GSTN - Building the World's Largest Tax System

India's Loksabha and RajyaSabha has passed Constitution Amendment Bill ( 122nd ) in bid to welcome Goods and Service Tax in India. It was a stepping stone for India's biggest tax reform since independence. GST will replace indirect taxes like excise, VAT, entertainment tax, luxury tax etc. A stronger and efficient GST requires software which is able to handle large complex data. GST would need the best of technology from the IT capital of the world. The team of technology specialists and tax experts are already are working on a robust  country-wide information system under GSTN.

Goods and Service Tax Network (GSTN) is Section 25, non-government, private limited company. GSTN was setup as a non-government not for profit private limited company in 2013 to create robust IT backbone to enable real time tax payee registrations, filing returns, handling of invoices, executing inter state tax settlements etc. The services will be available to all stakeholders such as central tax departments, state tax departments, banks, Central Board for Excise and Customs, RBI and taxpayers. The Government of India holds 24.5% equity, all states and union territories hold 24.5% and other non-government financial institutions namely NSE, HDFC, HDFC Bank, ICICI Bank and LIC Housing holds 51% equity in GSTN. The role of non-government financial institutions as a decision making power is unclear.

GSTN had called an application for Request For Proposal (RFP) from major IT firms in India to develop IT infrastructure in physical and software form. India's second largest IT firm, Infosys has won the contract worth Rs. 1,380 crores to develop GST Network, beating its rivals TCS, Wipro and Tech Mahindra. GSTN would be placing the order for hardware which required to build the platform. The hardware will be imported and then installed and then checked whether it is ready to run the software. The software is expected to be ready by October and the inclusion from software to hardware would take another 2 months. The Beta of GSTN would be running by February, 2017. New registrations of tax payers on the GSTN system will begin from the implementation day. GSTN is also working with 19 states for creating front-end.

Migration of existing taxpayers of VAT which number about more than 65 lakh and about 20 lakh of service tax payers and about 3-4 lakh of central excise taxpayers - their migration starts sometime in October and it will go on until February. - Chairman, GSTN

Building the world's largest and most complex tax system in few months is a herculean task. GSTN would help in PAN-based registration of traders, besides filing of tax returns and payment system. In other words, the portal itself will be a one stop for filing and processing of all taxes for almost 65 to 70 lakh tax-payers in the country and is being designed by a specialised design unit of Infosys.

Today, not all taxes in India are paid in electronic form. After GST, all taxes whether big or small will be have to be paid in electronic form. Smaller tax payers are not aware of the existing system and they consult their CA for the same. GSTN is in talks with various IT firms to develop simple multi-lingual mobile application that would enable small tax payers to file returns easily.

GSTN is surely the organisation for national importance. The simplicity and efficiency of the software would add to 'Ease of Doing Business'. All the stakeholders including SME taxpayers should be given training under the Financial Literacy program. A mobile app for easier returns is encouraging and but we should also you other platforms like Youtube, TwitterSeva and Email Ticket raising which appeal the masses. As CGST and IGST pass in coming winter session, the role of GSTN as implementing and customer service body would be more clear.

- Chaitanya Kulkarni ( twitter.com/chai2kul )

#TICVacations - Thiruvananthapuram : Pristine beaches, Coffee house and Malayalam film

At the last phase of my Tamil Nadu solo trip, I went to Cape Comorin which last tip of India. Kanyakumari is  a pilgrimage spot for Hindus. A rock memorial is built in the honour of Swami Vivekananda. The ferry service is provided by the port authorities and is expensive compared to Kerala. The high point for my Kanyakumari trip was North Indian food. It was a relief for my taste buds since I was craving for a Paneer dish. Thiruvalluvar statue which was shut during my visit is a 133 feet statue made up of rock in the middle of the sea. Thiruvalluvar was a writer ( Blogger of the old times ) and the greatest poet of South India. I was enchanted to see a statue of a writer in a place where gods are larger than life.

