The eagerly-awaited Goods and Services Tax, which has had quite a chequered innings over a decade, will finally become a reality from July. There has been a lot of give and take, specially by the Centre, which according to the West Bengal finance minister accepted 26 of the state governments’ recommendations. It is hoped there will be no slip between now and July, when it is likely to come into force. GST will be a game-changer as it subsumes most indict taxes such as Central excise. It will mean huge relief and less paperwork, and not only lead to transparency and remove corruption, but also quicker delivery of goods and services. The waiting time at various check nakas will go. Most important, it will add to the many steps by the government to further the ease of doing business. This should also lower costs as saving on time can lead to cost savings. Manufacturers and others have to cooperate to bring out the best outcomes.
GST is one of the most significant reforms by this government, and it’s expected to facilitate a a lot of new investment, not only from domestic players but also foreign ones. There have been long-standing complaints about the processes and procedures investors face. This is one more hurdle out of the way. But GST is not the only bottleneck for investors. The government has to find out why private investment is still not coming into the country. The idea of a Bad Bank, if implemented, could relieve the situation somewhat. But that is still a work in progress.
