Industry Indirect Tax Expectations for Budget 2024: What You Need to Know

By: Admin
July 22, 2024
Categories: GST Recent News

Cryptocurrencies, NFTs, and GST: Clarity Needed Ahead of Budget 2024

The taxation landscape for cryptocurrencies and non-fungible tokens (NFTs) has seen recent clarity under Income Tax regulations in India. However, ambiguity persists regarding their treatment under Goods and Services Tax (GST), resulting in confusion and heightened industry demands for clarification. Stakeholders are eagerly awaiting government measures to address the taxability of Virtual Digital Assets (VDAs) from a GST perspective in the upcoming Budget 2024.

Real Estate Sector’s Expectations: GST Reforms and Beyond

The real estate sector anticipates significant reforms in Budget 2024 to tackle pressing challenges. Foremost among these is the streamlining of input tax credit rules under GST. This reform is crucial as it aims to alleviate the GST costs borne by developers and streamline processes, thereby boosting the sector’s growth. Additionally, there is a hopeful expectation for reduced GST rates on under-construction properties, which could potentially stimulate demand and investment in the sector.

Economic Imperatives and Tax Efficiency

As India strives to strengthen its position in the global economy, the government’s approach to tax policies becomes pivotal. Tax efficiency is paramount to sustain economic supremacy and foster a conducive environment for industry players. With this in mind, Budget 2024 is expected to introduce more robust budgetary allocations for initiatives like “Make in India.” This initiative aims to promote domestic manufacturing and enhance India’s competitive edge in global markets.

Key Budgetary Asks: What Industry Stakeholders Seek

Industry stakeholders have outlined several key expectations from Budget 2024. These include:

  • Rate Rationalization: Calls for rationalizing GST rates across various sectors to align with industry dynamics and consumer demands.
  • Amnesty Schemes: Proposals to introduce schemes that ease the burden of tax litigation for both taxpayers and the government, fostering a more collaborative approach to dispute resolution.
  • Production-Linked Incentive Schemes: Extension and enhancement of production-linked incentive (PLI) schemes to incentivize manufacturing across sectors crucial for economic growth.
  • Support for the EV Industry: Measures and policies providing subsidies and incentives to the electric vehicle (EV) industry, aiming to promote sustainable mobility solutions and reduce carbon emissions.

Conclusion: Towards a Progressive Fiscal Policy

In conclusion, Budget 2024 holds significant promise for shaping India’s economic trajectory through progressive fiscal policies. Addressing the taxation complexities surrounding cryptocurrencies, NFTs, and VDAs under GST will be pivotal to fostering clarity and compliance within the digital economy. Similarly, reforms in the real estate sector are poised to streamline operations and reduce financial burdens, thereby enhancing sectoral growth.

By prioritizing tax efficiency and responding to industry demands through targeted initiatives like “Make in India,” the government can effectively support economic expansion and bolster India’s global competitiveness. As stakeholders eagerly await the budgetary announcements, the emphasis remains on fostering an environment conducive to sustainable economic growth and development.

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