Home / Knowledge / News / Textiles / GST implementation will help economy grow: Experts
GST implementation will help economy grow: Experts
05
Aug '16
People across the spectrum from manufacturers to exporters to retailers are unanimous in welcoming the passage of GST Bill in Rajya Sabha and are hopeful that implementation of the tax reform will help the Indian economy grow.
 
The Constitutional (122nd Amendment) Bill that will enable the Goods and Services Tax (GST) gives concurrent taxation powers to both the Centre and states. This implies that the Centre will levy a central GST (CGST), while states will levy a state GST (SGST). For goods and services that pass through several states, or imports, the Centre will levy another tax, the Integrated GST (IGST). 
 
The Bill, which has previously been passed by the Lok Sabha, was passed in the upper house after the government proposed amendments to the Bill. The amendments delete the provision of additional tax up to 1 per cent on inter-state trade. The amendments also state that Parliament shall, by law, provide for compensation to states for any loss of revenues, for a period which may extend to five years. Further, a GST Council shall be established as a mechanism to adjudicate any dispute. The Bill will now go back to Lok Sabha for it to accept the new amendments.
 
“The clearance of the much awaited GST bill in Rajya Sabha with a thumping majority will facilitate in the ease of doing business in the country. Although the implementation of the bill in the financial system is much awaited, we can be hopeful of reaping its benefits in near future,” RS Jalan, managing director of GHCL, which is into textiles and chemicals businesses, told Fibre2Fashion.
 
“GST will facilitate a uniform tax levied on goods and services across the country. Expectations are rife that this bill will see a climate of improved tax compliance across India. There will be a reasonable shift in tax burden from production to consumption as GST is being considered as a consumption tax. GST will ensure that India as a country will emerge as a common market with no burden of other indirect taxes and plethora of levies,” he added.
 
Stating that the GST's passage in Rajya Sabha will pave way for the growth of economy and exports, Tirupur Exporters' Association (TEA) president A. Sakthivel said, “We are happy to note that at last, consensus has been built to pass the prestigious GST Bill, a major reform in the indirect tax system in independent India. It is a game changing in reforms.”
 
“The industries and the people will get benefit out of the introduction of GST,” he said and requested finance minister Arun Jaitley to address any issues that may arise in exports after implementation of the GST system.
 
Meanwhile, the Confederation of All India Traders (CAIT) has expressed satisfaction over the declaration that there will be single return for both CGST & SGST and there will not be any dual control of authority under the GST tax regime. “Such a procedure will certainly simplify the taxation regime to a great extent and will encourage voluntary compliance which in turn will culminate into widening of tax base,” CAIT said.
 
CAIT urged the Union finance minister to include the representatives of trade and industry in GST Council for making them partners in decision making process. It has also urged that first three years after GST implementation should be declared as transformation period and barring habitual offenders or tax evaders, rest of the traders may not be penalised for defaults. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X