Santosh Dalvi, Partner, Indirect Tax, KPMG

The government has walked the talk for Make In India by simplifying indirect tax registrations, easing credit availment, rationalizing the penalty provisions and announcing GST implementation date. While the Finance Minister proposed changes such as increasing Service Tax rates, rationalizing Excise and Customs duties by correcting inverted duty structure, pruning Service Tax negative list and exemptions to bring the current indirect tax regime in line with proposed GST, it did not provide any definite road map for GST implementation. The B-day could have been a perfect day for the businesses if the expectation in terms of removal of Cenvat credit restrictions and anomaly of dual levy of taxes etc. was met.

Vikas Vasal, Partner, Income Tax, KPMG

This will help provide much needed financial support to the SMEs which are an integral part of the manufacturing sector in India. This will help nurture entrepreneurial talent and generate employment opportunities for youth across the country especially in the remote parts of the country.

Pratik Jain, Partner, Indirect Tax, KPMG

Reiteration of introduction of GST from April 1, 2016 is extremely positive. Further, removal of eduction cess on excise duties and broadening the tax base by shrinking the parallel economy are also steps in this direction. Higher budgetary allocation to states would perhaps further reduce the trust deficit between centre and states and enable smooth introduction of GST. While increasing service tax rate from 12 to 14 percent may come as a bit of disappointment for consumers but was necessary as a run up to GST as the GST rate on services is likely to be 16 to 18 percent. India Inc which was largely sitting on the fence would have no option but to start preparing for GST now.

Reduction of customs duties on many raw materials and reduction of special additional duties would help incentivising 'make in India' campaign.

Sachin Menon , COO, Tax and Head, Indirect Tax, KPMG

The increase in Service tax from 12.36 to 14 percent would be a precursor to introduction of GST, would avoid the feeling of steep increase of taxes on service, on introduction of GST as the proposed rate under GST is 16 % or more. Service industries shall be geared to factor even a higher service tax cost next year.