Lighthouse Beach, Kovalam

After a 5 hour super cheap bus ride, I finally arrived at Thiruvananthapuram which is the capital of Kerala state. I had booked a bunk at Vedanta Wake Up - Central Station which located near to the main bus stand and railway station. You can find it on the MakeMyTrip app. This was cheapest stay in India. I paid just Rs. 133 ( $2.20 USD ) for a day (it had air condition!). I prefer not to travel outside the city for the first day; just to observe the lifestyle, economy and transportations. My day got better with a Mahaboli; a sweet roti with gram and jaggery filling. People from Maharashtra and Goa call it Puranapoli and this special dish is only made on auspicious occasions like Holi and Pola. 

Mahaboli ( Malayalam ) aka Puranpoli (Marathi)

Liquor was banned for some time before the elections by UDF ( local party alliance with Indian National Congress ). But the Malayalis people didn't accept the decision and voted for LDF ( Left Democratic Front ). Malayalis (Kerela peeps) are considered to be the highest consumers of beer and whiskey in India. The local drink palm wine is also sold under the license of excise department. Liquor is inexpensive but one has to queue up outside the government owned liquor stores. Needless to say...it was a long queue. 180ml whiskey costs Rs. 80 and beer 650ml is priced at Rs. 70. Magizchi!

After having a time of my life with my roomies, Kovalam was on my list. Kovalam is beach town in Thiruvananthapuram district. It is 18 kms from my hostel in Thampanoor. KURTC provides AC bus to Kovalam beach from East Fort. The Volvo 8400 AC buses are very well maintained and provide cheap and superior transportation to tourist spots in Kerala. The AC bus costed me Rs. 32 and ordinary buses are available every 10 minutes in mere Rs 15.

#TICVacations - Create Adventures for Yourself

Kovalam features three spectacular crescent beaches. The most popular and largest beach is the Lighthouse beach. There's a promenade where one can just chill :) . The black sand is soft and there were no signs of pollution. Do not miss the sunset here. I visited Kovalam during off season. I am sure this place would give great vibes in December. Buses back to Trivandrum ply till 9pm. If you plan to have lots of shots get super drunk, there is always a option of private transport.

Me before getting sweaty at Varkala Beach

Varkala, you must have heard a lot from this place. Varkala is perfect hostelling getaway in Kerala. I recommend Shiva Garden and Homestay for great hostel atmosphere. Papanasham beach is one of the best beaches in India. Papanasham in Malayalam means 'dip into the water and wash away your sins'. The view and the sunset was scenic and took me to Nirvana.  I started a conversation with a loyal Kerala Blasters fan. After few minutes, I was playing beach football with the local people. The sand makes it difficult to run and I couldn't match up with the local heroes. 

Stairway to Heaven

Varkala beach is adjoined to a mountain. Led Zeppelin's stairway to heaven proved to be a perfect song for the climb. The hide and seek between monsoon cloud and the sun helped me to click a perfect shot. The approaching dark cloud was message to pack up. KURTC AC buses are available from Temple chowk. It was pleasure to see heavy rain after 9 days. Bus conductor of KURTC was courteous to offer me an entry into his bus one hour before its schedule. Within 10 minutes, the main chowk was flooded with mud water coming from the hills. KURTC AC Volvo costs Rs. 96 for a 4 hour ride to Thiruvananthapuram.

Cold Coffee and Masala Dosai at Indian Coffee House, Trivandrum

I strongly recommend my readers to visit the Indian Coffee House for brunch. Indian Coffee House is a chain of restaurants managed by Workers' Association in Kerala. They are locally famous for a delicious and affordable food. The Indian Coffee House in Trivandrum is a unique building with a spiral seating. The waiters are dressed elegantly with the local headwear. Masala Dosa with Uzzhunu vadai, Cold Coffee and Ghee Roast is my personal favourite. Sharjah juice made up of bananas, horlicks and vanilla ice-cream is highly recommended.

