Budget Highlights
ECONOMY
Capex target expanded by 35.4 per cent — from Rs 5.54 lakh crore to Rs 7.50 lakh crore. FY23 effective capex seen at Rs 10.7 lakh crore ECLGS cover expanded by Rs 50,000 to Rs 5 lakh crore
AGRICULTURE & FOOD PROCESSING
Promoting chemical free natural farming starting with farmers’ lands close to river Ganga Promoting post-harvest value addition, consumption and branding of millet products Delivery of Digital and Hi-Tech services to farmers in PPP mode. Use of Kisan Drones toaid farmers. Launching fund with blended capital to finance agriculture start ups.
EDUCATION
Universalization of Quality Education
A Digital University will be established with world class quality universal education
High quality e-content will be delivered through Digital Teachers
Skill Development
Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to promote online training
Startups will be promoted to facilitate Drone Shakti for Drone-As-A-Service
HEALTH
National Digital Health Ecosystem will be rolled out
National Tele Mental Health Programme will belaunched for quality counselling
Integrated architecture: Mission Shakti, Mission Vatsalya, Saksham Anganwadi, and Poshan 2.0 to be launched
Two lakh Anganwadis to be upgraded to Saksham Anganwadis
ALL INCLUSIVE WELFARE FOCUS
MSME
• Raising and Accelerating MSME Performance (RAMP)programme will be rolled out
• Revamping CGTMSE
• Extending ECLGS with focus on hospitality and related enterprises
• Interlinking various portals
•Digital Payments: Scheduled Commercial Banks to set up 75
• Digital Banking Units in 75 districts Digital Banking by Post Offices: 100% of post offices to come on the core banking system
• Vibrant Villages Programme: Targeting development of villages on the Northern Border left out from the development gains
• PM-DevINE: To fund infrastructure and social development based on felt needs of the North East
• Vibrant Villages Programme: Targeting development of villages on the Northern Border left out from the development gains
EASE OF DOING BUSINESS 2.0
• Trust based governance
• Integration of central and state level systems through IT bridges
•Expanding scope of PARIVESH Portal
• Unique Land Parcel Identification Number for IT based management of land records.
•Establishing C-PACE to facilitate voluntary winding up of companies
• End to end online e-Bill System andutilizing surety bonds in government procurement.
• AVCG promotion task force
• Support to 5G under PLI scheme •Opening up defence R&D for industry, startups and academia
EASE OF LIVING
• Introduction of Digital Rupee by RBI starting 2022-23
• Public investment to continue to pump prime private investment and demand in 2022-23
•Issuance of chip embedded e-Passports
• Modernization of building byelaws, implementing Town Planning Schemes and Transit Oriented Development
• Establishing Centersof Excellence in urban planning
• Providing a battery swapping policy as an alternative to setting up charging stations in urban areas
FINANCING OF INVESTMENT
• Green Bonds to mobilize resources for green infrastructure
•Infrastructure status for Data Centers and Energy Storage Systems Measures to aid investment by Venture Capital and Private Equity Investment
• Blended Finance for sunrise sectors Providing greater fiscal space to States
• Enhanced outlay to Scheme for Financial Assistance to States for Capital Investment
• For 2022-23 States will be allowed a fiscal deficit of 4% of GSDP of which 0.5% will be tied to power sector reforms
TAX PROPOSALS
Indirect Taxes
• Customs administration to be fully IT driven in SEZs
•Phasing out concessional rates in capital goods and project imports gradually and apply a moderate tariff of 7.5%
• Review of customs exemptions and tariff simplification
•Customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic electronicsmanufacturing
•Rationalization of exemptions on implements and tools for agri sector manufactured in India
• Extension of customs duty exemption to steel scrap
• Reduction of duty on certain inputs required for shrimp aquaculture
• Unblended fuel shall attract additional differential excise duty
GST
• Introduction of Digital by RBI starting 2022-23
• Public investment to
to pump prime private investment and demand in 2022-23
The Amendments carried out in the Finance Bill, 2022, vide clause 99 to 113 will come into effect from a date to be notified and clause 114 to 123 will come into effect on the date of its enactment
1. Additional Condition for availment of ITC u/s 16(2)- ITC can be availed only if the same is not restricted under Section 38 – as per the details communicated to the purchaser in GSTR-2B.
