So, finally after a halt of 10 long years, the Goods & Services Tax (GST) has been implemented paving huge relief for sectors such as retail, FMCG, Real Estate and others. Touted as a bill with a concept of ‘one nation one tax’, GST proposal was supported by all parties except AIADMK which staged a walkout on the plea that it violates federalism.
After 7 hours and 46 minutes of long discussion, 33 speeches and many encounter and support, came the moment of reconciliation after years of considerations and rejections from different sides of the aisle. As per the recent amendment, GST will now have two components keeping in mind the federal structure of the country: the Central GST (CGST) and the State GST (SGST). Initiating the debate in the Lok Sabha yesterday, Finance Minister Arun Jaitley said that the shift to GST regime will lead to a uniform, seamless market across the country. It will be uniform rate, will check evasion and boost growth rates.
No doubt the much awaited GST implementation with surely effect many industries including retail. Retailer Media caught up some of these industry professionals to know more how the newly made amendments will impact them and their industry as a whole.
Krish Iyer, CEO, Walmart India (Retail)
“Passing of the GST bill today is an extremely progressive step and long awaited one. GST is one of the critical tax reforms which has potential to create one single market in India for goods & services and will boost country's economy significantly.
Implementation of GST will reduce transaction cost of doing business, also reduce food wastage and bring down prices. Hence I am confident that it will not only bring relief to the consumers, but also help retail sector and building supply-chain efficiencies in India in a big way. This is thus a win-win legislative reform for all.”
Narendra Bansal, Chairman & Managing Director of Intex Technologies Ltd (Tech)
“Finally India gets united, which was living in a legacy of almost 30 different markets within the country. We were saddled with a plethora of diverse state-level taxes and levies of around 25-30 per cent – or even higher in the case of some sectors.
GST will ensure India finally emerges as one common market with an approximate tax rate of around 18 per cent, with no double taxation and no cascading effect of multiple levies.”
Abhishek Bansal, Executive Director Pacific Mall (Real Estate)
“This is indeed a significant step towards indirect tax reforms. Apart from reducing the general expenditure burden on the customer the bill will enable ease of doing business with greater transparency and mobility across state borders.
Since multiple taxes will be replaced by a single tax, in the real estate sector new constructions will stand to benefit. Overall impact will be economic growth and momentum.”
Jason Kothari, CEO, Housing.com (Online Real Estate)
“The GST Bill has been a long-standing request of the real estate sector that has been plagued by multiple layers of taxation. While the immediate benefits of the GST are expected to go to segments like logistics and warehousing, and retail - residential real estate, in the long term, should benefit from unified tax regime, a lesser tax burden on construction materials like cement, steel, etc.
This, in turn, can lead to lower construction costs for developers, who can pass on the price benefit to home buyers. The tangible benefits for the home buyer will also depend on the final rate of GST. If the rate is higher than the taxes being paid currently, it could increase the cost of an under-construction flat. However, the GST’s impact on creating a transparent taxation system and boosting business sentiments is very positive.”
Alok Agarwal, Co- Founder & Business Head, Teesort (eCommerce)
“Clearance of GST bill after 10 years is a much awaited and a progressive move by the Parliament. It’s definitely a feel good factor since it’s been hanging out for a long time. It’s good to see that there is a common consensus emerging in the parliament.
Introduction of GST will immensely support the creation a single unified market across India which will help in building robust supply chain and logistics network for E-commerce sector. It will also boost the make in India campaign thereby leading to more employment opportunities & will attract more FDI investment in country. That said, the real value will come in when GST is eventually put into effect which may take a couple of months.”