Goods and Services Tax (GST), the biggest tax reform since Independence came into existence on 1st July in India. Industry experts feel that various sectors or industries will not be benefiting with the new tax regime. Some of the renowned Industry experts reviewed over the implementation of the new regime are mentioned below:-
CEO of Summer Group, Rahul Shah
It is anticipated that the prices of the properties have fallen down in the new regime as Value Added Tax, Service Tax and several other indirect taxes have been replaced under the Goods and Service Tax (GST). Currently, taxes incurred by the property dealers for the acquisition of land, included in the cost of an apartment, ultimately enhancing the load on the shoulders of buyers. After the implementation of GST regime, such kind of taxes will not be included in the cost of the apartment and is likely to reduce the prices of property.
Roshini Sanah Jaiswal, CRO & Promoter of Jagatjit Industries Limited
In the views of Roshini Sanah Jaiswal, initially, for few months due to the implementation of GST regime, it will adversely affect the company, as they are not entitled to avail input tax credit and the cost of the company is likely to increase by 7-9 percent. In the upcoming months, the company is expecting to raise the prices and the impact will be reduced slowly.
Praveen Nair, General Manager, Datacenter Dynamics
From an IT foundation point of view, similarly, as demonetization caused a huge increment in computerised exchanges, the GST rollout will see billions of advanced solicitations in a day. Thus building the interest for registration and capacity accordingly to weight a market that is at any rate experiencing limit lack. Its an amazing time to serve in the data centre business.
Prashant Modi, MD and CEO of Great Eastern Energy Corporation
Hopefully, the government would only charge 5% GST rate for natural gas in order to increase production of natural gas in domestic to lessen the dependence on the imports and to enhance energy security.
Read Also: GST Impact on Petroleum Products
Gautam Khattar, Partner – Indirect Tax, PwC
In the previous taxation structure, due to the local state tax VAT which led to various fluctuations in prices across the state. Now as VAT has been removed in the new regime and single tax rate would be applied to India. Still, existing leases will be affected up to 30 percent. However, the new leases will get the actual benefits of credits which are additionally available under GST.
Rahul Garg, Founder & CEO – Moglix, a B2B marketplace
Numerous segments are as yet attempting to see how innovation and right set of partner plans can help them with the new compliances. Some disturbance is normal at first.
Kiran Deshpande, Co-Founder, Mojo Networks & President – TiE Pune
GST organisers have unenviable undertaking with the huge push and pull from assorted bodies electorate on the expense rate. In any case, programming innovation is a centre to India as daal roti and sambhar rice, and in this way merits proportionate expense chunk if not an entire duty exception. It will massively help India Stack utilisation and unquestionably countless ups.
Sanjana Desai, Head Business Development of Desai Brothers Ltd – Food Division (Mothers Recipe)
Due to 4 percent or 6 percent increase in tax rates will affect the growth and profitability of the business, specifically for sensitive price food- category items. We foresee the business to take a hit for an underlying couple of months on account of diminished of stock, and volumes might be affected even after that for specific classes where the expenses have expanded. Cost rectifications are likewise evaluated with the expansion in charges by 6 percent for different classifications like pickles and glues.
Yogesh Bellani, CEO of Field Fresh Foods Pvt. Ltd.
The tax rates for fast moving consumer items have been decided by keeping in mind the mass utilisation pattern. Items such as ketchup, packaged juices and sauces will impose 12 percent tax rates, whereas pasta and noodles, mayonnaise, mixed condiments and salad dressings will be under 18 percent slab rate. Due to the implementation of the GST regime, initially for the few months, FMCG industry might have teething troubles but after some period, the industry will be largely positive with the new indirect tax regime.
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Nishanth Chandran, CEO of Tender Cuts – a meat procurement Omni-channel platform
GST is an aid for organisations who are both in the acquisition of item and utilisation of administrations. This will enable us to counterbalance and accommodate charges, which was impractical prior.
Arun Kumar, Chairman, and CEO at KPMG in India
The concentrate should now be on making the move consistent and viable. While making consistency practical, especially for small organisations, is critical. The potential advantages of this point of interest change will turn out to be genuine when the advantages of legitimised tax assessment accumulate to customers and business profits by cost-efficiencies in coordination and streamlined procedures.
Ansh Bhargava, Head – Growth & Alliance, Taxmann.com
Duty consistency will prompt higher income for both the Union and state governments and empower them to satisfy their social goals.
Shirish Deshpande, President, Indian Association of Amusement Parks and Industries (IAAPI) & CEO, Pan India Paryatan Pvt. Ltd., (PIPPL)
The amusement park has been levied with 28 percent tax rate in the new indirect tax regime which puts the industry in the risk. Such higher taxation rates on amusement parks are very disheartening for our industry as it operates on paper thin margin. Treating event congregations at standard with betting industry is truly crippling. Amusement industry has a direct relationship with the entertainment and development of tourism in some states. Apart from this, it plays an important role in providing employment opportunities via through ancillary and directly and other related industries.
Ravindra P Marathe, CEO and MD, Bank of Maharashtra
Expanded rate of assessment on banking administrations from 15 percent to 18 percent will bring about the expanded cost of administrations offered to clients. By and large, the fiscal effect might be negative at first, yet the penny percent straightforwardness in exchanges will demonstrate positive outcomes for banks and the economy in the long haul.
Also Read: GST India: Banking Sector and Its Upcoming Struggles
Indranil Pan, Chief Economist of IDFC Bank
While it is perilous to guesstimate the suggestion on the development and swelling in the prompt run, the discernment is solid for the economy to pick up in the more drawn out term as the framework balances out and productivity picks up are clear. The higher assessment accumulations of the legislature if sensibly reserved for framework ventures is probably going to lift to the potential development of the economy.
Devendra Kumar Vyas, CEO of Srei
Higher tax rates of the new regime prompt necessity of higher working capital at any point of time the information duty will not be completely retained against yield charge risk. It additionally brings about higher income which subsequently expands the credit chance on the hidden exchange. Both of the above variables bring about expanding the cost of renting hardware. Keeping in mind the end goal to support the renting industry in the framework space, it is alluring that full info charge credit is permitted as opposed to giving a sweeping prohibitive provision.
AG Rao, Group Managing Director of ManpowerGroup India
Employing in numerous divisions is set to get a major lift amid the GST administration since numerous sloppy segments will now be streamlined and in this manner, there will a need to fill the empty positions which prior were being disregarded or not numbered fundamental.
Ritesh Agarwal, Founder & CEO of OYO
Being an extensive scale change, there might be some underlying teething issues. Hotels are the single greatest supporter of the tourism industry which represents 7.5 percent of the GDP. The business is required to contribute $ 280 billion to the GDP by 2026 and will pass on advantages of uniform tax collection the nation over to explorers.
Sumit Sabharwal, Managing Director (India & SAARC) of Excelity Worldwide
GST will drive work area to achieve an annualised development rate of 10-13 percent and fuel interest for experts in different sections of the economy. Some of the industries such as logistics, home decor, automobiles e-commerce, cement, IT and ITeS, media and entertainment, BFSI, Consumer durables, pharma and telecom impacting high with GST regime.
