labour, overhead productivity ratios while it is accepted in
case of overall productivity ratios. This means that there is a significant difference in material, labour, overhead productivity
ratios of the refineries sector companies whilethere is no significant difference in overall productivity ratios of the refineries
sector companies of Nifty 50.
Possible Savings
Possible savings has been calculated to analyse what would have been saved if optimum utilisation of resources is made.
Possible Saving in input = Actual input – Standard input
Standard input = minimum requirement of Input per unit of output X Actual Output revalued according to the base year.
Table 4: Possible Savings from 2010-11 to 2017-18

Amount in ` crore
Note: Amount has been rounded off to nearest `
Above table suggests that the total possible savings in material input for a period of eight years would have been ` 85067
crore of BPCL, ` 52075 crore of HPCL, ` 208996 crore of IOCL and lastly ` 262423 crore of RIL.The total savings in labour
input for a period of eight years would have been ` 6047 crore of BPCL with 2014-15 as a base year, ` 3024 crore of HPCL
with 2013-14 as a base year, ` 13110 crore of IOCL with 2011-12 as a base year and lastly ` 5394 crore of RIL with 2013-14
as a base year. The total savings in overhead input for a period of eight years would have been ` 18384 crore of BPCL, ` 14221
crore of HPCL, ` 58811 crore of IOCL and lastly ` 57790 crore of RIL.
Comparative Average Analysis

To analyse between the companies of a particular sector it is better to analyse its average performance for the study period.

CASE STUDY
Table 5: Comparative Average Productivity Ratios from 2010-11 to 2017-18
Base Year 2010-11
The total material average input output ratio and average material productivity ratio is the best of RIL, followed by IOCL,
BPCL and lastly HPCL.The total labour average input output ratio and average labour productivity ratio is the best of
RILfollowed byHPCL,BPCLand lastly IOCL The total overhead average input output ratio and average overhead productivity
ratio is the best of HPCLfollowed byBPCL, IOCL and lastly RILThe average overall input output ratio and average overall
productivity ratio is the best of RILfollowed byIOCL, BPCLand lastly HPCL
Conclusion
It may be concluded from the above analysis that the refineries sector companies included in Nifty 50 are able to utilize its
resources efficiently as for each amount of input more amount of output is obtained. But this should not be the only criteria
for analyzing the productivity. Material productivity may increase by optimally utilizing its raw material without any wastage
or spoilage, technology used in processing the material should be of high quality so that there is low wastage of material, use
of good quality equipment, etc. The labour cost can be optimally utilised by adopting techniques such as incentive schemes,
workers participation in the management, job enrichment, flexitime, etc. Overhead productivity can be improved by reducing
the expenses in overhead cost. Overhead cost such as power and fuel expenses can be reduced by avoiding the wastage and
optimally utilising it. By reducing the cost it ultimately increases the productivity and hence the company becomes more
productive.
Appendices
1: Material Productivity of BPCL
Base Year 2010-11 Amount in ` crore
Average Material Productivity Indices=103.69, a=103.69, b=0.60, χ2=0.650, S.D.=4.02, C.V=3.88%.
2: Material Productivity of HPCL
Average Material Productivity Indices=105.65, a=105.65, b=0.62, χ2=0.353, S.D.=3.58, C.V.=3.38%.

CASE STUDY
3: Material Productivity of IOCL
4: Material Productivity of RIL
5: Labour Productivity of BPCL
Average Labour Productivity Indices=164.03, a=164.03, b=1.68, χ2=69.482, S.D.=38.38, C.V.=23.40%.
6: Labour Productivity of HPCL
Average Labour Productivity Indices=141.94, a=141.94, b=0.63, χ2=32.335, S.D.=23.97, C.V.=16.89%.

CASE STUDY
7: Labour Productivity of IOCL
Average Labour Productivity Indices=124.41, a=124.41, b=-2.44, χ2=33.676, S.D.=26.12, C.V.=20.99%.
8: Labour Productivity of RIL
Average Labour Productivity Indices=102.17, a=102.17, b=-3.09, χ2=19.682, S.D.=21.45, C.V.=20.99%.
9: Overhead Productivity of BPCL
Average Overhead Productivity Indices=90.68, a=90.68, b=-2.96, χ2=6.302, S.D.=16.02, C.V.=17.67%.
10: Overhead Productivity of HPCL

CASE STUDY
11: Overhead Productivity of IOCL
Average Overhead Productivity Indices=76.15, a=76.15, b=-3.81, χ2=8.073, S.D.=19.08, C.V.=25.06 %.
12: Overhead Productivity of RIL
13: Overall Productivity of BPCL
Average Overall Productivity Indices=102.48, a=102.48, b=0.21, χ2=0.368, S.D.=2.38, C.V.=2.32%.
14: Overall Productivity of HPCL

CASE STUDY
15: Overall Productivity of IOCL
16: Overall Productivity of RIL
References Journal of Economic Surveys, 23(2), 250–276,

1. Deb, A. K. & Ray, S. C. (2014). Total Factor DOI:10.1111/j.1467-6419.2008.00562.x. Retrieved from
Productivity Growth in Indian Manufacturing: A https://papers.ssrn.com/sol3/papers.cfm?abstract_
Biennial Malmquist Analysis of Inter-State Data.Indian id=1378298
Economic Review, 49(1), 1-25. Retrieved from http://
www.jstor.org/stable/24583404 Annual Reports of Companies from 2010-11 to 2017-18
2. Gupta, C. B. (1989). Production, Productivity and Cost • BPCL
Effectiveness, Sultan Chand & Sons, New Delhi. • HPCL
3. Gopal M. A.& Kothari C. R. (1990). • IOCL
Research Methodology – Methods & • RIL
Techniques(2nded.).VishwaPrakashan, New Delhi.
4. Grewal, T.S., Grewal, H.S., Grewal, G. S. & Khosla, Various Bulletins of Reserve Bank of India
R. K. (2019). T.S. Grewal’s Analysis of Financial • Wholesale Price Index, Consumer Price Index and Fuel
Statements. Sultan Chand and Sons, New Delhi, India. and Power Index
5. https://www.nseindia.com/content/indices/Method_
Nifty_50.pdf
6. Maheshwari, M. and Taparia, P. (2019). Measurement
drmeenumaheshwari@gmail.com
of Material Productivity: A Case Study of Automobile
Sector Companies included in Nifty 50, International tapariapriyataparia@gmail.com
Journal of Research and Analytical Reviews (IJRAR),
6(2), 964-981. Retrieved from www.ijrar.org.
7. Reddy, M. S. & Naidu, V. B. (2013). Partial
Productivity Trends of Selected Indian Cement
Companies, Indian Journal of Research, 2(7), 39-41.
ISSN - 2250-1991.
8. Simpson, H. (2009). Productivity in Public Services.

