Mumbai; The Goods and Services Tax (GST) will be implemented from July 1, 2017 in India. The GST, which will replace a myriad of consumption taxes, could be a “game changer” over the medium term as it would reduce tax cascading and boost India’s competitiveness, investment and job creation.
The Finance Minister Arun Jaitley said, “Despite teething problems, hopefully GST will come up for implementation by July 1. The entire process has to be completed by September 15. At the moment, it is the biggest tax reform since Independence. Once implemented, it will be far more efficient tax system. The quantum of taxation will go up. GST will make generation of cash more difficult.”
The GST is expected to bring about reduced tax exemption, which could have a bearing on prices of goods and capital requirement for managing cross-border supply chains. It will also mean reduced duty benefit claimed on imports and reduced export incentives and drawback on exports, experts said.
The gem and jewellery industry has sought GST of 1.25 per cent from the government for the sector.
