Analyzing Union Budget 202425 : A Comprehensive Review of Indirect Tax Reforms And Strategic Directions—Adyasha Mohanty

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The Tax Publishers Union Budget 2024-25--Indirect Tax Reforms Analyzing Union Budget 2024-25 : A Comprehensive Review of Indirect Tax Reforms And Strategic Directions Adyasha Mohanty The Indirect Tax proposals outlined in Union Budget 2024-25 are being analysed in this article. "The measure of a country's greatness is in how it addresses its most pressing challenges. True reform is not only about creating new policies but also about adapting and refining existing ones to meet evolving needs." -- John F. Kennedy In this context, the Union Budget 2024-25 was unveiled against a backdrop of political stability, India's impressive economic performance surpassing global trends, and record-breaking tax collections. The Hon'ble Finance Minister has presented a visionary "Disha Nirdeshak" budget, meticulously designed to pave the way for an inclusive and prosperous Vikasit Bharat (Developed India). The indirect tax proposals outlined in India's Union Budget for the fiscal year 2024-2025, have generated considerable discussion among economists, policymakers, and the general public. Since its introduction in 2017, the Goods and Services Tax (GST) has been praised as a groundbreaking reform designed to simplify indirect taxation and unify the diverse state markets. However, in the light of the complexities and compliance issues that have emerged during its implementation, the government has introduced several measures that are aimed at improving efficiency and resolving longstanding concerns. The amendments to the GST law proposed in Budget 2024 are designed to implement the recommendations from the GST Council's 53rd meeting, reflecting a concerted effort to address the challenges identified. These changes, which stem directly from the Council's recommendations, necessitate legislative amendments. 1. A Discussion on the Visionary Proposals and GST Reforms in the Union Budget 2024-25 The significant updates that are brought up by the Budget 2024-2025 are as follows: - 1. The latest updates introduced in the GST law include a significant change vis-a-vis levy of tax on supply of Extra Neutral Alcohol (ENA). The government has decided to exclude ENA, which is used in the manufacture of alcoholic beverages, from the scope of GST. This exemption aims to alleviate the tax burden on the alcoholic beverages industry by removing ENA from central tax regulations. Consequently, ENA used in the manufacture of liquor for human consumption would no longer be subject to GST, reflecting the government's effort to streamline taxation and support the sector. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Union Budget 2024-25--Indirect Tax Reforms

Analyzing Union Budget 2024-25 : A Comprehensive Review of Indirect Tax Reforms And Strategic Directions

Adyasha Mohanty

The Indirect Tax proposals outlined in Union Budget 2024-25 are being analysed in this article.

"The measure of a country's greatness is in how it addresses its most pressing challenges. True reform is not only about creating new policies but also about adapting and refining existing ones to meet evolving needs." -- John F. Kennedy

In this context, the Union Budget 2024-25 was unveiled against a backdrop of political stability, India's impressive economic performance surpassing global trends, and record-breaking tax collections. The Hon'ble Finance Minister has presented a visionary "Disha Nirdeshak" budget, meticulously designed to pave the way for an inclusive and prosperous Vikasit Bharat (Developed India). The indirect tax proposals outlined in India's Union Budget for the fiscal year 2024-2025, have generated considerable discussion among economists, policymakers, and the general public.

Since its introduction in 2017, the Goods and Services Tax (GST) has been praised as a groundbreaking reform designed to simplify indirect taxation and unify the diverse state markets. However, in the light of the complexities and compliance issues that have emerged during its implementation, the government has introduced several measures that are aimed at improving efficiency and resolving longstanding concerns. The amendments to the GST law proposed in Budget 2024 are designed to implement the recommendations from the GST Council's 53rd meeting, reflecting a concerted effort to address the challenges identified. These changes, which stem directly from the Council's recommendations, necessitate legislative amendments.

1. A Discussion on the Visionary Proposals and GST Reforms in the Union Budget 2024-25

The significant updates that are brought up by the Budget 2024-2025 are as follows: -

1. The latest updates introduced in the GST law include a significant change vis-a-vis levy of tax on supply of Extra Neutral Alcohol (ENA). The government has decided to exclude ENA, which is used in the manufacture of alcoholic beverages, from the scope of GST. This exemption aims to alleviate the tax burden on the alcoholic beverages industry by removing ENA from central tax regulations. Consequently, ENA used in the manufacture of liquor for human consumption would no longer be subject to GST, reflecting the government's effort to streamline taxation and support the sector.