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Hyundai Motor India Receives Rs 517.34 Cr Tax, Penalty From GST Authority

Hyundai Motor India Receives Rs 517.34 Cr Tax, Penalty From GST Authority

NDTV2 days ago
New Delhi:
Hyundai Motor India Ltd on Tuesday said it has received a demand of Rs 517.34 crore from tax authorities, along with penalty, for alleged short payment of GST compensation cess on its certain SUV models.
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The company has received an order from Commissioner (Appeals), CGST Dept, Tamil Nadu, confirming GST compensation cess demand of Rs 258.67 crore, along with penalty of Rs 258.67 crore, on the allegation of short payment of GST compensation cess on certain SUV models for the period September 2017 - March 2020, Hyundai Motor India Ltd said in a regulatory filing.
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Reacting to the demand, a company spokesperson said, "HMIL is of the view that the amendment and the clarifications given by the Central Board of Indirect Tax and Customs (CBIC) to resolve the issue faced by the industry on this matter are in favour of the company. We are in the process of reviewing the order and will exercise the right to seek a legal remedy through an appropriate forum."
The company asserted that there is no impact on its financial, operational or other activities due to the order and is reviewing the order and will exercise the right to file an appeal.
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Empowering smallholder farmers & marginal farmers through formation & promotion of FPOs
Empowering smallholder farmers & marginal farmers through formation & promotion of FPOs

Time of India

time14 minutes ago

  • Time of India

Empowering smallholder farmers & marginal farmers through formation & promotion of FPOs

Dr. Prashant Prabhakar Deshpande has post-graduated in Economics with a Gold Medal in 1976 and was awarded a Ph.D in Social Sciences from Nagpur University in 2007. Introduction The Central Sector Scheme for Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) was launched by Prime Minister Narendra Modi on 29th of February, 2020. The scheme was launched with a budget outlay of Rs 6,865 crore till 2027-28. Since the launch of the scheme, Rs 254.4 crore in equity grants have been released to 4,761 FPOs and credit guarantee cover worth Rs 453 cr has been issued to 1,900 FPOs. Recently, FPOs were in the spotlight as India reached a transformative milestone by establishing 10,000 Farmer Producer Organisations (FPOs), ahead of the March 31, 2025, deadline, collectively bringing together nearly 30 lakh farmers across the country, 40% of whom are women. These FPOs are now conducting business worth thousands of crores of rupees, contributing immensely to the growth of the agricultural sector. On the occasion of the release of the 19th instalment of PM-KISAN in Bhagalpur, Bihar, the Prime Minister launched the 10,000th FPO, a milestone marking a significant leap in Farmer Welfare and inclusive agricultural development. The 10,000th FPO was registered in Khagaria district and focuses on maize, banana, and paddy. The concept behind the Farmer Producer Organisations Farmers who are the producers of agricultural products can form groups. To facilitate this process, the Small Farmers' Agribusiness Consortium (SFAC) was mandated by the department of agriculture and cooperation, ministry of agriculture, government of India, to support the state governments in the formation of FPOs. Objectives To provide a holistic and broad-based supportive ecosystem to form to facilitate the development of vibrant and sustainable income-oriented farming and overall socio-economic development and wellbeing of the agrarian communities. To enhance productivity through efficient, cost-effective, and sustainable resource use to realise higher returns through better liquidity and market linkages for their produce and become sustainable through collective action. To provide handholding and support to new FPOs up to five years from the year of their creation in all aspects of management of FPO, inputs, production, processing and value addition, market linkages, credit linkages, and use of technology etc. To provide effective capacity building to FPOs to develop agriculture entrepreneurship skills to become economically viable and self-sustaining beyond the period of support from the government. The Farmer Producer Organisations (FPOs) The FPOs are collectives formed by farmers to: Enhance productivity; Reduce costs, and; Improve market access through cooperation. The primary aim of an FPO is to enable farmers to benefit from the economies of scale, enhancing overall Farmer Welfare. The Small Farmers' Agribusiness Consortium (SFAC) under the Ministry of Agriculture plays a pivotal role in supporting the formation of the FPOs, which are registered under either: The Companies Act, or; The Co-operative Societies Act. Need for FPOs Small, marginal, and landless farmers face challenges during the agriculture production phase, such as: Access to technology; Quality seeds; Fertilisers and pesticides, and; Requisite finances. Challenges in marketing their produce due to a lack of economic strength. FPOs help in the collectivisation of such small, marginal, and landless farmers, giving them collective strength to deal with such issues. managing their activities together to get: Better access to technology; Inputs; Finance, and; Market for faster enhancement of their income. The way FPOs help Smallholder Farmers Achieving Economies of Scale FPOs help small and marginal farmers reduce input costs and secure better prices by aggregating purchases and sales. Enhanced Credit Access Access to institutional credit since long a barrier for smallholders, is improved through FPOs, aligning such support with ongoing government schemes for farmers aimed at financial inclusion. Accessing Global Markets FPOs enable smallholders to access international markets. Overcoming Shrinking Farm Sizes With average landholding size shrinking from 1.08 hectares in 2015–16 to just 0.74 hectares in 2021–22, FPOs help farmers aggregate resources and invest in modern equipment. This consolidation enables economies of scale: Allowing for bulk purchases; Shared services, and; Use of advanced machinery is improving productivity, a key enabler of agricultural sector growth. Supporting Value-Addition & Processing Through shared infrastructure like mini-mills and cold storage FPOs help farmers earn more by adding value to raw produce, strengthening Farmer Welfare through diversified income streams. Key Features of the Scheme Up to Rs 18 lakh financial aid over 3 years Matching equity grant of Rs 2,000 per farmer (max Rs 15 lakh) Credit Guarantee up to Rs 2 Crore in project loans Cluster-based handholding support for 5 years Challenges Faced by FPOs Many farmers joining FPOs have limited exposure to modern agricultural practices, quality standards, and market requirements. Most farmer-leaders lack formal training in business management, financial planning, human resources, and strategic planning. Most FPOs begin with minimal capital contributed by farmer members who themselves have limited financial resources, creating a precarious situation where the organisation struggles to invest in necessary infrastructure, working capital, or growth opportunities. Farmer members often expect immediate benefits from their FPO membership but are reluctant to make significant financial contributions. Traditional financial institutions often view these organisations as high-risk borrowers due to their agricultural focus, limited collateral, and perceived management weaknesses. Many FPOs lack the market intelligence necessary to make informed decisions about what to produce, when to sell, and at what prices, putting them at a disadvantage competing with established suppliers or negotiating with buyers. Epilogue By fostering collectivisation, enhancing market access, and providing financial and institutional support, the initiative has empowered millions of small and marginal farmers, including women and economically weaker sections, boosting agricultural productivity and income, contributing to rural job creation and economic resilience. As FPOs continue to evolve, they promise a more equitable and resilient future for India's agricultural landscape, it is opined. Critics however state that it is critical to move beyond numbers. They opine a target-oriented approach may work in the initial phase. As such, although reaching the target of 10,000 FPOs ahead of the March 31, 2025 deadline is commendable, there is now a need to focus on better outcomes. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.

GST notices to traders: A fiasco that could have been avoided with feet on ground
GST notices to traders: A fiasco that could have been avoided with feet on ground

The Hindu

time14 minutes ago

  • The Hindu

GST notices to traders: A fiasco that could have been avoided with feet on ground

The Goods and Services Tax (GST) notice fiasco in Karnataka, which ended with the intervention of Chief Minister Siddaramaiah, could have been avoided with proper planning and feet on ground by Commercial Tax officers, senior department officials feel. Before issuing notices to traders, a spot visit to assess the nature of business should have been undertaken by the officials, multiple officials in the department said. Nature of business 'When traders were issued notices, officials did not know the nature of businesses in a large number of cases. They had not visited the business premises to conduct a survey. It was a thoughtless and faceless exercise, which embarrassed the government,' a senior official explained. 'There was a lack of clarity and specificity with respect to the nature of supply — whether it was goods or services.' Businesses with a turnover in trade of goods above ₹40 lakh and of services above ₹20 lakh have to be registered under the GST. As many as 18,000 notices have been issued across the State based on the information received by the Service Analysis Wing (SAW) after it sought details from the UPI platforms. Officials said that while details were received from three platforms, transactions in many others had not been received, which meant the exercise was not comprehensive. Goods not under GST As a result, another official pointed out, notices ended up being issued to vendors selling milk, vegetables, flowers, meat, and fruits, all of which are exempted goods under the GST. 'The notices scared the traders with a big tax demand and were issued on mere assumptions, without ascertaining the nature of receipts. Attempts were not made to ascertain whether receipts actually pertain to business transactions, or whether they were unrelated to business, or related to exempted goods.' The notices, if questioned in the High Court, could be struck down, sources said. Higher targets? Multiple officials with whom The Hindu spoke also referred to a very 'high and unreasonable' target set by the State government for the GST collections, which prompted the department to look towards newer sources of revenue or widen the tax base. By tapping the UPI net, the government was expecting at least ₹1,000 crore to ₹1,500 crore revenue, sources said. While the department collected about ₹1.02 lakh crore during 2024-2025, the government has set a target of ₹1.20 lakh crore for 2025-2026. 'Normally, the revision of the target is based on the GDP growth. Targets in the past were increased, which were double the rate of growth of the State's GDP. This time, the target has been raised by 17%, which we believe is very difficult to attain,' another senior official said. Concurring with his view, an officer said, 'The last fiscal had ₹1.02 lakh crore, which included about ₹6,000 crore from the IGST input tax credit reversal, which had not been claimed at all. This will drop down to about ₹1,000 crore this year. If this is considered, the revenue target has been increased by over 20%.'

India-UK FTA prescribes a booster dose for Indian pharma and medtech exports
India-UK FTA prescribes a booster dose for Indian pharma and medtech exports

Economic Times

time14 minutes ago

  • Economic Times

India-UK FTA prescribes a booster dose for Indian pharma and medtech exports

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