Budget 2022 - Do We Have A Stable Policy In Letter And Spirit?

To add to the woes of a registered person, the Government in the Finance Bill 2022 has proposed to amend section 16 of the Central Goods & Services Tax Act, 2017, whereby it has “reserved” its “right” to restrict the input tax credit that can be availed by a registered person.

I was recently added to the national list prepared by the Government for those suffering from Covid, which coincidentally happened to be around the time of the Union Budget 2022. I was left with no option but to stay indoors and reflect, among others, on the Dickensian nightmare of the impact of Covid on life. In the world of viruses, it is not a matter of happenstance that colour, power, religion, creed, or for that matter status in society, has no impact on its virulence.

In this moment of a personal struggle, I did hope that there would be some joy in the Union Budget 2022, and that it would assuage the concern of ever-growing inflation and provide relief to the middle class, of which I am a part. While the opening was indeed thrilling, this movie has failed to connect with the masses.

The Hon’ble Finance Minister in her speech stated as follows, which was indeed welcome:

The proposals in this budget, while continuing with our declared policy of stable and predictable tax regime, intend to bring more reforms that will take ahead our vision to establish a trustworthy tax regime. This will further simplify the tax system, promote voluntary compliance by taxpayers, and reduce litigation.