amount of their goods manufactured or services rendered (such amount being a multiple of the duty saved) within
a specified period. Export obligations can be fulfilled by either through direct exports or through third parties. An
EPCG authorization holder shall be liable to pay custom duties along with interest custom in the event of non-
fulfillment of prescribed export obligations.

Laws Relating to Taxation

The Goods and Services Tax (“GST”) is levied on supply of goods or services or both jointly by the Central
Government and state governments. It is governed by the GST Council. GST provides for imposition of tax on
the supply of goods or services and will be levied by the Central Government on intra-state supply of goods or
services and by the state government including union territories. The GST law is enforced by various acts viz.
Central Goods and Services Act, 2017 (“CGST”), relevant state’s Goods and Services Act, 2017 (“SGST”),
Union Territory Goods and Services Act, 2017 (“UTGST”), Integrated Goods and Services Act, 2017 (“IGST”),
Goods and Services (Compensation to States) Act, 2017 and various rules made thereunder.

Further, the Income-tax Act, 1961 (the “Income Tax Act”) is applicable to every company, whether domestic or
foreign whose income is taxable under the provisions of this Act or Rules made there under depending upon its
“Residential Status” and “Type of Income” involved. The Income Tax Act provides for the taxation of persons
resident in India on global income and persons not resident in India on income received, accruing or arising in
India or deemed to have been received, accrued or arising in India. Every company assessable to income tax under
the Income Tax Act is required to comply with the provisions thereof, including those relating to tax deduction at
source, advance tax, minimum alternative tax, etc.

Other applicable laws
Shops & Establishments legislations in various states

Under the provisions of local shops and establishments legislations applicable in the states in which establishments
are set up, establishments are required to be registered under the respective legislations. These legislations regulate
the conditions of work and employment in shops and commercial establishments and generally prescribe
obligations in respect of inter alia registration, opening and closing hours, daily and weekly working hours,
holidays, leave, health and safety measures and wages for overtime work.

In addition to the above, our Company is subject to various laws and regulations such as the Petroleum Act, 1934,
fire acts of various states, state laws under the Industrial Establishments (National and Festival Holidays) Act,
1965 and the provisions of the Companies Act 2013 and rules framed thereunder, and other applicable statutes.
imposed by the Government of India or the state governments and authorities for our day-to-day business and
operations.

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