2. Welcome Amendment on ITC availment limit to be 30th November Report this ad Time-limit to avail ITC u/s 16(4) extended till 30th November of next year from 30th September.
3. Composition dealer registration cancellation dependent on non- filing of GST returns Section 10 Composition Tax Payer’s Registration can be cancelled suo-moto if they have not filed their GSTR-4 return beyond 3 months from the due date.
4. Non-composition tax payer registration cancellation on non-filing of GST returns Registration of a person, other than those paying tax under section 10, can be cancelled if has not furnished returns for such continuous tax period as may be prescribed.
5. Extension in time limit to issue credit notes Report this ad Credit Notes in respect of supply made in a financial year can be issued by 30th November of next financial year (currently allowed till 30th September).
6. GST 1/ GST 3B rectification allowed till 30th November Any rectification of error in GSTR-1/ GSTR-3B is now permitted till 30th November of next financial year (currently allowed till 30th September).
7. GST Outward Supply process to be amended a. The two-way communication process in filing GST returns is scrapped. b. Section 38 of the CGST Act is being substituted for prescribing the manner as well as conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement and to do away with two-way communication process in return filing.
8. The due date for filing return by non-resident taxable person is prescribed as 13th day of next month.
9. Section 41 of the CGST Act is being substituted so as to do away with the concept of “claim” of ITC on a “provisional” basis and to provide for availment of self-assessed input tax credit.
10. Sections 42, 43 and 43A of the CGST Act are being omitted so as to do away with two-way communication process in return filing.
11. Section 47 of the CGST Act is being amended so as to provide for levy of late fee for delayed filing of TCS returns under section 52.
12. ITC availment on self-assessment basis
a. Section 49 of the CGST Act is being amended so as to provide for prescribing restrictions for utilizing the amount available in the electronic credit ledger.
b. Section 49 of the CGST Act is being amended so as to allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person
c. Section 49 of the CGST Act is being amended so as to provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger.
13. Interest to be levied on ITC wrongly availed and utilized. If ITC not utilized, then interest will not be levied. Section 50(3) substituted retrospectively wef 01.07.2017.
14. Section 54 dealing with refunds amended an explicit refund claim of any balance lying in Electronic Cash ledger under Section 54.
b. Time limit of 2 years provided for claiming tax refund on inward supplies of both goods or services u/s 55, from last day of the quarter in which said supply was received.
15. GST portal www.gst.gov.in notified Notified Retrospectively as the common portal for all the functions provided under CGST Rules 2017 except for E way bill generation and for generation of invoices under Rule 48(4) of CGST Rules.
16. Rate of Interest u/s 50(3) prescribed as 18% in all cases.
Direct Taxes
• Allowing taxpayers to file Updated Return within 2 years for correcting errors.
• Tax relief to persons with disability deduction for payment in lumpsum /Annuity during the life term of the person taking care.Wef 1.4.2023.
• Reducing Alternate Minimum Tax Rate and Surcharge for Cooperatives to15%.
• Extending period of incorporation of eligible startups for providing tax incentives to 31.3.2023.
• Increasing tax deduction limit on employer’s contribution to NPS account of state government employees to 14 % of employers contribution.
• Income from transfer of virtual assets to be taxed at 30% and withholding tax @1% to be applicable on the sum credited to a resident.
• Better litigation management to avoid repetitive appeals • Any Surcharge or Cess on Income and Profits not allowable as businessxpenditure.
• Set off of brought forward loss not allowed against undisclosed income.
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