It’s been five years since the Goods and service tax (GST) implementation in India. Getting all stakeholders to adopt a new taxation system was undoubtedly a mammoth task, easier said than done. As expected, there were a lot of teething problems, some foreseen and many unanticipated.
At this time, when GST turned five, we missed late Shri Arun Jaitely. He and PM Modi somehow managed to get the states and union territories to agree and align on the new taxation regimen. As part of business economic forums and representative of various industries, FII has closely watched our country’s transformation of business affairs pre and post-GST implementation.
With the passage of time and people, and stakeholders getting used to the new scheme, the impact of GST is evident in the formalisation of enterprises, broader tax base and higher tax revenues. Small businesses, which were not quite used to paying taxes earlier, are now covered under its ambit. The chances of tax evasion have significantly reduced, creating self-discipline and awareness among the taxpayers.
After the initial hiccups, businesses are relieved, and the burden of unorganised tax deductions like Octroi has dissolved. Business operations are conducted with bills making it easier for the buyer and seller to get its benefit.
Currently, India’s economy is at USD 3.50 trillion, and those who are policymakers for India’s economic growth have huge plans to take it to USD 30 trillion economies soon. Old conventional methods, taxes, policies, rules and regulations would not work to make that happen. With GST implementation, there is an ‘ease of doing business, and with that ease, foreign investment will flow in.
According to my experience, the most valuable asset for any business is the owner’s time, and that time must be well consumed in product enhancement rather than paperwork. To avoid drudgeries, a unified taxation system has worked better. During the last eleven months, GST collection has been above one lakh crore per month, which is enough to gauge the mood, direction and mindset of businesses here. One can guess what kind of opportunities are available shortly.
There is a substantial positive shift in mindset toward GST. Annual GST collection of INR 20/25 lakh crores is average; hopefully, other tax collections will improve too. Income tax collection shall also improve from the present INR Rs. 14/15 lakh crores as these are our positive points and assets.
FII, the voice of the industry
Federation of Indian Industry (FII) came into being in 2013, and since 2015 it has been an active body associated with small and medium business industries (MSMEs) as their growth partner. Apart from being the voice of industries, FII handholds and liaisons among different stakeholders within and across borders create new opportunities for various business sectors. With its presence in 42 countries on the global map and a strong team of 5000 members, FII has become an essential non-political, but influential Industry body focused on the economic growth of Industries.
I have been privileged to be a part of the BJP Economic Advisory Committee. The government has taken some significant policy initiatives like economic vision documents, CSR schemes for public toilets, Gold Bond Schemes, Health Care schemes, Cancer Care schemes for the poor, Yamuna Action Plan, Policy Documents, Voluntary Disclosure Scheme, Demonetisation Scheme and more announced by the PM in his tenure.
The government could successfully implement these huge plans because of the Chartered Accountant fraternity only. Officially, they are formally known as CA, but for me, they all are “Economic Warriors’ (AARTH YODHA).
Chartered Accountants are not only taxpayers but are also answerable and responsible for the growth of our nation. Same for taxpayers. We are not only the tax assessees but also the building blocks of development. Entrepreneurs are the tangible assets and heroes of the country, and they need to be motivated and supported through various government schemes.
