Union Budget 2024: GST Triumph Hailed by Finance Minister
In her Budget speech before the Lok Sabha on Tuesday, Finance Minister Nirmala Sitharaman extolled the transformative impact of the Goods and Services Tax (GST). She lauded GST for:
* Lightening the tax burden on ordinary citizens
* Simplifying compliance responsibilities
* Reducing logistics expenses for businesses
GST’s Monumental Success
Minister Sitharaman hailed GST as an unparalleled success, highlighting key amendments that have enhanced its functionality for traders:
* Exempting Extra Neutral Alcohol (used in liquor production) from central tax
* Proposing similar adjustments to the IGST and UTGST Acts
* Introducing Section 11A, empowering the government to rectify non-levy or short levy issues arising from industry practices
Significant Enhancements
Among the notable changes proposed are:
* Extending the time limit for claiming input tax credit under Section 16 of the CGST
* Uniformizing the time limit for issuing demand notices and orders
* Enlarging the window for reduced penalties (from 30 to 60 days) by paying demanded tax with interest
Trade-Friendly Measures
Additional initiatives to facilitate trade include:
* Reducing the maximum pre-deposit for appeals to the Appellate Authority from Rs 25 crore to Rs 20 crore
* Halving the pre-deposit requirement for appeals to the Appellate Tribunal
* Adjusting the timeframe for filing appeals to prevent time-barring
Ease of Business
GST’s success, according to Minister Sitharaman, is attributed to its simplified and rationalized tax structure. The extension of GST to remaining sectors is expected to amplify these benefits.
