June 4, 2024

Procedure of GST Litigation in India

Goods & Service Tax / /

As the Indian economy grows, the importance of tax compliance and management has only increased. However, with this growth, tax disputes and litigation are becoming more common. If you’re facing tax litigation, it’s important to understand the process and steps you can take to manage the situation effectively. GST is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services, and non-compliance can result in substantial penalties and interest charges. In this blog, we will provide a comprehensive guide to managing GST litigation in India, including the steps involved, the key players involved, and the common challenges faced by businesses. What is Tax Litigation in India? Tax litigation refers to the legal process that involves disputes between taxpayers and tax authorities over the interpretation, application, and enforcement of tax laws. Tax litigation typically involves the resolution of disputes arising from assessments, penalties, and other tax-related issues. GST litigation, specifically, refers to legal disputes that arise from the application of the Goods and Services Tax (GST) in India. GST is a consumption tax that is levied on the supply of goods and services in India. GST litigation may involve disputes over classification of goods and services, calculation of tax liability, application of GST exemptions and concessions, and other issues related to the administration of GST in India. Types of Tax Litigation The term ‘litigation’ is explained as the procedure of taking a matter in a court of law and taking legal action. Mainly, there are two types of tax litigation; Direct Tax litigation and  Indirect Tax litigation The Litigation relating to GST falls under the category of “Indirect Tax litigation” in the country. Reasons for GST Litigation Different interpretation of Law: The GST Act is a complex piece of legislation, and its provisions are open to different interpretations. This leads to confusion and disagreement between taxpayers and tax authorities on the applicability of GST on various transactions. For example, there may be conflicting opinions on whether a particular supply of goods or services is exempt from GST or whether it attracts a higher rate of GST. This can result in disputes and litigations. Incorrect opinion: Taxpayers may receive incorrect opinions from tax consultants, which may result in non-compliance with GST laws. For example, a consultant may provide incorrect advice on the classification of goods or services, leading to incorrect GST returns being filed. In such cases, taxpayers may be penalised, and litigations may ensue. Mismatch in returns: In some cases, there may be a mismatch between the returns filed by taxpayers and the data available with the tax authorities. This can happen due to errors in data entry or misinterpretation of the GST laws. The tax authorities may initiate proceedings against taxpayers for non-compliance, leading to disputes and litigations. Judgement of Supreme Court: The Supreme Court of India has given several landmark judgements on GST, which have set the tone for GST litigation in the country. For example, the Supreme Court has ruled on the applicability of GST on works contracts and the scope of input tax credit. These judgements have significant implications for taxpayers and tax authorities, and their interpretation may lead to disputes and litigations. Circulars of CBIC: The Central Board of Indirect Taxes and Customs (CBIC) issues circulars to provide clarity on various provisions of the GST Act. In some cases, the circulars may not be clear enough, leading to confusion and disagreement on the interpretation of the law. For example, there may be conflicting opinions on the applicability of GST on discounts or rebates, leading to disputes and litigations. Amendment in Act – Retrospective: GST laws are subject to frequent amendments, and some of these amendments may have retrospective effects. This means that the changes in the law may apply to transactions that have already occurred. This can lead to disputes and litigations as taxpayers may not be aware of the changes in the law and may have taken incorrect positions in their GST returns. Types of Notices issued by the GST department Notices are issued by the GST department at various stages. Mainly these stages can be categorized into three parts: pre-litigation notices, notices during litigation, and other miscellaneous notices. The provisions that provide such notices have a combination of different sections by the help of which the authority clears such matters. They are listed as below; Pre-Litigation Notices: Following are the provisions that fall within the purview of Pre-Litigation Notices; Section 61: Scrutiny of Returns Section 65: Notice for Conducting Audit (by tax authorities) Section 66: Special Audit by Chartered Accountant (who is appointed by Tax authorities) Section 67: Inspection, Seizureand Search Section 70: Summons Notices during Litigation Section 73: Show Cause Notice under Normal Period for Demand. It can be issued within 33 months from the due date of the GSTR-9  Section 74: Show Cause Notice under Extended Period for Demand. It can be issued within 54 months from the due date of the GSTR-9 Section 76: Notice for the demand of collected Tax which is not deposited Other Notices (Miscellaneous) Section 79: Notice when there is an outstanding amount due to the default of a Vendor  E-Way Bill Notices Investigations by CAG, Intelligence, Preventive or Anti-Evasion Stages of GST Litigation in India Audit and Assessment: The first stage of the GST litigation process is the audit and assessment of the details submitted by the taxpayer at the time of return filing. This involves a review of the taxpayer’s returns, invoices, and other relevant records. The tax authorities may also conduct an on-site inspection or GST departmental audit to verify the taxpayer’s compliance with the GST laws. After reviewing the records, the tax authorities may issue a Show Cause Notice if any discrepancies have been found. Objection: If the taxpayer disagrees with the assessment or audit, they have the right to file an objection with the tax authorities within the prescribed time limit (mostly 7 to 30 days) of the assessment. This must be done in writing, and the taxpayer must provide a detailed explanation of the grounds for the objection. Adjudication: If the objection is not resolved, the matter will be referred to the Adjudicating Authority for a final decision.

