India Inc.’s tryst with GST begins. And firms both big and small will face the big migration test
ON THE EVE OF the implementation of the goods and service tax (GST), it is not business as usual. India is in the midst of its biggest indirect and structural tax overhaul in the world, which if it sails through will add 100200 bps to the GDP. But will the small companies be able to transition to the new environment? Will the new GST usher in a boom in business? Or will firms wind down their businesses?
System engineers, however, consider GST a mid-level complex problem. Which means that it can still be cracked without too much coding. But as some of the grey areas in the GST system are still being ironed out; with GST rates still being finalised; clarifications still being issued; GST registrations still being done, invoicing systems still being reworked, this biggest migration exercise is turning out to be a can of worms for corporate India, both large and small — in particular, the small firms.
The Winners
Clearly the winner is the formal sector. In a survey conducted by BW Businessworld, 58 per cent of the respondents in the MSME space were either neutral or disagreed that GST would benefit them. By contrast, 90 per cent of the large firms agreed that GST would benefit large firms.
Such big divergence speaks volumes of the huge divide that grips the new GST landscape. Firms that are large and can deploy new IT networks will see, at most, a flutter in their operations till the systems stabilise. The small and fringe players and those that have not been tax compliant either face the challenges of incurring huge costs to become tax compliant or go the dinosaur way.
この記事は Businessworld の July 8, 2017 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Businessworld の July 8, 2017 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
MEMORIES & IMPRESSIONS
Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.
The Robotaxi Market
The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.
And the Nobel Prize Goes to AI
The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.
Ola Electrified
Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.
Sharp Slide in Industrial Output on Eve of Deepavali
India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.
Heralding the Solar Era with Sustainable Electrification
RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more
A WELL-GREASED MACHINE
The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh
Disruption Ahead: Beyond Organisation Charts and Structures
ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.