INSTITUTE NEWS
EASTERN INDIA REGIONAL COUNCIL
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

BHUBANESWAR CHAPTER
To enhance further branding of the CMA Profession, CMA Niranjan Mishra, Council Member and Chairman, Indirect Taxation
Committee, CMA Uttam Kumar Nayak, Secretary, EIRC and CMA Saktidhar Singh, Chairman of the Chapter met and felicitated to
Shri Samir Mohanty, Hon’ble BJP Party President, Odisha on 25.05.2020 and discussed various professional development issues,
specifically expertise of CMAs to support Government in the Pandemic Situation of COVID -19 and Post Factor Covid-19 also.
Due to prolonged lockdown to contain spreading pandemic COVID-19, it is not possible to conduct Seminar/Evening talks through
physical presence at its Conference Hall. For educative and updating the skills & knowledge of members, a webinar has been
conducted on 06.06.2020 on the theme “Disallowance of Expenditure - Income Tax –Vs- Ind As”. CMA Niranjan Swain, Advocate
& Tax Consultant, Bhubaneswar delivered in detail as “Resource Person” on the Occasion. More than 100 numbers of Members/
Stakeholders actively participated in the webinar, CMA Saktidhar Singh, Chairman of the Chapter extended formal vote of thanks.
Due to Pandemic (COIVID-19), Notification of the Ministry of AYUSH, Govt. of India and subsequent communication received
from ROC-cum- Official Liquidator, Odisha, this Chapter has observed 6th International Yoga Day through online mode on 21st
June, 2020 (Sunday) from 7.30 A.M to 8.30 A.M to encourage our esteemed members and Stakeholders to pursue Yoga from their
homes to serve the twin objective of: Health Promotion including building of immunity through Yoga and Providing relief from
stress and improving the sense of Well-being by practice of yoga. Yoga Guru Jugajyoti Jadabanand Choudhury demonstrated various
Yoga Asana’s with its merit/importance on body and mind to the Participants. Around 50 (Fifty ) Members and Staffs of the Chapter
actively participated in the Campaign. CMA Saktidhar Singh, Chairman of the Chapter delivered welcome address and extended
vote of thanks .
NORTHERN INDIA REGIONAL COUNCIL

JAIPUR CHAPTER
The Chapter organised a Webinar on 17th May, 2020 on for preparation in the examination for the Subjects “Cost and
“Impact of COVID-19 on SMPs and Precautions in Office”. In Management Audit” in Final, “Operations Management and
the beginning of the Program Chairman of the Chapter CMA Strategic Management” in Intermediate and “Statistics” in
S.L. Swami welcomed the Key Speaker and all the participants. Foundation.Key Speaker of the second Technical Session
Key Speaker CA Vijay Agrawal explained in details about was CMA Rakesh Yadav, Past Chairman of Jaipur Chapter.
precautions to be taken for preventing from COVID-19. He also He gave useful tips for preparation in the examination for the
explained about scope for CMAs and Finance Professionals to Subjects “Strategic Cost Management” in Final and “Financial
help clients in implementing various recent announcements by Accounting”, “Cost Accounting” and “Cost and Management
Union Finance Minister. In the interactive session explaining the Accounting” in Intermediate. CMA Swapnil Bhandari, Secretary
queries of large number of members, he guided about managing of the Chapter was Key Speaker for third technical session. He
work from home. At the end of the program CMA Swapnil gave tips for “Direct and Indirect Taxation”, “Auditing” and
Bhandari, Secretary of the Chapter thanked Key Speaker and all “Corporate Laws”. He also gave tips for daily routine and to
the participants. The chapter organised a Webinar on 27th May, maintain health during stress period for preparing examination,
2020 for CMA Students. Purpose of this Webinar was to motivate especially for upcoming CMA exams.The student Webinar was
students regarding how to crack CMA examination in July 2020. conducted by Executive Member, CMA Purnima Goyal.The
Key Speaker of the first Technical Session was CMA Sudarshan Chapter organised Webinar on 13th June, 2020 on ITR Forms
Nahar, Vice-Chairman of the Chapter. He gave valuable tips and GST updates. In the beginning of the Seminar CMA S.L.

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Swami, Chairman of the Chapter welcomed the Key Speakers 20” where learned Speaker CMA Ayush Gupta explained the
and participants. In the first technical session Key Speaker CA issue in light of latest amendments. Large number of Members
Anoop Bhatia explained in detail on the topic “Recent Changes attended the Seminar. At the end of the program CMA Swapnil
in ITR Forms and Form 26 AS.”Second session of Webinar Bhandari, Secretary of the Chapter thanked the Key Speakers
comprised of deep discussion about the subject “Updates in and all participants.
GST with Precautions in Finalisation of Accounts for 2019-
SOUTHERN INDIA REGIONAL COUNCIL

HYDERABAD CHAPTER
On 05th May, 2020 the chapter discussed Practical issues in P.S. R. Prasad detailed about Empanelment of Agencies for
Real Estate Sector under GST + Impact of Covid 19 on Real specialized Monitoring(ASM),Eligibility criteria, submission
Estate Sector. GST in real estate has been a debatable issue in of documents, approval stage, post approval stage, termination,
India facing a tough time over the last few years, for issues like Confidentiality and Non- disclosure agreement, fee, terms and
GST on sale of flats to owners, sale after occupancy certificate conditions, expectations from ASM, Scope of work for ASM,
etc., avoiding input tax credit, purchase from unregistered in case of Working capital, in case of Term Loan(Project
dealers etc. In this programme CA Subba Reddy has dealt with Monitoring), General Parameters for monitoring, general terms
major issues mentioned above and explained well with suitable and conditions.On 22nd May, 2020- The Challenge of Corona
examples. On 13th May, 2020, CMA’s role in creating Customer Virus – Economic and Financial Issues. This event was initiated
Value was discussed. Knowing what customers value, and by the Chapter and organized by the Institute on online platform.
why, is the foundation of a sound business. CMA A.N. Raman, This event was attended by CMA Balwinder Singh – President,
Former President of SAFA emphasized the role of CMAs role Central Council Members CMA Dr. K. Ch.A.V.S.N. Murthy,
in creating customer value. He explained what global CMA CMA H. Padmanabhan and CMA Chittaranjan Chatopadyaya.
bodies have done about customer value, Role of a CMA in Dr.Subba Rao garu, Past Governor of RBI has elaborated on
Monitoring CV, Tools and Techniques of CV Monitoring, 10 issues i.e The Rs. 20 trillion stimulus package - and what
Cost Management Tools to align with Business Strategy, it accomplishes, The time for reforms, the government‘s fiscal
Target Costing Characteristics, Cross-Functional Team, Target problem, RBI support , RBI’s monetary easing policies, Bank
Costing Process, Establishing the Target Cost, Achieving the NPAs, Steps to restart the economy , Atmanirbhar Bharat, Crisis
Target Cost. On 17th May, 2020 – Agencies for Specialized management of example of co-operative federalism, India’s
Monitoring –Emerging Opportunity for CMA was organized by long term growth story in tact.
the chapter. This is an emerging opportunity for CMAs. CMA
WESTERN INDIA REGIONAL COUNCIL

