Budget 2025 | Indirect Tax Proposals

Introduction

The Union Budget 2025 – 2026 brings with it a host of amendments, in law and duty rates to customs and GST laws. The changes are intended to provide a fillip to domestic manufacturing, reduce tax slabs, increase value addition and reduce compliance burdens as also avoid unnecessary litigation. Additionally, targeted programs for controlled delivery for specified goods have been introduced. One adverse development concerns a retrospective amendment to input tax credit, which was subject to litigation for the past six (6) years. Broadly, the proposed amendments carry a positive sentiment for the trade and industry. However, there may be unintended consequences for trade and industry arising out of the fine print of the amendments.