With the GST bill rollout, here is what some of the CIOs and IT leaders of Indian manufacturing companies think about it.
As the India’s biggest tax reform, GST bill, clears its way with an impressive majority in the Rajya Sabha, the Indian manufacturing industry has responded positively on the move where several companies and firms agreed that the bill passage would definitely ease the way of doing business in India.
Here is what some of the CIOs and IT leaders of manufacturing companies in the country think about the GST bill.
Venkat Ramana, head IT at Larsen and Toubro India, believes that GST is a very welcoming and a positive move for the entire manufacturing industry. He said, “This reform will be very successful in improving trade and manufacturing in our country. We will be having a single tax system where we will be paying one tax to the central government instead of paying multiple taxes such as excise duty, value added taxes, central sales taxes, entry taxes, etc.”
He further added that the GST bill will in turn make the compliance easy which will generate more income for the companies. “Instead of dealing with so many departments, company owners can now have only one department to deal with, which will lead to avoidance of harassment and confusion,” said Ramana.
The GST bill will bring uniformity in the Indian market. According to manufacturers, the companies will have now a smoother and efficient operational model, which will greatly enhance their business productivity.
Yatendra Kumar, former head-IT at Gokaldas Exports believes that manufacturing industry as a whole will get benefited with GST bill because of the elimination of the dual taxation, which will reduce the cost of the raw materials and will decrease the hassle of paying the toll taxes.
He explained, “GST will fewer the supply disruptions, keep a check on inflation, measure efficiency and responsiveness of revenue mobilization, and improve in compliance. The streamlined tax payment system will make the movement of goods across the country uninterrupted. This sequentially will make the country a national market and contribute significantly to the growth of the economy.
Various manufacturing sectors like cement and automobiles will also be benefited from GST, agreed manufacturers. They believe it is a win-win situation for all.
According to Manish Sharma, president, Consumer Electronics and Appliances Manufacturers Association (CEAMA), removal of one percent tax on interstate transactions is surely a good news for the consumer electronics industry. He said, “GST will end state rules for manufacturing companies, create a national market for goods to be supplied and reduce logistics costs. The amendments will help further in providing the necessary boost to local manufacturing institutions which will increase the enterprise productivity and thus, create employments.”
Implication of GST council once the bill has been passed will further adjudicate the disputes between states and center, letting institutions focus on scaling up their businesses, said Sharma. “India has the potential to develop and manufacture electronics hardware for the global markets and meet its future requirements. The way forward is to nurture a healthy relationship between the government and the industry to put India in a strong position on the global electronics map. GST will put impetus towards the proposed Make in India drive boosting the industry and thereby, stimulating the economy,” added Sharma.