The PHD Chamber of Commerce and Industry (PHDCCI) has submitted its detailed pre-budget recommendations for FY 2026–27 to Arvind Shrivastava, Revenue Secretary, Department of Revenue, Ministry of Finance, at Kartavya Bhawan.
The high-level delegation included Saket Dalmia (Former President), Dr. Ranjeet Mehta (CEO & Secretary General), Mukul Bagla (Chair – Direct Tax Committee), Ashok Kumar Batra (Chair – Indirect Tax Committee), Babeeta Sharma (Director), and Sanat Kumar (Chief Economist).
The Chamber’s proposals emphasize tax rationalisation, trade facilitation, and innovation-led growth, with a particular focus on empowering MSMEs, manufacturers, and exporters through simplified compliance and targeted fiscal incentives.
GST Reforms for Simplicity and Uniformity
PHDCCI has urged the government to rationalise GST rates, introduce a single return system, and include petrol and diesel under the GST regime to improve input credit availability and compliance efficiency.
The chamber also proposed allowing inter-unit input tax credit (ITC) transfer for companies operating with multiple GST registrations across India. It further called for clarity on anti-profiteering provisions and consistent interpretation across jurisdictions.
These measures, PHDCCI said, would enhance transparency, reduce litigation, and strengthen the overall GST framework.
Customs Duty Rationalisation and Trade Balance
To improve cost competitiveness, the chamber recommended zero or reduced customs duties on critical raw materials for the steel, paper, and medical technology (medtech) sectors.
It also proposed the permanent removal of duties on key imports such as steel scrap, ferro nickel, and molybdenum, while seeking higher tariffs on finished stainless steel and paper imports to safeguard domestic manufacturing.
By rebalancing import duties, PHDCCI aims to support local value addition and reduce import dependence in high-potential sectors.
Sector-Specific Recommendations
Steel Industry:
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Zero customs duty on key raw materials.
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Higher import duty on finished steel products.
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Removal of cess on coking coal to reduce input costs.
Paper Industry:
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Increase basic customs duty on paper and paperboard.
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Restrict paper imports under Free Trade Agreements (FTAs).
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Permit duty-free import of wood logs and chips for actual users.
Gold and Precious Metals:
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Rationalise import duty on gold ore concentrate and align it with copper ore to encourage domestic refining.
FMCG Sector:
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Reinstate GST exemption on agri-warehousing, clarify job work classification, and simplify export procedures.
Healthcare & Medtech:
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Remove health cess on imported medical devices.
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Incentivise R&D and export promotion for medtech MSMEs.
Also read: NITI Aayog Highlights Services Sector as India’s Next Growth Engine
Ease of Doing Business and Compliance Reforms
PHDCCI recommended expanding faceless assessments and audits, ensuring online refund mechanisms, and further simplifying customs and GST compliance for exporters and small manufacturers.
It also stressed the importance of reducing procedural delays and enhancing technology-driven monitoring systems to support India’s goal of becoming a top global manufacturing destination.
Sustainability and Innovation Incentives
The Chamber called for GST exemption on renewable energy certificates (RECs) and stronger policy support for indigenous manufacturing of advanced materials. It also proposed incentives for medtech R&D, testing, and clinical validation, ensuring that innovation remains a central pillar of India’s industrial growth.
Toward a $5 Trillion Economy
PHDCCI highlighted that its recommendations are aligned with the government’s vision of a $5 trillion economy, aiming to bolster competitiveness, attract foreign and domestic investment, and promote sustainable development.
The Revenue Secretary assured the delegation that the government would carefully evaluate the proposals while formulating the upcoming Union Budget, acknowledging the Chamber’s role in shaping industry policy and advocacy.