Cheering the passage of the GST Bill in Rajya Sabha, India Inc today said roll out of the much-awaited indirect tax reform will contribute significantly to the growth of the economy and bring down the overall cost of goods and services.
Terming GST as the “biggest reform in the field of taxes in the country”, CII Director General Chandrajit Banerjee said: “GST is expected to remove the cascading effects of various multi-level indirect taxes on goods and services and will subsume most of the country’s central and state level duties and taxes, thus making the country a national market.
“GST will bring in much needed transparency and higher investments in the coming years and we hope that a few percentage points to India’s GDP will be added through higher tax revenue and investments”.
The Rajya Sabha today gave its approval to the long pending GST Bill as government forged a consensus with Opposition parties for passage of the reform legislation.
Assocham President Sunil Kanoria termed it as a milestone in India’s economic reforms after the 1991 reforms.
He, however, said the biggest challenge is to make it people friendly.
“We have to ensure that the overall tax rates do not go up, they should rather come down so that GST gets approval of the people,” Kanoria said.
“The cooperation extended by the Opposition to this crucial legislation is the cornerstone of democracy and gives industry a lot of hope on progress of reforms in the country,” Ficci President Harshvardhan Neotia said.
Anshuman Magazine, Chairman, CBRE India and South East Asia termed it as a “major tax reform for our economy, which will transform India into a single market”.
He said the roll out of the indirect tax reform is likely to positively impact the real estate sector.
“GST will facilitate Make in India by making India a unified market, improve competitiveness of Indian businesses and help bring down the prices of goods for consumers by doing away with cascading levels of taxation. In the long run, it will also enhance Government revenue,” Harsh Pati Singhania, Director JK Organisation said.