Business For All - December 2015

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Today, India is one of the fastest growing economies in the world. However, the World Bank annual report on ‘doing business,’ places India at 134 among 185 countries, a not so noteworthy position. The ranking is way behind its BRICS counterparts. This calls for an urgent steps to rivet on improving the country’s business environment and arrest the decline in relative performance against various determinants of investment attractiveness.

It’s time that the country brings in the major taxation overhaul through GST and join the league of 140 nations across the world with GST in place. The India GST case is structured more around efficient tax collection, curbing corruption, easy interstate movement of goods, etc. Touting it as the “single biggest tax reform” since independence, Finance Minister Arun Jaitley while introducing the Bill had said that the GST law will subsume all indirect levies from April, 2016 and would ensure seamless flow of goods and service across the country. As we all know, the GST aims to simplify the indirect tax regime with a single tax on manufacture, sale and consumption of goods and service at a national level. A study by the National Council of Applied Economic Research (NCAER) had estimated that roll out of GST would boost the India’s GDP growth by 1% to 2%. CRISIL had also reported that GST is best way to mobilise revenue and reduce the fiscal deficit.