This move by the government can drive uniform taxation and also improve ease of doing business, eventually benefiting the industry and governments as well.
The GST or the Goods and Service Tax, which is scheduled to be implemented from April 1, 2016, is all set to give a major boost to tax collections, besides reducing work burden on tax collecting departments as well. It will also improve transparency in the overall process of collecting the tax. This should great benefit the newly formed state of Telangana as well as Andhra Pradesh.
Close on the heels of the Goods and Services Tax (GST) Bill getting green signal from Lok Sabha, industry players across Telangana and Andhra Pradesh are quite upbeat about the prospects of uniform taxation across the country as well as the region, as it would improve easing of doing business, in addition to benefitting the IT sector as well as the government.
As of now, the industry is paying numerous types of tax which is making the overall process of tax collection, a difficult and complicated issue. Also there is this issue of different taxes when products cross various states while in transit. Hence a final decision on GST will greatly benefit the IT industry which is facing big issues on taxes today.
As it is likely to happen very soon, once GST comes into force, India’s global ranking in ease of doing business will go up, leading to more investments from overseas as well. This decision can also positively contribute towards the government’s ongoing ‘make in India’ plans.
Dinesh Shyam Sukha