I totally missed out of Tamil movies in Tamil Nadu. To avoid the same mistake again, I booked a ticket for Malayalam movie Anuraga Karikkin Vellam in Aries Plex 4K near Thampanoor. There were no subtitles in the movie. I frankly feel that regional movies in India are better than bollywood. The film revolves around a policemen father who spots a ex-girlfriend on his duty. He tries to contact her but accidentally contact his son's girlfriend Elizabeth. Yeah! As a prank, Eliza continues to talk with Biju( policemen) to tease her boyfriend. Soon, the prank is over but rather than been ashamed Biju uses the skills to improve relations with his wife, and they happily live after. Happy ending!

- Chaitanya Kulkarni ( twitter.com/chai2kul )

The era of cheap SmartTV is already here

Idiot box.. as it was known in the early 60's. Middle class americans and european were amazed by this little square box. Sitting whole day in front of TV in sofa recliner was considered as swag. Sure, it was the most turnaround event in the history of technology as masses were preferring video over audio. Some critiques and economist went too far, blaming television for the end of American growth story. TV is a social tool that allows conversation; something that allows you to laugh, cry and immense yourself in the intrigue and see the wonders of the worlds sitting at home. Modern TV is a fusion of computer and TV. Does it make a TV smart?

SmartTV term was introduced by Samsung. The accurate term for today's 'SmartTV' would be connected TV. Connected TV allows videos, radio and other functions possible on TV through Wi-Fi. The open web isn't the good experience for consumers as the open web wasn't designed for 80 inch televisions. Most of the ConnectedTVs use linux or android system today. ConnectedTV enables to stream a video from laptop or mobile to your TV without loosing any pixelations.

Modern Connected TV are more than just streaming connect. They come high end quad core processors and RAM. There are a hell lot of cool features like voice recognition and hand gesture. But I am still not convinced for spending lakhs for this not so smart TVs. You can connect laptop screen to most LCD and LED TV by HDMI cables. Most TV companies today provide HDMI cable for free or you can buy the same for Rs. 200. The smarter option for converting your LED TV into a ConnectedTV is using Chromecast or Teewe. TheIndianCapitalist.com is of opinion that smartTV isn't ready yet. A smartTV would require a high speed internet connection with the download speed of minimum 20Mbps and upload speed of 5Mbps to view 4K content of your choice.

Sony, LG and Samsung have selling wide range of 'SmartTV' in India. Make sure you buy a TV which plays newer x265 codec with mkv and m4v file. TheIndianCapitalist.com has listed down top 5 by random order cheap ConnectedTV. Selection criteria - HD 1080p, 65 inch LED TV.

- VU 55inch Full HD Smart LED TV - Rs. 51,990

- LG Full HD Smart LED TV - Rs. 97,000

- LeTV SuperTV 4K 55inch - Rs. 95,000

- Sony Bravia 55inch 1080p Smart TV - Rs. 1,10,000

- Toshiba 55inch Android LED TV - Rs. 85,000

- Chaitanya Kulkarni ( twitter.com/chai2kul )

World Bank issues Rupee denominated sustainable bond

World Bank has issued two new sustainable bonds in INR and Chinese Renminbi. World Bank, which is also known as International Bank for Reconstruction and Development is AAA (Moodys/S&P) rated. INR denominated bond was issued for retail investors in Italy.  Sustainable bonds are designed to achieve financial objectives with social and environmental goals. It is the first time that World Bank is issuing INR and CNY denominated bonds for investors in Italy. These sustainable bonds will be listed on EuroMOT of Borsa Italiana for Italian Stock Exchange.  Both sustainable bonds have been listed on 22nd July.

French banking giant BNP Paribas acted as a liquidity provider for World Bank issued CNY and INR denominated sustainable bonds. Liquidity Providers are trading members that act as a market maker by providing liquidity. A liquidity provider connects many brokers and trader for increasing the investment in the market. Liquidity providers enhance stock exchanges by providing security against volatility.

World Bank sustainable bonds will adhere to Post 2015 Sustainable Development Goals. The goals will lead to betterment of mankind and provide holistic environment for growth.

