Frequently Asked Questions (FAQs) on Goods and Services Tax (GST)

Following are the answers to the various frequently asked questions relating to GST:

Question 1.What is GST? How does it work?

Answer: GST is one indirect tax for the whole nation, which will make India one unified common market.

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

Question 2. What are the benefits of GST?

Answer:The benefits of GST can be summarized as under:

·         For business and industry

o   Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy and transparent. 

o   Uniformity of tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business.

o   Removal of cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.

o   Improved competitiveness: Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.

o   Gain to manufacturers and exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.

·         For Central and State Governments

o        Simple and easy to administer: Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far.

o        Better controls on leakage: GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of GST that would incentivize tax compliance by traders.

o        Higher revenue efficiency: GST is expected to decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency.

·         For the consumer

o        Single and transparent tax proportionate to the value of goods and services: Due to multiple indirect taxes being levied by the Centre and State, with incomplete or no input tax credits available at progressive stages of value addition, the cost of most goods and services in the country today are laden with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer, leading to transparency of taxes paid to the final consumer.

o        Relief in overall tax burden: Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.

Question 3.  Which taxes at the Centre and State level are being subsumed into GST?

Answer:                  

At the Central level, the following taxes are being subsumed:

a.       Central Excise Duty,

b.      Additional Excise Duty,

c.       Service Tax,

d.      Additional Customs Duty commonly known as Countervailing Duty, and

e.       Special Additional Duty of Customs.

At the State level, the following taxes are being subsumed:

a.       Subsuming of State Value Added Tax/Sales Tax,

b.      Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),

c.       Octroi and Entry tax,

d.      Purchase Tax,

e.       Luxury tax, and

f.       Taxes on lottery, betting and gambling.

Question 4.  What are the major chronological events that have led to the introduction of GST?

Answer: GST is being introduced in the country after a 13 year long journey since it was first discussed in the report of the Kelkar Task Force on indirect taxes. A brief chronology outlining the major milestones on the proposal for introduction of GST in India is as follows:

a.         In 2003, the Kelkar Task Force on indirect tax had suggested a comprehensive Goods and Services Tax (GST) based on VAT principle.

b.         A proposal to introduce a National level Goods and Services Tax (GST) by April 1, 2010 was first mooted in the Budget Speech for the financial year 2006-07.

c.         Since the proposal involved reform/ restructuring of not only indirect taxes levied by the Centre but also the States, the responsibility of preparing a Design and Road Map for the implementation of GST was assigned to the Empowered Committee of State Finance Ministers (EC).

d.        Based on inputs from Govt of India and States, the EC released its First Discussion Paper on Goods and Services Tax in India in November, 2009.

e.         In order to take the GST related work further, a Joint Working Group consisting of officers from Central as well as State Government was constituted in September, 2009.

f.          In order to amend the Constitution to enable introduction of GST, the Constitution (115th Amendment) Bill was introduced in the Lok Sabha in March 2011. As per the prescribed procedure, the Bill was referred to the Standing Committee on Finance of the Parliament for examination and report.

g.         Meanwhile, in pursuance of the decision taken in a meeting between the Union Finance Minister and the Empowered Committee of State Finance Ministers on 8th November, 2012, a ‘Committee on GST Design’, consisting of the officials of the Government of India, State Governments and the Empowered Committee was constituted.

h.         This Committee did a detailed discussion on GST design including the Constitution (115th) Amendment Bill and submitted its report in January, 2013. Based on this Report, the EC recommended certain changes in the Constitution Amendment Bill in their meeting at Bhubaneswar in January 2013.

i.           The Empowered Committee in the Bhubaneswar meeting also decided to constitute three committees of officers to discuss and report on various aspects of GST as follows:-

(a)      Committee on Place of Supply Rules and Revenue Neutral Rates;

(b)      Committee on dual control, threshold and exemptions;

(c)      Committee on IGST and GST on imports.

j.           The Parliamentary Standing Committee submitted its Report in August, 2013 to the Lok Sabha. The recommendations of the Empowered Committee and the recommendations of the Parliamentary Standing Committee were examined in the Ministry in consultation with the Legislative Department. Most of the recommendations made by the Empowered Committee and the Parliamentary Standing Committee were accepted and the draft Amendment Bill was suitably revised.

