Hon`ble Finance Minister Nirmala Sitharaman has promised a `never before` Union Budget to steer the pandemic-battered economy and push for growth, so it adds to the expectations.
The whole country and the world has gone into a turmoil & pain after Covid 19, but with normalcy slowly returning to lives & business this Union Budget 2021 is important more than ever.
In 2020, the manufacturing industry faced more challenges than most due to the pandemic and ensuing lockdown. The anticipation of this Budget is, therefore, naturally high. To neutralise the impact of Covid, it is imperative to boost consumption in the economy by creating demand and increasing disposable surplus. The government has taken a lot of appreciable initiatives to secure MSME interests. However, it must also focus on the medium and large enterprises dealing with MSMEs.
Hon`ble Finance Minister Nirmala Sitharaman has promised a `never before` Union Budget to steer the pandemic-battered economy and push for growth, so it adds to the expectations.
· The GST return timelines should be fixed at the same for all taxpayers. High volume taxpayers regularly face working capital pressure due to blocking of Input credit & non-filing of monthly returns.
· Creating demand and increasing disposable surplus by reducing personal taxes and incentivising consumption.
· A serious consideration to the textiles ministry proposal to develop seven Mega Integrated Textile Region and Apparel (MITRA) parks as part of a plan to help double the industry size to $300 billion by 2025-26.
· Reduction in the Goods and Services Tax (GST) rate on readymade garments that belong to the range of INR. 1,000 to 2,000 per piece to 5% from 12%, and proportionally on high valued garments has been a long-pending expectation of the industry.
· Clarity on the implementation of the National Retail Policy, which proposes to focus on ease of doing business by rationalising the licensing process, improving infrastructure access and overall modernisation of retail among others, is also expected.
This budget will be a benchmark on how the industry evolves & grows to post the most calamitous challenge the world has faced in a century.
