Major announcements on indirect taxes unlikely in Budget

Officials said govt will rather wait for GST rollout, instead of making changes for just one-quarter

The Budget for 2017-18 is likely to refrain from making any major announcements on the indirect tax front, particularly on excise duty and service tax, as much of these are expected to be covered under the goods and services tax (GST), likely to be introduced from July. Officials said the finance ministry will rather wait for the GST rollout, instead of making changes for just one-quarter of 2017-18. The GST Council has already resolved the contentious issues of administrative turf between the Centre and states over assessees under the new taxation regime and the right of coastal states to tax economic activities within 12 nautical miles of seas. After the Council approves legally vetted language on these in the meeting on February 18, a committee of officers will prepare procedures and item-wise tax rates.