k.         The final draft Constitutional Amendment Bill incorporating the above stated changes were sent to the Empowered Committee for consideration in September 2013.

l.           The EC once again made certain recommendations on the Bill after its meeting in Shillong in November 2013. Certain recommendations of the Empowered Committee were incorporated in the draft Constitution (115th Amendment) Bill. The revised draft was sent for consideration of the Empowered Committee in March, 2014.

m.       The 115th Constitutional (Amendment) Bill, 2011, for the introduction of GST introduced in the Lok Sabha in March 2011 lapsed with the dissolution of the 15th Lok Sabha. 

n.         In June 2014, the draft Constitution Amendment Bill was sent to the Empowered Committee after approval of the new Government.

o.         Based on a broad consensus reached with the Empowered Committee on the contours of the Bill, the Cabinet on 17.12.2014 approved the proposal for introduction of a Bill in the Parliament for amending the Constitution of India to facilitate the introduction of Goods and Services Tax (GST) in the country.  The Bill was introduced in the Lok Sabha on 19.12.2014, and was passed by the Lok Sabha on 06.05.2015. It was then referred to the Select Committee of Rajya Sabha, which submitted its report on 22.07.2015.

Question 5.How would GST be administered in India?

Answer:Keeping in mind the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.

Question 6.How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?

Answer :The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of Central Excise.

         

          A diagrammatic representation of the working of the Dual GST model within a State is shown in Figure 1 below.

Figure 1: GST within State

Question 7.Will cross utilization of credits between goods and services be allowed under GST regime?

Answer :Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross utilization of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST model which is explained in answer to the next question.

Question 8.How will be Inter-State Transactions of Goods and Services be taxed underGST in terms of IGST method?

Answer:In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution. The IGST would roughly be equal to CGST plus SGST. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another. The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit of IGST, CGST and SGST on his purchases (in that order). The exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The importing dealer will claim credit of IGST while discharging his output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST.Since GST is a destination-based tax, all SGST on the final product will ordinarily accrue to the consuming State.

                                 A diagrammatic representation of the working of the IGST model for inter-State transactions is shown in Figure 2 below.

Figure 2

Question  9.How will IT be used for the implementation of GST?

Answer:For the implementation of GST in the country, the Central and State Governments have jointly registered Goods and Services Tax Network (GSTN) as a not-for-profit, non-Government Company to provide shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders. The key objectives of GSTN are to provide a standard and uniform interface to the taxpayers, and shared infrastructure and services to Central and State/UT governments.

                                 GSTN is working on developing a state-of-the-art comprehensive IT infrastructure including the common GST portal providing frontend services of registration, returns and payments to all taxpayers, as well as the backend IT modules for certain States that include processing of returns, registrations, audits, assessments, appeals, etc. All States, accounting authorities, RBI and banks, are also preparing their IT infrastructure for the administration of GST.

                                

                                 There would no manual filing of returns. All taxes can also be paid online. All mis-matched returns would be auto-generated, and there would be no need for manual interventions. Most returns would be self-assessed.

Question 10.How will imports be taxed under GST?

Answer :The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods.

Question 11.What are the major features of the Constitution (122^nd Amendment) Bill, 2014?

Answer :The salient features of the Bill are as follows:

g.      Conferring simultaneous power upon Parliament and the State Legislatures to make laws governing goods and services tax;

h.      Subsuming of various Central indirect taxes and levies such as Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs;

i.        Subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling;

j.        Dispensing with the concept of ‘declared goods of special importance’ under the Constitution;

k.      Levy of Integrated Goods and Services Tax on inter-State transactions of goods and services;

l.        GST to be levied on all goods and services, except alcoholic liquor for human consumption. Petroleum and petroleum products shall be subject to the levy of GST on a later date notified on the recommendation of the Goods and Services Tax Council;

m.    Compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period of five years;

n.      Creation of Goods and Services Tax Council to examine issues relating to goods and services tax and make recommendations to the Union and the States on parameters like rates, taxes, cesses and surcharges to be subsumed, exemption list and threshold limits, Model GST laws, etc. The Council shall function under the Chairmanship of the Union Finance Minister and will have all the State Governments as Members.

Question 12.What are the major features of the proposed registration procedures under GST?

