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HomeBUSINESSBUSINESSUnion Budget 2023-24: Industrial organizations demand reduction in GST rates

Union Budget 2023-24: Industrial organizations demand reduction in GST rates

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Union Budget 2023-24: Bhopal (State Bureau). Central and state governments are taking many big steps to increase industries, but officials of industrial organizations say that many important provisions need to be made in the central budget for reforms. The demand of almost everyone is that the slabs of GST should be reduced. Along with this, GST rates should also be reduced. The central and state governments talk about ease of doing business, but it is not followed properly at the ground level. There are many problems to be overcome in setting up an industry. Talks with office bearers of industrial organizations regarding the Union Budget.

According to the estimates of the 15th Finance Commission, there is still a gap of over four per cent in the ratio of tax to GDP. The government may aim to reach 16 per cent tax-GDP ratio in the medium term from the current level of 11.7 per cent. The government should adopt a three-pronged approach to increase tax collection. First, avoid huge increases in the income tax threshold. Most of the tax filers are in the bracket of Rs 2.4 lakh to Rs 5 lakh. There should be effective tracking of their income and operations to prevent tax evasion. Second, there should be three categories of GST rates: low (for essentials), standard (for most products) and high (for demerits and luxury goods). Third, reforms in tax administration should lead to increased tax compliance and collection. Might be possible. Efforts should be made to expedite the process of appeals for tax disputes. Animesh Jain, ChairmanCII, Madhya Pradesh

A Credit Guarantee Fund Trust should be set up for micro and medium industries or the credit guarantee cover limit for SC-ST category entrepreneurs should be increased to at least five crores under the Credit Guarantee for Standup India Scheme. A portal should be developed to strictly follow the rule of 20 per cent procurement from Micro, Small and Medium Enterprises (MSMEs) and four per cent from SC-ST category MSMEs in the central procurement policy. – Dr. Anil Sirvaiya President, Dalit Indian Chamber of Commerce (DICCI)

If industries have to get wings then GST rates will have to be reduced. 18 per cent GST needs to be brought down to 12 and 12 per cent to nine per cent. The second thing is that the government talks about ease of doing business, but not much is happening on the ground. Unless the government fixes it, it cannot be said to be a very good environment for new industries. – Gautam Kothari, President, Pithampur Industrial Organization

First of all, the tax slab (tax level) of GST should be reduced. The facility of filing income tax return should be made easier. Can’t file return without consultant right now. In small cases the returns come quickly, but in business cases it takes more time even after the audit. A lot of recovery is taken out in the assessment. Thousands of cases go into rectification. – Dr. RS Goswami, President, Federation of MP Chamber of Commerce and Industries

Oil and petroleum are not yet covered in GST. For this reason, there is a lot of variation in the price of oil in the states. Second, the issue of subsidy has been around for a long time. A big demand is that instead of implementing the rules of both the Central Pollution Control Board and the State Pollution Control Board, this system should be centralized. – Rajeev Aggarwal President, Association of All Industries Mandideep

Posted By: Prashant Pandey

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