Page 17 - Banking Finance September 2021

ROUNDUP

companies called NBFC factors do the and Bankruptcy (amendment) bill, prescribed degree or courses of a single
majority of the factoring through the which paves the way for a pre-packaged university. It said students will be aca-
principal business condition. These are resolution process for the Micro, Me- demic account holders to whom the
Canbank Factors, India Factoring and dium and Small Enterprises sector. Academic Bank of Credits will provide
Finance, SBI Global Factors, Siemens Minister of State for Corporate Affairs a variety of services including credit
Factoring, Bibby Financial Services, IFCI RaoInderjit Singh moved the bill for verification, credit accumulation,
Factors and Pinnacle Capital Solutions. consideration and passage amid din in credit transfer or redemption and au-
thentication of academic awards.
The Standing Committee on Finance the lower house of Parliament, which
headed by Jayant Sinha had recom- was later passed without any discus- He launched NISHTHA 2.0 to train
mended the integration of Trade Re- sion with opposition members continu- teachers, designated the Indian sign
ceivables Discounting System (TReDS) ing their protest over Pegasus snoop- language as a subject that students
with GSTN e-invoicing portal leading to ing issue and the three new farm laws. can study. "There are more than 3 lakh
automatic uploading of all GST invoices Singh said the Insolvency and Bank- student who need sign language for
on to the TReDS platform to enable ruptcy Code (Amendment) Bill, 2021, their education. This will give a boost
real-time sharing of data that will al- will replace the ordinance that was to Indian sign language and will help
low buyers and sellers to have a single promulgated on April 4 as part of ef- the divyang people," said PM Modi.
window access to invoices. forts to provide relief to MSMEs ad- Modi also launched Structured Assess-

This panel had also recommended that versely impacted by the pandemic. ment For Analysing Learning Levels
receivables coming from the Central and The bill proposes a new chapter in the (SAFAL) a competency based assess-
State governments should compulsorily IB Code to facilitate the pre-packaged ment framework for Grades 3, 5 and
be brought under the ambit of TReDS insolvency resolution process for 8 in CBSE schools and a website dedi-
through this legislation so that payments MSMEs. cated to AI.
pending from the governments, which
have already been approved for various GST authorities unearth
MSMEs, are made available to them on Modi launches several ini-
a timely basis. tiatives under NEP Rs. 35000 crore fraud
In the year-long crackdown on tax
The standing committee has also rec- Prime Minister Narendra Modi an-
ommended that credit insurance be nounced launching of several initiatives evasion, the GST authorities have un-
extended for domestic factoring to undertaken under the National Educa- earthed over Rs 35,000 crore of tax
provide additional protection to the tion Policy (NEP) 2020 including Aca- fraud committed by misuse of input tax
factor and further encourage and pro- demic Bank of Credit and the Artificial credit provision under the Goods and
mote the factoring companies to lend Intelligence programme to make the Services Tax (GST) regime.
to more aggressively to MSMEs. Also, youth future-oriented and open the During the 2020-21 financial year, the
factoring company should be granted way for an AI-driven economy. CGST zones and the Directorate Gen-
status of specialised MSME funding Academic Bank of Credit is envisaged eral of GST Intelligence (DGGI) booked
entity so that a major portion of their as a digital bank that holds the credit about 8,000 cases involving fake ITC of
corpus is earmarked for the benefit of earned by a student in any course. It over Rs 35,000 crore, a statement
MSMEs. To encourage growth of fac- will facilitate multidisciplinary educa- from CBIC said.
toring business, the standing commit-
tion and enable multiple entry and exit Under the GST regime, at the time of
tee had also stressed the need to have
for students in higher education. paying tax on output, entities can re-
a credit rating mechanism for receiv- duce the tax they have already paid on
ables and suggested that commercial A University Grants Commission notifi-
banks be encouraged to provide a cation said that the Academic Bank of inputs. Some have, however, misused
wholesome financing for Factors. Credits will enable students to select the provision by creating fake invoices
the best courses or combination of on inputs.
Lok Sabha passes IBC courses to suit their aptitude and to "Misuse of the beneficial provision of
tailor their degrees or make specific ITC under the GST regime is the most
Amendment Bill modifications or specialisations rather common modus of evasion under the
The Lok Sabha has passed the Insolvency than undergoing the rigid, regularly GST law," the statement said.

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