Answer:The major features of the proposed registration procedures under GST are as follows:

                    i.            Existing dealers: Existing VAT/Central excise/Service Tax payers will not have to apply afresh for registration under GST.

                  ii.            New dealers: Single application to be filed online for registration under GST.

                iii.            The registration number will be PAN based and will serve the purpose for Centre and State.

                iv.            Unified application to both tax authorities.

                  v.            Each dealer to be given unique ID GSTIN.

                vi.            Deemed approval within three days.

              vii.            Post registration verification in risk based cases only.

Question 13.What are the major features of the proposed returns filing procedures under GST?

Answer:The major features of the proposed returns filing procedures under GST are as follows:

a.       Common return would serve the purpose of both Centre and State Government.

b.      There are eight forms provided for in the GST business processes for filing for returns. Most of the average tax payers would be using only four forms for filing their returns. These are return for supplies, return for purchases, monthly returns and annual return.

c.       Small taxpayers: Small taxpayers who have opted composition scheme shall have to file return on quarterly basis.

d.      Filing of returns shall be completely online. All taxes can also be paid online.

Question 14.What are the major features of the proposed payment procedures under GST?

Answer:The major features of the proposed payments procedures under GST are as follows:

                                i.            Electronic payment process- no generation of paper at any stage

                              ii.            Single point interface for challan generation- GSTN

                            iii.            Ease of payment – payment can be made through online banking, Credit Card/Debit Card, NEFT/RTGS and through cheque/cash at the bank

                            iv.            Common challan form with auto-population features

                              v.            Use of single challan and single payment instrument

                            vi.            Common set of authorized banks

                          vii.            Common Accounting Codes

Sensex dives 284 pts on global cues; mkts cautious over GST

Mumbai, Aug 3 (PTI) Extending downward trend for the fourth session, benchmark BSE Sensex plunges over 284 points to end at a three-week low of 27,697.51 and NSE Nifty cracked below the 8,600-mark on lacklustre global cues and a caution ahead of the decision on the landmark GST bill.

Market sentiment was weighed down by weakness prevailing across global markets as Japan's economy-boosting stimulus package disappointed investors. Investors started cutting down their bets amid caution over passage of the long-pending GST bill in the Rajya Sabha, which has been moved for a consideration today.

The BSE Sensex resumed higher, but profit booking later on dragged it down to the negative zone, which ended lower by 284.20 points, or 1.02 per cent, at 27,697.51, its lowest level since July 11. It had fallen by 604.651 points on June 24, 2016.

The gauge had lost 226.89 points in the previous three sessions.

The 50-share NSE Nifty shed 78.05 points, or 0.91 per cent, to end well below the 8,600-mark at 8,544.85, after moving between 8,635.45 and 8,529.60.

As many as 25 Sensex stocks closed with losses, including Tata Motors, ITC Ltd, Maruti Suzuki, Power Grid, L&T, Reliance Industries, Hindustan Unilever, Lupin, Bajaj Auto, ICICI Bank, TCS, HDFC Ltd and Dr Reddy's.

However, Cipla, Asian Paints, Sun Pharma and Coal India notched up gains, which capped the fall.

Among sectoral indices, realty suffered the most by falling 2.15 per cent, followed by FMCG 2.04 per cent, capital goods 1.74 per cent, consumer durables 1.73 per cent, power 1.71 per cent and auto 1.70 per cent.

The broader markets too remained under pressure, with the BSE mid-cap index declining 1.50 per cent and the small-cap index shedding 1.14 per cent.

Foreign portfolio investors (FPIs) bought shares worth Rs 536.27 crore yesterday, provisional data showed.

Globally, Asian bourses fell the most in five weeks as a disapointing Japanese stimulus package and oil below USD 40 a barrel renewed concern the global economic recovery is faltering.

For the day, benchmark indices in Japan, Hong Kong and Singapore ended lower by up to 1.88 per cent.

European markets were showing a mixed trend in their early session with key indices in France's Paris CAC declining, while the UK's FTSE and Germany's rising 0.25 per cent.

Rajnath arrives in Pak to participate in SAARC meeting

 Islamabad, Aug 3 (PTI) Home Minister Rajnath Singh today arrived here to attend the SAARC Interior Ministers' conference tomorrow during which he is expected to raise the issue of most wanted terrorist Dawood Ibrahim and cross border terrorism.

Accompanied by a delegation comprising officials from his ministry and external affairs, Singh, who is on his maiden visit to Pakistan, will be underlining the need for meaningful cooperation among the South Asian countries.

