Krishna (Fictional Character): Arjuna, the finance minister has given more focus on agricultural sector in this budget. Many announcements were made for agriculture. It is expected that GST will be implemented from 1st July. It was mentioned in the speech about the meetings held for discussing GST, rate of Tax, role of state government etc. This year, the major tax will be collected through GST. Changes are made in the budget considering the background of GST. That’s why there are no major changes in the sales tax laws. Even though the major focus of budget was on agricultural sector, there is unrest situation in topic of waiver of loan and there was peace in all other taxes because GST is coming.
Arjuna: Krishna, What are the important changes made in this year’s state budget?
Krishna: Arjuna, the following are the important changes-
- GST law is about to come, to close the long term appeals and collect tax as early as possible, government has established three new benches of Maharashtra Sales Tax Tribunal.
- Court fees, penalty etc. are prescribed before many years in different acts. After reviewing it, these will increase.
- According to sales tax law, in case of VAT appeals is to be preferred the officer have to fix the part payment. Now, 10% part payment of the disputed amount is to be paid immediately.
- After the result of appeal the time period available for preferring appeal in tribunal for tax payer or Sales Tax Department was 120 days which is increased to 180 days.
- The Sales Tax department gives interest if the tax payer did not get refund within 90 days. Now the above provision is changed from 90 days to 60 days.
- The tax collection provisions are made clear and specific.
- Those who are not registered under VAT, for registering them under VAT as well as GST government will come out with the provision to give part waiver of interest and penalty after paying Value Added Tax.
- As per the provision of the profession tax if the profession tax is not paid then the officer has the power to collect tax, interest and penalty of last 8 years. Now government has reduced it from 8 years to 4 years.
- To get the collection of Professional tax on time government has increased the rate of interest on the delay of payment of profession tax from 15% to slab wise rate ranging from 15% to 24%.
- The taxpayers registered under Service tax under required to pay profession tax.
- Earlier if the Professional tax return is submitted late then Rs. 1000/- has to be paid as late fee per return. But now if the tax payer has not submitted their professional tax return, they can file it till 30th September 2017 and no late fee will be charged to them.
- The rate of VAT on geo membrane required for farm pond, soil testing kit, milk testing kit, card swipe machine, etc. is now reduced to 0% i.e. now they are tax free.
- VAT rate of 23.08% on sale of Country and foreign liquor increased to 25.93%.
Arjuna: Krishna, What taxpayers should learn from above?
Krishna: Arjuna, Every year the honorable finance minister announces the budget and after that there are changes made in the tax laws. In this, some changes are beneficial to tax payers while some are beneficial to government. This year the finance minister is raising the “Gudi” of GST. Every year there are changes in some provisions of law but this year the law itself is changing. Let’s expect that the new change in the structure of law will give simple, easiness in our work and will be beneficial to all.