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Indira Gandhi National Old Age Pension Scheme (IGNOAPS)

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National Old Age Pension Scheme (NOAPS), IGNOAPS was renamed and launched formally in November 2007. It is one of the five components of the National Social Assistance Programme (NSAP) introduced by India’s Ministry of Rural Development (MORD). Beneficiaries of this scheme make up 73% of the total beneficiaries listed under the NSAP.   The launch of IGNOAPS represents a significant step towards the fulfilment of Directive Principles in Articles 41 and 42 of the Indian Constitution. Article 41 directs the state to assist the citizens in case of old age and disablement within limits of its economic capacity and development. IGNOAPS aims to provide social benefit to poor households in case of old aged members and uplift minimum national standards. Currently, more than 2 crore Indian citizens are listed and avail of the IGNOAPS benefits. The beneficiaries are identified from the BPL list prepared by the States/UTs as per the guidelines issued by the MORD.  National Social Assistance Programme (NSAP) Ministry of Rural Development of India has introduced Indira Gandhi National Old Age Pension Scheme (IGNOAPS) under National Social Assistance Programme (NSAP) in the year 2007. IGNOAPS also called as National Old Age Pension Scheme (NOAPS). The old age pension scheme aims to provide social protection to the eligible beneficiaries.  What are the Main Features of the IGNOAPS Under NSAP? Selection: The local authoritative bodies like Gram Panchayat and municipalities are expected to identify the beneficiaries significantly.  Disbursement: The IGNOAPS benefits can be distributed in public meetings such as the neighbourhood committees in urban areas and Gram Sabha meetings in rural areas. This is apart from the classic methods of disbursal of benefits through accounts and money orders.  Monitoring: Although the States/UTs have the liberty to implement IGNOAPS by designating a Nodal secretary at the State level. It is mainly to report the scheme’s progress by coordinating with the concerned departments. The progress is reported every quarter. Eligibility Criteria The age of the applicant should be 60 years or higher. (It is applicable for both male & female). Applicant must belong to household living below poverty line according to the criteria prescribed by the Government. Applicant must be destitute and having no regular source of financial support form family members or any other sources is eligible for old age pension. BPL widows and BPL persons with severe and multiple disabilities in the age group of 60 -79 years are not eligible for this scheme. What are the Benefits of IGNOAPS? Under the IGNOAPS, Indian citizens aged 60 or higher and living below the poverty line receive a pension every month. The central contribution of the pension is INR 200 per month for every beneficiary up to 79 years and INR 500 every month per beneficiary from 80 years onwards. The state governments can contribute to the above-mentioned amount.  At present old age receivers avail between INR 200 to INR 1000 depending on state contribution. For example, the beneficiaries in Jammu and Kashmir avail INR 400 per month. The scheme is a non-contributory process, and the beneficiaries do not have to contribute any amount to receive the pension. The pension is available for all the members who are 60 years of age or older in a BPL family and not restricted to only one person.  Documents Required Application form for IGNOAP Proof of age – The age certificate needs to be obtained from the concern medical officer and to be attested by the concerned Block medical officer. Income certificate to be submitted Below Poverty Line (BPL) card in the name of Applicant should be submitted. Bank pass book or Post office passbook Passport size photographs Indira Gandhi National Old Age Pension Amount S.No Age of BPL Citizen IGNOA Pension Amount 1 60 years to 79 years Rs.200 per month 2 80 years and above Rs.500 per month Indira Gandhi National Old Age Pension Application Procedure Step 1: Get an application form from Social Welfare Department in the concerned area. Step 2: Fill all information in the Application form. State, District and Block details Name of the village Panchayat Name of Society, Beneficiary and Heirs House number Gender (Male / Female) Age and Date of Birth Birth certificate details Annual income and domicile certificate details. EPIC number (Voter ID number) Step 3: Submit the application form along with all documents to the concerned Tehsil Social Welfare Officers. An applicant from urban area can directly submit the application to concern District Social Welfare Officer. Step 4: Application will be scrutinized or verified by officers Step 5: Social Welfare department will recommend the beneficiaries to District Social Welfare Officer. Step 6: The final sanction will be made by District Level Sanctioning Committee (DLSC). FAQs When was IGNOAPS launched? IGNOAPS was launched in 1995 and was renamed in 2007 in honor of former Prime Minister Indira Gandhi. What is the Indira Gandhi National Old Age Pension Scheme (IGNOAPS)? IGNOAPS is a social security scheme launched by the Government of India to provide financial assistance to elderly individuals who are below the poverty line (BPL). It is part of the National Social Assistance Programme (NSAP). 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GHMC Trade License

