Tax World reacts to Indirect Tax/GST proposals in Budget 2023
Our Managing Partner, Mr. Puneet Bansal has shared his thoughts on Indirect Tax changes proposed in Budget 2023:
“As per Economic Survey 2022-2023, Indian economy has bounced back after facing pandemic and staged full recovery in FY 2022-23, outperforming many nations. It is poised to return to its pre-pandemic growth trajectory in FY 2023-24. Amidst fast-paced inflation and taking cue from last year’s speech, the FM introduced this year’s budget as first budget in “Amrit Kaal”. This budget focuses on all key sectors such as infrastructure, agriculture, education and employment, critical for overall development of country. The highlight of budget is capex outlay of Rs. 10 lakh crore (increment of 33% from last year). At same time, measures were also announced to meet needs of Digital India.
On legal and tax front, the Government has actively worked towards reducing compliance burden and enhancing ease of doing business. In line with this intent, the Government has announced removal of numerous compliances and de-criminalized multiple offences.
On Indirect Taxes, the Government proposes to promote export, boost domestic manufacturing and enhance domestic value addition. In line with this objective, Basic Customs Duty is rationalized on various goods like parts of camera lens, parts of open cells of TV panels, lithium-ion cells for batteries etc. The Government has also given effect to several decisions taken in last meeting of the GST Council like decriminalization & compounding of certain offences, retrospective amendment to treat certain transactions (high sea sales, bonded warehouse sales etc.) as no supply since July 2017. Apart from this, many other legislative amendments are proposed like barring ITC on CSR expenses, restriction on filing of GST returns beyond 3 years from due date, introduction of penalty on E-Commerce operators allowing unregistered persons / composition taxpayers to make supplies through their platform, consent-based sharing of taxpayers’ information with other government agencies etc.
Surprisingly, the Government maintained pin-drop silence on many strategic topics like much-anticipated Customs amnesty scheme, New SEZ law (DESH Bill), New FTP etc.”
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