The Rajya Sabha on Wednesday passed a bill to roll out Goods and Services Tax or GST.
“A uniform tax rate will bring about seamless transfer of goods and services across country and it will enable us to check evasion,” the Union finance minister Arun Jaitley said.
It is considered as one of the biggest tax reform since independence. The bill was already passed by the Lok Sabha.
Industry bodies have shared their responses on this strategic move, which is expected to boost Prime Minister Narendra Modi’s reform credentials.
Industry response to GST
The Manufacturers’ Association of Information Technology (MAIT) appreciated the move.
MAIT said the concerted efforts of the Government to bring all stakeholders on board and finalise India’s new GST Law appears to be comprehensive in its approach.
“The IT-Electronics industry at large welcomes the proposed move to the GST regime, as the same would herald a new beginning in the indirect taxation landscape of modern India, paving the way for a simplified and homogenous tax structure for goods and services,” stated Nitin Kunkolienker, Vice President, MAIT and Director-Corporate Affairs, Smartlink Network Systems.
ACER CFO Alok Dubey said businesses will now only have to deal with State and Central GST Departments instead of variety of state and central departments. He expects this to bring down disputes, litigation and cost of compliance.
Bhaskar Pramanik, Chairman, Microsoft India
“It is a positive development and I hope the Government will implement this long pending reform by April 1, 2017. The Government’s idea of a single tax regime is crucial to improve ease of doing business in India and address the ambiguities of the current indirect tax landscape, proving beneficial for the economy, at large.”
Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board, Wipro
“We are sure that the implementation of the GST would go a long way in strengthening the economy as one common market for taxation as well as address key issues of transparency, ease of doing business and simplification of tax laws.”
“In the process of implementing GST through legislations, we must collectively ensure there is no drifting away from the intent of the Bill and the cornerstone principles of this Government in improving Ease of Doing Business and reduced tax related litigation in India. I am sure the Government would engage meaningfully with the Industry on its concerns and arrive at an effective framework for implementation of GST.”