Explaining Budget 2024 Announcements On GST And Custom Duty

While the indirect tax proposals aim at creating a taxpayer friendly environment, it appears that the Government has stopped short on taking affirmative measures which could have provided impetus to investments in key sectors and eased the burden of GST on the end consumers.

The tax proposals contained in the Union Budget recently tabled before the parliament largely aim at bolstering domestic manufacturing, improving ease of doing business, reducing litigation and providing certainty in tax administration.

On the Import duty front, the emphasis is to boost domestic manufacturing, in line with the 'Make in India' and 'Aatmnirbhar Bharat' initiatives through rationalization of the Customs duty rates. Keeping in line with these objectives, certain exemptions are extended till March 2026 and 2029 respectively, whereas certain others are allowed to lapse on September 30, 2024. The rationalization of import tariffs is expected to continue further with a comprehensive