You can now buy US stocks such as Facebook, Apple and Google on NSE

You can now buy US stocks such as Facebook, Apple and Google on NSE

The NSE IFSC will be the first in the world to allow Indian retail investors to trade stocks in the United States. “Unsponsored depository receipts will be used to make the offering.”

The NSE International Exchange (NSE IFSC), a wholly-owned subsidiary of the National Stock Exchange (NSE), said on August 9 that it will shortly begin trading in select US companies.

The NSE IFSC platform would be used to enable the trading, according to a press release “Unsponsored depository receipts will be used to make the offering. Under the Regulatory Sandbox, IFSCA has made this possible.”

The entire trading, clearing, settlement, and holding of US stocks will be governed by the IFSC authority’s regulatory system.

“This effort is a first of its type at IFSC, where Indian retail investors will be allowed to transact on the NSE IFSC platform within the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS) limits,” NSE IFSC stated.

The RBI’s LRS framework, for example, allows residents to remit up to $250,000 per fiscal year for any allowed current or capital account transaction.

“The business model offered by NSE IFSC will not only provide additional investment opportunities to Indian investors but will also make the entire investing procedure simple and inexpensive,” the stock exchange noted.

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When compared to the underlying shares traded in US markets, investors will be able to trade in fractional quantities/values, according to the company.

The new structure will make US stocks more accessible to Indian ordinary investors, according to the NSE IFSC.

The NSE IFSC Clearing Corporation Limited (NICCL) will provide a solid risk management framework, enabling clearing and settlement of all trades in depository receipts, and provide settlement assurance for all trades performed on the NSE IFSC platform, according to the company. Furthermore, all trades will be protected by the NSE IFSC’s investor protection structure.

According to the announcement, investors will be able to keep the depository receipts in “their own Demat accounts formed in GIFT City” and will be eligible for corporate action benefits related to the underlying stock.

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NSE IFSC will release operational information soon and will launch the product as soon as feasible, according to the company, which also stated that depositories, banks, and brokers have already begun working with NSE IFSC to make these investment products available to Indian customers.

The introduction of trading in US stocks through NSE IFSC, according to Vikram Limaye, MD and CEO of NSE, will be one of the stock exchange’s important achievements.

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Refiling Incorrect Nil GST Refund Application

Till the presentation of GST into the Indirect Taxation System, the happening of blunders in the filing methods has been a normal situation. Among these situations, one such situation that has been of most extreme worry for the Taxpayers is incorrect Nil GST Refund application, wherein the taxpayer had a real refund guarantee for the given time frame yet no choice of re-filing was accessible.

Understanding real hardship to taxpayers, CBIC has given a Circular No. 110/29/2019 – GST dated third October 2019, wherein it gave an alternative to re-file refund application if taxpayer has accidentally filed NIL GST refund application.

What Is Incorrect NIL GST Refund Application?

While filing refund application GST RFD-01/1A for a particular classification and period, the enlisted individual is shown a message through a popup box to file NIL refund for the given time frame. Also, with the absence of data/information about such option, taxpayers frequently incidentally file a NIL refund application in GST RFD-01/01A for the period during which they were really qualified for refund. Such filings are considered as incorrect NIL GST refund. To add more to the taxpayer’s predicament, when an application is filed on the GST portal, the choice to re-file such application isn’t available.

Along these lines, upon demands through different representations, the board, upon definite examination of the issue, has chosen to enable such taxpayers to re-file the application, just for the particular time and under that particular category for which the incorrect case was filed.

But, while settling the issue, so as to guarantee the validity of the case, the board has set down two conditions to be fulfilled by a taxpayer, before he can apply for the refund.

Conditions For Refiling Accidental NIL GST Refund Application

CBIC is explained vide circular that if an enlisted individual has filed “NIL” refund application for a period under a specific category then he may re-file for a similar period under same classification just in the case that he fulfills below 2 conditions:

Condition-1: Such individual has already filed a NIL refund application for such period.

Condition-2*: Registered individual has not filed refund application under such category during any consequent period.

* Condition-2 will apply for refund claims falling under below categories:

  • Refund of unutilized input tax credit (ITC) in case of exports without pay of tax;
  • Refund of unutilized ITC if there should be an occurrence of provisions made to SEZ Unit/SEZ Developer without payment of tax;
  • Refund of unutilized ITC by virtue of accumulation because of modified tax structure;

How To Re-File Refund Application?

If the given taxpayer fulfills the previously mentioned conditions, he is qualified to refile for his refund as below:

So as to re-file the Refund application, the taxpayer will be required to file the application under “Some other” category rather than NIL for example the category under which the original “NIL” GST RFD-01/01A was filed.

The filed GST RFD-01/01A ought to relate to a similar period for which NIL refund application was filed.

The application will be accompanied with all supporting records, which is generally required to guarantee a refund.

Methodology Of Granting Refund

Once the approved office gets the application for a refund, he is required to ascertain the permissible amount according to relevant arrangements given in para 3 of Circular No.59/33/2018-GST dated 04.09.2018 (wherever applicable).

Upon detailed examination of the application, if the approved official acknowledges the entire or any piece of the amount asserted as payable for refund, in such case he will request the taxpayer in writing to charge such amount from his electronic credit record through FORM GST DRC-03.

Once the evidence of such debit is received by the best official, he will issue the refund and payment order in form GST RFD-06 and form GST RFD-05, respectively.

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