Fibre2Fashion Magazine June 2018 June 2018

Beat INDIA Walmart to pay $16 billion to acquire 77% share in Flipkart Walmart president and CEO Doug McMillon (left) with Binny Bansal, Flipkart’s co-founder and group CEO. Pic courtesy: Walmart In what is termed as the biggest global e-commerce buyout so far, Walmart Inc. has signed definitive agreements to become the largest shareholder in Flipkart Group, India’s innovative e-commerce company. The investment will help accelerate Flipkart’s customer-focused mission to transform commerce in India through technology and underscores Walmart’s commitment to sustained job creation and investment in India. Walmart will pay approximately $16 billion for an initial stake of GST GST Council unveils new return filing process Indian finance minister Arun Jaitley (right) chairing the 27th GST Council Meeting, via video conference. Pic courtesy: PIB The Goods and Services Tax (GST) Council, at its 27th meeting, has unveiled a new simplified return filing process. The new system, which will come into effect in six months, will require a taxpayer to file only one return every month. However, composition dealer and zero-transaction dealers will have to file returns on a quarterly basis. The Council also approved making the GST-Network (GSTN) a government entity by allowing the regime to take over the stake held by private entities. While the Central government will own 10 | FIBRE 2 FASHION JUNE 2018 approximately 77 per cent in Flipkart, subject to regulatory approval in India. The remainder of the business will be held by some of Flipkart’s existing shareholders, including Flipkart co-founder Binny Bansal, Tencent Holdings Limited, Tiger Global Management LLC and Microsoft Corp. “Our investment will benefit India providing quality, affordable goods for customers, while creating new skilled jobs and fresh opportunities for small suppliers, farmers and women entrepreneurs,” said Doug McMillon, 50 per cent of the GSTN, the remainder will be owned collectively by the states. The GSTN is a company that provides the IT backbone for the GST. At present, the Central government has 24.5 per cent ownership, and the state governments collectively own another 24.5 per cent. The remaining 51 per cent is with five financial institutions, viz HDFC Ltd, HDFC Bank, ICICI Bank, the NSE Strategic Investment Company and LIC Housing Finance Ltd. POLICY Indian government extends MEIS rate at 4% beyond June 30 The Directorate General of Foreign Trade (DGFT), under the ministry of commerce and industry, Government of India, has extended the incentive at 4 per cent under the Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20), beyond June 30, 2018. The MEIS incentive under Foreign Walmart’s president and chief executive officer. “This investment is of immense importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India,” said Binny Bansal, Flipkart’s co-founder and group chief executive officer. While Walmart and Flipkart will leverage the combined strengths of both companies, they will maintain distinct brands and operating structures. Post signing the agreements, Walmart Inc has sought approval from Competition Commission of India (CCI) for its proposed acquisition of 77 per cent stake in Flipkart. Walmart said it will buy stake from most of Flipkart’s investors including SoftBank Group, Accel Partners, Naspers and Ebay Inc through its subsidiary Wal-Mart International Holdings. In its filing with the CCI, Walmart said that its proposed buying of majority share in Flipkart does not create any competition concerns. Trade Policy of India (FTP 2015-20) was valid from November 1, 2017 to June 30, 2018, as per earlier Public Notices issued by the DGFT. Welcoming the extension of MEIS on garments and madeups beyond June 2018, Apparel Export Promotion Council (AEPC) Chairman HKL Magu said, “The extension in MEIS scheme has given us a breather and sanction of our request to ensure that all embedded, non-reimbursed Central and state levies be refunded which will help in restoring the competitiveness of Indian exports. This will enable us to increase India’s share in the world market and given our high employment intensity, create significant employment opportunities across India.” The continuance of MEIS rate at 4 per cent beyond June 30, 2018 is “a major relief to the exporting units who used to take up orders six months back normally,” said Tiruppur Exporters Association (TEA) president Raja M Shanmugham.

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