KALYAN AMBARNATH CHAPTER
The Chapter organized a Report of One Day Golden CMA Harshad Deshpande Regional Council Member, CMA
Jubilee Conference on 22nd February 2020, at Hotel Heritage (Dr.) Gopichand B. Shamnani, Secretary of Conference ,CMA
Residence, Kalyan.CMA Neetu S. Kapoor, Secretary of Gopal U. Keswani Treasurer of Chapter, CMA N. Rajraman,
the chapter, welcomed the Chief Guest and Guest of Honor Past Chairman of Chapter , CMA Anirudh Gupta, Chairman
,dignitaries and delegates attending the conference. The of Indore Dewas Chapter . Delegates and guests were shown
Conference was inaugurated by lighting of lamps at the a ten minutes Power Point presentation, summarizing and
hands of Chief Guest Dr. Mrs. Vaidehi Daptardar , Principal, highlighting achievements of Kalyan-Ambernath during the
Adarsh College of Commerce, Badlapur and Babaji Patron last 50 years , Powerpoint presentation was prepared by a
and Guest Of Honor, CMA S. G. Narasimhan , Chairman of team of students led by Mr. Pratik Banjan . CMA Neetu
Conference, CMA P.V. WANDREKAR , Past Chairman WIRC, S. Kappor invited Prof. Krishna Naidu , anchor , Corporate

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Trainer to carry out the Conference .CMA S.G. Narasimhan, Lalwani Pathak, delivered valedictory lectures congratulating
Chairman of the Conference delivered a welcome address . and expressing happiness on completion of 50 years of chapter.
He brought to knowledge of delegates attending conference, She appreciated the efforts CMA M.R. Dudani, Chairman and
the efforts , sacrifices of CMA M.R.Dudani Chairman of Founder member of chapter for branch for promoting Cost
chapter, and other founder members and role of successive and Management Course at Ulhasnagar and surrounding
Chairmen’s in past who helped in promoting profession of Cost areas.CMA M.R.Dudani, Chairman of chapter attended the
& Management Accountancy in suburban region of Kalyan Valedictory session and informed delegates and students about
Ambernath, Ulhasnagar, and adjoining areas up to Karjat and the time when he joined CMA course. There were no study
Kasara.Babaji, Guest of Honor and Patron Member of Chapter notes and coaching facilities. Students had to visit the Mumbai
appreciated the efforts of CMA M.R.DUDANI Founder Office for admission and appear for examinations. For solving
Member and Chairman of chapter in setting up of chapter office problems of students he and many others members from the
at Ulhasnagar and starting Oral Coaching of CMA Foundation, area wrote letters to the head office for establishing a branch
Inter and Final levels and also establishing CMA examination n at Kalyan. Because of continuous efforts the institute granted
centre at Ulhasnagar. He also appreciated efforts of CMA M.R, permission to establish branch Kalyan. Subsequently when
Dudani in guiding, helping in Audit of Accounts and other the institute started oral coaching Kalyan –Ambernath chapter
compliance of many Trusts, Educational Institutes, Religious applied for granting permission for conducting oral coaching
and Charitable organizations by doing timely compliance of for CMA course. In 1979 the institute granted permission for
govt rules. Dr.Mrs.Vaidehi Daptardar, Principal, Adarsh College conducting oral coaching. With the increase in number of
of Commerce, Badlapur Chief Guest delivered the inaugural students Chapter also started coaching for Foundation. With
lecture . There were two technical sessions. On the occasion the introduction of Computer Education in the CMA course
CMA Balwinder Singh President, CMA Biswarup Basu, chapter established Computer Lab. For computer training
Vice President, CMA Niraj D. Joshi , Chairman WIRC, were Chapter also perused head office for transfer of exam centre
felicitated and presented memento by CMA S.G.Narasimhan, from Mumbai to Kalyan which has helped to save time and
Chairman of Conference, CMA Gopichand B. Shamnani, difficulty for appearing examination. He informed about his
Secretary of Conference, CMA Gopal U. Kewani Treasurer Dream Project to Complete “CMA Bhavan” at Ulhasnagar.
of Chapter respectively . On the occasion CMA Ashish P Students and delegates appreciated the efforts of CMA M. R.
Thate, CMA P. Raju Iyer, CMA V. Murali , CMA Chitranjan Dudani by non stop clapping and standing ovation.CMA V.C.
Chattopadhyay Central Council Members and CMA Harshad Kothari , Past Chairman of WIRC and Central Council Member
S. Deshpande , CMA Vinayak B. Kulkarni, CMA Chaitanya L. presented a paper on “ Resource Management of Infrastructure
Mohrir, Regional Council Members, and CMA Gupta Chairman Projects “ . He informed the delegates about the Dream project
of Indore Devas were also felicitated and presented memento of construction of “CMA BHAWAN “ of CMA M.R. Dudani ,
by CMA Neetu S. Secretary of Chapter.CMA Balwinder Chairman of Chapter . He requested delegates and students to
Singh President , informed delegates about improvements in support the project for providing better infrastructure facilities
functioning of institutes for giving better services to members for future aspiring students pursuing CMA course. CMA V.C.
and students. He informed that now because of improvement Kothari felicitated CMA P.V. Wandrekar , Past Chairman of
in functions of Membership Department processing time of WIRC.CMA N. Rajaraman , Chief Financial Officer, OCS
application for associate membership certificate of practice Services (India) Pvt. Ltd., and Past Chairman of Kalyan
reduced to few days. For continuous updating of knowledge of Ambernath Chapter, informed the delegates and students
members post online qualification courses have been announced. about constant changes taking place in different parts of the
CMA Biswarup Basu, Vice President, congratulated Office business environment. Technology updating is taking place at
bearers, Managing Committee members, faculty members and a fast rate. He motivated students for adoption of CHANGE
students for completing 50 years.CMA Neeraj D. Joshi , Central MANAGEMENT for continuous success in profession.At the
Council Member , and Chairman WIRC , informed that he was end of Valedictory session Smt.(Dr.) Manju Lalwani Pathak,
happy to attend of Golden Jubilee Conference of the Chapter. Principal , Smt. C.H.M. College of Arts Science and Commerce,
On the occasion Souvenir of conference was released at the Ulhasnagar-3 (West), felicitated CMA M.R.Dudani, Founder
hands of President, Vice President, Central Council Members member and Chairman, CMA S.G.Narasimhan, CMA Neetu
and Chairman of WIRC. CMA Neetu S. Kapoor, secretary S. Kapoor, CMA Gopal U. Keswani, Treasurer, CMA (Dr.)
of Chapter introduced , welcomed and presented memento Gopichand B. Shamanani, Mr.Raju P.C. Executive Secretary,
to Smt.(Dr.) Manju Lalwani Pathak, Principal , Smt. C.H.M. Mr. Ravi Rohra Office staff for providing valuable services for
College of Arts Science and Commerce, Ulhasnagar-3 (West) making Golden Jubilee Conference a Grand Success .
who was chief guest of Valedictory session. Smt.(Dr.) Manju

