It has been more than five months after GST implementation, but experts are still confused and not able to reevaluate the stir-clear benefits of GST in various sectors.
Eradication of central sales tax will support businesses in paving the way to various operations, and in contrary different GST slabs and exemption provisions develop the structure of GST more dubious, said Kavita Rao, who is a professor at National Institute of Public Finance and Policy. She addressed this issue during participating in a conclave to express the thoughts on the myth and realities around GST topic at the Symbiosis School of Economics.
She further said, “Exemptions are apologies of the government for its inability to provide equitable access to goods. Direct benefit transfers or other expenditure methods should be relied on for equity and not a distortion of taxes.”
Economist Manadi Phadke mentioned that though GST will shed a positive impact on the growth of the country, the density of the impact would not be that much strong.
Ranjit Naiknavare, a real estate representative and director of Naiknavare Developers, said GST reduced the demand in real estate segment because tax rates on real estate are high comparatively. He said, “Demonetisation and GST have been double blows to the realty sector. The initial impact of GST in India has been inflationary quite similar to how it has been in other nations when GST was implemented.”
Deepak Mohani, a Stock market analyst expressed that GST is not as expected it to be. He further mentioned, “If GST was perceived to bring positive change in the stock market, it did nothing. The markets find it hard to react as GST rates are dynamic and its long-term impact is not clear.”
Rajendra Khadilkar, director, Ameya Management Consulting, works to render inputs to businesses on GST related issues said norms surrounding input tax credit will direct to various litigations if loopholes in GST are not sorted out.
Lately, senior BJP Minister and former finance minister Yashwant Sinha expressed his view on GST that multiple GST rates direct itself to seek influence and are a “textbook case of how GST ought not to be implemented.”