CII President’s quotes on GST
CII felicitates the Central and State Governments on completion of One Year of GST. A transformational reform, GST is the most significant tax change since India’s Independence. It makes India a single market for the first time, ensuring harmony of tax rates across the country.
The adjustment process down the supply chain is largely complete. Industry feedback is that most sectors have had a positive experience. The initial issues that come along with implementation of a massive tax reform have been largely addressed including for smaller firms.
A few remaining areas such as complete coverage of all sectors and convergence of tax rates are expected to be taken up quickly. The GST will greatly boost growth in coming years.
GST is the most transformative and far reaching reform to India’s Indirect tax system since Independence. It brings taxpayers and tax authorities on a single platform without human interface.
With uniformity of rates and elimination of multiple other indirect taxes, GST has cut out tax cascading, widened the tax net and added to tax revenues. Going forward, GST is expected to greatly add to growth forces.
Industry is benefiting in many ways from GST which has streamlined movement of goods, made manufacturing aligned to natural advantages, and infused huge efficiencies across the system. Industry hopes that as the system further stabilizes, we will have fewer tax slabs and that all sectors including petroleum, electricity and real estate will be subsumed in it.
CII compliments the Government for ensuring a smooth and facilitative introduction of GST within one year. As the most transformational tax reform in India’s independent history, some initial teething issues were to be expected but we are impressed with the way the Government has proactively responded to concerns of industry, including MSME.
Industry has largely adapted to GST and has been committed to its success. With GST now well-settled, we believe that the economy will benefit greatly from the increase in tax revenues, widening of tax base, and reduction in transportation and logistics costs. We expect that GST will contribute significantly to the GDP in time to come.
Industry celebrates the successful implementation of GST in this one year. As GST completes the first year of its introduction, we are happy to note that the transformational tax regime has stabilized and is well-settled. We commend the Government for its commitment and efforts to ensure a smooth GST.
Our feedback from industry is that across the supply chain, the adjustment to GST has been largely complete. The introduction of the e-way bill has improved the system by reducing transport and logistics costs and faced very few issues.
Going forward, as the remaining issues such as extension of GST to all sectors and compression of tax slabs are addressed, we expect that the economy will further pick up momentum towards double-digit growth.
GST is a unique and massive tax reform that India has introduced with great success. The initial few quarters were a period of tests and trials for the trade and industry, for GST transition and implementation.
Today, GST, after one year of its introduction, can be said to have taken off better than expected and is more or less working successfully.
For the tax to be truly effective, there is need to move towards just three rates. The government should actively consider inclusion of key sectors such as petroleum, alcohol and real estate within the ambit of GST to ensure free flow of credit through the supply chain. With these changes, GST can achieve its full potential and drive India’s growth to the next trajectory.