Finance Minister Nirmala Sitharaman addressed a press conference in Panaji, Goa. The Finance Minister and several State Finance Ministers have gathered in Panaji to take part in the Goods and Services Tax Council Meet.

While a separate press conference will be held after the GST meet, this press conference is about enhancing domestic manufacturing and Make in India scheme.

Vikas Dhoot reports from Panaji

Here are the live updates:

2.00 pm

Historic, says Modi

Prime Minister Narendra Modi has hailed his government's decision to slash corporate tax rates. "The step to cut corporate tax is historic. It will give a great stimulus to Make in India, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians," he tweeted.

The announcements in the last few weeks clearly demonstrate that our government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society and increase prosperity to make India a $5 Trillion economy, he said.

1.25 pm

Shaktikanta Das welcomes corporate tax cuts, says its a bold move

Reserve Bank Governor Shaktikanta Das on Friday said the reduction in corporate tax is a bold measure which will be highly positive for the economy.

These are definitely bold and welcome measures. It will augur extremely well and will be highly positive for our economy, Das said at an India Today organised event.

He said one of the major drawbacks that we had was high corporate tax rates and todays drastic cut in the same will take the country closer to the rates that prevail in emerging economies such as Thailand, and the Philippines.

1.10 pm

Industry, market cheer slashing of corporate tax rate

Industry, stock market and experts cheered slashing of corporate tax rate and other announcements by Finance Minister Nirmala Sitharaman saying the big bang reforms will push economic growth and investments.

“Reducing corporate tax rate to 25 per cent is big bang reform. Allows Indian companies to compete with lower tax jurisdictions like the US. It signals that our government is committed to economic growth and supports legitimate tax abiding companies. A bold, progressive step forward, Kotak Mahindra Bank CEO Uday Kotak said in a tweet.

Biocon CMD Kiran Mazumdar Shaw also applauded Finance Minister Nirmala Sitharaman.

“Corporate tax rate cut from 30 per cent to 25.2 per cent to spur growth- this is a great move which will firmly revive growth and investment. My hats off to FM @nsitharaman for this bold but most needed move,” she tweeted.

1.00 pm

Corporate tax cut to give ‘necessary fillip’ to economy: Piyush Goyal

Commerce and industry minister Piyush Goyal on Friday said the announcement of the corporate tax rate cut for companies by almost 10 percentage points to 25.17 per cent will give necessary fillip to the economy.

“Finance Minister’s announcement on slashing corporate tax will give necessary fillip to the economy which we’ve been hoping for. We have had a series of measures and today’s measures are the largest,” Goyal said at an event in Mumbai.

11.15 am

How will a company benefit, Revenue Secretary explains

The current effective tax rate for companies is 30 per cent. That rate is now 22 per cent. For new manufacturing companies the tax rate was 25 per cent. That has been brought down to 15, says Revenue Secretary Ajay Bhushan Pandey

There will be no sunset clause for the tax benefit to new manufacturing companies of 15 per cent. The effective rate was 34.9 per cent taking all surcharges into account, he says.

For new manufacturing companies, the effective rate with surcharges was 29.1 per cent. Now, the basic rate is 15 per cent, and effectively a company will pay only around 17 per cent.

11.10 am

On resuming mining activity in Goa, the Group of Ministers has met and is discussing options, the Finance Minister says.

"We will be taking all concerns on board to reconcile how the situation is now and how to take it forward," she says.

11.05 am

'New announcements will have a positive impact on revenue collection'

"We want to have more investments in Make In India. This will mean more investment. This will mean strengthening the economy," Ms. Sitharaman says while replying to a question.

What about fiscal deficit? "Economic buoyancy will itself generate enough reasons for better revenue generation. We will definitely be having a positive impact on the revenue collection. "

We are at par with South East Asian countries in terms of corporate tax, she says.

11.00 am

CSR spending

The government has decided to expand the scope of spending 2 per cent profits on corporate social responsibility (CSR) to allow spending on incubators or research grants to institutes engaged in promoting science research.

The total revenue forgone for the reduction in relief is estimated as ₹1,45,000 crore per year.

10.55 am

MAT rate reduced

The MAT rate has been reduced from 18.5 per cent to 15 per cent. In order to stabilise the flow of funds into capital markets, it is provided that the enhanced surcharge levied in the Budget shall not apply on capital gains arising in sale of equity shares in a company or a unit of a business trust or an equity fund liable to Securities Transaction Tax (STT).

The enhanced surcharge shall also not apply to capital gains arising on sale of any security including derivatives in the hands of foreign portfolio investors.

Enhanced surcharge will not apply to capital gains arising on sale of any securities including derivatives in the hands of foreign portfolio investors.

In order to provide relief to listed companies that have already made a public announcement of buyback before July 5, 2019, it is provided that tax on buyback of shares in case of such companies shall not be charged.

10.50 am

I-T rate cut for new companies

For new companies incorporated after October 1, 2019 and commencing production by March 31, 2023, the income tax rate will be 15 per cent. The effective tax rate for these companies will be 17.01 per cent.

Such firms will also not be required to pay any MAT.

Other companies can opt for this concessional tax regime after the expiry of their existing tax holidays or the exemption period.

After they exercise this option, they shall be liable to pay tax at 22 per cent. And the option once exercised, cannot be withdrawn.

In order to provide relief to firms who want to continue with the existing regime of exemptions, we are giving some MAT relief.

10.45 am

Corporate tax slashed for manufacturing sector

"We today propose the slash the corporate tax rates for domestic companies and also for new manufacturing companies. We have issued an ordinance to amend the income tax act for this," says FM.

We are adding a new provision to the income tax law to allow any domestic firm to pay income tax at 22 per cent subject to the condition that they won't avail any incentives or exemptions, she adds.

There will be no minimum alternative tax (MAT) levied on them and the effective rate for such firms will be 25.17 per cent including all surcharges and cess.

10.30 am

Nirmala Sitharaman's earlier announcements

On September 14, the Finance Minister announced measures to boost exports and realty sector. This included conducting annual mega shopping festivals, Remission of Duties or Taxes on Export Products (RoDTEP) in the place of MEIS, and special window to provide last mile funding for housing projects.

On August 30, as part of banking reforms, she announced mergers of public sector banks. 27 PSBs will now become 12.

On August 23, she withdrew enhanced surcharge levied on FPIs, vowed to make home and auto loans cheaper and allowed government departments to purchase vehicles to replace old ones.