Director's Message

     




Sandipan Ray

Founder & Director
SMBConnect

A warm welcome to fellow entrepreneurs in our monsoon edition. A lot is happening lately in Indian economic forefront. To begin with, due to this onset of heavy rainfall, NCAER has already predicted GDP to grow at 7.6 and 7.7 per cent in 2015-16 and 2016-17 respectively. That settled, it is the GST that seems to be spearheading speculations. While a section of the society is looking eagerly forward to its implementation, and the idea of One Country One Tax One Market seems like a great idea, people who are feeling less positive about it cannot be ignored too.

For one thing, price of services after paying 18% GST, are bound to increase. The service providers who must register at every state and retailers after registering with the central government, will have to deal with higher compiance costs. On the government level, being implemented in India from April 2017, GST is going to take

away any power the Central or State governments has to change the tax rates. And it is still a matter of concern, who will manage the GST, resolve its disputes and how smooth the entire transition will be.

Thankfully, the silver lining here is strong enough. GST implementation is predicted to bring forth a boost of 1 to 2.5% in GDP. Tax base expands. Tax credit to businesses become unhindered. There is easier interstate movement of goods and state to state transactions become tax neutral. Despite some drawbacks associated with its implementation and despite its administrative uncertainties, the Goods and Services Tax aims to create a single unit system. It will work to make the country a unified market, one that cooperates and follows uniformity. And till it proves to be otherwise, that is a welcome concept for us Indians to look forward to.