India Inc, market leaders express cautious optimism on GST rollout
The game-changer goods and services tax (GST) is all set to kick in from Friday midnight . Market experts, India Inc and government all looked excited ahead of the implementation of India’s biggest tax reforms since Independence.
The tax regime brings to the Indian economy a promise of becoming more competitive in a global market, with a better tax environment to conduct business.
Here is how the market experts and industry leaders reacted on the implementation of mega tax reform:
Chanda Kochhar, MD and CEO, ICICI Bank
The Goods & Services Tax is a transformational structural reform which will have multiple benefits – the creation of a national market; enhanced ease of doing business; greater productivity and efficiency; and improved tax compliance. All stakeholders are working together for a seamless transition to this new paradigm. This reform will result in benefits for all participants in the Indian economy, including both businesses and consumers.
Rakesh Jhunjhunwala, Partner, Rare Enterprises
The ace investors said India cannot afford to change at such a slow pace, if it needs more capital and investment. Jhunjhunwala said that gains from GST will not be immediate, but they will be both tangible and intangible and difficult to assess. He believes India will see double-digit growth from FY2020. The rollout of GST will lead to greater tax compliance and that he sees an overall reduction in taxes, rather an increase due to GST implementation.
Ansh Bhargava, Head – Growth & Alliance, Taxmann.com
GST from July 1 is going to replace the multiple taxes, multiple interfaces, multiple compliances regime into one. India is moving towards tax compliant society where filing of returns will not just be easy but transparent too. This tax compliance will lead to higher revenue for both the central and state governments and enable them to fulfil their social objectives. Businesses need not worry, as the government has expressed their laxity in terms of lack of compliance by businesses or penalties that are imposed. Preparedness, completeness and readiness should be the motto of businesses from day one. It’s just a matter of time that air of confusion will clear around GST and India with its resilience will embrace GST.
Arvind Mediratta, CEO & MD, METRO Cash & Carry, India
We see GST playing a transformative role in the Indian wholesale and retail market. It will lead to more transparency, free movement of goods, widen the taxable base of businesses and usher in new entrepreneurial energy into the marketplace. We look forward to GST creating one unified national market where benefit of supply chain efficiencies, elimination of multiple taxation and online integration of tax information will bring immense benefits to businesses and consumers in the long run.
Arindam Haldar, CEO, SRL Diagnostics
It is laudable that the government has accorded healthcare, and the diagnostics sector, the importance that it deserves by deciding to exempt it from GST, making access to medical services easier for the people. It is a fine attempt to bridge the economic difference between the private and public sector as the anti-profiteering clause makes it mandatory to reduce prices for consumers with the decrease in tax rate on supply of products. This move also allows for innovation as the fiscal burden on the sector will lessen. I am sure there will be no adverse impact on the diagnostics industry and customers can continue to have access to quality healthcare services without any significant increase in prices. The biggest impact of GST will be the reduction in disparity of prices with a single unified tax system governing the nation, a detail which will have a positive impact on healthcare and diagnostics sector as well. It is expected that healthcare will become more affordable for the people.
Rubal Jain, Managing Director, Safexpress
GST will not only change the way India does business, it will also mean that the many State borders will no longer be the deciding factor for routes taken to transport goods and products. This will bring about a sea change in sectors such as pharmaceuticals, auto, and retail, since they rely heavily on the efficiency of their supply chain & logistics.
Sunu Mathew, MD, Leap India
The best thing which can happen for logistics sector in the last couple of decades was GST, this has already called for consolidation in warehousing in the country and will also increase efficiency in transporting goods from one state to another state. The initial hiccups in the first quarter of implementation of GST will eventually iron out in the long run, and the efficiencies in doing business and easy compliance will attract lots of unorganised logistic players in to the new regime.
Nithin Kamath, Founder & CEO, Zerodha
As far as trading and investments in the capital market is concerned, I do not think GST will have a great impact. The service tax charged on ‘brokerage and transaction charges’ will increase from current 15 per cent to 18 per cent. At a broader level, GST roll out is a huge positive for the country. Agreed, the initial few months can be chaotic with the clarity needed on many fronts. However, in the long run, GST is the way forward.”
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Via:: Economic Times – Stocks