India Inc stakeholders react to passage of GST Bill

* Internet and Mobile Association of India Statement:
The Internet and digital industry has been looking forward to the implementation of GST as the ‘one tax, one market’ principle of GST is in accordance with the industry’s ‘one country, one market’ business model. GST is expected to help ease of doing business and promote free-play for market dynamics allowing deeper penetration of digital services.
* Nitin Kunkolienker, Vice President, Manufacturers’ Association of Information Technology:
The IT-electronics industry at large welcomes the proposed move to the GST regime, as the same would herald a new beginning in the indirect taxation landscape of modern India, paving the way for a simplified and homogenous tax structure for goods and services.
* Deepak Garg, Founder, Rivigo:
The ensuing GST regime will make India a unified market that will facilitate smooth movement of goods and eliminate numerous border hurdles at different points for surface logistics service providers. Currently, Indian inventory spend (losses, obsolescence, wastage) can be up to 50-60 per cent of the overall logistics spend. Seamless movement of goods across the country could mean this lost inventory spend being available to deploy in productive value creation to further propel economy’s growth.
* A.K. Rastogi, GM Finance, Nippon Audiotronix:
GST will be positive for the automotive sector primarily because of the removal of cascading effect of tax on the cost of goods and services that is expected with GST. Currently most of car manufactures are located in few of the states in India.
* PropTiger Statement:
With the uniform tax, developers will have free input credits on GST paid for services and goods purchased by them which will reduce cost for them and can be passed as reduction to buyers. For commercial property, GST will reduce taxation as developers will be able to get input credit of GST paid for construction services against the GST charged on lease rentals.