INSUBCONTINENT EXCLUSIVE:
Under the GST regime, a uniform tax system was introduced in the country.Touted as the biggest economic reform since independence, the Goods
and Services Tax (GST) completes one year of its implementation on July 1
In a major initiative to ease the tax system of the country, the government launched GST on July 1, 2017
Under the GST regime, a regulated tax system was introduced in the country
With the introduction of this 'one nation one tax' regime, the country's business landscape saw a widespread makeover
The roll-out of GST was accompanied with frequent changes in rules, which was welcomed by few and deemed complex by others
The launch of GST stirred a lot of hubbub in the corporate sector
India Inc gave a mixed response to this indirect tax system.On completion of one year, here's what India Inc says about the hits and
misses of GST:Ankur Dhawan, Chief Investment Officer, PropTiger.com"GST is a revolutionary tax reform rolled out by the government of India
One of the key benefits for the real estate sector under the GST regime is input tax credit which developers can now avail for taxes paid on
construction material and services
This benefit was not available in earlier service tax regime
GST has streamlined tax administration of real estate sector
However, the initial few months of the implementation were full of confusion for developers as well as customers
On one side, developers were not sure how much benefit they can get out of input tax credit and new raw material prices while on the other
end, customers were protesting a significant increase in taxation
While by the end of 2017, things became clearer, most of the developers started passing 4 -6 per cent discount to customers
In the long-run, the GST reform is expected to streamline the sector more that will further strengthen consumer sentiments rekindling hopes
order to reduce the burden caused by interstate transfers and facilitate solicitation of materials at the lowest possible cost for the real
With a single non-complex flat tax rate and the elimination of state-based taxes levied on procurement such as custom duty taxes and octroi,
there has been a considerable rise in the available credit
The overlapping of the two primary taxes like service and VAT (Value Added Tax) has led to varied practices being followed in the sector
multiple indirect taxes with one single tax
It has streamlined tax compliance and diminished the room for double taxation
This measure has surely added a significant boost to the economy
This welcome reform has also safeguarded a smooth flow of credit in the economy
It is further expected to condense the construction cost in the hands of the developer, thus aiding in upholding the existing pricing level
real estate sector and brought increased transparency in the field
However, GST should be restructured a bit so that it can be also helpful at places where land costs are higher
in higher education is the lack of exemptions of auxiliary education services from the ambit of GST
under GST, students availing other services including hostels, food, laundry, etc., which are outsourced by higher education institutions,
education services for secondary education institutions in pre and post GST era, and are, therefore, exempted from GST
I believe that higher education institutions should be extended the same exemptions as the government wants more private universities to be
set up, requiring crores to be invested in academic infrastructure
These are auxiliary education services which are part and parcel of education only
The discrimination between school education and higher education should be removed
Further, no set-off is available to the university for this."Chet Jain, CEO and Founder, Crowdera, an online crowdfunding platform"GST as a
single taxation system is important
The Indian government is investing enough money to improve the infrastructure and support the financial ecosystem of the country
There is definitely scope for clarification in that area
Also, there should be something to show that GST has evolved for the past year
There should be incentives in place for foreign companies to come to India, build infrastructure and expand their operations here
However, I don't see any incentives
But because of GST, such companies are avoiding Indian markets, and this is something which needs attention."(: One Year of GST: What
Finance Minister Arun Jaitley Has To Say)Harsh Dhand, Founder and CEO, Rentsher, an online product rental marketplace" GST has been quite
beneficial for us as over 80 per cent of vendors have adopted the same and are able to provide input credit
Hence, we are paying tax only on net revenues, a dream for a startup
GST for essential electronics like laptops, projectors, TVs especially on rent can still be reduced to 12-15 per cent
I believe that rentals should be segregated from procurement price of GST if the government is serious about promoting this sector and
reducing imports".Vinay Singhal CEO, WittyFeed, an online viral content company"With the concept of 'one nation, one market, one tax',
Indian government introduced GST on July 1, 2018
Since then, GST has played a pivotal role in removing the cascading effect of taxes on goods and services
The implementation of GST proved to be a game-changer for the economy and logistics
With its advent, every state dismantled the border check-posts which saved much time in transportation
In the digitalisation process, the online facilities for filing the monthly returns, payment of tax, and majorly tax-refund application
became easy and fast."Bijender Goel, Managing Director, Terra Techcom Pvt Ltd"GST is good for the country but it's implementation should
Filing of four returns quarterly is a burden for a person having turnover of less than Rs 1.5 crore
Petrol and diesel should also be brought under GST to give benefit to the common people."
