India now breathes as a reformed nation. With the push of a button, President Pranab Mukherjee and Prime Minister Narendra Modi rolled out India’s biggest tax-reform – Goods and Services Tax (GST) on July 1 at Central Hall of Parliament in a special mid-night joint session.
With the implementation of GST, while businesses are expected to perform more efficiently vis- a-vis simplification of indirect taxes, on the other hand, consumers are expected to be benefited by reduction in the prices of goods and services with elimination of the cascading impact of indirect taxes.
Experts suggest that economy is expected to gain from efficiency of the businesses, enhanced production possibility frontiers and investors attraction towards India.
Let’s take a look at what industrialists and entrepreneurs have to say about the new tax reform:
Welcoming the government’s move, Rahul Garg, Founder & CEO of Ratan Tata-backed Moglix said, “I congratulate the Government on translating its vision of One Nation, One Tax into reality. While some disruption is expected initially but I am certain that each one of us will contribute to make GST a success. A few of us have already put the processes and systems in place, many sectors are still trying to understand how technology and right partnership can help them with compliance.”
Moglix has recently developed Green GST – an affordable SAAS based technology tool – to empower the $300 billion manufacturing segment in India with almost zero pricing to make manufacturing supply chain GST ready.
Mohit Sahney, MD & CEO of Finova Capital said, “The GST bill is going to have a positive impact in long run by streamlining the taxation landscape in India. However, as with the implementation of any new system, there would be a few hiccups in the short run because of uncertainty and also, due to a higher tax regime in some of the sectors, including the NBFCs.”
Industrial chambers suggest though there is a lot of awareness at the top level, however, training of the officers at the lower levels will go a long way for the fruitful outcome at ground level.
While welcoming GST, Gopal Jiwarajka, President of PHD Chamber, said “We look forward to reduction in the cost of doing business and improvement in the ease of doing business in the coming times. We look forward to a proactive role of the government in resolving the issues and challenges faced by trade and industry under the ambit of GST, since it is the biggest tax reform ever in the history of India, issues and challenges in the implementation process cannot be ruled out.”
“The industries are still fretful about inconsideration of lot of requested amendments to the council. Especially, certain provisions under GST guidelines, such as ‘reverse charge’ which is harsh and can lead to uncalled complexity in doing the business,” said Mohan Gurnani, Chairman, Chamber of Associations of Maharashtra Industry and Trade (CAMIT)
With the introduction of the GST bill, the informal sector is expected to gradually shift to formal sector and more people will come under the taxation bracket. Overall, it is speculated to prove as a strong enabler for GDP growth, which will indirectly have an affirmative influence on all sectors.