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Hyderabad trade license from the GHMC must be obtained by all businesses operating in Hyderabad within 30 days of commencing activity. GHMC has a turn around time of sanctioning any GHMC trade license application within 7 days from the application, provided the application was complete in all respects at the time of their submission, and there is no further information or query pending. GHMC Trade License Authority The authority for the grant of the GHMC trade license would vary based on the category of the establishment. For eating and medical establishments, the Dy. Commissioner is the approval authority and Asst. Medical Officer of Health in the field inspection authority. For non-eating and non-medical establishments, the Zonal Commissioner is the approval authority, and the License Officer of GHMC is the field inspection authority. For petty establishments, the Dy. Commissioner is the approval authority and Asst. The license Officer of GHMC is the field inspection authority. For meat, chicken, and veterinary trades, the Chief Veterinary Officer is the approval authority, and Veterinary Officer is the field inspection authority. Documents Required for GHMC Trade License Aadhaar Card – Individual PAN or Incorporation Certificate – Business Lease Deed or Legal Occupancy Trade License Fee No of Lanes Road Width Rate per Square Feet Maximum Amount 1 Single Lane 20 Feet Rs. 3 Rs. 10,000 2 Double Lane 30 Feet Rs. 4 Rs. 50,000 3 Multiple Lane >30 Feet Rs. 6 Rs. 2,00,000 4 Star Hotels, Corporate Hospitals >30 Feet Rs. 6 Rs. 2,50,000 Procedure for Obtaining GHMC Trade License CSC e-Seva Online through the GHMC website On submission of the trade license application along with the documents required and trade license fee, a provisional trade license will be issued on the spot. Thereafter, a field verification would be completed by the approval authority, as mentioned above. On completion of field verification, if the business has complied with all the norms of bye-laws, the final TIN generated certificate will be issued by GHMC. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta

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Issue of Debentures by a Company Act

