lauding the passage of the Constitution (122nd Amendment) Bill clearing the decks for the long-pending Goods and Services Tax regime, the US India Business Council termed the move a “game-changer” for the Indian economy.
“This is a significant milestone in India’s ongoing efforts to improve its ranking in the World Bank’s “Ease of Doing Business” index,” the USIBC said, noting: “This far-reaching reform places India at the cross-roads of an incredible economic opportunity.” By streamlining domestic supply chains and removing the compliance burden of contradictory state tax regimes, the measure is “bound to increase India’s global competitiveness as an investment destination”, it said.
“Industry has been hopeful for this reform for almost a decade and we commend India’s political leaders in their commitment towards growing the economy and ensuring predictability and tax certainty for the global investment community,” USIBC president Mukesh Aghi said.
listing the benefits for both domestic and global industries, he said a simplified tax structure can usher in greater compliance and increase the number of tax-payers, thereby widening the tax base and increasing the overall revenue for the government.
With GST expected to make goods cheaper for consumers and increase competitiveness of Indian exports in international markets, Aghi said India’s GDP growth could jump by 2 per cent.
Now that the crucial legislation has been approved by Parliament, the USIBC called for a streamlined implementation of GST, providing sufficient time for stakeholders to adjust their internal systems.
With the passage having come ahead of the US-India Strategic and Commercial Dialogue in New Delhi, the trade body said it would make for heightened focus on the ease of doing business in India.