STATUTORY UPDATES
DIRECT & INDIRECT TAX UPDATES - JUNE 2020
provision of clause (g) of sub-section (4C) of section
DIRECT TAXES 139 of the Income-tax Act, 1961.
(d) shall file the Audit report along with the Return,
• Notification No. 32/2020 dated 12th June 2020:
duly verified by the accountant as provided in
—In exercise of the powers conferred by clause (v)
explanation to section 288(2) of the Income-tax
of the Explanation to section 48 of the Income-tax
Act, 1961 along with a certificate from the chartered
Act, 1961 (43 of 1961), the Central Government
accountant that the above conditions are satisfied.
hereby makes the following further amendments in
the notification of the Government of India, Ministry 3. This notification shall be deemed to have been
of Finance (Department of Revenue), Central Board applied for the period from 01-06-2011 to 31-03-
of Direct Taxes, published in the Gazette of India, 2012 in the assessment year of 2012-2013 and also
Extraordinary, vide number S.O. 1790(E), dated the from the assessment years 2013-2014, 2014-2015,
5th June, 2017, namely:— 2015-2016 and 2016-2017.
2. In the said notification, in the Table, after serial
• Notification No. 34/2020 dated 23rd June 2020:
number 19, the following serial number and entries
—In exercise of the powers conferred by clause
relating thereto, shall be inserted, namely:—
(46) of section 10 of the Income-tax Act, 1961 (43
Sl No. Financial Year Cost Inflation Index of 1961), the Central Government hereby notifies
20 2020-21 301 for the purposes of the said clause, ‘Maharashtra
Electricity Regulatory Commission’, Mumbai (PAN
3. This notification shall come into force with effect AAAGM0004R), a commission established by
from 1st day of April, 2021 and shall accordingly the State Government of Maharashtra, in respect
apply to the assessment year 2021-22 and subsequent of the following specified income arising to that
years. Commission, namely:- (a) Grants from Government
of Maharashtra; (b) Fees for annual licence; (c)
• Notification No. 33/2020 dated 23rd June 2020: In Interest on Fixed Deposit and Savings Account;
exercise of the powers conferred by clause (46) of (d) Fees for application/petition filed; (e) Fees for
section 10 of the Income-tax Act, 1961 (43 of 1961), Documents; (f) Penalty for delayed payment of
the Central Government hereby notifies for the Annual Licence Fees; (g) Fees for RTI; (h) Sale of
purposes of the said clause, ‘Greater Noida Industrial Scrap; (i) Interest on Loans and Advances given to
Development Authority’, (PAN AAALG0129L ), an employees; (j) Fees for annual performance review;
authority constituted by the State Government of (k) Fees for determination of tariff; and (l) Fees for
Uttar Pradesh, in respect of the following specified initial licence.
income arising to that Commission, namely:— 2. This notification shall be effective subject to the
(a) Grants received from the State Government; conditions that Maharashtra Electricity Regulatory
Commission, Mumbai,- (a) shall not engage in any
(b) Moneys received from the disposal/90 years lease
commercial activity; (b) activities and the nature
of immovable properties;
of the specified income shall remain unchanged
(c) Moneys received by the way of lease rent & fees throughout the financial years; and (c) shall file
or any other charges from the disposal/90 years lease return of income in accordance with the provision of
of immovable properties; clause (g) of sub-section (4C) of section 139 of the
(d) The amount of interest earned on the funds Income-tax Act, 1961. (d) shall file the Audit report
deposited in the banks; along with the Return, duly verified by the accountant
(e) The amount of interest/penalties received on as provided in explanation to section 288(2) of the
the deferred payment received from the Allotees of Income-tax Act, 1961 along with a certificate from
various immovable properties; and the chartered accountant that the above conditions are
satisfied.
(f) Water, sewerage and other municipal charges from
the Allotees of various immovable properties. 3. This notification shall apply with respect to the
assessment years 2021-2022, 2022-2023, 2023-2024,
2. This notification shall be effective subject to the
2024-2025 and 2025-2026.
conditions that Greater Noida Industrial Development
Authority,- (a) shall not engage in any commercial
• Notification No 35/2020 dated 24th June 2020:
activity
Extension of time limit under the Income Tax
(b) activities and the nature of the specified income Act 1961 and related tax. Provided that where the
shall remain unchanged throughout the financial specified Act is the Income-tax Act, 1961 and the
years; and compliance relates to-
(c) shall file return of income in accordance with the