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When a company is formed, one of its initial challenges is generating funds. The company can raise funds by either taking a loan, with the help of investors or by issuing debentures and shares.  Issue of debentures meaning: Debentures are an instrument used to raise long term debt capital for the company. The debenture that a company issues is seen as an acknowledgement that the company has borrowed an amount, which it will have to repay at some time in the future. Because of this, a debenture holder will be referred to as the company’s creditors.  Debentures According to Section 2 (30) of the Companies Act, 2013, “Debenture” includes debenture stock, bonds or any other instrument of a company that is evidence of a debt, whether it has or not constituted a charge on the assets. Debenture can be classified as: Secured Debenture Unsecured Debenture Types of Debentures Redeemable debentures: Redeemable debentures are those that are issued for a fixed specified period of time. The company has to repay the creditor the full amount with interest on the predetermined date. This type of debenture ensures that the company fulfils its obligation to the holder.  Non-redeemable debentures: As the name suggests, non-redeemable debentures can not be redeemed during the company’s lifetime. These debentures are repaid during the liquidation of the company.  Mortgage debentures: These debentures are issued by mortgaging an asset of the company. On repayment failure from the company, the debenture holder can sell the asset and recover the dues.  Non-convertible debentures: A non-convertible debenture can not be converted into an equity share at any given point. The debenture holders remain as creditors till their debentures are matured. Partially convertible debentures: A partially convertible debenture holder is given the option to convert a part of their debentures into equity shares. If they choose to convert that part, they will enjoy the benefits of both debentures as well as shares.  Fully convertible debentures: These can be fully converted into a specified number of shares after their maturity.  Issuing of debentures Debentures are issued at face value. Even though that is the case, the market price of debentures usually fluctuates. In case the face value is higher than the market value, the company will discontinue the debentures. However, if the face value is lower than the market value, the debentures are premium issued.  Conditions for Issue of Debenture No company will issue any debentures that carry any voting rights. No company will issue a prospectus or make an offer or invitation to the public or to its members in excess of five hundred for the subscription of its debentures, unless the company has, previous to such issue or offer, selected one or more debenture trustees and the prescribed conditions that govern the appointment of such trustees. An issue of debenture for more than 500 members or any number of public that is subject to clarification from government without the creation of a debenture trust is forbidden. A debenture trustee will take steps to protect the interests of the debenture holders and remedy their grievances. Any provision of trust deed or contract that is protected by trust deed, exempting a trustee or indemnifying him against any liability for violation of trust will be void. If any default is made in compliance with the order of the Tribunal under this section, every officer of the company who is in default will be punishable with imprisonment for a term which may extend to a period of 3 years or with fine which will not be less than Rs 2 lakh but which may extend to Rs five lakh or with both. Procedure to Issue Debentures Call Board Meeting Call and hold Board meeting and make a decision which types of the debenture will be issued by the Company. In the Board meeting pass resolutions for Approval of the following: Offer letter for private placement in Form No. PAS – 4 and Application Forms Approval of Form No. PAS – 5 Sanction of Debenture Trustee Agreement and appointment of a Debenture Trustee Appointment of an expert for approval of increase of borrowing powers, if required To authorize for creation of charge on the assets of the company Agree to the Debenture Subscription Agreement To fix day, date and time for the extraordinary general meeting of shareholders. Prepare the Following Documents Based on the decisions of the Board Meeting, prepare the following documents and issue notice for extraordinary general meeting: Debenture Subscription Agreement Offer Letter for private placement in Form No. PAS – 4 and Application Forms Records of a private placement offer in Form No. PAS – 5 Debenture Trustee Agreement Mortgage Agreement for creation of charge on assets of the company Finally, issue notices of extraordinary general meeting together with the explanatory statement. Extraordinary General Meeting Hold extraordinary general meeting and enable special resolution to issue convertible secured debentures and augment borrowing powers of the company and to sanction the Board to create charge on the company assets. Prepare and File Documents On approval of the debenture issue, prepare and file the following documents File Form No. PAS – 4 and PAS – 5 in Form No. GNL – 2 with the Registrar of Companies (ROC). File Offer Letter in Form No. MGT – 14 with the Registrar of the Companies (ROC). File copy of Board resolutions, Special Resolution, Debenture Subscription Agreement, Debenture Trustee Agreement and so on Form No. MGT – 14 with the Registrar of Companies. File Form No. PAS – 3 related to return of allocation with the Registrar of Companies (ROC) after making allocation of debentures. File Form No CHG – 9 for the creation of charge on assets related to the Company. Certificate of Debenture The certificate of debenture should be issued within a period of 6 months from the date of allocation in the case of any allocation of debenture. Journal Entries on Issue of Debentures DATE PARTICULARS LF Debit Amount Credit Amount   Bank A/c  to Debentures Application A/c (receiving the application money)   —   —  

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What is Central Sales Tax (CST)?

