GST Might Not Be Easy, But It Attracts Investors
The Goods and Services Tax, which was implemented on July 1, 2017, saw India make the switch from the previous tax structure to the new unified tax regime. It’s not as simple, however, as a number of complicated forms have to be filled up and the operational nuances faced by businesses are a cause for concern. However, its introduction in July last year has made India an increasingly attractive business market for overseas investors, according to the UKIBC (UK India Business Council).
Richard Heald, the CEO of the UK India Business Council, said that the new tax regime is bound to encounter “teething issues”, but the opposition faced from political systems is “churlish” and “inaccurate”. Mr Heald made these remarks in a newsletter that was sent out to the members of the UK India Business Council. He also stated that even the Council was subject to a “steep learning process” to better understand the Goods and Services Tax.
Mr Heald went on to say that GST is far from a “simple tax”. Although there are only five slabs under which businesses are taxed based on the goods and/or services they provide, compliance, he says, is much more difficult in comparison with the previous tax structure. At least in the initial stages, there are plenty of complaints about the complexity of filling GST-related forms. However, senior officials of the Indian Government suggest that the implementation of this new tax regime can be “an evolutionary process”.
Long-Term Benefits Of GST
Mr Heald acknowledged that the introduction of the Goods and Services Tax in India was a massive step taken towards turning the country into a unified market for products and services, which could in turn offer long-term economic benefits. Mr Heald says that the tax will work well not only for businesses in India, but for those in the United Kingdom as well, as businesses from abroad will start looking at India as an increasingly attractive market in which to conduct business.
However, the UK India Business Council has raised a few residual concerns which could potentially cause major problems for businesses unless they are well-equipped with robust IT systems.
Richard Heald, the CEO of the UK India Business Council, said that the new tax regime is bound to encounter “teething issues”, but the opposition faced from political systems is “churlish” and “inaccurate”. Mr Heald made these remarks in a newsletter that was sent out to the members of the UK India Business Council. He also stated that even the Council was subject to a “steep learning process” to better understand the Goods and Services Tax.
Mr Heald went on to say that GST is far from a “simple tax”. Although there are only five slabs under which businesses are taxed based on the goods and/or services they provide, compliance, he says, is much more difficult in comparison with the previous tax structure. At least in the initial stages, there are plenty of complaints about the complexity of filling GST-related forms. However, senior officials of the Indian Government suggest that the implementation of this new tax regime can be “an evolutionary process”.
Long-Term Benefits Of GST
Mr Heald acknowledged that the introduction of the Goods and Services Tax in India was a massive step taken towards turning the country into a unified market for products and services, which could in turn offer long-term economic benefits. Mr Heald says that the tax will work well not only for businesses in India, but for those in the United Kingdom as well, as businesses from abroad will start looking at India as an increasingly attractive market in which to conduct business.
However, the UK India Business Council has raised a few residual concerns which could potentially cause major problems for businesses unless they are well-equipped with robust IT systems.