No Customs duty to simply sawn diamond!

Multimodal Logistics Parks at four locations 

India’s economic growth in the current year is estimated to be 9.2 per cent, highest among all large economies. The overall, sharp rebound and recovery of the economy from the adverse effects of the pandemic is reflective of our country’s strong resilience. This was stated by Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman while presenting the Union Budget in Parliament today. 

The Finance Minister (FM) said, India is celebrating Azadi ka Amrit Mahotsav and it has entered into Amrit Kaal, the 25-year-long lead up to India@100, the government aims to attain the vision of Prime Minister outlined in his Independence Day address and they are: 

Complementing the macro-economic level growth focus with a micro-economic level all-inclusive welfare focus, Promoting digital economy  & fintech, technology enabled development, energy transition, and climate action, and Relying on virtuous cycle starting from private investment with public capital investment helping to crowd-in private investment.

The Finance Minister informed that the Productivity Linked Incentive in 14 sectors for achieving the vision of AtmaNirbhar Bharat has received excellent response, with potential to create 60 lakh new jobs, and an additional production of Rs 30 lakh crore during next 5 years. 

Nirmala Sitharaman emphasized that this Budget continues to provide impetus for growth. It lays a parallel track of (1) a blueprint for the Amrit Kaal, which is futuristic and inclusive, which will directly benefit our youth, women, farmers, the Scheduled Castes and the Scheduled Tribes. 

And (2) big public investment for modern infrastructure, readying for India at 100 and this shall be guided by PM GatiShakti and be benefited by the synergy of multi-modal approach. Overall the Union Budget 2022-23 is estimated at Rs: 39.45 lakh crore over the Budget Estimates of 2021-22 of Rs: 34.83 lakh crore which was revised to Rs: 37.70 lakh crore. Total receipts other than borrowings in 2022-23 estimated at Rs. 22.84 lakh crore and that will reach a Fiscal deficit in current year: 6.9% of GDP (against 6.8% in Budget Estimates).

Customs duty on cut and polished diamonds and gemstones being reduced to 5 per cent; Nil customs duty to simply sawn diamond - To give a boost to the Gems and Jewellery sector! A simplified regulatory framework to be implemented by June this year - To facilitate export of jewellery through e-commerce. 

Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import - To disincentivise import of undervalued imitation jewellery. 

Contracts for implementation of Multimodal Logistics Parks at four locations through PPP mode will be awarded in 2022-23. To incentivise exports, exemptions being provided on items of packaging boxes. 

Specific tax regime for virtual digital assets introduced. Scheme for taxation of virtual digital assets proposed that, any income from transfer of any virtual digital asset to be taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance to be allowed while computing such income except cost of acquisition. 

Loss from transfer of virtual digital asset cannot be set off against any other income. To capture the transaction details, TDS to be provided on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold. Gift of virtual digital asset also to be taxed in the hands of the recipient.