The keenly awaited Goods and Services tax (GSt) Bill is likely to be a game changer whose impact will be seen on all business activities. it is therefore necessary that different industry sectors assess its impact and start working towards making their organisations GSt-ready

The implementation of Goods and Services Tax (GST)—which would replace the present indirect tax structure and remove its inefficiencies, such as multiple levies, cascading effect, and consequent compliance burdens—has been a top priority for the central government. The tax, expected to be implemented from April 1, 2017, aims to create a unified national market, thus boosting exports (in terms of cost competitiveness) and adding almost 2 percent to the GDP’s growth.

In spite of the significance of this tax reform, its implementation has been delayed due to multiple reasons, including the lack of support from Opposition parties in Parliament. However, with the reduced strength of Opposition in the Rajya Sabha, following recent state elections, the chances of the government meeting the minimum requirement of two-thirds of the Upper House voting in favour of the bill has gained momentum. Thus, the hopes of GST becoming a reality have been revived again.

Despite uncertainties in the global markets on account of recent developments like Brexit, which is likely to change trade relations, India seems to be well-positioned to draw in foreign investment. This, combined with the efforts of Prime Minister Narendra Modi to attract foreign investments for the government’s Make in India initiative, puts up a strong case for the immediate introduction of GST in India.