Amitabh Taneja Edi­tor-in-chief

Progressive Grocer (India) - - Editor’s Note -

With GST com­ing into force, a ma­jor ru­bi­con has been crossed in the realm of tax ad­min­is­ra­tion. Ini­tial re­ports sug­gest that it has been a smooth tran­si­tion for the F&G in­dus­try, although there have been some mi­nor hic­cups here and there. But that is only to be ex­pected when­ever the old or­der gives way to the new. But be­fore long, one hopes that the ini­tial teething prob­lems will be ironed out and all stake­hold­ers will learn to jump through the GST hoops ef­fort­lessly.

As the most sig­nif­i­cant tax re­form till date, GST has many ben­e­fits to of­fer. In one swift stroke, it has merged a large num­ber of Cen­tral and State taxes (es­ti­mated at 25-30 per cent) into a sin­gle (re­duced) tax un­der HSN Code & SA Code. Prior-stage taxes are now a thing of the past, paving the way for the cre­ation of a Com­mon Na­tional Mar­ket and bet­ter gains for both Cen­tral and State gov­ern­ments.

For the wholesalers and re­tail­ers, the new regime ush­ers in an era of greater trans­parency and tax com­pli­ance with the com­plete value chain tracked online. In the new scheme of things, changes are ex­pected in the ways of do­ing busi­ness and mar­gins are ex­pected to grow thin­ner for both wholesalers and re­tail­ers. In this con­text, it is heart­en­ing to note that there have been on­go­ing dis­cus­sions be­tween pro­duc­ers and re­tail­ers to thrash out the net­tle­some is­sues.

Most an­a­lysts con­cur that post-gst era will lead to more ro­bust eco­nomic growth, which will boost con­sumer sen­ti­ment and mar­ket con­fi­dence. The uptick in busi­ness sen­ti­ment will boost the pre­mi­u­mi­sa­tion trend. The prof­itabil­ity of en­trepreneurs is also ex­pected to grow once the chal­lenges of com­ply­ing with the new reg­u­la­tions are re­solved.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.