Sitharaman said pending GST refunds so far will be paid to small businesses within 30 days.
The Finance Minister proposed to establish an organisation to provide credit enhancement for infrastructure and housing projects with an aim to enhance fund flows towards such projects.
Following the increase in surcharge in the Budget, the effective income tax rate for individuals with taxable income of ₹ 2-5 crore went up to 39% from 35.88% and for those above ₹ 5 crore to 42.7%.
Taxation: The FM's biggest announcement is that the enhanced surcharge on Long Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG) arising from the transfer of equity shares has been revoked.
Global GDP growth may be revised downwards from the current estimate of 3.2%, she said adding that globally the demand was going to be weak. The RBI has this year cut interest rates by 110 basis points in four installments but banks have passed only a part of it to borrowers.
The finance minister also issued a clarification on a few aspects that she said were a cause for concern for auto buyers. The government has also raised the rate of depreciation on all vehicles, irrespective of their type, and acquired from now till March 2020, by 15 percent bringing the total depreciation to 30 percent. The finance minister announced the decision at a press conference during which she spoke about the Indian economy. Also, to address complaints of harassment, the FM said that all I-T summons would be issued through a centralised system with a unique ID from October 1. This will help with NPAs in the names of MSMEs which are pending because no one wants to take a call. Not only this, all future GST refunds will be settled in 60 days for SMEs, so that small businesses do not have to worry about their money being stuck somewhere, said Sitharaman.
"Reform is a continuous process", she said in her opening remarks adding that tax scrutiny will be "faceless" from Vijaya Dashami day, the last day of the Indian festival of Dussehra. The government has been taking bold steps to accelerate our economy & will continue to do so.
The government's announcements are aimed to improve private investment and assuage concerns of portfolio investors in the country.
Major demands of the slowdown-hit industries like- automobile, FMCG (Fast-Moving Consumer Goods), include a reduction in the GST (Goods and Services Tax) and the rollback of the super-rich tax for FPIs (Foreign Portfolio Investors).