Goods and service tax Council

 

News Flash

The GST council met today to clarify on the taxation of real estate projects, among other things. The Council will finalise the rules regarding the already availed Input Tax Credit (ITC) by real estate developers for under-construction projects before the new tax rates come into force from the next financial year.

 

New announcements

• GST on under-construction projects will be slashed from 12% to 5%.
• And on projects tagged as “affordable housing” will be reduced from 8% to 1%. However, the council specified that these projects will not be able to avail the input tax credit benefits (ITC) once the taxes come into effect on April 1, 2019.

Affordable housing

A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value up to Rs. 45 lakh (both for metropolitan and non-metropolitan cities) has been categorized as affordable housing.

 

GST Council

GSTC is comprised of the Union Finance Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers as members.One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings.

The Goods and Services Tax Council shall determine the procedure in the performance of its functions. Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than threefourths of the weighted votes of the members present and voting, in accordance with the following principles, namely: —

• The vote of the Central Government shall have a weightage of one-third of the total votes cast, and
• The votes of all the State Governments taken together shall have a weightage of 2/3 of total votes.

 

It makes recommendations to the Union and the States on the following issues:

• The taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed under GST;
• The goods and services that may be subjected to or exempted from the GST;
• Model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply;
• The threshold limit of turnover below which the goods and services may be exempted from GST;
• The rates including floor rates with bands of GST;
• Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster;
• Special provision with respect to the North- East States, J&K, Himachal Pradesh and Uttarakhand;

Source: Business Today

 

 

Bumphead parrotfish

 

News Flash

A study has shown that Fishing, coral reef degradation threaten parrotfish in Andaman and Nicobar islands.

 

Bumphead Parrotfish

Bumphead parrotfish, Bolbometopon muricatum, is an important component of coral reef ecosystem, but is highly endangered globally.

• This fish is highly prized resource.

 

Why Population decline

It has a large body size, aggregating behaviour and limited activity at night make Blobometopon muricatum an easy target for spear-fishers.

Combined with slow growth and low replacement rates, this has resulted in population declines across the Indo-Pacific and Red Sea regions.

IUCN: ‘vulnerable’ in the Red List.

 

Source: The Hindu Businessline

 

 

 

Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme

 

News Flash

Government warns against fake websites for KUSUM scheme registration.

• The scheme, formulated by the Ministry of New and Renewable Energy (MNRE), aims to promote the use of solar energy among the farmers.

 

Background

KUSUM scheme was launched in the start of 2018 with desire to assist as many farmers as possible to install new and improved solar pumps on their farms with government subsidy.

 

Objectives

• Provide the farmers with advanced technology to generate power.
• Solar pumps assist to irrigate the farmers and also to generate safe energy.
• Due to the presence of the energy power grid, the agricultural labors will be able to sell the extra power directly to the government.
• It will provide them with extra income.

 

Features

• For the betterment of farmers.
• Construction of plants on infertile lands only.
• Distribution of solar powered pumps.
• Power production on small scale.
• Power generation from tube-wells.
• Sale of excess power.
• Subsidy structure of the scheme.
• Good for the overall environment.

Source: Business today

 

 

New hydroelectricity policy

News Flash

Earlier this month, the Union Cabinet approved a new hydroelectricity policy that included large hydro projects within the ambit of renewable energy.

Before this policy, small hydro projects of a capacity of less than 25 MW were treated as renewable energy. This inclusion will change the energy mix drastically.Renewable energy capacity would now be 1,20,455.14 MW or 34.4% of the overall energy mix.

 

Current Energy Mix

India’s renewable energy sector had an installed capacity of 75,055.92 MW as of February 2019, according to data with the Central Electricity Authority. This made up about 21.4% of the overall energy mix, with the rest coming from thermal, nuclear and large hydro sources.

 

Hydroelectricity

Hydroelectricity is electricity made by generators that are pushed by movement of water. It is usually made with dams that block a river to make a reservoir or collect water that is pumped there. When the water is released, the pressure behind the dam forces the water down pipes that lead to a turbine. This causes the turbine to turn, which turns a generator which makes electricity.

 

Advantages

• Hydropower is fueled by water, so it’s a clean fuel source.
• It won’t pollute the air like power plants that burn fossil fuels, such as coal or natural gas.
• Hydroelectric power is a domestic source of energy, allowing each state to produce their own energy without being reliant on international fuel sources.
• The energy generated through hydropower relies on the water cycle, which is driven by the sun, making it a renewable power source, making it a more reliable and affordable source than fossil fuels that are rapidly being depleted.
• Hydropower efforts produce a number of benefits, such as flood control, irrigation, and water supply.

 

Economic impact

The greatest benefit from the Corps hydropower program is the abundant low-cost energy the projects contribute to electric power grids. Because hydroelectric powerplants burn no fuel, operating costs are low and are immune to rising fossil fuel prices.

 

Future of Hydropower

Hydropower makes up 74% of the world’s total renewable electricity generation and 16% of the world’s electricity is generated by hydropower.

Source: The Hindu

 

 

Judicial Overreach

 

News Flash

Government has to frame schemes; courts should stay out of governance, says Supreme Court.

• A Bench led by Justice A.M. Sapre criticised the Uttarakhand High Court for framing a scheme to regularise hundreds of casual workers engaged by the Border Roads Organisation (BRO) under the Ministry of Defence in the construction of roads for going to pilgrimage of Char Dham Yatra.
• Although Supreme Court criticised the high court in this matter but there are so many occasions when the supreme court itself acted in excess. However, Judicial activism becomes necessary in the case when executive doesn’t perform its duties.

 

Judicial Review in India

In India judiciary has power to review any law and determine its constitutionality.however not clearly mentioned in the constitution but it can be derived from the articles 13 and 226 of the constitution. Judiciary can review a law when :

1. It violates any fundamental right.
2. It is beyond the legislating power of that legislative unit.
3. It violates any constitutional provision.

 

Judicial Activism

Judicial activism took a upsurge in India after the court allowed filing public interest litigations on the behalf of those who are not able to approach court on their own.

The seeds of the concept of public interest litigation were initially sown in India by Krishna Iyer J., in 1976 in Mumbai Kamagar Sabha vs. Abdul Thai and was initiated in AKHIL BHARATIYA SOSHIT KARAMCHARI SANGH case wherein an unregistered association of workers was permitted to institute a writ petition under Article 32 of the Constitution for the redressal of common grievances. Krishna lyer enunciated the reasons for liberalization of the rule of Locus Standi in Fertilizer Corporation Kamgar vs. Union of India and the ideal of ‘Public Interest Litigation’ was blossomed in S.P. Gupta and others vs. Union of India, 1981.

This activism benefited many marginalised sections of society on the one hand, and on the other the rules were framed when executive showed negligence in the matters of public welfare and interest.

Another tool of this activism was article 142 which empowers court to pass such decree or make such order as is necessary for doing complete justice in any cause or matter pending before it.

The activism of judiciary many times provided relief to the deprived sections of society, and promoted protection of the environment. for example;

• In case of Taj-mahal getting deteriorated by the nearby polluting plants, court directed to shut down those plants and tased regulations.
• In case of large number of undertrials in the prisons for a long time, especially those who, on account of poverty, illiteracy, and ignorance were unable to seek remedies from the courts.

But in other matters we can see unthoughtful intervention in the domain of judiciary, for example:

• Fixing timings to burst fireworks in Diwali. Nad banning non-green fireworks.
• In another case in 2018 court directed to allow only BS4 vehicle after march 2020.
• In case of SC and ST( prevention of atrocities) Act, 1989 court prohibited arrest without permission and a preliminary inquiry.

 

Separation of powers

Separation of powers is part of the basic structure of the Constitution. Making laws is the function of the legislature. As observed in Union of India v. Deoki Nandan Aggarwal (1991), “The power to legislate has not been conferred on the courts.” In Suresh Seth v. Commissioner, Indore Municipal Corporation (2005), the court observed: “Under our Constitutional scheme, Parliament and Legislative Assemblies exercise sovereign power to enact laws.” So there is a need to have checks and balances but not the overreach of one organ to another.

