sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Budget Extravaganza »
 How Union Budget 2018 impacts individual taxpayers
  How Budget 2018 will be different due to GST
 This is how Budget 2018 announcements may help you save tax
 Here's why the government advanced the Budget date
 Will Budget 2018 Reduce Your Income Tax? 10 Expectations
 How Budget 2018 will be different due to GST
 Will Budget 2018 cut tax on switch from dividend to growth option in mutual funds?
 Startup eco-system looks forward to the budget for addressing tax dilemma
 High time to prioritise non-tax revenue in the Budget
 Govt may abolish dividend distribution tax in budget
 Budget making in the GST era: paradigm shift

How GST has taken away the wind out of the Union Budget presentation
December, 28th 2017

Since the implementation of the Goods and Service Tax (GST), more than 12 different taxes including VAT, Excise Duty got subsumed, hence, leaving no room for the Budget manoeuvre under different indirect tax heads.

Every year when the Union Budget was presented in the Parliament by the Finance Minister, the people of the country glued to their eyes to their television to find out what got cheaper and what got dearer. The Budget 2018, the first GST-era Budget, is going to take the wind out of the entire process. The Union Budget has two parts — Part A contains allocations to different sectors and schemes, while Part B contains tax proposals, both direct and indirect.

The tweaks and sops announced under different indirect tax heads were time-sensitive and kept a secret until the presentation of the Budget. The changes were effective immediately, and companies, on the basis of these changes, used to decide prices of different goods and services.

Since the implementation of the Goods and Service Tax (GST), more than 12 different taxes including VAT, Excise Duty got subsumed, hence, leaving no room for the Budget manoeuvre under different indirect tax heads. Any decision on indirect tax on goods and services is now taken by the GST Council.

However, the direct tax is still under the Union Budget and, in that area, Arun Jaitley may choose to bring some changes. Bringing down the corporate tax rate from 30% to 25% is a long due demand, and may get a mention in the upcoming Budget.

Last year, in the Budget 2017, expecting the implementation of the GST from July, Arun Jaitley did not propose any significant changes in the indirect taxes. The government had imposed a levy of Special Additional Duty of 2% on import of populated circuit boards that used in the manufacture of mobile phones, leading to a slight increase in the price of phones. Similarly, Excise duty on unmanufactured tobacco was almost doubled to 8.3% from 4.2%, making cigarettes, bidis and tobacco products costlier. The implementation of the GST has subsumed this entire process of the Union Budget.

Though what is expected from the Budget 2018 is incentives for rural population and farmers, infrastructure investment push and measures for job creation. The Budget 2018 is the last full Budget of the present government and also the last one before eight state elections and the 2019 General Election. Experts expect this Budget to be a populist one. Arun Jaitley is likely to present the Budget on February 1.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions