The Goods and Services Tax (GST), which has been hailed as historic, revolutionary and as India's biggest tax reform, is set to be rolled out from July.
The Goods and Services Tax (GST), which has been hailed as historic, revolutionary and as India’s biggest tax reform, is set to be rolled out from July. While former Prime Minister and eminent economist, Dr. Manmohan Singh recently stated that the new indirect tax regime could be a game changer, former Finance Minister P Chidambaram called the July 1 deadline as impractical and told The Indian Express that rushing to roll out the GST could be “detrimental.” It may be noted that Dr. Manmohan Singh had also added a word of caution about “difficulties in its implementation.”
Meanwhile, India Inc has largely welcomed the GST passage, there are mixed views from different segments. “GST is a game changer and it should be implemented at the earliest,” Mr. N. Venkataraman, Senior Advocate, Supreme Court told FE Online. Specific suggestions cited include a transition program to facilitate easy migration and tax rationalization at a single point so that the ordinary consumer is benefited.
From the logistics industry perspective, Chander Agarwal, Managing Director, TCIExpress told FE Online, “For the logistics industry, the implementation of the GST will open new forays for the organised sector as well as help to align the unorganised players. The unification of various taxes involved in the transportation of goods and services will result in increased efficiency of business as a whole and will facilitate borderless movement of goods. This would mean a faster movement of goods across the country, resulting in ease of doing business across regions.”
“This is expected to increase the overall volume of the business as delays through multiple check posts and entry points will be reduced; though the overall cost of compliance is expected to increase, we see overall increase efficiencies and growth to businesses and the industry as a whole,” Chander Agarwal stated.
He further added, “As an organized and leading player in the logistics industry, we are GST-ready, so whether it is with respect to the issue of invoice or receipt of payment, we will comply as required. We will support the government in all their initiatives.” So yes, Corporate India is clearly waiting for GST implementation starting from July 1st. Let’s wait and watch as we are a few months away from D-Day!