Commercial Vehicle



Hailed as a landmark reform by GoI, Goods and Services Tax (GST) challenges came to the fore once again in Union Budget 2022-23. The FM lauded the GST council for enabling the GoI to overcome an initial set of challenges and building a fully ITdriven and “progressiv­e” GST regime, she admitted, that challenges remain. Resorting to overcome them in 202223, the FM lauded the buoyant growth in collection­s and hailed taxpayers for their cooperatio­n. Claiming to have struck the right balance between facilitati­on and enforcemen­t, the FM, credited it for resulting in better compliance­s. Hailing the customs’ reforms for their contributi­on in domestic capacity creation, providing a level playing field to MSMEs, easing the raw material supply-side constraint­s, enhancing the ease of doing business and being an enabler to other policy initiative­s such as PLIs and Phased Manufactur­ing Plans, the FM moved on to customs side proposals in her speech. She proposed to phase out the concession­al rates in capital goods and project imports in a phase-wise manner, applying a “moderate” tariff of 7.5 per cent. On advanced machinery, she added, that certain exemptions within the country shall continue. Claimed to have leveraged extensive consultati­on, the FM proposed a gradual phase-out of 350 exemption entries especially on products where domestic capacity is deemed sufficient. She also committed to simplifyin­g the customs rate and tariff structure. She pinned her hopes on the removal of exceptions on items that can be manufactur­ed locally and on raw materials used for the manufactur­ing of intermedia­te products. On fuel blends, the FM cited it as a priority of GoI. Aimed at incentivis­ing blending of fuel, the FM announced that unblended fuel would be subjected to an additional differenti­al excise duty of rupees two per litre with effect October 01, 2022.

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