Parliament passed Goods & Services Tax Bill (GST) to create a hassle-free environment and boost up the investor’s confidence. The bill has been given assent by the president & has been ratified by 21 states. The government is yet to notify the act.
The BJP government appointed a committee to recommend measures to simplify the income tax structures. The Committee submitted its second report to the government in December 2016. However no major income tax reforms were announced in the budget in February 2017.
Implementation of the General Anti-Avoidance Rule (GAAR), a proposal of UPA government was getting delayed due to apprehensions on part of foreign investors. Following consultations, the Ministry of Finance operationalised the GAAR provisions with effect from 1st April 2017.
Contrary to the expectations of Minimum Alternative Tax (MAT) removal by industries, government says that it is not practical. However, Government has extended the period of time upto which it can be carried forward upto 15 years.It will enable companies to off-set their future tax liabilities.
(Minimum Alternative Tax is a tax to felicitate taxation of those companies which show zero or negligible income to avoid tax)