Budget 2024: Lower GST demand listed by Delhi Market Association officials

Union Budget 2024: The Delhi Market Association has urged the government to consider measures to lower the Goods and Services Tax (GST) rates on essential items and on shop rentals

As the Union Budget 2024-25 approaches on July 23, various stakeholders are presenting their proposals and recommendations to Finance Minister Nirmala Sitharaman, hoping for favourable outcomes.

The Delhi Market Association has urged the government to consider measures to lower the Goods and Services Tax (GST) rates on essential items and shop rentals, aiming to stimulate consumer spending and boost sales.

Here’s what the Delhi Market Association expects in the Union Budget 2024:

“We want the GST to be reduced on the rentals of the shops. In south Delhi and other markets, the rentals are already very high, and a further GST rate of 18 per cent on them pinches our pockets,” said Vikram Bhasin, President of GK-2 Market Association, regarding his budget expectations.

GST is beneficial for every businessman; however, certain items should not incur so much GST, another member of the group said.

“Aluminium utensils attract 12 per cent GST. However, they are widely purchased by lower-income groups; hence, the GST on these should be up to only 5 per cent,” he recommended.

The issue of significant GST incurred on commercial rental spaces was widely echoed among traders. They also complained that while the Municipal Corporation of Delhi (MCD) charges them heavy property taxes, the facilities provided in return by the civic body are inadequate.

Lovely Sahni, President of Krishna Nagar Market, said, “Traders everywhere say the same thing. We pay so much tax on everything; then why aren’t we provided with the facilities?”

Regarding his expectations, Sahni said that the income tax slab revision is long overdue, highlighting that traders face troubles on both personal and commercial levels.

An official of the Gandhinagar Readymade Market Association highlighted that their area has to pay conversion charges, commercial house tax charges, and commercial electricity bill charges.

He further criticised the MCD for failing to provide basic necessities like sanitation and systemic parking around market spots. “This market is huge, but the government has not provided any parking for us. Outside traders have stopped coming here,” he added.

The Asian Development Bank (ADB) on Thursday upgraded India’s gross domestic product (GDP) growth forecast for 2024-25 (FY25) to 7 per cent from 6.7 per cent earlier, citing better prospects of robust public and private investment and strong services sector growth.  

However, it said unanticipated global shocks, such as supply line disruptions to crude oil markets and weather shocks that impact agriculture output, are key risks to India’s economic outlook.

with forecasts for an above-normal monsoon, will be important to sustain economic growth in rural areas. It said that investment demand led by public investment remains strong.

“Bank credit is fueling robust housing demand and improving private investment demand. However, export growth will continue to be led by services, with merchandise exports showing relatively weaker growth,” said ADB.

It said that the forward-looking services purchasing managers' index is well above its long-term average.

The International Monetary Fund on Tuesday raised India’s GDP growth projection for FY25 by 20 basis points to 7 per cent in its update to the World Economic Outlook amid a boost in private consumption, especially in rural areas

For FY26, ADB maintained India’s GDP growth projection at 7.2 per cent, as stated in its April outlook.