GST has divided industry down the middle—the big guns are smiling, but small traders are jittery
As the clock ticked to the midnight of June 30 in the run-up to the introduction of the Goods and Services Tax, arguably the biggest economic reform in India in at least 26 years, different parts of the $2 trillion economy reacted differently—some with excitement, others with trepidation. At the Bengaluru head office of US cola major Coca Cola’s bottling arm, Hindustan Coca Cola Beverage (HCCB), the atmosphere was festive. An hour past mid-day on July 1, HCCB raised its first invoice under the new tax regime for a distributor in Karnataka. The firm, like most other big companies in India, had been preparing itself and its business associates for months. A designated team of 100 trainers held more than 70 sessions with its 4,000-odd distributors.
GST subsumes nearly 17 taxes and 23 cesses of different kinds levied on goods and services across India by states and union territories. Its benefits far outweigh the transition pangs and cost of efforts that large companies like HCCB have put to make the value chain compliant with the new structure. "You can give any challenge and India can find a way to make it work,” says a beaming Christina Ruggiero, CEO, HCCB, who is only three weeks into her first assignment in India.
At the other end, 53-year-old Darshan Singh, who runs a small textiles and fabric design house in Ludhiana, is staring at a bleak future. Singh buys fabric from mills, processes it, and sells the re-designed fabric to bigger firms. In order to claim input credit, those companies now want Singh to provide them with a digitised GST compliant invoice. Completely at sea with the new structure, he has already seen orders dwindle as some clients have moved away to those already registered with the GST network.
Diese Geschichte stammt aus der July 30, 2017-Ausgabe von Business Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der July 30, 2017-Ausgabe von Business Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
LOOK BEFORE YOU LEAP
IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more