In continuation of the government’s policy of phased reduction in corporate tax rates, Union Finance Minister Nirmala Sitharaman has announced that lower rate of 25 per cent would be applicable for all companies having annual turnover up to Rs. 400 cr from FY 2019-20. This will cover 99.3 per cent of the companies and only 0.7 per cent will pay at 30 per cent.
This step will result in revenue loss of Rs. 4,000 cr for the government, Sitharaman said in a reply to a question during her post-Budget press conference. Presenting Union Budget 2019-20, Sitharaman said the government is further simplifying the GST processes. “A simplified single monthly return is being rolled out. Taxpayer having annual turnover of less than Rs. 5 cr shall file quarterly return. Free accounting software for return preparation has been made available to small businesses. A fully automated GST refund module shall be implemented. Multiple tax ledgers for a taxpayer shall be replaced by one.”
Further, under the Interest Subvention Scheme for MSMEs, Rs. 350 cr has been allocated for FY 2019-20 for 2 per cent interest subvention for all GST registered MSMEs, on fresh or incremental loans.