It was amazing to see the kind of promptness with which top Indian CEOs responded to the GST rollout. Walmart India CEO Krish Iyer send out a terse congratulatory message: “Dear valuable BestPrice members, thank you for the valuable partnership. It is a historic day as we all migrate to the GST and a new beginning. “1 Nation, 1 Market, 1 Tax,” he tweeted. He further said that the success of GST and growth of SMEs are interlinked. “At Walmart India we are committed to supporting SMEs and kiranas in this transition,” he further said. Gyanendra Tripathi, Tax Partner, EY India, said: “The implementation of nationwide GST replacing the plethora of taxes under the current regime is a historic and transformational reform. The benefits of GST are immense for the manufacturing sector.
The manufacturers were required to apply and obtain multiple registrations (unit wise for factory, depot), service tax, VAT, CST. With GST providing for a single GSTIN at a state level, there is simplification of not only the registration but also permits the input credits to be pooled and utilised at TIN level as opposed to factory level for excise duties.
While the manufacturers being generally within the value chain could claim the input tax credit on most Central/ State taxes, there were cascading taxes as well as costs in the form of CST, trading related reversals, etc. With GST, the cascading of taxes is eliminated while the reversals or adjustments also reduce significantly.
It is important for the manufacturers to look at their supply chain and plan for further efficiencies where possible. A
relook at the depot structure or consolidation and setting up of new factories on sound business logic could be facilitated in the GST regime.
Tulsi Tanti, Chairman and Managing Director, Suzlon Group, said “Suzlon welcomes the single biggest tax reform, the Goods and Services Tax (GST) by the government post-independence. This makes India one amongst the progressive economies which have adopted a unified tax structure. It demonstrates the strength of the government to bring all states and various parties together to implement this historic initiative. I strongly believe GST will stimulate our economy, will help in increasing GDP growth, will enable ease of doing business and would provide a boost to Indian manufacturing. From a purely tax perspective, capital cost for a new project in the RE sector will not see any major change. Therefore, as far as GST is concerned, it would not have any significant impact on the outlook of wind energy market.”
Mohan Gurnani, Chairman from Chamber of Associations of Maharashtra Industry and Trade (CAMIT), said “We welcome the initiative and truly support the government’s vision. Although the regime is already here, the industries are still fretful about inconsideration of lot of requested amendments to the council. Especially, certain provisions
under GST guidelines, such as ‘reverse charge’ which is harsh and can lead to uncalled complexity in doing the business. Industries hoped that the laws under the policy could have been made more tolerant for the tax payer, atleast in the initial phase.”
Mitesh Prajapati, Director of Sameer Steel Division Of Ramanlal Prajapati and Sons Steel India, said “While, we support government’s initiative, but as small business owners, we are intimidated with technological dependence for abiding by the policy. A major setback for businesses in smaller towns could be to install computer and internet, and deploying an added staff to manage online registrations for e-way bill and uploading of invoices for availing ITC. Again, conditions laid down for availing GST input on tax credit seems stringent in its approach. We hope we sail through the initial difficulties and wish, the regime will fulfill its objective.”
Nikunj Turakhia, President of Steel Users Federation of India (SUFI), said “Goods and Services Tax (GST) is one of the biggest post independence reforms in India. It will change the way business is being conducted. The long term advantages are tremendous as India moves towards one Nation, one market, one Tax. Of course, there are apprehensions and confusion due to complex nature of Indian business but long term benefits are surely visible.”
Brijesh Lohia, Managing Director from Global Ocean Group, said “The entire logistics industry has been at unease regarding the compliance of E-way bill under the GST regime. We will require to train the workforce in operating GSTN portal or RFID readers which is time consuming and practically implementing while on road can be a daunting task. However, we welcome the new regime and are hopeful the issues will soon iron out as the policy rolls into its first phase.”
Atul Chordia, Chairman of Panchshil Realty, said “GST will impact pricing for under construction properties but not the ready to move in products. Technically, it will have little or no impact on luxury real estate where buyers are more interested in acquiring a global product and marginal cost increments are largely ignored.” “However as a
luxury residential major, we work with a huge spectrum of global partners across technology, materials and construction. This is where we will now see a marginally higher cost position, even for our near-ready projects, as we usually invest significantly in the interior finishes as well,” he added.