STATUTORY UPDATES
(i) furnishing of return under section 139 thereof, for day of December, 2020 shall be the end date of
the assessment year commencing on the - the period during which the time limit specified in,
(a) 1 st day of April, 2019, the end date shall be or prescribed or notified there under falls for the
extended to the 31st day of July, 2020; completion or compliance of the action and the 31st
day of December, 2020 shall be the end date to which
(b) 1 st day of April, 2020, the end date shall be
the time limit for completion or compliance of such
extended to the 30th day of November, 2020;
action shall stand extended.
(ii) delivering of statement of deduction of tax at
2. This notification shall come into force from the
source under sub-section (2A) of section 200 or
30th day of June, 2020.
statement of collection of tax at source under sub-
section (3A) of section 206C thereof for the month
• Notification No 36/2020 dated 25th June 2020: —
of February or March, 2020, or for the quarter ending
In exercise of the powers conferred by clause (46)
on the 31st day of March, 2020, as the case may be,
of section 10 of the Income-tax Act, 1961 (43 of
the end date shall be extended to the 15th day of July,
1961), the Central Government hereby notifies for the
2020;
purposes of the said clause, ‘Real Estate Regulatory
(iii) delivering of statement of deduction of tax Authority’ as specified in the schedule to this
at source under sub-section (3) of section 200 or notification, constituted by Government in exercise
statement of collection of tax at source under proviso of powers conferred under subsection (1) of Section
to sub-section (3) of section 206C thereof for the 20 of the Real Estate (Regulation and Development)
month of February or March, 2020, or for the quarter Act, 2016 (16 of 2016) as a ‘class of Authority’ in
ending on the 31st day of March, 2020, as the case respect of the following specified income arising to
may be, the end date shall be extended to the 31st day that Authority, namely:-
of July, 2020;
(a) Amount received as Grant-in-aid or loan/
(iv) furnishing of certificate under section 203 thereof advance from Government;
in respect of deduction or payment of tax under
(b) Fee/penalty received from builders/
section 192 of that Act for the financial year 2019-
developers, agents or any other stakeholders as
20, the end date shall be extended to the 15th day of
per the provisions of the Real Estate (Regulation
August, 2020;
and Development) Act, 2016;
(v) section 54 or 54GB referred to in item (I) of sub-
(c) Interest earned on (a) & (b) above.
clause (i) of clause (c) of sub-section (1) of section
3 of the Ordinance or sub-clause (ii) of the said 2. This notification shall be effective subject to the
clause, the end date in respect of the time limit for conditions that each of the Real Estate Regulatory
the completion or compliance and the end date for Authority –
making the said completion or compliance, shall be (a) shall not engage in any commercial activity;
the 29th day of September, 2020 and the 30th day of (b) activities and the nature of the specified
September, 2020 respectively; income shall remain unchanged throughout the
(vi) any provisions of Chapter VI-A under the heading financial years;
“B.- Deductions in respect of certain payments” (c) shall file return of income in accordance with
thereof, referred to in item (I) of sub-clause (i) of the provision of clause (g) of sub-section (4C) of
sub-section (1) of section 3 of the Ordinance, the end Section 139 of the Income-tax Act, 1961; and
date in respect of the time limit for the completion
(d) shall file the audit report along with return,
or compliance and the end date for making the said
duly verified by the accountant as provided in
completion or compliance, shall be the 30th day of
explanation to section 288(2) of the Income-
July, 2020 and the 31st day of July, 2020 respectively;
tax Act, 1961 along with a certificate from the
and
chartered accountant that the above conditions
(vii) furnishing of report of audit under any provision are satisfied.
thereof for the assessment year commencing on the
• 3.This notification shall apply to the Real Estate
1st day of April, 2020, the end date shall be extended
Regulatory Authority, mentioned at column (2) below,
to the 31st day of October, 2020:
with respect to the assessment years mentioned in
Provided further that the extension of the date as column (4) below.
referred to in sub-clause (b) of clause (i) of the first
Schedule
proviso shall not apply to Explanation 1 to section
234A of the Income-tax Act, 1961 in cases where the Name of the real
amount of tax on the total income as reduced by the estate regulatory PAN Assessment Years
clauses (i) to (vi) of sub-section (1) of the said section authority
exceeds one lakh rupees : Real Estate
2019-2020, 2020-2021,
Regulatory
Provided also that where the specified Act is the Authority,
AAAGR0572D 2021-2022, 2022-2023 and
Direct Tax Vivad se Vishwas Act, 2020, the 30th 2023-2024
Karnataka

