Important Announcements made by Finance Minister on 23 Aug 2019
Today on 23rd August 2019, respected Finance Minister, Nirmala Sitharaman, conducted a press meeting to address the important issues related to the economy. There were speculations about low economic growth and panic within the country. Some analysts were expecting that the FM will announce measures to achieve high growth and to announce stimulus to banks. However, FM made the following important announcements.
Momentum will continue
FM mentioned that the current projected Global GDP is 3.2% and is likely to be revised downward. The USA, Germany, etc are seeing the inverted yields. With the trade war between USA and China, the growth rate of China has been reduced. As we are always compared with China, the FM clarified that India still stands at a comfortable growth rate as compared to China.
Continuous efforts are made in the direction and the FM mentioned that momentum that has been created at the time of the Union budget 2019 will continue.
- Enhanced surcharge levied on LTCG and STCG has been withdrawn for FPIs / domestic investors.
- Angel tax or Section 56 (2)(viib) of the I-T Act will not be applicable for start-ups registered with DPIIT.
- A dedicated cell for addressing the issues of the startups will be formed.
- All vehicles acquired from now to 31st March will get an additional 15% dep. Totaling to 30% dep.
- Faceless Assessments, faceless scrutiny will now begin.
- A risk-based approach will be taken for assessments.
Goods & Service Tax
- All pending GST refunds to MSMEs shall be paid within 30 days.
- For all future GST refunds will be sorted out in 60 days.
- No announcement for due date extension for Annual GST Returns(GSTR-9/9A) and GST Audit Reports (GSTR 9C).
- GST rate cuts are the prerogative of GST Council and the decision in this regard can be taken there only.
- TReDs will discount GST refunds from companies. (Click here to read Basics of TReDS – Is it really a boon for MSMEs )
Banks NBFCs and MSMEs
- Additional Credit expansion to public sector banks – the upfront release of Rs 70,000 cr
- additional 9lac crores will be issued.
- Banks to effect timely rate cut through MCLR reductions
- Banks will launch the repo rate / external benchmark rate linked loan products.
- Within 15 days of loan closure, the documentation should be closed and given to the customers.
- Online tracking of loans will be implemented for PSU sector banks and NBFCs
- Transparency reduced harassment and customer experience
- More credit supports to NBFCs and Banks to ensure sufficient liquidity
- Aadhar based KYCs by banks then no more KYC by NBFCs
- MSME Act and related laws will now be revised to incorporate “one meaningful definition” of “MSMEs”.
- An organization will be set up to provide enhanced debt flow to infrastructure companies
- Use of Aadhar based KYC for opening demat accounts and for investing mutual funds for Indian and foreign investors.
- Finance ministry is working with RBI to bring offshore Rupee market to domestic stock exchanges and permit trading of USD – INR derivative.
Other important announcements include
- Boost to the Automobile industry by changing government vehicles
- Changes in depreciation rates as mentioned above
- Boost for Infrastructure industry announced
- CSR violations will not be considered a criminal offense but a civil responsibility
FM concluded the meet by saying Wealth creators will be given due respect.