Nirmala Sitharaman News

Narendra Modi praised the transformative impact of the Goods and Services Tax (GST) over its seven-year implementation. Citing data compiled y the Central Board of Indirect Taxes and Customs (CBIC), PM Modi posted on «X» (formerly Twitter) that GST has significantly enhanced the lives of 140 crore Indians. «For us, reforms are a means to improve the lives of 140 crore Indians. After the introduction of GST, goods for household use have become much cheaper.» The Prime Minister also emphasized that the implementation of GST has led to increased savings for the poor and common man. He noted that GST has lowered taxes on essential household items such as flour, curd, and detergent, making daily necessities more affordable.

The Goods and Services Tax (GST) Council under the chairpersonship of finance minister Nirmala Sitharaman, after its first meeting on Saturday since the new government assumed office, has announced many changes to make compliance easier. Among them are a waiver of interest and penalty on certain past tax demands, tweaks in monetary limits to reduce litigation, reduction in the pre-deposit amount needed for filing appeals and exemption of railway platform tickets, among other items. These are welcome moves that will ease GST’s burden for some.

capital investment, increased allocations for rural schemes and a boost for housing programmes at their pre-budget meeting with finance minister Nirmala Sitharaman on Saturday. The full budget for FY25 is expected next month. Sitharaman underlined the Centre’s support to states through timely tax devolution and release of GST compensation arrears to stimulate growth, while nudging them to undertake reforms to gain maximum advantage from 50-year interest-free loans. The states also suggested higher assistance be provided to combat disasters and climate change, officials aware of the discussion told ET. Andhra Pradesh asked for central funds for the development of Amaravati as its capital, fresh funds and the clearance of arrears for Polavaram irrigation project and cheap power tariffs among other demands. “There was no demand on special package by any state,” an official told ET. The Telugu Desam Party, support of which is key to the NDA’s majority in Parliament, has just taken over in Andhra Pradesh.

waive interest and penalties on past tax demands, reduced the pre-deposit amount for filing appeals, fixed monetary limits for appeals against assessees at various legal forums and set a sunset date for anti-profiteering cases in a range of decisions aimed at easing doing business in the country. “Our intent is to make GST assessees’ life easier, simpler and less cumbersome… We are working towards less and less compliance,” Union finance minister Nirmala Sitharaman, chairperson of the body, told reporters after the council’s 53rd meeting that was held in the capital. The council will take up pending reform measures when it meets next, likely by August end. Saturday’s measures by the council at its first meeting after the formation of the new government at the Centre could bring relief to multiple sectors, including shipping, airlines, insurance and nonbanking financial companies (NBFCs) facing large tax demands, said experts.

Finance Minister Nirmala Sitharaman on Saturday said less than two per cent of the total 58.62 lakh taxpayers under Central GST administration has been sent tax notices and the intention of the government is to make GST assessees life easier by reducing compliance requirements. «I want to reassure the assesses that our intent is to make GST assessees life easier, we are working towards less and less compliance. On behalf of the CGST, notices are not being sent left, right and centre. Only 1.96 per cent of all active tax assessees have been sent notices from Central GST,» Sitharaman said. Addressing the media post the GST Council meeting, the Minister said as of December 31, 2023, only 1.96 per cent of all active tax assessees have been sent notices from the Central GST (CGST). Around 1.14 lakh assessees have been sent notices by the CGST out of total 58.62 lakh assessees. The Council in its 53rd meeting on Saturday took a host of taxpayer-friendly steps including waiving interest and penalties for demand notices for fiscal years 2017-18, 2018-19 and 2019-20, if the full tax demand is paid by March 31, 2025.

Finance Minister Nirmala Sitharaman on Saturday said the intention of the central government has always been to bring petrol and diesel under GST, and it is now up to the states to come together and decide on the rate. She said a provision has already been made by former Finance Minister Arun Jaitley by including petrol and diesel into GST law. What is remaining is for the states to come together to discuss and decide on the rate of the levy. «The intention of the GST, as was brought in by former Finance Minister Arun Jaitley, was to have petrol and diesel in GST. It is up to the states now… to decide on the rate. The intent of my predecessor was very clear, we want petrol and diesel to come into GST,» Sitharaman said. When GST was introduced on July 1, 2017, amalgamating over a dozen central and state levies, five commodities — crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF) — were included in GST law but it was decided that it would be taxed under GST at a later date.

Union Finance Minister Nirmala Sitharaman on Saturday said the GST Council has fixed a monetary limit for filing appeals by the tax department before the various appellate authorities. It has recommended a monetary limit of Rs 20 lakh for GST Appellate Tribunal, Rs 1 crore for the High Court and Rs 2 crore for the Supreme Court for filing of appeals by the department before these legal forums, she said after the 53rd GST Council meeting held here. The Tax Authority would generally not go for an appeal if the monetary limit is less than the prescribed by the GST Council. The Council has also recommended that the maximum amount for pre-deposit for filing appeal before the appellate authority be reduced from Rs 25 crore CGST and Rs 25 crore SGST to Rs 20 crore CGST and Rs 20 crore SGST, she said.

