Skip to main content

FinMin to initiate Budget exercise nextweek

FinMin to initiate Budget exercise nextweek
This might be this govt's last Budget before 2019 general elections

Work on India's first post-goods and services tax (GST) Budget will start next week, with the finance ministry issuing time lines for different processes that will culminate with its presentation in February.

It may also be the current government's last full-fledged Budget, as general elections are due in 2019.

Even though independent India's biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April-March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax, alongside direct tax numbers.

With excise duty and service tax being subsumed in the GST, the classifications will undergo change, an official said.

While a new classification for revenues to be accrued from GST will be included in the Budget for next fiscal year, for the current year two sets of accounting may be presented — one for actual accruals during April-June for excise, Customs and service tax, and the other for July-March period for GST and Customs duty.

The official said that as the GST rates are decided by a GST Council, headed by the finance minister and comprising of representatives of all states, the Budget for 201819 will not have any tax proposals concerning excise and service tax levies.

Only proposals for changes in direct taxes — both personal income tax and corporate tax, besides Customs duty — are likely to be presented in the Budget along with new schemes and programmes of the government.

This will be Finance Minister Arun Jaitley's fifth Budget in a row.

According to practice, a vote-on-account or approval for essential government spending for a limited period is taken in an election year and a full-fledged Budget is presented by the new government.

While P Chidambaram had presented the previous government's vote-on-account in February 2014, Jaitley had presented a full Budget in July that year.

The official said the finance ministry will next week issue the Budget circular and start consultations with other ministries from October for Revised Estimates (RE) of expenditure for the current fiscal year.

The Business Standard , New Delhi, 11th September 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit