GST processes further simplified
Supplier
exemption
Enhanced
to Rs. 40 lakhs
Less
than Rs. 5 Crore of Annual
Turnover
shall file quarterly return
Further
simplification of the GST processes, increasing Special Additional Excise duty
and Road and Infrastructure Cess on petrol and diesel by one rupee each, hike
in Customs Duty on Gold and precious metals to 12.5% and imposing nominal basic
excise duty on tobacco products and crude are among the salient proposals
pertaining to the Indirect Taxes in the Union Budget 2019-20. It also provides
for exempting import of certain Defence Equipments from basic customs duty, reducing
customs duty on certain raw materials and capital goods, and rationalization of
export duty on raw and semi-finished leather.
GST:
Presenting
the Budget in Parliament, the Union Minister of Finance and Corporate Affairs,
Smt. Nirmala Sitharaman announced that GST processes are being further
simplified. The threshold exemption
limit for a supplier of goods is proposed to be enhanced from Rs. 20 lakhs to
an amount exceeding Rs. 40 lakhs.
“Tax
payers having annual turnover of less than Rs. 5 Crore shall file quarterly
return. Free accounting software for Return preparation has been made available
to small businesses. A fully automated GST refund module shall be implemented.
Multiple tax ledgers for a tax payer shall be replaced by one”, she said.
The
Budget proposes to move to an electronic invoice system wherein invoice details
will be captured in a central system at the time of issuance. “This will
eventually be used to pre-fill the taxpayers’ returns. There will be no need
for a separate e-way bill. To be rolled out from January 2020, the electronic
invoice system will significantly reduce the compliance burden”, said Smt.
Sitharaman.
The
Finance Minister said that the landscape of Indirect Tax has changed
significantly with the implementation of GST. Terming it as a “monumental
reform”, Smt. Sitharaman said the GST regime has brought together the Centre
and the States with the result 17 taxes and 13 cesses became one and multitude
of rates instantly became four. “Almost all commodities saw rate reduction.
Tens
of returns were replaced by one. Taxpayers’ interface with tax departments got
reduced. Border checks got eliminated. Goods started moving freely across
states, which saved time and energy. The dream of ‘One Nation, One Tax, One
Market’ was realized,” she said.
Complimenting
the GST Council, the Finance Minister said the Council, Centre and States
proactively worked to resolve the teething problems witnessed during the
initial phase of GST. Smt. Sitharaman said that GST rates have been reduced
significantly where relief of about Rs. 92,000 crores per year has been given.
Sabka Vishwas Legacy Dispute Resolution
Scheme:
On
the issue of huge pending litigations from pre-GST regime, the Minister said
that there is a need to unload the baggage and allow business to move on, as
more than Rs. 3.75 Lakh Crore is blocked in litigations in Service Tax and
Excise.
The
budget proposes a dispute resolution-cum-amnesty scheme, called “the Sabka
Vishwas Legacy Dispute Resolution Scheme, 2019” that will allow quick closure
of these litigations. The relief under the scheme varies from 40 percent to 70
percent of the tax dues for cases other than voluntary disclosure cases,
depending on the amount of tax dues involved. The scheme also provides relief
from payment of interest and penalty. The person discharged under the scheme
shall also not be liable for prosecution.
Customs duty:
On
the Customs duty, the Finance Minister said the proposals are driven with the
objectives of securing the country’s borders, achieving higher domestic value
addition through Make in India, reducing import dependence, protection to MSME
sector, promoting clean energy, curbing non-essential imports, and correcting
inversions.
Describing
Defence Modernization and Upgradation as a national priority and of immediate
requirement, the budget proposes exemption from the basic Customs duty on
import of such defence equipment that are not being manufactured in India.
Make in India:
Describing
Make in India as a cherished goal, the Finance Minister proposed increase in
basic Custom duty on certain items so as to provide domestic industry a level
playing field. She also proposed to withdraw exemption from custom duty on
certain electronic items which are now being manufactured in India. To
encourage domestic publishing and printing industry, 5% custom duty will be
imposed on imported books.
To
further promote domestic manufacturing, the budget proposes customs duty
reductions on certain raw materials and capital goods. The Finance Minister
announced exemption on certain parts of electric vehicles to further
incentivize e-mobility.
Duty & Cess on Petrol & Diesel:
The
Budget proposes to increase Special Additional Excise duty and Road and
Infrastructure cess each by one rupee a litre on petrol and diesel. “Crude prices have softened from their highs.
This gives me a room to review excise duty and cess on petrol,” the Finance
Minister said.
Smt.
Sitharaman also announced increase in custom duty on gold and other precious
metals from 10% to 12.5%.
The
Budget also proposes rationalization of export duty on raw and semi-finished
leather to provide relief to the sector.
Comments
Post a Comment