Nirmala Sitharaman on Saturday underlined Centre's support to states through timely tax devolution and GST compensation arrears to stimulate growth. At the pre-budget meeting with state finance ministers, Sitharaman also nudged states to take advantage of the scheme under which the Centre gives 50-year interest free loan to states for undertaking specified reforms. In her remarks, the Union Finance Minister underlined the union government's support to states through timely tax devolution, Finance Commission grants, and arrears of GST Compensation being provided for providing stimulus to growth, an official statement said. Regarding the 'Scheme for Special Assistance to States for Capital Investment', Sitharaman mentioned that while most of the loans are untied, a part of it is conditional-linked to citizen-centric reforms by states and sector-specific capital projects and requested the states to avail these loans by fulfilling requisite criteria.

Nirmala Sitharaman on Saturday chaired a pre-budget meeting with state and union territories finance ministers at Bharat Mandapam. The meeting is organised by the Ministry of Finance and Corporate Affairs with the finance ministers of all states and UTs, along with other stakeholders, for suggestions for the upcoming Union Budget. The Finance Ministry had consulted with various stakeholders of the economy a few days ago. Sitharaman has met economists, finance and capital market experts and industry bodies. The first pre-budget meeting was chaired by the FM on June 19. The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, the finance secretary, secretaries of the departments of economic affairs, revenue, financial services and corporate affairs and the chief economic adviser.

Recently, leaders from India's corporate sector advocated for reducing the income tax burden on individuals, increasing capital expenditure, and implementing measures to control food inflation during their nearly two-hour meeting with Finance Minister Nirmala Sitharaman ahead of the Union Budget. In their pre-Budget discussions with Sitharaman, industry representatives emphasized the need for heightened focus on infrastructure development to sustain economic growth. They also highlighted the importance of bolstering the MSME (micro, small, and medium enterprises) sector, which is crucial for the Indian economy and a key source of employment.

Dividend Distribution Tax (DDT) underwent significant changes in India with the abolition of DDT in the 2020-21 Budget. Traditionally, dividends are payments made by companies to shareholders from their profits. DDT, introduced in the Finance Act of 1997, was a tax levied on these dividends distributed by domestic companies, irrespective of their income tax obligations on those profits. The decision to abolish DDT marked a substantial shift in tax policy. Previously, DDT imposed a burden directly on companies, reducing the amount of dividends received by shareholders. Post-abolition, Finance Minister Nirmala Sitharaman announced that dividends would now be taxed in the hands of the shareholders themselves. This change aimed to streamline the taxation process, making it more transparent and aligning it with international norms where dividends are typically taxed at the individual level. The economic implications of abolishing DDT were widely anticipated. By removing this tax, Indian equities were expected to become more attractive to investors. The move was seen as potentially boosting market sentiment and encouraging companies to reinvest profits back into the economy. This reinvestment could stimulate economic growth and create employment opportunities. Moreover, the abolition of DDT was expected to make India a more appealing destination for foreign investors, potentially leading to increased Foreign Direct Investment (FDI).

investment in agricultural infrastructure, easing loan terms, and implementing employee-centric production-linked incentive schemes were some of the key suggestions made by stakeholders from the agricultural sector and Micro, Small, and Medium Enterprises (MSMEs) as part of the pre-budget consultations with finance minister Nirmala Sitharaman on Friday. The Agriculture Industry sought a new agriculture policy with focus on investment on Agriculture infrastructure, rationalisation of subsidy, increased investment in allied agri based food processing Industry and a substantial hike in allocation for agriculture research and innovation. The stakeholders asked to boost farm exports and create district hubs to support agriculture exports, sought launch of national Goat and Sheep Mission and increased the budget allocation for the Agricultural and Processed Food Products Export Development Authority (APEDA) to ₹800 crore from ₹80 crore. «All the stakeholders unanimously sought rationalisation of fertilizer subsidy and using the direct benefit transfer route to plug any leakage,» said a person aware of the meeting proceedings. They also asked the government to revise the retail price of urea, which has remained unchanged since 2018, and to incentivise the use of bio-fertilisers and foliar fertilisers.

have urged the government to reduce taxes on farm equipment and increase allocations for agricultural research and development and a flagship programme meant to support farmers.In a meeting with Union finance minister Nirmala Sitharaman on Friday as part of consultations ahead of the annual budget for 2024-25, they also urged higher allocations to strengthen the Agricultural and Processed Food Products Export Development Authority (APEDA), a government export trade promotion body.The upcoming full-year budget is expected to be presented in July.India’s agriculture sector grew at a mere 1.4% in financial year 2023-24, much below its pre-pandemic decadal average of 4.4%, due to erratic monsoons. The sector is expected to improve in the current fiscal year because of anticipated normal monsoons and a favourable base effect.Agricultural stakeholders at the meeting on Friday also urged the government to strengthen trade and exports post-harvest management, develop districts as export hubs, establish boards for each agri-commodity under the private sector, and fund global market access programmes.“We have suggested an acceleration of agriculture growth rate through a substantial increase in agricultural R&D up to ₹20,000 crore from ₹9,500 crore," said M.J.

