The Synthetic & Rayon Textiles Export Promotion Council

Union Budget for 2019-20

Circular No.ES/88/2019-20                                                                                                            July 06, 2019

To:  Members of the Council

Sub: Union Budget for 2019-20

Dear Sir,

The Council is glad to inform you that the Government has announced the Union Budget for 2019-20 on 5th July, 2019.

The Union Budget has made the following announcements:

Economy

  • Two goals for the country's future: National security and Economic growth. 

  • Government lays out 10-point vision for the New India. 

  • India to become US$3 trillion economy this year. Projected to achieve US$5 trillion economic goal. 

MSME

  • Propose easing angel tax for startups.

  • Angel tax: Wont require scrutiny from Income Tax department for startup. 

  • 2% interest subvention for GST-registered MSME on fresh or incremental loans. 

  • Interest subvention scheme for MSMEs: Rs. 350 crore allocated for 2019-20

  •  ‘Stand Up India' Scheme to continue till 2025. 

  • Propose to commence television channel for start-ups. 

  • To extend pension benefit to retail traders with annual turnover less than Rs 1.5 crore.

  • New payment platform for bill filing for MSMEs to be created: to address delays.

  • Social stock exchange for listing social enterprises and voluntary organizations.

Investment

  • Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendly. 

  • Long-term bonds for market. 

  • Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector.

  • To merge NRI portfolio route with FPI route. 

  • To hike statutory limit for foreign investment in some companies. 

  • To set up a credit guarantee enhancement corporation. 

  • Govt to take up measures to make RBI & SEBI depositories inter-operable. 

  • User friendliness of trading platforms for corporate bonds to be reviewed, including issues arising out of capping of International Securities Identification Number. 

  • To deepen corporate tri-party repo market in corporate debt securities. Plan to enable stock exchanges to allow AA rated bonds as collateral. 

  • Annual Global Investors' Meet for attracting global players to come and invest in India. 

Customs

  • Under Chapter 54, Classification of Dyed woven fabrics, containing more than 85% or more by weight of filaments of nylon or other polyamides, against Serial Nos.41 and 42 of Notification No.14/2006-Customs dated 1st March, 2006, is being rectified from “5407 42 00” to “5407 42”, vide Notification No. 26/2019-Customs, dated 6th July, 2019. This is a technical change.

  • Changes in customs duties to promote “Make in India”

GST

  • Taxpayers having annual turnover of less than ₹5 crore can now file quarterly returns.

  • Fully automated GST refund module shall be implemented.

  • An electronic invoice system is proposed that will eventually eliminate the need for a separate e-way bill.

  • Further simplification of GST Processes

FDI

  • Local sourcing norms to be eased for FDI in single-brand retail sector. 

  • Govt. to open FDI in aviation, insurance, animation AVGC and media. 

Startups promotion

  • Exclusive TV channel for startups

  • E-verification for establishing investor identity and source of funds to resolve tax issues relating to fund raising

Faceless E-Assessment

  • A scheme of faceless electronic assessment involving no human interface to be launched this year

Enhancing Ease of Tax Payers

  • Aadhaar and PAN to be made interchangeable

Pradhan Mantri Karam Yogi Maandhan

  • Pension benefits to retail traders and small shopkeepers.

For more information on the Union Budget 2019-20, please follow the link for the following

(1) Customs Notifications

(2) Central Excise Notifications

(3) Explanatory Notes

(4) Highlights of Budget 2019-20 (Key Features)

We request you to please send us your suggestions / views on the Budget provisions latest by 12th July, 2019 (Friday) so that the same can be included in the Post Budget Memorandum which the Council will be shortly forwarding to the Government. 

Thanking You,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR