“The announcement in the Budget 2020 about simplified GST returns from April 2020 is welcome. However, more is anticipated from the government on GST reforms,” says Atit Gandhi managing director of Montage Group.
Gandhi comments:
GST refunds have to be on time, need relation in GST compliance procedure; there is a burden on the GST payer to pay on time without receiving the same from the creditor. Let’s hope the GST Committee brings in new clarity on reforms.
The Budget has slashed the IT rates, which should help in driving consumption. The slashing of corporate rates to 22% is a good move and should drive more corporate investment.
Measures to enable NBFCs to extend invoice financing to MSMEs and RBI’s loan restructuring, will give a major boost to MSMEs. Similarly, the economic and financial sustainability of MSMEs will go up by making amendments to allow NBFCs to be part of TReDS (Trade Receivables Discounting system), that would result in enhanced funding for MSMEs.
Government’s plans to improve road and train infrastructure for agriculture perishable goods and boost cold storage and warehouse infrastructure will help towards arresting wastage of tonnes of agriculture produce, and get farmers higher prices.
Collective aspects in the budget such as commitment to double agricultural income by 2022, farmer insurance, infrastructure development in Jammu & Kashmir and Ladakh, tax holidays on affordable housing, deadline for Delhi-Mumbai Express Way and 100 new airports, 100% tax concession for infra investing by sovereign wealth funds, healthcare infra investment, single window clearance for investors, divestment commitments in LIC & IDBI Bank, reduction in personal IT slabs and DDT reduction, all are welcome. These objectives are expected to increase consumption and assure a renewed investment push for infrastructure development.
As the theme goes, it is an aspirational Budget, focused on economic development for all, and a caring society.