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Types of GST in India- CGST, SGST, IGST and UTGST Explained

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India is currently going through major reforms in its overall economic sectors. The growth trajectory of India is so high that it is poised to become the third-largest economy of the world by 2030. Government is taking significant initiatives to boost the overall economic growth of the country. Introduction to GST and its 3 types- CGST, SGST, IGST AND UTGST are effectively supporting such major economic development programs.

GST stands for Goods and Services Tax. It is considered as the biggest taxation reform in the history of Indian economy. It will subsume multiple taxes like VAT, Service Tax, CST, excise and additional excise duty, entertainment and luxury tax, etc. It is a single uniform taxation system which will help in eliminating time, cost and effort.

GST is introduced in the parliament as The Constitution Amendment Act 2016 and it is regulated by the Union Finance Ministry of India. It is a consumption based tax levied on the supply of goods and services which mean that it will be imposed at each stage of sale or purchase of goods or services based on the input tax credit method.

GST will transform Indian economy turning it into one common market based on a uniform taxation system. It will enhance the ease of doing business in India. Industries will make substantial savings in terms of logistics and supply chain due to GST. Some companies will benefit more as the GST rate will be lower than the current taxation. On the other hand, few sectors will have to pay more tax as GST will replace the old taxes uniformly, which may increase the rate respectively.

The overall impact of GST on India’s economy is expected to be positive. As GST will be applicable from July 2017, industries and business organizations have already started to create future strategies. Both the central as well as the state government are focusing on regulating GST and major changes are being made in the organized monetary framework.

Government has joined hands with the National Securities Depository Limited (NSDL) and together they have created Goods and Services Tax Network (GSTN). It’s a non-government firm which will provide IT infrastructure services to the central and state governments, stakeholders and taxpayers for proper implementation and regulation of GST.

Indian economy is highly diverse due to numerous industries operating in different sectors having the different location, supply chain and target consumers. To understand the detailed impact of GST, let’s discuss its three types-

  1. Central Goods & Service Tax (CGST)

As per the Central Goods & Services Tax Act 2016, CGST is the centralized part of GST that subsumes the present central taxations and levies- Central Sales Tax, Central Excise Duty, Services Tax, Excise Duty under Medical & Toiletries Preparation Act, Additional Excise Duties Countervailing Duty (CVD), Additional Custom Duty and other centralized taxations.

CGST is applicable on the supply of goods and services of standard services and commodities which can be amended periodically by a specialized body under the central government. The revenue collected under CGST belongs to the central government. The input tax is given to the state governments which they can utilize only against the payment of CGST.

  1. State Goods & Services Tax (SGST)

SGST is an important part of GST. It stands for State Goods & Services Tax as per the 2016 GST bill. Various taxations and levies under the state authority are subsumed by SGST as one uniform taxation. It includes the amalgamation of State Sales Tax, Luxury Tax, Entertainment Tax, Levies on Lottery, Entry Tax, Octroi and other taxations related to the movement of commodities and services under state authority through one uniform taxation- SGST.

Revenue collected under SGST belongs to the State Government. However, the mainstream framework of the state governing body will be supervised by the central government. Each state will be having their own State Authority to collect SGST.

  1. Integrated Goods & Services Tax (IGST)

GST focuses on the concept of one tax, one nation. IGST stands for Integrated Goods and Services Tax which is charged on the supply of commodities and services from one state to another state. For example, if the supply of goods and services occurs between Gujarat and Maharashtra, IGST will be applicable.

Under Article 269A of the Indian Constitution, the inter-state trade and commerce activities that involve the movement of commodities and services shall be levied with an integrated tax (IGST) under the GST regime. The Government of India will collect the revenue under IGST. Further changes can be made by the Goods and Services Tax Council of India.

  1. Union Territory Goods & Services Tax (UTGST)

As we have already learned about CGST and SGST which are intra-state taxations and IGST which is inter-state, the union territories in India are accounted under a specialized taxation called Union Territory Goods and Services Tax as per the GST regime 2016. It will subsume the various taxations, levies and duties with one uniform taxation in Union Territories as well.

Delhi (India’s Capital Territory), Chandigarh, Dadra & Nagar Haveli, Andaman & Nicobar Islands, Daman & Diu, Lakshadweep and Puducherry are the prominent union territories in India. UTGST will account for all the taxations under these union territories in India. The parliament is looking forward to implement a separate act to impose and supervise GST in Union Territories under the name of UTGST act. The bill will be presented in respective union territories for further changes in the implementation of GST.

CONCLUSION

GST will surely boost the country’s economic growth and ease of doing business in overall industrial sectors. The significant types- CGST, SGST, IGST and UTGST will provide a smooth mechanism of tax collection for the respective central, state and union territory governments of India. It will begin a new phase in India’s economy by providing logistics and supply chain efficiency and state-based parity that the country requires the most.

Top 5 advantages of Data-driven Marketing

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Marketing is a melting pot of prospecting and generating leads to bring more business to the company and boost its sales. The level of competition in today’s business world has reached its threshold and the pressure on marketers to generate suitable leads is increasing. Marketers are keen to discover innovative marketing techniques and focus on gathering different data and information for an effective data-driven approach.

Today, the emergence of ‘Big Data’ has influenced new concepts and methods of marketing. You can access big data gathered by immense research and analysis of the market relevant to current trends. Integrating a B2B database in the marketing strategy has become significant in today’s business. These data not only help in generating genuine leads from several channels, it also helps you to understand the current market trends and emerging opportunities.

Here’s the top 5 advantages of data-driven marketing-

  1. Personalised Targeting

Big data and innovative analytic tools help the marketers to target their valuable prospects with personalisation. Approaching audience with personalised communication increases the chances of their conversions. Backed by a powerful database, your marketing strategy in a personalised manner can influence a large number of potential prospects.

When a prospect receives personalised messages, he/she is more likely to proceed for CTA as the communication is more proficient in terms of his/her location, interests and purchase history. Data-driven marketing has improved personalised targeting of prospects as the data significantly helps the marketers to create an effective marketing strategy with complete research and analysis of the market and changing consumer behaviours.

  1. Enhanced Customer Experience

Customers like the information which is useful for them. Data-driven targeting with a personalised approach provides a convenient and detailed experience to the customers which effectively enhances their conversion chances. The Big Data helps you to understand the changing consumer behaviours with the analysis of their purchase history and emerging products/services.

As a result, you can easily target the customers and enhance their experience with your brand. As a marketer, you must understand the potential of big data and analytics in order to improve your marketing strategy for better results. The productivity of a business depends upon its sales. Data-driven marketing is the key-tool to explore new opportunities in the market to increase the sales of your business substantially.

  1. Marketing Channels Optimisation

Optimising your marketing channels is amongst the crucial steps involved in data-driven marketing. The Big data help you to understand what audiences like, how they can be approached and which factors largely influence their conversions. You can utilise this valuable information to optimise the significant marketing channels to provide better customer experience.

Optimising the website with updated content as per the data analytics is the very first step in data-driven optimisation of marketing channels. Your official business website is the most influential marketing channel and thus, it should be updated on regular basis with relevant content that attracts the audiences more effectively.

The big data not only helps you to optimise your website, it also helps in optimising several other significant marketing channels like active Social Media platforms. The data & analytics of social media platforms like Facebook, Twitter, Instagram, LinkedIn, etc. significantly helps in improving the strategy to perform data-driven marketing and generate more leads.

  1. Brand Awareness & Loyalty

The big data helps you to learn about new challenges in the market that is stopping your business to emerge amongst the top players. Creating brand awareness and establishing an anchored loyalty with customers are the most important factors to keep up with the global competition in today’s business world.

Analysing the data and information will help you to improve the marketing channels that performs promotions, advertisements, enhances customer engagement and covers supplemented aspects of integrated marketing communications to boost the sales. As a result, you create a big noise about your brand on these channels and establish an anchored brand loyalty with your valuable customers as well as the potential prospects.