STATUTORY UPDATES
Andhra Pradesh Amendment) Rules, 2020.
2019-2020, 2020-2021,
Real Estate (2) They shall come into force from the 1st day of
AAAGA0918E 2021-2022, 2022-2023 and
Regulatory April, 2021 and shall accordingly apply in relation
2023-2024
Authority
to the assessment year 2021-22 and subsequent
assessment years.
• Notification No 37/2020 dated 25th June 2020: —
In exercise of the powers conferred by clause (46) In the Income-tax Rules, 1962,-
of section 10 of the Income-tax Act, 1961 (43 of (a) in rule 2BB, after sub-rule (2), the following sub-
1961), the Central Government hereby notifies for the rule shall be inserted, namely:— “(3) Notwithstanding
purposes of the said clause, ‘Real Estate Regulatory anything contained in sub-rule (1) and (2), an
Authority’ as specified in the schedule to this employee, being an assessee, who has exercised
notification, constituted by Government in exercise option under sub-section (5) of section 115BAC
of powers conferred under sub-section (1) of Section shall be entitled to exemption only in respect of the
20 of the Real Estate (Regulation and Development) allowances mentioned in sub-clauses (a) to (c) of sub-
Act, 2016 (16 of 2016) as a ‘class of Authority’ in rule (1) and at serial no.11 of the Table below sub-
respect of the following specified income arising to rule (2) to the extent and subject to the conditions, if
that Authority, namely:— any, specified therein.”;
(a) Amount received as Grant-in-aid or loan/advance (b) in rule 3, in sub-rule (7), in clause (iii), after
from Government; (b) Fee/penalty received from the proviso, the following proviso shall be inserted,
builders/developers, agents or any other stakeholders namely:—
as per the provisions of the Real Estate (Regulation • “Provided further that the exemption provided in the
and Development) Act, 2016; (c) Interest earned on first proviso in respect of free food and non alcoholic
(a) & (b) above. beverage provided by such employer through paid
2. This notification shall be effective subject to the voucher shall not apply to an employee, being an
conditions that each of the Real Estate Regulatory assessee, who has exercised option under sub-section
Authority – (a) shall not engage in any commercial (5) of section 115BAC.”.
activity; (b) activities and the nature of the specified
income shall remain unchanged throughout the • Notification No 39/2020 dated 29th June 2020: —In
financial years; (c) shall file return of income in the notification of the Government of India, Ministry
accordance with the provision of clause (g) of sub- of Finance, (Department of Revenue) (Central Board
section (4C) of Section 139 of the Income-tax Act, of Direct Taxes), number 35/2020, dated the 24th
1961; and (d) shall file the audit report along with June, 2020, published, vide, number S.O. 2033(E),
return, duly verified by the accountant as provided dated the 24th June, 2020 in the Gazette of India,
in explanation to section 288(2) of the Income-tax Extraordinary, Part-II, Section 3, Sub-section (ii), at
Act, 1961 along with a certificate from the chartered page 3,-
accountant that the above conditions are satisfied. (i) in line 30, for “section 54 or 54GB” read “sections
3. This notification shall apply to the Real Estate 54 to 54GB”;
Regulatory Authority, mentioned at column (2) below, (ii) in line 35, for “sub-clause (i)” read “sub-clause (i)
with respect to the assessment years mentioned in of clause (c)”.
column (4) below.
Schedule INDIRECT TAXES
Name of the real
estate regulatory PAN Assessment Years
CUSTOMS
authority
• Notification No. 26/2020 -Customs dated 2nd
2020-2021, 2021-2022,
Odisha Real Estate
AAAGO0648F 2022-2023, 2023-2024 June 2020: Seeks to further amend notification No.
Regulatory Authority 50/2017-Cus dated 30.06.2017 so as to temporarily
and 2024-2025
2020-2021, 2021-2022, reduce the import duty on Lentils (Mosur) till
Jharkhand Real Estate 31st Aug 2020. In exercise of power conferred by
AAALJ2126L 2022-2023, 2023-2024
Regulatory Authority
and 2024-2025 subsection (1) of section 25 of Customs Act 1962(52
of 1962) and subsection (12) of section 3 of Customs
• Notification No 38/2020 dated 26th June 2020: — Tariff Act 1975 (51 0f 1975) The Central Government
In exercise of the powers conferred by sub-section on being satisfied that it is necessary in the public
(2) of section 115BAC read with section 295 of interest so to do, hereby makes the following further
the Income-tax Act, 1961 (43 of 1961), the Central amendment in the notification of Government of India
Board of Direct Taxes hereby makes the following in the Ministry of Finance (Department of Revenue)
rules further to amend the Income-tax Rules,1962, No 50/2017 Customs dated 30th June 2017
namely:‒ In the said notification:
(1) These rules may be called the Income-tax (13th (a) In the table, after serial no 21D and the entries

STATUTORY UPDATES
relating thereto, the following serial number and 1514 19 Refined rape, colza
150000
entries to be inserted: 4 or 1514 or mustard oil and
MT
45% (i)
99 fractions thereof
(1) (2) (3) (4)
21E 07134000 Lentils (Mosur) 10% Condition
Condition
No
Lentils(Mosur) origination in or
21F 07134000 exported from United States of 30% (a) The TRQ is allotted to the importer by the
America Directorate General of Foreign Trade, in accordance
with paragraph 2.62 of the Handbook of Procedures,
(b) In the first proviso, after clause (d) the following clause 2015-20. (b) The TRQ authorization shall contain
shall be inserted namely: name and address of the importer, IEC code,
Customs notification No., sub-heading or tariff
“(e) the goods specified against serial number 21E and 1 item as applicable, quantity and validity period of
21F of the said table after 31st day of August , 2020.” certificate. (c) The TRQ authorization shall be issued
electronically by the Directorate General of Foreign
• Notification No. 27/2020-Customs dated 9th June Trade and transmitted to ICES system. (d) Imports
made against the TRQ shall be allowed only upon
2020: Seeks to further amend notification No. debiting the TRQ quantity electronically in the ICES
50/2017-Cus dated 30.06.2017 so as to withdraw the system.
concessional rate of 10% available to the import of
Whereas the Hon’ble High Court of judicature at
Bamboo for the manufacture of Agarbattis, and to Hyderabad for the State of Telangana and the State of
levy a uniform rate of 25% on import of Bamboos Andhra Pradesh vide order dated 31.12.2014 in WPMP
No.43494 of 2014 and W.P.No.34771 of 2014, has
• Notification No. 28/2020 –Customs dated 23rd permitted import of maize only on actual user condition
2
June 2020: In exercise of the powers conferred by and on payment of Customs duty prevailing, but not
TRQ Customs duty, subject to further orders in the
sub-section (1) of section 25 of the Customs Act, Writ Petition. Accordingly, TRQ on Maize shall be
1962 (52 of 1962), the Central Government, so to do, subject to order by Hon’ble High Court in the said Writ
hereby exempts the goods of the description specified Petition.
in column (3) of the Table below, and falling within
• Circular No 27/2020 dated 2nd June 2020:
the sub-heading or tariff item of the First Schedule
Extension of validity of AEO certification for ease of
to the Customs Tariff Act, 1975 (51 of 1975), as are
renewal process. Validity of AEO certificates reads
specified in the corresponding entry in column (2) of
as follows:- Validity of AEO certificate shall be three
the said Table in such quantity of total imports of such
years for AEO T1 and AEO T2 and five years for
goods in a financial year, as specified in column (4)
AEO T3 and AEO LO.
below (herein after referred to as the ‘tariff rate quota
(TRQ) quantity’), when imported into India, from so The Board has decided to extend validity of all AEO
much of the duty of customs leviable thereon under certificates expired/expiring between 1.03.2020 and
the said First Schedule as is in excess of the amount 31.05.2020 to 30.06.2020, except for those entities
calculated at the rate specified in the corresponding against which a negative report is received during this
entry in column (5) of the said Table (herein after period.
referred to as the In-quota tariff rate), subject to
any of the conditions, specified in the Annexure to • Circular No 28/2020 dated 5th June 2020: 1st phase
this notification, the condition number of which is of All India roll-out of Faceless Assessment. Kind
mentioned in the corresponding entry in column (6) reference is invited to Circular No.09/2019-Customs,
of the said Table; namely: dated 28th February 2019, which communicated
Board’s decision to implement the next generation
Sub–
Sl heading Description of
Tariff Inquota
Condition
reforms in the Customs clearance process under
rate quota tariff the umbrella of Turant Customs with the objectives
No or tariff goods rate
No
Quantity
item of speedy clearance, transparency in decision
Milk and cream in making, and ease of doing business. Subsequently,
powder, granules Board rolled out numerous changes to the Customs
or other solid
forms, (a) of a fat clearance process, which combine together support
0402 10
content by weight Turant Customs. These initiatives include the self-
not exceeding
1 or 0402
1.5%; (b) of a fat
10000 MT 15% (i) registration of goods by importers, automated
21 00 clearances of bills of entry, digitisation of customs
content, by weight,
exceeding 1.5% documents, paperless clearance, etc. The stage is now
- not containing
added sugar or other set for the roll out of the most critical reform under
sweetening matter the Turant Customs viz., Faceless Assessment.
Maize (corn), other 500000
2 1005 90 15% (i) &(ii)
than seed quality MT • Circular No 29/2020 dated 22nd June 2020:
Crude sunflower Procedure for Transhipment of Export Cargo from
150000
3 1512 11 seed or safflower oil
MT
50% (i) Bangladesh to third countries through Land Customs
and fractions thereof
Stations (LCSs ) to Port/Airport, in containers or