Before leaving for Islamabad to attend the day-long SAARC Home Ministers Conference, the Home Minister said he was "looking forward to underscore the imperative of meaningful cooperation within the region against terrorism and organised crime." 

"This Conference provides a platform to discuss issues pertaining to security," said Singh, who is expected to tell Pakistan to stop sponsoring terror in India and rein in groups like Lashker-e-Taiba and Jaish-e-Mohammed.

Singh's visit comes notwithstanding threat by LeT founder Hafiz Saeed, who warned of a countrywide protest in Pakistan by his outfit if Singh arrives in Islamabad to attend the SAARC ministerial conference.

Tomorrow's meeting is preceded by the 7th Meeting of the SAARC Interior/Home Secretaries which is being held today. The Union Home Secretary Rajiv Mehrishi, who is leading the Indian delegation, arrived here yesterday.

There is little possibility of Singh having a bilateral meeting with his Pakistani counterpart Chaudhry Nisar Ali Khan in the wake of strain in Indo-Pak relations after the killing of Hizbul Mujahideen militant Burhan Wani in Jammu and Kashmir on July 8.

Not only did Pakistan Prime Minister Nawaz Sharif praise Wani but he also remarked that "Kashmir will one day become Pakistan", a comment which evoked a sharp reaction from External Affairs Minister Sushma Swaraj, who said his dream of the state becoming a part of his country "will not be realised even at the end of eternity".

Apart from terrorism, other key issues to be discussed include liberalisation of visa, illegal trafficking in narcotic drugs, psychotropic substances and small arms and how to make coordinated and concerted efforts to combat such menace.

The three-tier meeting began at the joint secretary-level and then moves on to Secretary and Home Minister-level meetings.

The focus of the meeting will also be on strengthening networking among police forces of SAARC member-countries and also enhance information-sharing among law enforcement agencies.

Japan warns China over territorial aggression

 Tokyo, Aug 2 (AFP) Beijing risks triggering unintended conflict with Asian rivals through its aggressive stance in maritime disputes, Japan warned today in an annual security assessment.

China's sweeping claims over the strategic South China Sea, where it has built a series of artificial islands capable of supporting military operations despite overlapping claims from other nations, have stoked international alarm.

The region's superpower "continues to act in an assertive manner" and its actions "include dangerous acts that could cause unintended consequences," Tokyo said in a defence white paper.

Beijing is under pressure to respect a UN-backed tribunal's finding last month that there is no legal basis for its ambitions over the resource-rich South China Sea where the Philippines, Vietnam, Malaysia and others also lay claims.

The white paper said China was "poised to fulfill its unilateral demands without compromise" including efforts "to turn these coercive changes to the status quo into a fait accompli".

And it again called on Beijing to abide by the ruling of the tribunal, which China has denounced as a fraud.

Japan also expressed concern over increased activity in the East China Sea, where the two countries have competing claims over a group of small uninhabited islets called the Senkaku in Japan and the Diaoyu in China.

"Recently, China has been intensifying activities near the Senkaku Islands, such as its military aircraft flying southward closer to the islands," it said.

In the year to March 2016, Japan's air force scrambled jets 571 times against Chinese planes flying near Japanese air space, an increase of 107 from the previous year, it added.

In June Japan accused China of sending a spy ship into its territorial waters as Tokyo conducted a joint exercise with the US and India.

And last month the two countries were at loggerheads over accusations Japanese warplanes locked their fire control radar onto Chinese aircraft.

Beijing sparked alarm after it unilaterally established an air defence identification zone in the East China Sea in 2013, demanding all aircraft submit flight plans when traversing the zone which covers islands disputed with Tokyo and also claimed by Taipei.

US Defence Secretary Ashton Carter said in February that China's military presence in the South China Sea was increasing the risk of "miscalculation or conflict" between regional countries.

A US warship in May sailed close to a disputed reef Beijing has built up into an artificial island, prompting China to express "dissatisfaction and opposition".

Japan's white paper also highlighted concerns over North Korea's nuclear programme, saying it was possible it has "achieved the miniaturisation of nuclear weapons and has developed nuclear warheads".

Since carrying out a fourth nuclear test in January, North Korea has claimed it miniaturised a nuclear warhead to fit on a missile and successfully tested an engine designed for an inter-continental ballistic missile that could reach the US mainland.