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The goods that are sold through inter-state trade are subject to Central Sales Tax (CST) in India. However, all sale to foreign missions and SEZs should not be charged any CST. If any item is returned within 180 days, this tax will not be levied. Note: Sales Tax has been replaced by the Goods and Services Tax (GST) starting 1 July 2017. India is a democracy which is run by the people for the people, where the money to administer and develop the country also come from the people. Taxes are the primary source of income for the government and are used to maintain the nation. The government imposes different types of taxes on different products and services, in a bid to improve governance and improve infrastructure. Central Sales Tax is an integral component of the tax structure of the country, having been introduced in the sixth Constitutional Amendment. Central Sales Tax has been a major source of revenue for the government since its inception and is considered crucial in Indian trade and commerce. What is Central Sales Tax? Central Sales tax refers to the tax levied on sales generated during inter-state trade and commerce in a country. In essence it is the tax one has to pay on the sale of goods which are sold through inter-state trade. Central Sales Tax (CST) is an indirect tax, origin based tax on customers and is payable in the state where a particular product is sold. CST is charged only on inter-state transactions and any transaction within a state or import/export of goods does not fall under its purview. Central State Tax in India India, is a union of states and the strength of our country lies in its ability to handle these states collectively, which is where Central Sales Tax comes into play, by eliminating any confusion regarding inter-trade tax. Central Sales Tax came into existence through an act of the parliament and was enacted in the year 1956 to regulate sale of commodities and taxes regulating such sales. Although CST is levied by the Central Government and falls under the Union List of the Seventh Schedule, it is administered by the state in which a particular sale originates. A trader dealing in goods which involve inter-state trade is expected to pay both the state sales tax and the central sales tax on such transactions. Central Sales Tax Act, 1956 Sales Tax in India falls under the ambit of Central Sales Tax Act, 1956, which extends to the whole of India and defines the rules and regulations guiding sales tax. This Act was introduced in the Sixth Constitutional Amendment and brought the taxes on sale/purchase of goods in inter-state trade under the purview of the legislative jurisdiction of Parliament. This act came into force in 1957 and forms the backbone for Central Sales Tax in India, containing various provisions for the same. This Act mentions the definitions of inter-state trade, situations where CST is applicable, penalties involved, important goods for interstate trade, trade restrictions, appeals and any other information which might be relevant. Objectives of Central Sales Tax Act, 1956  The government introduced the Central Sales Tax Act in a bid to simplify and streamline tax collection in the country. Some of the main objectives of Central Sales Tax Act are mentioned below. Provide provisions for levying, collecting and distributing taxes collected via interstate sale of goods and products. Frame policies to determine when sale and purchase of goods occurs, with reference to interstate commerce. Classifying certain goods as being essential and important for trade and commerce. Establish which competent authority will settle interstate trade disputes. Central Sales Tax Rate Central Sales Tax rates are determined by the government and have changed since the time the Act first came into force. The original Central Sales Tax rate was 1%, which was then increased periodically to 2% and finally became 4% from July 1975 onwards. Goods which are extremely important for inter-state travel are not taxed under certain provisions of the CST Act, ensuring that essential commodities do not become dearer. In 2007, an amendment to central sales tax rates was accepted, which saw the Sales Tax coming down to 3% from the previously charged 4%. June 2008 witnessed a further reduction in the tax rate, with the rate coming down to 2%. A major reason for the reduction in CST rates was the need to introduce Goods and Services Tax (GST), which would make CST inconsistent with GST. The table below highlights the central sales tax rates for different scenarios. Local Tax Rate Central Sales Tax Rate   When sale is to registered dealer Goods exempt from local tax Nil 1% 1% 2% 2% >2% 2% (form C required) Central State Tax Rules A dealer should submit an application (Form A) for registration under section 7 of the Act. This application should be duly signed by the proprietor and verified by a competent authority. Only a single application will be entertained even if an applicant has multiple places of business in a state. The certificate of registration should be kept at the principal place of business and copies of the registration should be displayed at other business locations. In case a registration certificate is lost or destroyed, the applicant should make a payment in the form of court fee stamps to receive a duplicate copy. FAQs When was CST introduced? CST was introduced in 1956 through the Central Sales Tax Act, 1956. What is Central Sales Tax (CST)? Central Sales Tax (CST) is a tax levied on the sale of goods during interstate trade or commerce in India. It is governed by the Central Sales Tax Act, 1956. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO

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Khadi and Village Industries Commission (KVIC)

