Union Finance Minister Nirmala Sitharaman leads pre-budget consultation with state Finance Ministers

New Delhi: State and union territory finance ministers convened under the direction of Union Finance Minister Nirmala Sitharaman to discuss the pre-budget at the Bharat Mandapam in New Delhi on Saturday.
 
The Ministry of Finance and Corporate Affairs is hosting a conference to solicit proposals for the Union Budget from various stakeholders, including the finance ministers of all states and Union territories.

A few days ago, the Finance Ministry held consultations with a range of economic players. Sitharaman has interacted with industry bodies, professionals in finance and financial markets, and economists. The FM presided over the first pre-budget meeting on June 19. The top economic adviser, the secretaries of the departments of economic affairs, revenue, financial services, and corporate affairs, as well as Union Minister of State for Finance Pankaj Chaudhary, attended the meeting. 

In the latter part of the day, Sitharaman is scheduled to preside over the 53rd Goods and Services Tax (GST) Council Meeting. This will be the GST Council's first meeting following the establishment of the new administration. Ministers of state finance will also be in attendance at the conference. 

The GST council will talk about matters about the GST regime, including tax rates, policy changes, and administrative difficulties. The council may also discuss the recommendations made by the Standing Committee on Chemicals and Fertilizers in February to reduce GST on nutrients and raw materials in the interest of fertilizer manufacturing companies and farmers. The council will seek to nullify retrospective GST demands and may address the issue of taxing reinsurance services in order to provide relief for reinsurers. 

The Council plays a pivotal role in molding India's indirect tax system to ensure that it promotes tax relief for both citizens and companies. 

The details of the council meeting's agenda are not yet available to the general public. The country's Goods and Services Tax was implemented on July 1, 2017, and states were guaranteed five years of compensation under the terms of the GST (Compensation to States) Act, 2017, for any revenue lost as a result of the introduction of the GST.