Industry Needs To Work Closely With Indian Govt For Smooth Implementation Of GST

The new tax regime will contribute significantly towards every sector of economic growth, broad export expansion and without saying ample job opportunities. GST is collaborative approach and much awaited tax reform and it is a one more welcome step to move ahead towards more globalization. The roll out will yield many positive benefits but Companies will need to make major changes in their process.

- Narayan Kulkarni

“We have emerged today into a new era of economic reform –with the introduction of the game-changing Goods and Services Tax (GST). This will stand as an exemplar of collaborative reform for the world on an unprecedented scale,” said Shobana Kamineni, President, Confederation of Indian Industry (CII) commenting on the implementation of GST from July 1.

CII works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes. CII is India’s premier business association has over 8,300 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 200,000 enterprises from around 250 national and regional sectoral industry bodies.

According to Kamineni, going forward, GST will contribute to ease of doing business and accelerate new business ventures. “GST imparts significant competitiveness to Indian industry, thereby boosting the inherent potential of the economy to raise incomes, add to the formal economy and incentivise exports. GST also helps expand the tax net. Above all, it gives us tremendous confidence that the Government will continue to facilitate investments and simplify the business environment.”

The CII President said that GST is based on self compliance with the input tax credit as a powerful incentive to businesses to step into the tax fold. “Input tax credit will curb inflation by avoiding tax-on-tax. We believe that most businesses would pass on the benefits of input tax credit to consumers so that inflation would be curbed,” stated Kamineni.

“Industry is prepared for the rollout of the GST. Large numbers of government officials, tax experts, and CII stand ready to support enterprises in its implementation,” noted Kamineni, adding that initial glitches are expected to be quickly sorted out.