MUMBAI: Marking 1 year of completion of India’s boldest tax reform - GST Act, CNBC-TV18, the country’s foremost business news brand, in association with PwC India successfully hosted a first-of-its-kind-initiative ‘GST Decoded – 1 Year On’. A special report from PwC India titled ‘365 days of GST: A Historic Journey’ was also launched at this unique forum. The keynote address by Dr. Hasmukh Adhia, Union Finance Secretary emphasized on the GST achievements as well as the foreseen challenges.
The prestigious conclave witnessed participation from key policymakers from the government such as Thomas Isaac, Minister of Finance - Govt. of Kerala, Manpreet Singh Badal, Minister of Finance - Govt. of Punjab and Mauvin Godinho, Panchayat Minister - Govt. of Goa and corporate luminaries Kabir Ahmed Shakir, CFO - Microsoft, Niranjan Gupta, CFO - Hero MotoCorp , Ashok Tyagi, Whole-time Director & Board Member - DLF, Nitin Saluja, Founder – Chaayos and Shyamal Mukherjee, Chairman – PwC who discussed and debated about the opportunities which can be tapped along with challenges that lay ahead.
With an objective to capture the implications of the GST, panelists addressed how sectors like software enterprises, automotive, real-estate, and hospitality amongst many others had been affected by the reform over the last one year.
Below are the key talk points from the panel discussions at the forum:
Dr. Hasmukh Adhia, Union Finance Secretary:
We have released Rs 50,000 cr out of the Rs 2 lakh cr IGST collections to states as a provisional settlement. We are holding Rs 1.16 lakh cr for settlements with taxpayers
We have to watch revenues before rationalizing the items under the 28% tax slab, removing items immediately is not feasible
States like Punjab may require compensation for more than 5 years, but many states may not require compensation from Centre after 2-3 years
Natural gas and aviation turbine fuel may come under GST
Claiming wrong input tax credit is an area that can be plugged. There is a great scope to improve revenue collection
Sugar cess has merits & demerits. Cess is not a bad idea if does not create compliance issues
There is scope to bring certain items from 28% bracket to 18%
First priority is to implement new #GST return forms. Second priority is compliance not with ‘danda’ but with ‘data analytics’… Data is the new ‘danda’
Thomas Issac, Minister of Finance - Govt. of Kerala:
The experience OF GST implementation in the first year has been rather disappointing for me
Anti-profiteering clause is ‘ineffective’
Small companies & unorganized businesses are in trouble
We can discuss bringing petroleum products under GST but states must be compensated
Centre should rollback fuel excise hikes, petrol, diesel price problem is solved
Manpreet Singh Badal, Minister of Finance - Govt. of Punjab:
40% of Punjab’s tax base has been subsumed. At the moment Punjab is a compensation state; worried about how we are going to run the state after 2022
I would give 8/10 for implementing GST but only 2/10 for the way it was implemented
Mauvin Godinho, Panchayat Minister - Govt. of Goa:
It’s a splendid legislation that’s working very well
Every political party should be complimented, all Indians united for one reform
Sugar cess decision will be taken only if everybody is on board. GST Council is not run by majority
Mahender Singh, Member (GST), CBIC:
Compliance from taxpayers is a concern. It is a great challenge to convince people to pay tax
If people don’t pay taxes they are causing harm to themselves. We will run out of patience with poor tax compliance
It has been a rollercoaster ride & a great success
Kabir Ahmed Shakir, CFO – Microsoft:
Global peers show disbelief that we have implemented GST in such a diverse country
