Prof. Kavitha Rao from National Institute of Public Finance and Policy, shared how GST would now help move from a cascading regime of taxes - Customs, Excise, Service, VAT etc. to a more robust tax structure unifying the whole of India into one market thereby promoting the efficiency of scale and effective business decision making.
Dr. Amit Bagga, practising Chartered Accountant, touched upon the reverse charge mechanism of GST where the recipient of the goods (who is registered under GST) and/or services is liable to pay the tax instead of the supplier (who is not registered under GST). He emphasized that biggest beneficiary of the GST reform will be the government which will net huge tax revenues as besides the increase in tax collections under a simplified GST regime there might be a positive spillover to direct tax collections.
Mr. Kapil Sharma Sharma, partner, Lakshmikumaran and Sridharan Attorneys, talked about the input tax credits (reducing the tax liability if one has already paid on inputs) in this new tax regime which he termed as “Game-changer” for independent India. He emphasized that input credits being claimed shall be matched and validated and hence compliance will increase and leakages to be plugged which will subsequently making the tax net wide. He mentioned that GST could lead to better supply chain management and vendor management.
Mr Vipin Kumar Khatri, GST Faculty with ICAI, opined that GST is a consumption based tax and consists of 4 pillars - Input Tax Credits (flowing seamlessly through the supply chain), Integrated GST ( mechanism to transfer between states in interstate trade), uniformity in tax system (one nation-one tax which would lead to increase in ease of doing business) and supply (includes sales, transfers, barter, exchange).
The roundtable discussion was moderated by Prof. Vinay Dutta, FORE School of Management, who concurred that although GST is not that simple tax system but it is a tryst with destiny that independent India is making by simplifying and rationalizing the indirect tax regime and will in all accounts hopefully, shall be hailed as a landmark in the economic history of India.
The floor was open for questions. The panellists patiently responded to the queries ranging from the effect of GST on individual food bill to the GST differential rate of levy and calibration, rushing of GST implementation is a motive to boost short term revenue or otherwise, an anti-profiteering clause of GST, inflationary effects of GST much to the satisfaction of faculties and students. The Vote of Thanks was proposed by Prof. Vandana Gupta, Area Chair, Finance & Accounting, FORE School of Management.
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