Home» Circulars» Interim Budget 2019 20 Highlights Provisions For Exports Logistics Area

 

 

Dear Members,   As you are aware,  Hon’ble Minister of Finance  Shri Piyush Goyal has  presented the Interim Budget 2019-2020 on 1st Feb 2019.   The budget 2019-20  lays focus on benefits  for middle class, farmers and unorganised workers, no tax on income up to Rs 5 lakh income, farmer income support scheme of Rs 6,000 per year, interest subvention scheme for farm loan takers and new pension scheme for unorganised sector workers along with higher allocation for rural schemes rural schemes like MNREGA and village roads.   The key economic indicators as per budget statement   Fiscal deficit seen at 3.4 percent in FY 19 and Current account deficit at 2.5% of the GDP   India is poised to become a $5 trillion economy in next 5 years, $10-trillion economy in the next eight years Average Inflation in December 2018 was 2.1%.   Rs 3 lakh crore  recovered through Insolvency and Bankruptcy Code. Govt expects banks on the central bank's Prompt Corrective Action list to be removed soon.   GST has been continuously reduced, resulting in relief of 80,000 crore rupees to consumers.   Department of Industrial Policy and Promotion (DIPP), which will now be renamed as the Department for Promotion of Industries and Internal Trade.   Gist of  provisions  in Interim Budget 2019-20 from exports/ Logistics perspective   Though there are no chemical sector specific taxation  proposals, the announcements related to Exports/ logistics/Ports  are as follows:   Customs and Trading Across Border Reforms   To promote the “Make in India” initiative, rationalization of customs duties and procedures.  Government has abolished duties on 36 capital goods.   A revised system of importing duty-free capital goods and inputs for manufacture and export has been introduced, along with introduction of single point of approval under section 65 of the Customs Act.   Indian Customs is introducing full and comprehensive digitalization of export/import   The flagship programme of Sagarmala along the coastal areas of the country will develop ports for faster handling of import and export cargo. For the first time, container freight movement has started on inland waterways from Kolkata to Varanasi. Government will introduce container cargo movement to the North East as well, by improving the navigation capacity of the Brahmaputra river.   India's import dependence on crude oil and natural gas has been a source of big concern to our Government. A high level Inter-Ministerial Committee, has made several specific recommendations, including transforming the system of bidding for exploration, changing from revenue sharing to exploration programme for Category II and III basins. The Government is in the process of implementing these recommendations.   GST Reform for benefit to consumers and businesses   Businesses with less than Rs 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns   You are requested to take note of the above provisions based on Interim budget 2019-20 documents available on relevant website. CBIC Notifications related to any of the  provision shall be updated to you in due course. The original budget documents/ notifications are available for download using below link-https://www.indiabudget.gov.in/ We also look forward to your feed-back on the provisions of the Interim Budget 2019-20.  The same can be mailed to us  on  ed@chemexcil.gov.in  & deepak.gupta@chemexcil.gov.in  .   Thanking You, Yours faithfully, S.G Bharadi Executive Director CHEMEXCIL