STATUTORY UPDATES
closed bodied trucks. of the said document for the exporters and also for
maintaining a docket in the Customs House would
• Circular No 30/2020 dated 22nd June 2020: stand discontinued. This reform complements the
Paperless Customs – Electronic Communication of introduction of a digital pdf Outof-Charge (OOC) copy
PDF Based Copies of Shipping Bill & e-Gatepass to of the Bill of Entry and Gatepass w.e.f. 15.04.2020
Custom Brokers/Exporters. In its continuing endeavor and launch of the 1 st Phase of Faceless Assessment
to promote ‘Faceless, Contactless, Paperless Customs’ at Chennai and Bengaluru w.e.f. 08.06.2020.
Board has decided to rely upon digital copies of the
Shipping Bill and do away with the requirement of • Circular No 31/2020 dated 30th June 2020:
taking bulky printouts from the Service Centre or Extension of validity of AEO certification for ease
maintenance of voluminous physical dockets in the of renewal process (Modification in Circular No.
Custom Houses. This reform will yield immense 27/2020 dated 02.06.2020) [Circular No. 31/2020 -
benefits in terms of saving the time and cost of Customs dated 30.06.2020].
compliance for the trade, thereby enhancing the ease
of doing business, while providing enhanced security
features for verification of authenticity and validity of
the electronic document.
Sources: Incometax portal, cbic.gov.in
Board directs that w.e.f. 22.06.2020 only the
digital copy of the Shipping Bill bearing the Final
LEO would be electronically transmitted to the
exporter and the present practice of printing copies

(STATUTORY BODY UNDER AN ACT OF PARLIAMENT)
RESCHEDULED TIME TABLE & PROGRAMME – JUNE 2020
FOUNDATION COURSE EXAMINATION
Foundation Course Examination Syllabus-2016

Day & Date
Time 2.00 p.m. to 5.00 p.m.
Wednesday,
Fundamentals of Economics & Management
2nd September, 2020
Friday,
Fundamentals of Accounting
4th September, 2020
Tuesday,
Fundamentals of Laws & Ethics
8th September, 2020
Thursday,
Fundamentals of Business Mathematics & Statistics
10th September, 2020
1. The Foundation Examination will be conducted in Offline mode only. Each paper will be of 100 marks.
2. Examination Centres: Adipur-Kachchh(Gujarat), Agartala, Agra, Ahmedabad, Akurdi, Allahabad, Asansol,

Aurangabad, Bangalore, Baroda, Berhampur(Ganjam), Bhilai, Bhilwara, Bhopal, Bewar City(Rajasthan),
Bhubaneswar, Bilaspur, Bikaner (Rajasthan), Bokaro, Calicut, Chandigarh, Chennai, Coimbatore, Cuttack, Dehradun,
Delhi, Dhanbad, Duliajan (Assam), Durgapur, Ernakulam, Erode, Faridabad, Ghaziabad, Guntur, Guwahati, Haridwar,
Hazaribagh, Howrah, Hyderabad, Indore, Jaipur, Jabalpur, Jalandhar, Jammu, Jamshedpur, Jodhpur, Kalyan, Kannur,
Kanpur, Kolhapur, Kolkata, Kota, Kottakkal (Malappuram), Kottayam, Lucknow, Ludhiana, Madurai, Mangalore,
Mumbai, Mysore, Nagpur, Naihati, Nasik, Nellore, Neyveli, Noida, Palakkad, Panaji (Goa), Patiala, Patna,
Pondicherry, Port Blair, Pune, Raipur,Rajahmundry, Ranchi, Rourkela, Salem, Sambalpur, Shillong, Siliguri, Solapur,
Srinagar, Surat, Thrissur, Tiruchirapalli,Tirunelveli, Trivandrum, Udaipur, Vapi, Vashi, Vellore, Vijayawada,
Vindhyanagar, Waltair and Overseas Centres at Bahrain, Dubai and Muscat.
3. A candidate who is completing all conditions for appearing the examination as per Regulation will only be
allowed to appear for examination.
4. Probable date of publication of result: To be announced in due course.
* For any examination related query, please contact exam.helpdesk@icmai.in
Kaushik Banerjee
Secretary

