Key highlights of Union Budget-2018
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 2-2-2018
Mr. Arun Jaitley today presented the final full budget of Modi government before the country goes to polls next year, amid subdued economic growth and challenging fiscal situation. Given that rural India constitutes two-thirds of the country's population, the agricultural sector is generously rewarded in this Budget along with education, healthcare and other populist policies being the focus areas. During the Budget 2018 speech, Mr. Jaitley said that common man will continue to be getting utmost importance from Modi government. Even Prime Minister Narendra Modi hailed the Budget, 2018 as "farmer friendly, common citizen friendly, business environment-friendly and development friendly”. Opposed to the expectations of aam aadmi, this Budget chose to keep income tax slabs unchanged for salaried class. It also clarified that Crypto currencies shall not be deemed as legal
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
oms (CBIC).
In Nutshell, Union Budget, 2018, brought number of sops for MSME sector and kept its focus on infrastructure creation, higher farmers' income and economic reforms.
Though certain announcements could have been made as regards future roadmap of GST to address various concerns of trade for ease of business for GSTN Network, GST return filing, refund to exporters, Tran 1 deadline, Open issues in transitional credits and other GST law related issues still left unanswered.
General Economy
* Agriculture
* Minimum selling price(MSP) for Kharif crops has been set at least 1.5 times the production cost.
* Rural Economy
* Substantially increase in allocation of National Rural Livelihood Mission to ₹ 5750 crore in 2018-19.
* Education
* Government aims to move from black board to digital board schools by launching revitalising Infrastructure and systems (RISE) by 2022.
* Health
* Flagship National Healthcare protection scheme will be launched to cover 10 crore
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ilways
* ₹ 11,000 crore has been allocated for Mumbai rail network and ₹ 17,000 crore for the Bengaluru metro
* Aviation
* Airport Authority of India (AAI) has 124 airports. It has been proposed to increase the airport capacity by at least 5 times to 1 billion trips a year, ₹ 60 crore has been allocated to kick start the initiative in 2018-19.
* Technology
* Allocation to Digital India scheme doubled to ₹ 3073 crore.
* Fiscal Situation
* Fiscal deficit is 3.5% of GDP at ₹ 5.95 lakh crore in 2017-18. Projected fiscal deficit to be 3.3% of GDP in the next fiscal.
* Miscellaneous
* ₹ 7,148 crore allocated for industries in the textile sector
* Recapitalisation will pave the way for public banks to lend an additional ₹ 5 lakh crore
* Disinvestment target of ₹ 80,000 crore for FY19
Highlights of changes in Indirect Tax
Name of Central Board of Excise and Customs is being changed to Central Board of Indirect Taxes and C
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
so as to empower Central Government to exempt goods re-imported after export for repair, further processing or manufacture ['Outward Processing of Goods'] from payment of whole or any part of duty of customs, leviable thereon subject to certain conditions.
Changes in recovery provisions [Section 28]:
* Provision introduced for pre-notice consultation in non-fraud cases.
* Provision introduced for supplementary SCN within existing time period.
* Providing a definite time frame of 6 months (non-fraud cases) and 1 year (fraud cases) for adjudication of SCN which is extendable to further period of 6 months/ 1 year.
* If the SCN is not adjudicated even within the extended period, it would be deemed as if no demand had been issued.
Few major amendments in the first schedule to the Customs Tariff Act, 1975:
* To make 'Make in India' initiative a great success, Customs duty on certain products, such as mobile phones, televisions, specified parts/accessories of motor vehicl
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
l), being the goods imported into India at the rate of ₹ 8 per litre for the purpose of financing infrastructure projects.
* Abolition of Additional Duty of Customs [Road Cess] on imported motor spirit commonly known as petrol and high speed diesel oil.
EXCISE:
* Road and Infrastructure Cess on motor spirit, commonly known as petrol and high speed diesel oil, to be levied @ ₹ 8 per litre (@ ₹ 4 per litre in case it is manufactured in and cleared from 4 specified refineries located in the North-East India).
* Additional Duty of Excise [Road Cess] on motor spirit commonly known as petrol and high speed diesel oil has been abolished.
* Basic excise duty on Branded and Unbranded petrol and diesel has been reduced.
SERVICE TAX:
Retrospective Exemption:
* Services provided or agreed to be provided by the Naval Group Insurance Fund by way of life insurance to personnel of Coast Guard, under the Group Insurance Schemes of the Central Government.
* Services prov
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r section 115Q of the Act so as to bring deemed dividends also under the scope of dividend distribution tax under section 115-O.
* Long term capital gains exceeding ₹ 1 Lakh will be taxed at 10% without the benefit of indexation.
* Senior citizens to get ₹ 50,000 per annum deduction for medical insurance u/s 80D and limit u/s 80DDB, deduction of amount paid for medical treatment of specified diseases, has been raised to ₹ 1 Lakh for all senior citizens.
* Standard deduction of ₹ 40,000 allowed in lieu of existing exemption in respect of transport allowance and reimbursement of miscellaneous medical expenses.
* Education cess to be replaced with “Health & Education Cess” and the rate is to be increased to 4% from current rate of 3% which will lead to additional collection of ₹ 11000 crore.
* Government has also made PAN mandatory for any entity entering into a financial transaction of ₹ 2.5 lakh or more.
Hope the information will assist you
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =