To Ease Payments, Compulsory TREDs To Be Adopted For MSMEs And Small Companies By The Government Departments
The issue of money trouble was being faced by MSMEs for some time in their dealings with various government agencies but there are chances for this issue to ease down soon, as New Delhi ‘factors in’ changes which would be important to the way it reimburses its billers.
Swathes of bureaucracy would be cut by the Centre and speedy bill payments would be done by the departments, they will be able to do so by compulsorily adopting the Trade Receivable Discounting System or TReDS. For the government, quick vendor payments should increase the competitive intensity and the cost would be lowered.
Under the sovereign guarantee on the RBI-regulated TReDS platform; Government entities such as the Defence Ministry’s 41 Ordnance Factory Board (OFB) companies will be permitted avail financing services by collateralising the receivable invoices of vendors supplying artilleries, helmets to India’s armed forces and tanks.
To this effect, in the ongoing budget session, Former Union minister Jayant Sinha in the Parliamentary Committee had submitted recommendations seeking amendments to major clauses through the Factoring Regulation (Amendment) Bill of 2020.
According to the parliamentary committee report which will go under the scrutiny of upper and lower houses of the parliament, “the TReDS platform can be used by governmental entities to validate that they are good at paying their bills and thus for their projects they can get more bidders”.
TO READ OFFICIAL NOTIFICATION CLICK HERE.
GST: NIC HAS ISSUED A LIST OF GSTINs ON WHOM E-INVOICING IS COMPULSORY
On January 27, 2021, a list of GSTINs has been issued by the National Informatics Centre and for the same e-invoicing shall be mandatory.
By the NIC, 73308 GSTNs are enlisted and for the taxpayer, it is mandatory to upload the invoice details and on the Government Invoice Registration Portal, the taxpayer should register supply transaction. The taxpayer would upload his invoice details on a system known as E-invoicing or electronic invoicing and he has to register on the Government Invoice Registration Portal (IRP) and he will be issued the Invoice Reference Number (IRN) which will be generated by the IRP system.
The taxpayer is required to prepare and generate his invoice using his ERP/accounting system or it can be done manually as well and then these invoice details have to be uploaded to IRP and the unique reference number, known as IRN would be generated.
Implementation of ESI Under the Code of Social Security, 2020
Under the Code on Social Security 2020, New and A Major Change Has Been Adopted.
Notification under Section 1(3) for geographical extension to new areas which is a previous concept and notification under Section 1 (5) for coverage of establishments by the appropriate government under Employees’ State Insurance Act (ESI), 1948 has put to an end. The definition in Section 2(29) of the code for all the establishments including factories shall be covered under the definition of establishments.
There is an Improved Change in The Coverage Under the ESI and There Have Been Certain Provisions That Have Been Introduced.
At present for 10 or more persons the threshold for coverage under ESI has been reserved. Whereas if power is not being used by factories then the threshold shall be of 20 employees according to Section 2 (32) of the SS code, 2020.
The establishment’s that are employing less than 10 persons on voluntary basis the code also covers them in this provision. Under the ESI employers of plantations can also opt for the coverage by their inclination towards Corporation.
And in the case of establishments engaged in life-threatening occupation, their employees will also be covered under ESI irrespective of the number of employees employed. However, establishments which carry dangerous or life-threatening occupation as notified by the Central Government, the threshold for coverage should be only one employee.
A New Provision Has Also Been Introduced in The Code
According to the latest provision, the contribution of the employer and the employee of an establishment shall be payable on the date on which any benefits are made available by ESIC to the employees of that establishment and the Central Government will notify about the date.