The CNY-denominated sustainable development bond pays a yearly coupon of 2.50% in EUR every year. At maturity investors are entitled to the repayment of 100% of their original capital investment in CNY 2 by the World Bank. The payment at maturity will be made in EUR.

The INR-denominated bond pays a yearly coupon of 5.80% distributed in EUR every year and at maturity investors are entitled to the repayment in INR of 100% of their original capital investment2 by the World Bank. The payment at maturity will be made in EUR.

INR denominated sustainable bond was priced at Rs 1,50,000 per bond. The maturity period is of 5 years.

Source - World Bank Press Release, Euronext.

- Chaitanya Kulkarni ( twitter.com/chai2kul ) 

#Jio4G effect : Airtel to offer free voice calling

Reliance Industries Ltd's ambitious telecom arm Jio ( Reliance Jio Infocomm Ltd ) is creating buzz of Twitter and other social media channels. Jio has rolled out an attractive preview offer for LYF, Samsung smartphones and HP laptop users. Jio's Samsung offer is limited to high end phones. Although, Jio fans can enjoy the preview offer by buying a LYF phone. The cheapest LYF smartphone is available at Rs. 2,999 and comes with 4G Volte feature and two years warranty.

Jio preview offer gives unlimited internet, voice calls and SMS to its current 15 lakh users. Jio fans continuously teasing slow internet users like me by posting unbelievable speed tests on twitter. Jio offers speed as high as 70 MBPS in some parts of India. Reliance Jio Infocomm Ltd will be the largest startup in the world with the investment of Rs 1,50,000 crores before commercial launch. The company would foray into 4G, fibre broadband, DTH, Wi-Fi business etc. via physical investments. Jio has also launched 11 apps related to payment banking, music streaming, cloud services, live TV and video streaming. In coming time, these apps would prove as stronger digital assets for RIL. Reliance Jio would provide disruptive plans in Rs 300 to Rs 500 ARPU to get 10 crore user base in the launch year. Shares of other telecom players are crashing in Bombay Stock Exchange over the fear of closure of smaller telecom companies. RIL report says that they intend to make India truly digital by giving best speeds. Current internet ranking of India is 155th and Jio plans to bring India in top 10 in few years.

Bharati Airtel has joined the 4G revolution by offering free calls. Telecom analyst suggest the recent price cuts are directly related to #JioPhobia. The new postpaid plan under MyInfinity series would offer unlimited voice. Under the Rs 1,199 plan, customers will get free calls, bundled with 1 GB of 3G or 4G data and 100 SMS’ per day. The Rs 1,599 plan will offer unlimited voice calling, 100 SMS’ per day, and 5 GB of 3G or 4G data.

Infrastructure of Reliance Jio seems ready as they have launched 4G in all bands in most circles. Although consumers are facing activation issue. Some of my blogger friends told me they had to wait for 10 days to start a SIM. Reliance Jio is expected extend preview offer on 15th August for Apple. Being a national day of pride, Jio may also join hands with local brands like Micromax and Karbonn. The commercial launch is expected in October. #AccheDin for mobile users are here.

- Chaitanya Kulkarni

F-16 : #MakeInIndia, for India and the world

With nasty neighbours and souring relations with Pakistan and China, India is in dire need for all-weather multirole fighter planes. India already has given a contract for LCA Tejas to Hindustan Aeronautics Ltd. In 2007, India began an official tender for procuring 126 multirole fighter combat jets from France's Dassault at the tender cost of $11 billion. At that time, it was the largest defence deal. The deal unraveled after the global financial crises. In 2014, PM Narendra Modi made a modest deal to acquire 36 Rafale fighter jets in a fly-away condition. India is short of fighter jets when the Arab revolution has turned into a full fledged civil war. Major defence companies across the world are wooing India. Saab, Lockheed Martin, Boeing took part in #MakeInIndia expo which was held in Mumbai.

