BJP looks implementation of GST Bill
Dec 18, New Delhi: The strongest session in the Rajya Sabha in India is the implementing of the Goods and Service Tax (GST) bill by BJP particularly Prime Minister Narendra Modi.
The GST bill was passed in four hours by the business advisory committee. The government and the opposition particularly congress are engaged in the cat and mouse game over GST for quite some time. Implementation of GST could send a strong signal on the country's commitment to reforms. The GST would reduce manufacturing coat and benefit customers. The elimination of multiple tax structure at central and state levels would make the sector viable and globally competitive. The GST will be a dual tax with both central and state GST component levied on the same base. There will be no distinction between goods and services for tax purpose with a common legislation applicable to both.
Implication of GST on imports and exports - Basic custom duty will continue to be there even under the GST system. The additional custom duty in lieu of special additional duty(SAD) will be subsumed in the import GST.
Impact on pharma industry- introduction of GST is a positive step and if implemented in the right spirit could result in reduction in transaction cost. The most visible and immediate impact of GST appears to be the proposed discontinuance of central-state tax. Another evident impact of GST would be definite relook and review of the present warehousing strategies followed by the pharma industry.
Impact on logistics sector- the GST will standardize rates across the nation, allowing many corporations to move away from having warehouse in different states of adhere to each state tax code and employ logistics companies to manage distribution and supply chain.
The Oslo Times