(STATUTORY BODY UNDER AN ACT OF PARLIAMENT)
RESCHEDULED TIME TABLE & PROGRAMME FOR INTERMEDIATE AND FINAL EXAMINATION– JUNE 2020
www.icmai.in
PROGRAMME FOR SYLLABUS 2016
ATTENTION: INTERMEDIATE & FINAL EXAMINATION (JUNE – 2020 TERM) WILL BE HELD ON ALTERNATE DATES FOR EACH GROUP.
INTERMEDIATE FINAL
Day & Date (Time: 2.00 P.M. to 5.00 P.M.) (Time: 2.00 P.M. to 5.00 P.M.)
(Group – I) (Group – II) (Group – III) (Group – IV)
Tuesday,
Financial Accounting (P-05) ------------------- Corporate Laws & Compliance (P-13) -------------------
1st September, 2020
Wednesday, Operations Management & Strategic
------------------- ------------------- Corporate Financial Reporting (P-17)
2nd September, 2020 Management (P-09)
Thursday,
Laws & Ethics (P-06) ------------------- Strategic Financial Management (P-14) -------------------
3rd September, 2020
Friday, Cost & Management Accounting and
------------------- ------------------- Indirect Tax Laws & Practice (P-18)
4th September, 2020 Financial Management (P-10)
Saturday, NO EXAMINATION NO EXAMINATION NO EXAMINATION NO EXAMINATION
5th September, 2020
Sunday, NO EXAMINATION NO EXAMINATION NO EXAMINATION NO EXAMINATION
6th September, 2020
Monday,
Direct Taxation (P-07) ------------------- Strategic Cost Management – Decision Making (P-15) -------------------
7th September, 2020
Tuesday,
------------------- Indirect Taxation (P-11) ------------------- Cost & Management Audit (P-19)
8th September, 2020
Wednesday,
Cost Accounting (P-08) ------------------- Direct Tax Laws and International Taxation (P-16) -------------------
9th September, 2020
Thursday, Strategic Performance Management and Business
------------------- Company Accounts & Audit (P-12) -------------------
10th September, 2020 Valuation (P-20)
1. The provisions of direct tax laws and indirect tax laws, as amended by the Finance Act, 2019, including notifications and circulars issued up to 30 th November, 2019, are applicable for June, 2020 term of
examination for the Subjects Direct Taxation, Indirect Taxation (Intermediate), Direct Tax laws and International Taxation and Indirect Tax laws & Practice (Final) under Syllabus 2016. The relevant
assessment year is 2020-21. For statutory updates and amendments please refer to: https://icmai.in/studentswebsite/Syl-2016.php
2. Companies (Cost Records and Audit) Rules, 2014 as amended till 30th November, 2019 is applicable for June, 2020 examination for Paper 12- Company Accounts and Audit (Intermediate) and Paper 19 - Cost
and Management Audit (Final) under Syllabus 2016. For updates and amendments please refer to the link: https://icmai.in/studentswebsite/Syl-2016.php
3. The provisions of the Companies Act 2013 are applicable for Paper 6 - Laws and Ethics (Intermediate) and Paper 13 - Corporate Laws and Compliance (Final) under Syllabus 2016 to the extent notified by the
Government up to 30th November, 2019 for June, 2020 term of examination. Additionally, for applicability of ICDR, 2018 for Paper-13 - Corporate Laws & Compliance (Final) under Syllabus 2016 refer to
relevant circular in website for June, 2020 term examination by following link: https://icmai.in/studentswebsite/Syl-2016.php
4. For Applicability of IND AS and AS for Paper 5 - Financial Accounting, Paper 12 - Company Accounts and Audit (Intermediate) and Paper 17 - Corporate Financial Reporting (Final) refer to relevant
circulars and notifications in website for June, 2020 term examination in the given link: https://icmai.in/studentswebsite/Syl-2016.php
5. Pension Fund Regulatory and Development Authority Act, 2013 is being included in Paper 6-Laws and Ethics (Intermediate) and Insolvency and Bankruptcy Code 2016 is being included in Paper 13 -
Corporate Laws and Compliance (Final) under Syllabus 2016 for June, 2020 term of examination. Please refer to the link: https://icmai.in/studentswebsite/Syl-2016.php
6. Examination Centres: Adipur-Kachchh (Gujarat), Agartala, Agra, Ahmedabad, Akurdi, Allahabad, Asansol, Aurangabad, Bangalore, Baroda, Berhampur (Ganjam), Bhilai, Bhilwara, Bhopal, Bewar
City(Rajasthan), Bhubaneswar, Bilaspur, Bikaner (Rajasthan), Bokaro, Calicut, Chandigarh, Chennai, Coimbatore, Cuttack, Dehradun, Delhi, Dhanbad, Duliajan (Assam), Durgapur, Ernakulam, Erode,
Faridabad, Ghaziabad, Guntur, Guwahati, Haridwar, Hazaribagh, Howrah, Hyderabad, Indore, Jaipur, Jabalpur, Jalandhar, Jammu, Jamshedpur, Jodhpur, Kalyan, Kannur, Kanpur, Kolhapur, Kolkata,
Kota, Kottakkal (Malappuram), Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Mumbai, Mysore, Nagpur, Naihati, Nasik, Nellore, Neyveli, Noida, Palakkad, Panaji (Goa), Patiala, Patna,
Pondicherry, Port Blair, Pune, Raipur, Rajahmundry, Ranchi, Rourkela, Salem, Sambalpur, Shillong, Siliguri, Solapur, Srinagar, Surat, Thrissur, Tiruchirapalli, Tirunelveli, Trivandrum, Udaipur, Vapi,
Vashi, Vellore, Vijayawada, Vindhyanagar, Waltair and Overseas Centres at Bahrain, Dubai and Muscat.
7. A candidate who is fulfilling all conditions specified for appearing in examination will only be allowed to appear for examination.
8. Probable date of publication of result: To be announced in due course.
* For any examination related query, please contact exam.helpdesk@icmai.in
Kaushik Banerjee
Secretary
July 2020 - The Management Accountant 121

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in July 2020 - The Management Accountant 1

COST ACCOUNTANTS OF INDIA

Ms. Priyanka Saxena 6th CMA Awards 2019

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• Leveraging Technology to make India a global economic powerhouse

• Strengthening industrial competitiveness: Special emphasis to manufacturing sector

• Differential Customer Service: A key determinant of growth

Insurance Sector in • Disruptive innovation: A path to progress

• Insurtech: Re-shaping the Insurance Industry

• Indian Economy post Covid-19: A positive outlook

Self-Reliant India: for fast-paced growth

• MSMEs: key to self-reliant India

• Agricultural Pricing Policy in India: Opportunities and Challenges

• Minimum Support Prices(MSP): Key to protect farmers

• Direct Benefit Transfer for Agri Input Subsidy

DIRECTORATE OF JOURNAL & PUBLICATIONS

www.icmai.in July 2020 - The Management Accountant 7

chaired by Shri Kumar Vivek, Vice President,

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VC Meeting with Secretary MCA E-Seminars by the EIRC of the Institute

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ICMAI REGISTERED VALUERS ORGANISATION

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is based on the theme “Goods & Services Tax (GST): Recent

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of the Auditee companies as to the Internal Audit of Cost

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Technical Cell (Cost Audit & Statutory Compliances) (2019-20)

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Mysuru Chapter Raipur Chapter

Noida Chapter Thrissur Chapter

Howrah Chapter Bengaluru Chapter

Bhubaneswar Chapter Coimbatore Chapter

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Hyderabad Chapter Lucknow Chapter

Kozhikode Malappuram Chapter Madurai Chapter

It is normal trade practice to refund the

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Kind Attention !!!

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GOODS & SERVICES TAX:

GST was essential for the Indian

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Under the new GST regime, while various

ELECTRICITY - A GOOD OR A SERVICE? be “goods” as per the UCC.

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