A lot is expected on the GST front in the upcoming Union Budget 2020. Essential sectors in Indian economy like the automobile are expecting goodies from the Union Finance Minister Nirmala Sitharaman. The Union FM shall present the Budget in the coming month on Saturday, 1 February 2020.
The Society of Indian Automobile Manufacturers (SIAM) anticipates a reduction in the Goods and Services Tax (GST) rate charged on automobiles from 28% to 18%. The automobile industry has been undergoing turmoil for the past few months with fluctuating sales.
It has further pushed the decline in automobile production and, in turn, has led to thousands of job losses in the sector. In addition to the GST rate cut, the association also eyes on an exemption from customs duty from 5% for lithium-ion battery cells. The move will further encourage the production and supply of relatively low-cost electric vehicles.
Following this sector, the health care sector is heavily counting on the Budget 2020 for getting the healthcare services tagged as Nil rated. NATHEALTH is the Healthcare Federation of India, an independent organisation. It has claimed to the publication -Business Standard that the focus this Budget 2020 will be about providing incentives for medical value tourism.
It further added that the health insurance premiums must fall under zero-rated items of GST. In turn, it makes it eligible for a refund of accumulated input tax credit (ITC) left unutilised. Without the refund of ITC, the cost of healthcare services only increases the expenses of the patients.
When it comes to changes concerning the filing of GST returns, the new system will come into effect from 1 April 2020. Hence, the CBIC may tweak the law and rules to accommodate the new returns in forms RET-1 or RET-2 or RET-3 along with the annexures in ANX-1 and ANX-2. It needs the approval of both the houses of parliament and accordingly, will be placed during the Union Budget 2020.
Even though the GST Council is the sole authority to make changes to the GST law, whatever was recommended by the Council, will be implemented via amendments to GST legislation. The Budget 2019 had also seen changes and refinement to GST law. Accordingly, the government will take up the task to tune GST law for changes in the GST procedures, compliance system and judicial pronouncements, in the coming months.
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Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.