 

Article 32 in the Constitution of India 1949

32. Remedies for enforcement of rights conferred by this Part

(1) The right to move the Supreme Court by appropriate proceedings for the enforcement of the rights conferred by this Part is guaranteed

(2) The Supreme Court shall have power to issue directions or orders or writs, including writs in the nature of habeas corpus, mandamus, prohibition, quo warranto and certiorari, whichever may be appropriate, for the enforcement of any of the rights conferred by this Part

(3) Without prejudice to the powers conferred on the Supreme Court by clause ( 1 ) and ( 2 ), Parliament may by law empower any other court to exercise within the local limits of its jurisdiction all or any of the powers exercisable by the Supreme Court under clause ( 2 )

(4) The right guaranteed by this article shall not be suspended except as otherwise provided for by this Constitution

 

Article 142 in the Constitution of India 1949

142. Enforcement of decrees and orders of Supreme Court and unless as to discovery, etc ( 1 ) The Supreme Court in the exercise of its jurisdiction may pass such decree or make such order as is necessary for doing complete justice in any cause or matter pending before it, and any decree so passed or orders so made shall be enforceable throughout the territory of India in such manner as may be prescribed by or under any law made by Parliament and, until provision in that behalf is so made, in such manner as the President may by order prescribe

(2) Subject to the provisions of any law made in this behalf by Parliament, the Supreme Court shall, as respects the whole of the territory of India, have all and every power to make any order for the purpose of securing the attendance of any person, the discovery or production of any documents, or the investigation or punishment of any contempt of itself

 

Source: The Hindu

 

 

ATTENTION

The Uyghurs

The Uyghurs, or Uighurs are a Turkic ethnic group who live in East and Central Asia. As of 2019 Uyghurs live primarily in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China, where they are one of China’s fifty-five officiallyrecognized ethnic minorities. Uyghurs primarily practice Islam.

China has arrested around 13,000 people it describes as terrorists in the traditionally Islamic region of Xinjiang since 2014 and broken up hundreds of “terrorist gangs”, according to a government report.

 

 

National Anti-Profiteering Authority

Consumer complaints are not the only trigger for the National Anti- Profiteering Authority (NAA) to act, said its chairman B.N. Sharma.Mock purchases can be made by NAA offices to check a trader’s invoice for profiteering.

The NAA was set up under Section 171 of the Central GST Act, 2017 to check whether trade and industry were passing on rate reductions under the Goods and Services (GST) Tax.

 

 

New Income Tax Slabs

Income tax slabs for resident Individual below 60 years of age

Taxable income slabs	Income tax rates and cess
Up to Rs 2.5 lakh	Nil
Rs 2,50,001 to Rs 5,00,000	5% of (Total income minus Rs 2,50,000) + 4% cess
Rs 5,00,001 to Rs 10,00,000	Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and above	Rs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess

 

Income tax slabs for resident individual between 60 and 80 years of age (Senior Citizen)

Taxable income slabs	Income tax rates and cess
Up to Rs 3 lakh	Nil
Rs 3,00,001 to Rs 5,00,000	5% of (Total income minus Rs 3,00,000) + 4% cess
Rs 5,00,001 to Rs 10,00,000	Rs 10,000 + 20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and above	Rs 1,10,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess

 

Income tax slabs for resident individual above 80 years of age (Super Senior Citizen)

Taxable income slabs	Income tax rates and cess
Up to Rs 5 lakh	Nil
Rs 5,00,001 to Rs 10,00,000	20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and above	Rs 1,00,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess

Non-resident Indians (NRI) are not allowed to avail the rebate of section 87A. A surcharge of 10 per cent is levied on individual taxpayers having income between Rs 50 lakh and Rs 1 crore. For High-net individual (HNIs) having income exceeding Rs 1 crore, a surcharge of 15 per cent is levied.

A cess of 4 per cent is levied on the income tax payable.

Source: The Hindu Businessline