Stating that GST will improve the overall efficiency of the Indian tax system, Madhusudan Kela said that he expects the indirect tax reform's implementation process to stablise in the next 12-18 months.
Stating that GST (Goods and Services Tax) will improve the overall efficiency of the Indian tax system, Madhusudan Kela, Chief Investment Strategist at Reliance Capital has said that he expects the indirect tax reform’s implementation process to stablise in the next 12-18 months. “There is need to use this volatility to enter GST related sectors & stocks,” he told ET Now. Last week, Modi government emerged victorious with the historic passage of the GST Bill in Rajya Sabha. The government is now working to meet the GST implementation deadline of April 1, 2017. The GST Bill was approved by the Rajya Sabha with 203 votes in favour and none against.
GST is widely seen as the biggest indirect tax reform of independent India. India Inc has hailed the passage of the bill, stating that with India becoming “one common market”, the ease of doing business will be greatly enhanced. FICCI is of the opinion that F=from the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods. This currently estimated at 25 to 30 per cent. “Introduction of GST would make Indian products competitive in the domestic and international markets. Studies show that this would instantly spur economic growth,” FICCI has said. However, many in the industry hope that the government will keep the standard rate under GST to below 20 per cent.
Moving the GST Constitution Amendment Bill in Lok Sabha, Finance Minister Arun Jaitley today said that the Goods and Services Tax will go a long way in helping the country. The Finance Minister also said that the whole country will become “one integrated market” under the GST.