With the introduction of GST, consumers in India have got an annual benefit of Rs 1 lakh crore rupees, said Union Finance Minister Nirmala Sitharaman presenting Budget 2020 on Saturday. She added that 16 lakh new taxpayers have been added to the system due to GST and an average household now saves on average 4 per cent on monthly spends due to reduced GST.
"GST has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted MSME," Sitharaman said during Budget 2020.
During the maturing of GST, it faced some challenges. GST Council have been proactive in resolving issues during the transition.
"This is the budget to enhance purchasing power. Let our businesses be healthy and solvent. Fundamentals of the economy are strong. Inflation has been well-contained. GST has been the most historic structural reform in the country," the finance minister said.
also read
- GST collections hit Rs 1.78 lakh crore in March, second highest since roll-out
- GST enforcement body begins action against FMCG majors like ITC, Pepsico and others for tax evasion
- GST collections rise to second highest-ever at Rs 1.72 lakh crore in January
- GST officers detect over 29,000 bogus firms involved in fake ITC caims of Rs 44,000 crore
Sitharaman's second budget is expected to announce measures to restore economic growth and to set out a clear road map for achieving the ambitious target of $5 trillion economy by 2025.
Investments have failed to pick up despite corporate tax cuts and other stimulus measures, higher FDI inflows, plans to consolidate state-owned banks and monetary easing.
After corporate tax cuts in September last year, speculation is rife about possible reduction in personal income taxes. A combination of an increase in the basic exemption limit and/or the introduction of a differentiated tax rate structure for higher incomes may be on the cards.