Sensex slips for 3rd day ahead of GST debate, Europe hurts

 Mumbai, Aug 2 (PTI) Market continued to struggle for direction on Tuesday as the Sensex cracked below 28,000 to close at a one-week low as investors stayed cautious ahead of GST debate in the Rajya Sabha on Wednesday amid weak European cues.

Broader markets did not show enough appetite either, with the BSE small-cap and mid-cap indices ending lower by 0.83 per cent and 0.62 per cent, respectively.

Earlier, the market opened in the green on the back of pick-up in eight core industries in June, an uptick in manufacturing PMI along with rising hopes of GST Bill passage this week.

The government on Monday listed the constitutional amendment Bill for GST for consideration and passage in the Upper House on Wednesday amid strong indications that the most far-reaching tax reform in independent India would be backed by the Congress and other major parties.

Infrastructure sector grew at 5.2 per cent in June, fastest in two months, mainly helped by a double-digit growth in coal and cement sectors.

India's weather office IMD keeping its above-average forecast for June to September too gave some cheer.

But that was short-lived as sentiment turned negative after European shares slipped to their two-week low in early session, mirroring a weak trend in Asia and falling crude prices, dealers said.

On the day, the Sensex resumed higher, but settled 21.41 points, or 0.08 per cent, down at 27,981.71, a level last seen on July 26. The gauge had lost 205.48 points in the past two sessions.

The NSE Nifty too took some blows as it dropped by 13.65 points, or 0.16 per cent, to close at 8,622.90. It moved between 8,687.20 and 8,611.40.

Tata Motors, with a loss of 2.80 per cent, was the worst hit from the Sensex pack followed by HDFC at 2.37 per cent.

Others that came under selling pressure included Adani Ports, Bharti Airtel, ICICI Bank, GAIL, Wipro, Cipla, Lupin, Coal India, Sun Pharma, M&M and Tata Steel.

However, ITC rose 3.73 per cent followed by Maruti Suzuki (2.49 per cent) after the company raised prices by up to Rs 20,000 across various models.

Out of the 30-share Sensex pack, 18 fell while 12 gained.

State-run Indian Bank soared almost 20 per cent to Rs 186.20 after the company reported rise of about 43 per cent in net profit for the April-June quarter.

Talking of sectoral indices, metal dropped the most by 1.78 per cent, followed by realty 1.18 per cent, infrastructure 0.87 per cent, power 0.84 per cent and healthcare 0.80 per cent.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 726.22 Monday, as per provisional data released by the stock exchanges.

Key regional markets hit a soft patch as indices in Japan and Singapore fell by up to 1.47 per cent while financial markets in Hong Kong were shut due to Nida typhoon.

In Europe, France, Germany and the UK-based indices fell by up to 1.42 per cent. .

Govt to evacuate jobless Indians facing financial crunch in Saudi Arabia

 New Delhi, Aug 1 (PTI) A large number of Indian workers in Saudi Arabia who have lost their jobs and cannot even buy food due to severe financial hardship will be brought back home, External Affairs Minister Sushma Swaraj said, asserting that not one of them will go hungry.

In a statement in Parliament amid concerns by members in Lok Sabha and Rajya Sabha, Swaraj said her deputy V K Singh is leaving for Saudi Arabia to oversee the evacuation process.

She said the Indian embassy in the Gulf nation was running five camps to feed the affected people.

"Not one worker of ours will go hungry. This is my assurance to the country through Parliament... We will bring all of them back to India," Swaraj said.

Issues like logistics and modalities of a possible repatriation of the workers who want to return to India will be worked out during Singh's visit.

Official sources said approximately 10,000 Indian workers have been affected by the economic slowdown in the Gulf and the situation was "fluid and dynamic". They said the situation varied from company to company.

Sources said 3,172 Indian workers in Riyadh have not been paid their salary dues for several months but are getting regular rations.

Separately, 2,450 Indian workers belonging to the Saudi Oger Company are housed in five camps in Jeddah, Mecca and Taif. Since July 25, the company had stopped providing meals to the workers besides defaulting on their salaries, the sources said.

The Indian Consulate in Jeddah, with the assistance of the diaspora, has provided rations to the workers which should be sufficient for the next 8 10 days, they said.