  1. Consistent Strategy Improvement

Progress is the ultimate objective of any marketing strategy, and when it is Big Data-driven, a continuous flow of improvement in elements of your whole strategy is integrated in order to perform the significant business activities more effectively. Analysing all the information and consistently implementing the objectives boost the marketing strategy for better results.

Optimising the marketing channels with respect to new information is one of the most important strategy improvement involved in data-driven marketing. You can easily understand the ever-changing customer needs through big data and generate more productivity by improving the mainstream strategy as per current trends.

Internet has revolutionised the whole marketing phenomenon. There are various data analytic tools available online in order to improve the marketing strategy as per changing aspects in the market. It is impossible to overlook the immense productivity your business can generate through a data-driven marketing strategy.

Reforming India’s Transport Sector – Highlights of the Motor Vehicle Amendment Bill

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On the threshold of major reforms, India is witnessing rapid amalgamation of various constitutional amendments that have paved the road for the nation to move towards a sustainable developing economy. Major reforms, significant initiatives by the government and the emergence of technological implementations are the key factors that have boosted India’s economic prosperity.

Recently, the country witnessed a major reformation in its currency, demonetisation. It enabled more transparency within the monetary system and helped in reducing the volume of black money as well. However, it gave a liquidity shock to the nation but it was a short-term effect.

In the beginning of 2015, the Indian government announced fresh liberalization of Foreign Direct Investment (FDI) rules that opened floodgates for overseas investments in open food retail, private security firms, airlines, defence, education, financial institutions, e-commerce and several other sectors. FDI is considered crucial in India. Although, a large amount of foreign investment will improve the nation’s economic sustainability and it will also strengthen the rupee value against other global currencies.

One of the major reformation in the history of Indian economy is the introduction to GST. It stands for Goods and services tax which will subsume multiple taxes like VAT, Service Tax, CST, excise and additional excise duty, entertainment and luxury tax, etc. It is a single uniform taxation system which will help in eliminating time, cost and effort.

The Transport sector of India has welcomed a new act that got recently passed in the Loksabha. The previously amended Motor Vehicle Act of 1988 is reformed with some new regulations. It’s a draft legislation to amend the Motor Vehicles Act to impose strict penalties on traffic rules violations. Its main objective is to protect the people of India from legal harassment. It is also focused on bringing significant transformation in the transport mechanism and obligations to bring more ease in the sector.

Here’s everything you need to know about the Motor Vehicles Amendment Bill –

  1. The bill amends the 1988 Motor Vehicle Act to solve issues regarding road safety, third party insurance and public transport regulations.
  2. It provides unlimited liability for third party insurers in motor vehicle accidents. The amount is 10 lakh rupees in case of death and 5 lakh rupees in case of severe injury.
  3. The bill comprises of a Motor Vehicle Accident Fund which would provide compulsory insurance cover to the people of India for several accident types.
  4. The bill emphasizes on e-Governance to improve the delivery services. It includes the online issue of learning licenses, enhancing the license validity, educational qualification parity and many other reforms in the mainstream regulatory framework for motor vehicles.
  5. The bill proposes a major reform which describes that the guardian will be considered as guilty for traffic violations committed by juveniles. The criminal charges will be imposed on the guardian, while the juvenile will go under judicial trial as per standard JJ act. Also, the registration of the motor vehicle involved will be canceled.
  6. The bill allows the state government to specify a multiplier for scrutinizing the penalties and fines under this act. The multiplier ratio cannot be less than 1, not more than 10.
  7. The bill specially focuses on providing ease for physically disabled citizens of India by removing barriers in issuing the driving license for them as well as altering the motor vehicles to make them suitable for handicapped.
  8. Testing the motor vehicles for approval and certification will get stricter as per the new regulations of Motor Vehicle Amendment Bill. Agencies involved in testing the vehicles are brought under the scrutiny of this bill.
  9. The bill focuses on creating a National Register for Driving Licenses issued throughout the nation in order to facilitate the strict examination of multiple license issues.
  10. The bill also proposes to create a National Register for Vehicles Registration in order to keep a significant record of a total number of vehicles for ‘Pollution Under Control’ and other environmental issues.

6 incredible digital marketing techniques every business must use

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Marketing acts as the heart of your business as the success of your company lies in the accomplishment of marketing targets. A successful marketing campaign determines the value aspects of your business. The ultimate marketing umbrella covers promotions, advertising, public relations and sales of a business.

It’s important to understand the various methods of marketing to carry out an exemplary approach towards the potential prospects. Without marketing, none of your potential consumers would know about your services and products. Your sales may crash and company may get closed if the marketing process doesn’t work out.

For a business to get successful, the service or the product it offers must be known to its potential buyers. You need to establish a connection with the social community in order to classify the potential prospects and target them accordingly. It requires unique marketing strategies as you may not be the only business to provide such service or product.

Marketing is a phenomenon of introducing and promoting a service or product to the potential consumers/clients. It is an integral way to establish brand awareness, brand loyalty and strong customer relationship. The increasing competition of businesses and companies to prospect potential targets before their rivals have influenced various marketing techniques.

Here’s a list of incredible marketing methods that can bring a lot of leads to boost your business-

  1. Email Marketing

Email Marketing is the most-practised digital marketing method in business world. It’s not about spamming people by buying B2B database and lists that are even accessible by your rivals. Email marketing can be done with an exemplary approach if the method is accurately implemented. It’s about informing the valuable prospect about your product or service with his/her prior permission and then sending quality content tailored according to the person’s interests.

Email marketing is a powerful method of marketing as it makes you virtually stand in front of your potential customer with the information of your product/service tailored in an attractive way, and allows you to gain the prospect’s attention in order to convert him into actual consumer.

All you need is a genuine database or lists of email IDs of potential prospect companies or individuals that you want to target, create quality content and approach them with an email. If your content is creative enough to explain your product’s/service’s uniqueness and relevance to customer’s need, the chances of getting conversion becomes high.

Once you have successfully approached the potential target, you need to drive his attention towards your product’s quality or your service’s convenience in order to convince him to perform a transaction. As a result, you will successfully receive an order for your product/service progressively increasing the sales of your business.

Email marketing results largely depend upon the lists that you’ve bought or you’ve created as it needs to encompass correct and genuine prospects data. Generate leads through e-mail prospecting and create marketing targets as per the number of email IDs, distribute the tasks amongst your team and stay open for upcoming enquiries from valuable customers to perform the email marketing technique effectively.

  1. SEO Marketing

Your website on the internet itself acts as the biggest tool for digital marketing. You need to carry out Search Engine Optimisation (SEO) technique to boost your website visibility in order to gain as much as attention on the world wide web. SEO marketing has emerged as the most practised marketing method on the digital platform.

SEO is the best source of increasing your website visibility. It helps in increasing your website traffic by optimising your content on search engine result page (SERP) when a user searches for an item online. It uses the keyword content of your website relevant to the search and positions your website link on the SERP. The user gets directed on your landing page and access your content.

As an effective marketing strategy, you need to consider how search engines work according to the actual keywords, what people search for and which search engines are preferred by the demographics. It involves editing your web content as per the keywords and HTML coding to increase its relevance with user’s search as well as removal of unwanted barriers in search engines’ index.

Google is the dominating search engine of the digital world. It operates certain metrics to determine SEO rankings of popular websites. You need to follow Google metrics to maintain your website ranking as it increases the chances of the user ending up on your website rather than your competitor’s landing page.

SEO tactics like increasing the number of backlinks, co-citation links, editorial links; analysing keyword popularity, link outreach; and keyword stuffing help to build a strong search engine presence. The most important factor influencing SEO is the quality of your content and its relevance to local searches.

  1. Content Marketing

The digital marketing method involves content marketing as one of the significant drivers. The quality of your content and its subject to the truth is what triggers the user to engage on your website. Content marketing helps in building trust and brand loyalty through offering solution and information credibility to the website visitors.

