In a significant move to streamline the tax system, the Goods and Services Tax (GST) has emerged as a catalyst in reducing the compliance burden on trade and industry, according to Finance Minister Nirmala Sitharaman. The unification of the tax structure has garnered positive feedback, with a recent survey indicating that 94% of industry leaders view the transition to GST as largely beneficial, she said while tabling Union Interim Budget today.
Acknowledging the continued support of taxpayers, Nirmala Sitharaman listed key changes in the tax provisions, underscoring the government’s commitment to fostering a business-friendly environment. One notable reform is the elimination of tax liability for individuals earning up to Rs. 7 lakh annually, providing relief to a significant portion of the population.
The threshold for presumptive taxation in the retail sector has been raised from Rs. 2 crore to Rs. 3 crore, aiming to ease the financial burden on small businesses. Simultaneously, the corporate tax landscape witnessed a significant overhaul, with the rate reduced from 30% to 22% for existing companies and an even more competitive 15% for certain new manufacturing industries, she added.
One of the notable achievements highlighted by the Finance Minister is the simplification of the tax return filing process. Filing returns has become more straightforward and efficient, leading to a drastic reduction in the average processing time from 93 days in 2013-14 to a mere 10 days. This not only expedites the refund process but also contributes to a more responsive and taxpayer-friendly system, she added.