Finance Budget (2024) of the New Government

Full Finance Budget will be presented by FM on 23rd July, 2024 at 11 am.

Industries have made representations to the government for reduction of tax rate and for a simpler tax compliance. Such as –

• Electric Vehicle (EV) manufacturer requests to reduce 18% GST on EV component.
• Ed-tech sector expects complete GST exemption on all educational expenses for students from below-poverty-line (BPL) and low-income (LIG) families.
• The National Restaurant Association of India has raised the issue of the lack of input tax credit for the restaurant industry with the Union finance ministry.
• Insurance sector proposed reforms such as offering health insurance to employees at negotiated rates, reducing GST on premiums, and increasing Section 80D exemption limits.
• Tourism industry seeks uniform 12 per cent GST rate on hotels.
• Healthcare Sector Seeks GST Relief, Incentives In R&D, Local Manufacturing
• The Indian healthcare sector seeks 0% GST on diagnostic services and facilitating refunds for GST paid on input tax credits. And, lowering customs duty on imported diagnostic equipment and adjusting high GST rates on lab supplies will enhance efficiencies and foster R&D investments
• Travel agents body TAAI expect GST rate rationalisation for tourism
• Jewellery industry expects duty cuts, tax reforms, and streamlined regulations
• Indian pharma firms seek govt tax reliefs, incentives to spur innovation

Taxpayers’ Association, Taxpayer, Consultants are praying for a stable and simpler tax compliance.

Apart from these, the gaming industry is expecting reduction of 28% GST rate. In the 53rd GST Council meeting, the FM stated that the issue of tax rate was not taken up for discussion. So, it is less likely to be heard from government in the budget as well.

Pursuant to 53rd GST Council meeting, the government already issued 23 Circulars & 7 Notifications on various date from 22.06.2024 to till date to give effect to the recommendations made by the Council in said meeting.

Some of the changes are –

1. Introduction of GSTR-1A form to amend/add the invoices in GSTR-1 and its auto-population of the same to recipient till the date of filing of GSTR-3B.
2. Clarified the valuation of services for providing corporate guarantees.
3. Revised process for Input Service Distributors (ISD) to distribute Credit.
4. Timeline of GSTR-4 filing shifted to 30th June instead of 30th April from FY 2024-25 onwards.
5. Introduced mechanism for claiming refunds of additional IGST paid due to upward revision on price after exports.
6. Detailed procedures for filing Appeals to the Appellate Tribunal
7. Exemption from filing of GSTR-9 for taxpayers with an aggregate turnover up to 2 crore rupees in FY 2023-24.

And many other issues are already clarified vide aforesaid Circulars and Notifications.

So, it is very less likely that any new announcement on GST front will be made by the government in the budget.

However, let’s see what happens on coming Tuesday…