Union Budget 2024: Industry leaders requested a host of considerations in the upcoming full Union Budget 2024 during their pre-Budget meeting with Finance Minister Nirmala Sitharaman on June 20.Expectations listed by India Inc. during the two-hour interaction include a reduction in the income tax burden for the common man, an increase in capital expenditure, and measures to control food inflation, PTI reported.Prominent industry figures, including Sanjay Aggarwal (President at PHD Chamber), Vinod Aggarwal (President at SIAM), Neeraj Akhoury (President at Cement Mfrs Association), Sanjay Kirloskar (CMD of Kirloskar Brothers), Arathi Krishna (MD of Sundram Fasteners), Shefali Misra (Vice President at Biocon), Yash Pal Sachar (Vice President at Ashok Leyland), and Samir Somaiya (President at IMC Chamber), and others, made recommendations for the Union Budget.Sanjiv Puri, President of industry body Confederation of Indian Industry (CII), presented eight points to Sitharaman for consideration.These included relief in income tax for lower income slabs, streamlining employment-linked incentive schemes such as the Production Linked Incentive (PLI) scheme, and promoting ease of doing business.CII also made recommendations for agriculture and rural development.Trade association, the Federation of Indian Chambers of Commerce & Industry's (FICCI) recommendations centred around driving capital expenditure, fostering innovation, and simplifying taxes.Former FICCI President Subhrakant Panda emphasised the need to support growth momentum by energising demand, enhancing infrastructure development, controlling food inflation, supporting MSMEs, and prioritising innovation and R&D.

Tax incentives, an increase in capital expenditure, fiscal consolidation, enhanced ease of doing business, and a stable long-term tax regime are among the key suggestions industry and financial institutions made in their pre-budget consultations with finance minister Nirmala Sitharaman on Thursday. The Confederation of Indian Industry (CII) said its president Sanjiv Puri suggested a 25% increase in capex spending over the revised estimate of FY24 and relief in income tax to boost consumption. CII also suggested setting up a Green Transition (Mitigation and Adaptation) Fund for which multiple sources of funding could be tapped and would facilitate the availability of capital at a lower cost, it said in a statement.

Union Budget 2024: Prime Minister Narendra Modi led-government will present first full Budget in their third term after the 18th Lok Sabha polls in 2024 in the coming month, laying the roadmap for the next five years. The last budget presented by the Finance Minister Nirmala Sitharaman was a vote on account due to the General Elections that were scheduled from April to May. Here are some interesting Budget trivia that you should know:

Also Read: Budget 2024: Will Finance Minister Nirmala Sitharaman increase income tax exemption limit?“The government and regulators have been worried for quite some time about the increased participation of retail investors in the derivatives market. There are fears that if markets correct, there could be significant losses to retail investors, leading to overall dampening of sentiments," the source told Financial Express.Income from F&O transactions is now taxed as business income.

Reuters reported that the upcoming first full-fledged Budget 2024 of Modi 3.0 is expected to relieve taxpayers, as the government considers reducing income tax rates for specific groups of individuals. The report also indicates that the government is considering lowering income tax rates for individuals earning annual incomes of ₹10 lakh.Moneycontrol reported, quoting government officials, that the Centre plans to raise the income threshold before any tax is levied from ₹3 lakh to ₹5 lakh in the upcoming budget.

law committee under the goods and services tax (GST) council has recommended an amendment to GST act to raise tax notices where the low tax was paid due to interpretation of law or lack of clarity, ET has learnt. The recommendation, if approved by the council may give relief to a large number of industries including online gaming industry, which was seeking relief from retrospective tax notice. The recommendation may be placed before the GST council and once approved this would pace way for quashing a large number of notices sent to online gaming industry.

Budget expectations: Finance Minister Nirmala Sitharaman will begin consultations on Wednesday, ahead of the new government’s first full budget, to be presented in July. India Inc has suggested a host of reforms, including medium-term ones, to catapult the economy to a higher growth trajectory, spur employment creation, trigger private investments and preserve macro stability. A look at their wish list: 1. SUSTAIN GROWTH:

₹79,927 trillion at the end of March, NSE data show.Sebi is now considering a series of tweaks to its derivatives trading rules, including higher margins for selling options contracts and more detailed disclosures.Also read | Why Sebi’s reviewing the eligibility criteria for derivatives tradingLast month, finance minister Nirmala Sitharaman alluded to an unchecked explosion in retail trading of futures and options, saying it could create challenges not just for the markets but for investor sentiment and household finances as well.Das on Tuesday said the last mile of the disinflationary process was proving to be sticky owing to 'stubborn' food prices. But he added that it was "too premature" to change the monetary policy stance and that the apex bank had to shun an "adventurism" approach on the rates front.Also read | The MPC has done well to keep policy interest rates unchanged"The disinflationary process is facing a lot of resistance from food inflation which is stubborn and high, primarily due to supply-side factors affected by weather conditions," he said.RBI's monetary policy committee kept its rates and stance unchanged in its June policy.