Rushabh Shah, President, TAIT
“Total tax on software is 15% service tax and 5.5% VAT totalling about 21.24% on base rate. This will come down to 18% GST. Software is taxed twice as service tax and VAT. Now it will be single tax. We feel that GST will simplify compliance and will free up resources to concentrate on business expansion. Though, implementation will be done only after things are in place, companies need to start planning for future.”
K.R. Sreenivasan, Founder, Director, Infoholic Research
Passing of the GST bill offers quantum of promises to lift the rising Indian economy and unifying it as a single competitive market. A fresh air will be breadth into the business sectors as GST will substitute Central Excise Duty, Service tax, VAT, octroi etc. As cascading of tax will be eliminated by GST, prices will reduce and propel the GDP of India to new heights.
Foreign players that were jittery in expanding pan India owing to non-uniform tax system will find great relief and venture out to all states. Same thing goes for Make in India and Start up India as companies will get equal opportunity based in every state or region of the country.
However, various sectors currently operating in India are going to get impacted that is for sure. The industries that will benefit are Auto Media & Entertainment and Consumer Staples. Meanwhile, taxes on Banking sector, Consumer discretionary, Telecom and Pharma sector will go up and this might have some effect in consumers. Sectors like cement, metals and transportation will not see any major bearing as change in the rate of tax is minimal even after GST in these industry segments.
Sandeep Aggarwal, Founder and CEO, Droom
“GST is not just tax simplified but a tax regime that no longer ignores the existence of a digital economy and the 21st Century commerce. Implementation of GST is a great move for e-commerce players. At present, there is a maze of indirect taxes. GST will help eliminate the ambiguity that currently exists and will help to build a unified market across India. This historical economic reform is expected to enhance the operational efficiency of the online business space. Hope government does not pass the burden of implementing GST, operating costs and technology build out to Ecommerce companies who to begin with have scanty profit margin of not making loses.”
Anil Khera, CEO, Videocon d2h
“GST is a welcome step. It will unify the indirect tax administration in India and help the country in two ways. First it will simplify and make it easy for the consumers to understand. Second it will significantly improve the ease of doing business in India. Together it will help us, a DTH operator, to be more efficient in our business.”