KUWAIT CITY, July 3: Promoth Manghat, CEO of UAE Exchange Group expressed his views on new Goods and Service Tax (GST) which came into effect in India on July 1. “The launch of GST is a historical decision for India. International media has been hailing it as a visionary constitutional moment, which is the result of governments of states and union territories forgoing certain aspects of their sovereignty for the cause of the nation. This pooled sovereignty is also being hailed worldwide. This coming together of the nation to launch GST will change the business landscape of India drastically. Henceforth supply chain will become more efficient as it needn’t be replicated in every state. The drastic reduction in costs of manufacturing and logistics clubbed with efficiency gain will benefit the consumer immensely.
As India transforms into a single market, its administrative mechanism will pass through the litmus test. This might ask for a lot of preparation from the government and India Inc. Also the other challenge that seems to raise hood is that compared to other nations, India’s tax bracket is on a higher side, which might not go well with the various stakeholders that India has to answer.
With this single market concept, India emerges into an opportunity that’s larger than Europe, USA, Brazil, Mexico and Japan put together. For the government this decision is a big win. The international perception of Modi being just an able administrator can now be modified with adding the dimension of being a transformist too, who could achieve consensus among over 30 provinces in India. As far as remittance is concerned, there hasn’t been much of a change, as some banks continue to charge the same percentage of service tax.”