You will need to demonstrate expertise through blog and articles writing provided with relevant information. The blog post should consist of applicable keywords in order to bring more traffic to draw in visitors. You can use SEO methods to find out what are the terms that drive traffic on your website as well as what your audience is searching on.

Blogs are a great place to put Call to Action (CTA) buttons. Unique content with absolute information helps in engaging the reader and it increases the chance of conversion. The more content you put, the more exposure is created. The increased visibility of your website is expected providing better prospection results.

  1. Social Media Marketing

Engaging on Social Media for lead generation is one of the most important pillars of digital marketing. The use of social media networks is immensely expanding in today’s world. The young-age population of the world is highly active on social media which has opened floodgates for businesses to engage with their target consumers.

According to a study, Social Media Marketing has effectively reduced costs for 45% of businesses. 24% of businesses who utilise social media for lead generation have witnessed increase in their revenue. Social Media is a huge platform for marketers to advertise and promote their products/services.

Driving valuable leads from LinkedIn, Facebook, Twitter and other social media networks is becoming the new trend of marketing. Sponsored posts increases the visibility and helps the marketers to achieve more leads. You need to identify and further classify the target audience on social media networks according to their location, interests, key sector, etc.

Once you’ve classified your target audience, you can directly approach them with your offerings turning them into your client. Facebook and Twitter are the most used social media platforms on the internet and one can’t afford to ignore the enormous scope of marketing.

It becomes easier for the customers to connect with you when you’re on social media. As a result, you can create a strong relationship with your customers. Not only you can solve their queries but also you can get feedbacks about your products. This helps you to regulate brand awareness and maintain the loyalty with valuable customers to build strong relationships with them.

  1. Mobile Marketing

Mobile marketing is an advanced marketing technique progressively involving all aspects of digital marketing and providing time and location sensitive, personalised information about your product/service directly to the potential target using the mobile phone as the medium.

The global technological upgradation has enabled the use of advance smartphones and tablets as well as other handheld devices. World population use such devices as their basic mean of communication. Mobile phones have become an essential part of human life and we are dependent on them for various needs.

Internet enabled smartphones and tablets have boosted mobile marketing on a large scale. Apart from tele-sales, telemarketing and SMS marketing; advertising on mobile apps, providing exclusive offers and discount vouchers, targeting location-based prospects, etc. are the different mobile marketing methods that have influenced the marketers.

Mobile Marketing holistically involves content marketing, SEO and Social Media is well. The internet-active population largely use their mobile phones for accessing the web. It enables you to provide time and location sensitive, personalised content about your product/service which is an exemplary approach towards the prospect and increases the chances of conversion.

MMS marketing, app-based marketing, in-game mobile marketing, QR codes, proximity marketing, location-based marketing, voice mails, etc. are the different aspects of mobile marketing that you can utilise. The best thing about mobile marketing is that it works through an user-controlled media, which means that the potential customer allows you to execute marketing with his/her consent.

  1. Analytical Marketing

The analysis of marketing channels performance and strategizing accordingly for better prospecting can be termed as analytical marketing. It involves detailed research and analysis of the community of your customers that you have created on social media or on your own website. It also studies all the digital marketing channels collecting testimonials, feedbacks and reviews about your product and services.

Analytical Marketing is more than a marketing technique, it’s an essential step involved in overall marketing process. You necessarily need to perform analysis of your marketing campaign in order to decide and plan your next marketing campaign. It can also be termed as remarketing.

Google provides certain metrics to analyse your SEO and website ranking. The number of likes, comments and shares on Facebook, retweets and followers on Twitter, views and likes on Youtube, etc. are the basic analytics on Social Media. The social media platforms also provide their own analytics that can be accessed by sponsorship or premium membership.

Analytical marketing also involves the analysis of changing behaviour of consumers and their relevance to your product/service. Basically, it helps you to understand the impact of your previous marketing campaign, giving you the information about changing aspects in the market and allows you to plan your remarketing accordingly. The marketing process involves analytics as an essential step which can’t be overlooked at all.