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KVIC stands for Khadi and Village Industries Commission. It is an important organization in India that helps rural areas grow and creates jobs. It operates under the Ministry of Micro, Small, and Medium Enterprises. KVIC’s goal is to improve the economy of villages by promoting khadi and village industries. KVIC has launched several initiatives, like the Prime Minister’s Employment Generation Programme. These initiatives support people starting their own businesses and create employment opportunities. KVIC provides training and assistance with selling products.  What is the Khadi Village Industries Commission? Khadi Village Industries Commission (KVIC) is a statutory body of the GoI. It operates under the Ministry of Micro, Small, and Medium Enterprises (MSME). KVIC was established in April 1957 by an Act of Parliament, the Khadi and Village Industries Commission Act, 1956. KVIC’s mission is to promote khadi and village industries in India. It does this by providing financial & marketing assistance and training to village industries. Khadi is a hand-spun and hand-woven fabric made from cotton or wool. It is a traditional Indian textile that has been produced for centuries.  The village industries produce a wide range of products. This includes food, handicrafts, and other goods. KVIC provides employment to millions of people. It assists in generating income in rural areas.  KVIC also helps to preserve India’s traditional handicrafts and textiles. Historical Background of the Khadi Village Industries Commission he Khadi and Village Industries Commission (KVIC) was set up in April 1957. It was set up by the Khadi and Village Industries Commission Act 1956. Its roots can be traced back to the Indian independence movement. Mahatma Gandhi advocated the use of khadi. It was seen as a symbol of self-reliance and a means to uplift rural communities.  The Swadeshi Movement and the promotion of indigenous industries were central to his ideology. The establishment of KVIC was a significant step in realizing these objectives.  The All India Khadi and Village Industries Board was established in 1942.  It was responsible for promoting khadi and village industries during the British colonial period.  With time, the KVIC took over the work of the board. About Digital KVIC Digital KVIC was launched in 2017 to make it easier for people to access and buy khadi and village industry products. KVIC has launched a number of digital initiatives in recent years.  The KVIC website provides information on a wide range of topics. This includes government schemes and training programs.  The website also has an online store where people can buy khadi and village industry products. KVIC has also launched a mobile app. The app provides access to the same information and services that are available on the website.  The app also allows users to track their orders and make payments. Digital KVIC has many advantages, such as better customer service, improved efficiency, and increased transparency. Since its launch, Digital KVIC has made significant progress. It has increased online sales by 20% and decreased order processing time by 50%. It has helped boost the growth of the khadi and village industries sector. Objectives of the Khadi Village Industries Commission To promote khadi and village industries of the country. To provide financial assistance, training, and marketing support to the village industry entrepreneurs. To create employment opportunities in rural areas. To preserve India’s traditional handicrafts and textiles. Key Updates and Facts about the Khadi Village Industries Commission Here are some facts about Khadi Village Industries Commission (KVIC): KVIC was established in April 1957. It is a statutory body under the Ministry of Micro, Small, and Medium Enterprises (MSME). The mission of KVIC is to promote khadi and village industries in India. KVIC plays an important role in the Indian economy. It has helped to create millions of jobs in rural areas. It has helped to preserve India’s traditional handicrafts and textiles. Some of the latest updates on the Khadi Village Industries Commission (KVIC) are: KVIC has launched a new scheme to promote the use of khadi in government procurement. The scheme is named the “Khadi Procurement Policy.”  It aims to increase the use of khadi in government procurement by 20% by 2025. KVIC has launched the “Khadi India” website to promote khadi and village industry products.  In 2022, KVIC launched a new quality assurance scheme for the products.  The scheme aims to ensure that the products meet the highest standards of quality. Organs of the Khadi Village Industries Commission Board of Directors The Board of Directors is the highest decision-making body of KVIC. It is composed of 15 members, including the Chairman and the Vice-Chairman. The Board formulates policies and strategies for the development of village industries. General Manager The General Manager is the chief executive officer of KVIC. He handles the implementation of the policies and strategies of the Board. The General Manager is assisted by a team of officers and staff. Zonal Offices The Zonal Offices are located in major cities across India. They are responsible for providing financial and marketing support in their respective regions. State Offices The State Offices are located in all the states of India. They coordinate the activities of the Zonal Offices and the District Offices.  District Offices The District Offices are located in all the districts of India. They provide direct assistance to the village industries in their respective districts. Important Schemes of the Khadi Village Industries Commission SFURTI SFURTI stands for Scheme of Fund for Regeneration of Traditional Industries.  The Ministry of MSME launched it in 2005 with the view to promote cluster development.  KVIC is the nodal agency for the promotion of cluster development of Khadi and village industry products. PMEGP PMEGP stands for Prime Minister’s Employment Generation Programme.  The Ministry of MSME launched PMEGP KVIC in 2000.  It aims to promote self-employment in rural and urban areas.  KVIC is the nodal agency for the implementation of PMEGP in the village industry sector. SPIN SPIN stands for Scheme of Skilled Person’s Income Generation Network.  The Ministry of MSME launched it in 2016.  It aims to provide training and

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