EXCLUSIVE: GST BILL AND REACTION FROM INDUSTRY LEADERS - HR News, CXO Articles, HR Technology, Events, Trends

Latest News

August 06, 2016

EXCLUSIVE: GST BILL AND REACTION FROM INDUSTRY LEADERS

The approval over the passing of the GST Bill by the Upper House of the Indian Parliament has created a lot of buzz among the business community as well as general public. This historic bill Goods & Services Tax (GST) will lead the taxation system more structured and unified. The business community is Gung Ho about the impact of the bill which will create lot of positive business environment in the economy.




Let us find out the reaction from India's leading industry leaders.  

Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry

Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry
'This historic move by the Government is commendable as India will move towards double digit growth trajectory in the next few years. Currently, Indian economy is moving towards 8% growth in 2016-17 on account of various positivities such as good monsoon and uptick in the industrial activity. GST will enhance India’s growth trajectory to 10% in the next few years by 2019-20. However, states must be reaching agreement on the rates and processes to be adopted in the coming times. GST would be beneficial for many policy reforms announced by the Government of India during the recent past.

Make in India program would also get a boost with improvement in ease of doing business by doing away with multiplicity of taxes and their cascading impact. GST will enhance production possibilities, attract FDIs and increase employment opportunities in the economy. The implementation of GST will reduce the barriers between states and will make the country a common market, increase tax revenue for the states due to a wider tax base and better compliance. GST implementation will help in reducing tax evasion, enable greater control and facilitate efficient monitoring than the traditional taxation system. GST will create a common base and common rates across goods and services and reduce transaction costs.

With the reduction in the compliance costs, our trade and industry will become more competitive leading to reduction in transaction costs, an increase in export competitiveness and lower domestic prices. Going forward, the need of the hour is to spread awareness at a larger scale about the implementation procedure and advantages of GST to every citizen of the country.'

Rituparna Chakraborty, Executive Vice President & Co-Founder, TeamLease Services

Rituparna Chakraborty, Executive Vice President & Co-Founder, TeamLease Services
'Passing of GST in a single stroke will benefit both corporates and the economy. It will pave way to significant job creation across most domestic consumption driven sectors. It will also ensure fast track formalization of workforce and shall compel informal staffing companies either to comply with the law of the land or shut shop.'

It will variablize your current fixed costs through seeking input credit; will offer easy predictability on the costs of production and services rendered increased profitability by reducing the average tax burden. The uniformity of tax structures will open up markets beyond favourable territories, lead to expansion of services, capacity and product range. It will also less protectionism amongst states and lead more innovation.

From job creation perspective it will create:
·        Obvious need for hiring a distributed workforce across the length and breadth of India
·        Demand for skilled manpower will go up significantly
·        Pave way for mandatory formal job creation

Industries that will spur job creation immediately are:
·         Consumer Goods/FMCG
·         Media
·         Auto Industries
·         Cement
·         Logistics

Oliver Mirza, Managing Director & CEO, Dr. Oetker India

Oliver Mirza, Managing Director & CEO, Dr. Oetker India
'We are pleased that the much awaited Goods and Services Tax (GST) Bill was passed in Rajya Sabha yesterday and are hopeful of it being implemented by next financial year. The implementation of GST will positively impact the FMCG industry, which is on a growth trajectory. The sector is sure to avail significant benefits in transport, logistics and warehousing apart from other input costs. It will be beneficial not only for the players in the sector but will also have a positive impact on the economy at large. The GST would entail a unified tax regime to increase transparency and fair trade.'


Hari Menon, CEO, BigBasket

Hari Menon, CEO, BigBasket
'The passage of the Goods and Services Tax (GST) Bill in the Rajya Sabha is a progressive reform, and we welcome it. If implemented correctly, it will bring relief from one of the key issues faced in the e-commerce segment - cascading taxes. We are hopeful that in the long-run the creation of a unified marketplace will reduce the tax burden, inventory cost and logistical issues; and ensure seamless movement of goods across the country. This will help bring efficiency, transparency and boost profitability and growth of the sector.'

K. Madhavan, Managing Director, Peps Industries

K. Madhavan, Managing Director, Peps Industries
'We will now have one market for all of India and it is a composite taxation for goods & services. We are sure our category will certainly fall in the GST bracket, though some industries seem to be out of GST. When compared to services I am informed that manufacturing has more advantages and manufactured goods will go less expensive. Currently we are paying closure to 27% tax in an average; while the minimum stipulated tax looks like 18%. Our volume sales are bound to go up and consumers will also benefited immensely. Much more than anything the complicity in the taxation working will be easy. I am keeping my fingers crossed until the GST council is set up and their actual recommendations are submitted to the finance ministry. From the consumer perspective and that of the nation as a whole it is a boon.'

Dikshu C. Kukreja, MD and Principal Architect, CP Kukreja Associates

Dikshu C. Kukreja, MD and Principal Architect, CP Kukreja Associates
'Implementation of GST is a much awaited, much required tax mechanism which shall not only simplify the maze of tax policies which unnecessarily complicate the business environment in India but is also sure to give a fillip to the Indian economy. It is important that the present and successive governments ensure that the GST rate does not become intimidating to the business and additional levies and surcharges do not creep into the system. Further it must be ensured that an equitable distribution amongst the states based on their manufacturing capacity is maintained.'

Rajendra Garg, Director, Anupam Sinks

Rajendra Garg, Director, Anupam Sinks
'In spite of the improvements made in the tax design and administration over the past few years, the systems at both central and state levels remain complex. They are subject to disputes and court challenges, and the process for resolution of disputes is slow and expensive. At the same time, the systems suffer from substantial compliance gaps, except in the highly organized sectors of the economy. Therefore a strong single taxation system GST is much awaited wherein various Central and State statutes will be subsumed.'

Pravin Khandelwal, Director, Pranay Impex Pvt. Ltd

Pravin Khandelwal, Director, Pranay Impex Pvt. Ltd
'To avoid the taxes, goods are being sold mostly within the state in order to avoid paying the CST which is not credited at the stage of manufacture or in course of trading. Good quality products being manufactured in one part of the country will find more market in the farthest part of the country because there will be no CST and no entry tax. GST Bill Implementation will certainly lead to the creation of a unified market, with seamless movement of goods across states and reduce the transaction cost of businesses.'

Ssiddharth Goel, Director, KNG Agro Food

Ssiddharth Goel, Director, KNG Agro Food
'Currently there is a distinction between goods and services when they are sold as a package. Companies have to pay taxes on entire underlying value of the product/service, with implementation of GST; companies in a chain will have to pay tax only on the value-addition. So, the actual tax paid will likely be small and reduce the incentive for evasion.'


3 comments:

  1. It' actually a great and helpful piece of information. I am glad that you shared this helpful information with us. Please stay us up to date like this. Thank you for sharing. Wonderful blog has been shared by you keep posting panseva more like this.

    ReplyDelete