The government, Swaraj said, was in touch with the foreign and labour offices in Saudi Arabia to ensure early evacuation of affected Indians.

Swaraj noted that the law there does not permit an emergency exit visa without no objection certificate from the employers who, she said, have shut their factories and left the country, leaving these employees stranded.

The government has requested the Saudi authorities to give them exit visas without NoC from employers and also urged it to clear the dues of workers who have not been paid for months, whenever they settle the accounts with the companies concerned. .

Anandiben offers to quit as Guj CM, BJP Par Board to decide on replacement: Shah

 Ahmedabad/New Delhi, Aug 1 (PTI) In a sudden move ahead of Assembly polls, Gujarat Chief Minister Anandiben Patel, who is in the midst of several challenges, today offered to resign, saying it was time for new leadership to take over since she is soon going to turn 75.

During Patel's over two-year-old tenure, the BJP for the first time in the post-Narendra Modi era in Gujarat has faced multiple challenges including defeat in rural areas in the civic polls, a powerful agitation by Patel community for OBC quota and the ongoing Dalit unrest over the flogging incident after the skinning of a dead cow in Una.

BJP President Amit Shah said the party's Parliamentary Board will decide on the replacement for Patel, who will turn 75 on November 21 and is the first woman chief minister of Gujarat. "She has requested the party to relieve her of her post. I will place the letter she has written to me before the Parliamentary Board and it will take a decision," Shah told PTI in Delhi.

Patel took to Facebook to request the party leadership to relieve her of the post though speculation has been rife for quite some time that she is on the way out. Elections are due in later part of 2017.

An unwritten age bar of 75 has been set by Prime Minister Narendra Modi for the BJP leaders to hold positions in state and central governments. A minister in the BJP government since 1998, Patel succeeded Modi as Chief Minister on May 22, 2014.

"For the last some time there has been a tradition in the party that those who attain the age of 75, voluntarily retires from the post. I will attain the age of 75 in November," Patel said in the Facebook post.

"Two months ago I had requested the party to relieve me from the post and today also through this letter, I request the party to relieve me of the post," she said.

"I am asking the party to relieve me two months in advance as the new chief minister will require the time to work, when the state is going to face elections in 2017 and an important event like Vibrant Gujarat Summit to be held in January," Patel said.

"It (the rule of 75) is a good thing and it will give a chance to young leaders to come up," she added.

Narsingh cleared of doping charges, set for Rio Olympics

 New Delhi, Aug 1 (PTI) In a sensational turnaround, Narsingh Yadav was today exonerated of doping charges by the National Anti-doping Agency (NADA), which concluded that he was a victim of sabotage, paving the way for the wrestler's participation in Rio Olympics.

After more than a week of drama which began with Narsingh testing positive for a banned anabolic steroid methandienone in tests conducted on June 25, NADA DG Naveen Agarwal put an end to the suspense on the wrestler's fate by exonerating him.

"We kept in mind that in the past, till June 2, none of his samples were positive. It was inconceivable that one-time ingestion would be of benefit. Therefore the panel is of the view that the one-time ingestion was not intentional," Agarwal said while reading out the verdict.

"The panel concludes that the athlete deserves the benefit of article 10.4 of the NADA's anti-doping code.

Keeping in view that he was victim of a sabotage, the panel exonerates the athlete from charges of anti-doping rules of NADA.

Agarwal said the sample collected on July 5 had substantially lower content of the banned substance than the one taken on June 25.

"...the report about indicative estimated concentration of prohibited substance in the sample collected on June 25 has substantially reduced in the sample collected on July 5," he added.

"Important to note that report of the first sample was not known to the athlete till the collection of second sample on July 5. Had the athlete been regularly taking it, the report of July 5 would have been positive to the extent of having the main substance."

A relieved Narsingh said he is eager to go to the Olympics now and win a medal for the country.

"I am very happy and I am hopeful of winning a medal at the Olympics. Truth has won. This will ensure that nothing like this happens with any other player. It is a huge win," Narsingh said.

"I knew I was on the right side and was confident of getting justice," he added.

The Wrestling Federation of India (WFI) President Brij Bhushan Sharan Singh said the process to get Narsingh back in the Olympic squad has been set in motion. Narsingh had been replaced by Parveen Rana when the scandal broke out to save India's quota place in the 74kg category. .