Pic - Coup plotters using F-16 to kill pro government supporters in Istanbul, Turkey

Make In India is not merely a campaign but an amalgamation of all ongoing projects and forward thinking for India's defence security systems. Lethargic PSUs have seen a turnaround and are creating world class products. Narendra Modi's warm relations with US and 100% FDI in defence have paved a greater deal for India. Lockheed Martin has offered to manufacture more than 100 F-16 in India on the condition that Indian Air Force agrees to buy some of it. F-16 would not just be made for India but will be sold across Europe and Asia.

As per some defence sources, India is not keen for procuring fourth generation F-16. We are eyeing for fifth generation F-35 jets. But India is unlikely to get the deal especially under the 'Make In India' campaign. No country would want to assemble its newest innovation in a foreign country. Defence companies are mostly owned by the government of origin and a large chuck of research grants and defence budget is funded by the government for efficient running of a company. TheIndianCapitalist.com is of an opinion that F-35 is not the bang for buck for Indian Air Force. Surely, it has state of the art accuracy and meets modern standards. F-35 is heavier than most fighter jets in the market. The payload matches to LCA Tejas and various defence analyst suspect its multirole capabilities. Pentagon has confirmed that F-35 has lost against F-16 as it lacked a special coat of stealth paint.

The deal for F-16 would not just be an ordinary buy but a diplomatic victory over Pakistan. The US government had offered Pakistan 8 F-16s last year but it denied any subsidies. The double-play of Pakistan is highly suspected by Pentagon. Like any other business deal, US has offered to sale F-16 at market rate. On the other hand, Lockheed Martin has offered to manufacture more than 100 F-16 in India facility. Locally produced F-16 would mean discounted deal for India and would not harm our fiscal deficit.

US based Lockheed Martin has submitted a proposal to Ministry of Defence for locally manufacturing of F-16 Block 70 under the #MakeInIndia scheme. Sales division of Lockheed Martin are ambitiously calling it 'a unmatched and unprecedented deal'. The company termed India as '' new epicentre of the world's most extensive industrial defence network".

TheIndianCapitalist.com's take

Locally manufactured F-16 would be the biggest success of Make In India. F-16 is highly appreciated by defence analysts across the globe. F-16 is currently operational in UK, Italy, Spain, Turkey, Pakistan etc. and the new buy is from Romania. Lockheed Martin would obviously employ from the best universities in India ie. the IITs and NITs. Local manufacturing of world class F-16 would add to highly skilled labour which can be later employed by Indian defence companies to make innovative breakthrough in defence world. We need a ISRO in defence. To be defence superpower, we need to manufacture world class defence equipments at an attractive price so that countries smaller than Romania could buy our products to protect themselves. We think Ministry of Defence may accept Lockheed Martin's offer and state governments may soon start talks with the company. Maharashtra's MIHAN and newly launched Ottappalam Defence park may soon take off with major defence companies planning to #MakeInIndia.

- Chaitanya Kulkarni ( twitter.com/chai2kul )

#StartUpIndia - 10 reasons why India is already a startup nation

We all get ideas but only a few of us work hard to make it happen. A 'start-up' or a 'startup' does just that! The startups knowledge is not associated with money but with inquisitiveness to solve problems and pain points which will resolve the pain of a hundred others.

The foundation of startup lies in finding solutions and making an enterprise out of ideas. Startup founders are known for their risk taking abilities, adventurism and a problem solving attitude. New age startups are beyond apps and information communication technology. Well known Indian startups like Map My Genome, Practo and many others are making innovative breakthrough in the field of molecular biology and healthcare. Startups go viral in achieving social change.

It cannot be denied that we have a million problems, but we also have a billion minds and many more solutions. - PM Narendra Modi

India is already a breeding ground for startups. According to a Nasscom report, India is amongst the top five largest startup communities in the world. India has seen 4,200 startups come up in 2015 which resulted in 80,000 jobs. New jobs add to increased consumption that reflects a spike in India's GDP. India has already become a startup nation. In an event held at Vigyaan Bhavan,  New Delhi, the Department of Industrial Promotion and Policy launched 'Startup India - Standup India' campaign. Startup India is a flagship initiative of the Government of India intended to built a strong eco-system for nurturing innovation and startups across the country. 

