TMI BlogINDIRECT TAXES IN UNION BUDGET 2019-20X X X X Extracts X X X X X X X X Extracts X X X X ..... INDIRECT TAXES IN UNION BUDGET 2019-20 - By: - Dr. Sanjiv Agarwal - Goods and Services Tax - GST - Dated:- 9-7-2019 - - The Union Budget for the year 2019-20, as laid in the Parliament today (i.e., 5 th July, 2019) is the first Budget of the new Union Government and so for the Union Finance Minister, a woman. While the Budget promises a host of plans, welfare schemes and developmental activities, here is a snap shot of the of the Indian economy and Budget offerings in terms of indirect taxation and directions for the economy in the backdrop of economic slowdown. Economic Highlights and Select Proposals Economic survey suggest economic growth with macro-economic stability India is now the 6th largest economy in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e world, compared to 11th largest economy in 2014. Indian economy is globally the 3rd largest in Purchasing Power Parity (PPP) terms Indian economy to become a 3 trillion dollar economy in the current year, aspiring to be a 5 trillion dollar economy Fiscal deficit in FY19 at 3.3% of the GDP Building Team India with Jan Bhagidari : Minimum Government Maximum Governance. Common man s life changed through MUDRA loans for ease of doing business. Various measures related to MSMEs announced like Pradhan Mantri Karam Yogi Maandhan Scheme, Interest Subvention Scheme for MSMEs, Payment platform for MSMEs Measures to make India a more attractive FDI destination. GDP predicted @7% for financial year 2019-20 Focus on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... private investment and infrastructure Industrial production and service sector growth not encouraging Labour laws reforms to be prioritized Life expectancy increases and ought to be addressed Starts up econ system to be liberalized to encourage entrepreneurship Indirect Taxes Highlights and Select Proposals Customs , Service Tax and Central Excise Import duty on gold precious metals increased to 12.5% from 10%. Import of Defence equipment not manufactured in India exempt from Customs Duty 5% Basic Custom Duty imposed on imported books. Customs duty reduced on certain raw materials, like Inputs for artificial kidney, Capital goods required for manufacture of specified electronic goods, etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Increase in Special Additional Excise Duty and Road and Infrastructure Cess each by ₹ 1 per litre on petrol and diesel Legacy Dispute Resolution Scheme, 2019 for quick closure of pending litigations in Central Excise and Service tax from pre-GST regime Service Tax (provisions shall apply retrospectively): No service tax shall be levied or collected in respect of taxable service provided or agreed to be provided by the State Government by way of grant of liquor licence, against consideration in the form of licence fee or application fee, by whatever name called, during the period commencing from the 01.04.2016 to 30.06.2017. Refund of tax already collected but which would not have been so collected shall be giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en and application for the claim of such refund shall be made within a period of 6 months from the date on which the Finance (No.2) Bill, 2019 receives the assent of the President. Special provision for retrospective exemption from service tax in certain cases relating to services provided by Indian Institutes of Management to students for period 1st July, 2003 to 31st March, 2016. Special provision for retrospective exemption from service tax in certain cases relating to long term lease of plots for development of infrastructure for financial business for 1st October, 2013 to 30th June, 2017 Goods and Service Tax (GST) Acknowledges GST as a monumental tax reform in country Praises cooperative federalism and ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forts of GST Council Admits teething problems in GST implementation, but considers it to be natural, looking to the scale of reform. Stress on further simplification of GST processes, including simplified single return and e-invoice system. GST revised collection for financial year 2018-2019 Rs. 643900 crores Budget estimate for GST collection for financial year 2019-2020 ₹ 663343 crores Changes in GST law Changes proposed in CGST / IGST / UGST tax laws: CGST Insertion of new Section Relating to 31A Facility of digital payment to recipient 53A Transfer o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f certain amounts 101A Constitution of National Appellate Authority for advance ruling and AAAR 101B Appeal to National Appellate Authority 101C Order of National Appellate Authority IGST Insertion of new Section Relating to 17A Transfer of certain amounts by Government to State / Union Territory 103A Retrospective Exemption in relation to Uranium Ore Concentrate UGST Insertion of new Section Relating to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 103A Retrospective Exemption in relation to Uranium Ore Concentrate Amendment in CGST Law Section Amendment 2 Adjudicating Authority to exclude National Appellate Authority 10 Alternative composition scheme for supplier of services or mixed suppliers 22 Higher threshold exemption for supplier of goods upto ₹ 40lakhs 25 Mandatory use of Aadhaar for taking GST registration 39 Quarterly payment / furnishing of annual return by composition suppliers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44 Commissioner empowered to extend date of furnishing annual return 49 Facility to transfer amount from one head to another in e-cash ledger 50 Providing for charging interaction net cash tax liability 52 Commissioner empowered to extend the date of furnishing TCS return 54 Central Government empowered to refund State tax to taxpayers 95 Seeking advance ruling from National Appellate Authority for Advance Ruling 102 National Appellate Authority empowered to rectify Advance Ruling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 103 Ruling of National Appellate Authority to be binding to all persons having same PAN 104 National Appellate Authority Ruling to be void if obtained through fraud, suppression etc 105 National Appellate Authority to have powers of civil court under CCP, 1908 106 National Appellate Authority to regulate its own procedures 168 Commissioner to exercise power u/s 44 52 with approval of CBIC 171 National Anti-Profiteering Authority empowered to impose penalty @10% of profiteered amount These proposals shall come into fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rce on enactment of Finance Bill, 2019 and / or on issuance of Notification, wherever prescribed. = = = = = = = = - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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