10 reasons why India is already a startup nation

1. Startups means new businesses. During last year, 98,473 businesses were incorporated. India is known for large MSME (Micro/Small/Medium Enterprise) sector which has spread across many industries. App based IT startups are always in the news for series of seed funding. Startup India programme encourages startups in the field of agriculture, education, healthcare, etc. They are the expected to expand by handholding and incubation. India's angel investor have been investing in social startups like Arcatron and GingerMind etc. Relaxed RBI and SEBI norms mean great business for fintech startups.

2. The total funding by venture capitalists and banks in startups stand at $9 billion as on 2015, which is more than the combined GDP of Arunachal Pradesh, Mizoram, Manipur, Sikkim and Andaman & Nicobar. 

3. Flipkart is the most valued Indian startup. The valuation of flipkart is more than the GDP of 13 Indian states and union territories. Flipkart's Sachin Bansal and Binny Bansal were named into Forbes billionaires list. Flipkart's Indian rival Snapdeal is valued more than Vedanta or GSK. Flipkart and Snapdeal are selling huge range of products including real estate, jewellery and automobiles. For delivery to the last person, these e-commerce giants have tied up with India Post.

4. India is home to 5.7% of the world's unicorn startups that are valued at over $1 billion. India's unicorn startups houses are Flipkart, Snapdeal, Ola, PayTM, Quickr, Mu Sigma and InMobi.

5. Reliance Jio Infocomm Ltd has become the world's largest startup with the investment of Rs 1,50,000 crore before commercial launch. The telecom giant will be launching 4G service soon. Jio has also launched live TV, music streaming, cloud storage and payment services in digital app space. Home grown Patanjali Ayurvedic Ltd reached historic Rs 5,000 crore turnover in just 4 years since launch. Patanjali is the fastest growing FMCG company with turnover close to major brands like HUL, Colgate and Dabur.

6. In 2015 itself, 17 finance companies received funding of over $290 million; making this one of the most funded sectors of the year and also one showing great promise. With relaxed RBI guidelines in relation to payments bank, this is a new avenue for startups to innovate. 11 companies in the B2C commerce space received funding to the tune of $3.3 billion, which also means that over 33 per cent of the funding last year was in B2C companies and over 50 per cent of these were Unicorn startups.

7. In adherence to Startup India campaign, Karnataka, Andhra Pradesh and Rajasthan have come up with startup policies. Kerala has decided to invest one per cent of its budget for entrepreneurship. Various MBA colleges have started incubator programs in campuses. 4 more IITs will have research parks on the lines of IIT Bombay and IIT Madras. 

8. Startup Village in Kochi and Vizag plans to incubate more than 1,000 startups in next 10 years. The Startup Village angel fund of $10 million is approved by SEBI. Startup Village is also known for India's first 1TBPS high speed internet.

9. International acquisition were seen in last two years. Facebook acquired Little Eye Labs and Twitter acquired Bengaluru based Zipdial.

10. #StartUpBudget - FM announced StandUp India scheme for SC/ST entrepreneurs with Rs 500 crores corpus. Every banking branch in India have been mandated to at least fund 1 SC/ST entrepreneur or women entrepreneur. Income tax exemption for startups for its first three years of business operations was also announced.

The focus of the #StartUpIndia is to create an ecosystem to establish innovation based startups to increase employment opportunities and overall economic development. The StartUp India action plan showcases benefits such as single point of contact, easy clearances, app helping to register a company in a single day, three year income tax exemptions etc.

Failures are a stepping stone to success. Winding up a company would be possible in just 90 days. It will motivate aspiring entrepreneurs to take risk. Steps like Self Certified Clearance, No government inspection for 3 years, easy patent registration, and development of incubators would add impetus to entrepreneurship.

From red tape to red carpet, #StartUpIndia directly reflects in ease of doing business. TheIndianCapitalist.com is of view that by 2020, India may become the largest start-up ecosystem in the world. Startup India, Stand up India!

- Chaitanya Kulkarni ( twitter.com/chai2kul )