No need to worry about foreign investors perception on GST:NRN

: Infosys Co-Founder N R Narayana Murthy today said India should not be worried about the perception of foreign investors on GST regime, but hopedthe respect for the country will improve in their eyes once they realise that the system is hassle-free.
"I don't think India is very high on the radar screens of most nations.That is the reality, but this initiative will reduce hassles for anybody who wants to operate in India."
"Once they start their operations in India then they will realise that this system is comparable to what they have experienced in developed nations. So then their respect for India will improve," Murthy told PTI.

He said there may be more (global) investments coming in and they would be much more enthusiastic toparticipate. "That is how I look at it. I don't think weshould worry whether some foreigner is saying, this is good orbad," he added.
Asked what GST means for India in economic terms globally if the country boosts its GDP by two per cent ahead of China, he pointed out that China has the second largest economy in the world, whose GDP was four times that of India.
"Therefore I don't think we should lose timein boasting about ourselves vis a vis China. That is not necessary, but we have to work harder and enhance our GDPgrowth rate and make the country strongerin terms of public infrastructure and defence, among otherthings."

To a query, he said it is true that government had not included certain GDP-driving commoditieslike petroleum products, but that he would rather look at the issuewith the 'extraordinary tenacity' Prime Minister Narendra Modi hasshown in making this happen.

"It was very easy to say let us postpone by anotheryear, but he didn't do that. He and the Finance Minister saidwe will implement it. I would like to take that view frankly."
Asked if he sees taxes falling due to GSTimplementation in future,Murthy said the new tax system wouldhelp government collect data on various products, which wouldallow it make 'zillions of analysis' and enable it to gethuge insights into the tax regime to make taxation easier andsimpler.

On the demand from various sectors, including solution providers, to postpone GST implementation as they are not ready, Murthy said "I often used to say ships are safe at harbours but they are not meant to be there. They have to go into the high seas. Face storms and reach the comfort of a desirable destination. Hence let us not needlessly worry about possible problems."
He suggested setting upof rapid reaction warranty teams to attend to problemswith utmost alacrity on 24/7 basis.
"This is a must whether it is in the U.S., U.K., Japan, Australia or China, so I am not frankly that much concerned because life is full of problems, but we have to make progressin spite of the problems," Murthy said.

He hoped GST would bring many people into the fold of the formal economy as it is very easy to follow and comply.
More than anything else, the poor are likely to benefit more from GST as more people moving into the formal sector will bring inadditional revenue, which could be utilisedto provide better facilities to workers at small firms,he said.
Asked to comment on predictions thatthe success of GST would bring the Narendra Modi government backto power,he said "I am apolitical, therefore I don'tattach any political significance to what any government does - whether at the central or the state level."

"All I would lookat is whether any initiative taken up by any government isgoing to make life of our citizens better. And I am convincedthat GST is one of such initiative which will make the livesof citizens much better. That is all I am worried about," Murthy said.
He said he firmly believes that the GDP would experience additional growth rates due to removal of taxationhassles.
"If you are making taxation easier,then you areimproving the entrepreneurial skills of the people andtherefore the country benefits. So therefore I personallybelieve that the GDP will experience additional growth rates,"he said.
"The reality is simple. There will be some productsthat will become a bit dearer.It could be that clothing maybecome a bit dearer, but as you know a committee headed byCEA, who himself is a very highly respected economist, saidthat the impact of it is likely to be neutral to positiveacross segments compared to the current tax regime," he said.

To a query,Murthy said "There is an estimate that internal trade will increase by anywhere between 25 and 30 per cent while external trade may improve by as much as 30 per cent.
So therefore, GST initiative is very beneficial to the country, from all aspects - whether it is from the perspective of exports and imports," he said.
To a query, Murthy said "I have also been told that there is a report in US Fed paper that GST could help India as much as four per cent. I don't know. If that is indeed true, then that is fabulous," he said.

The research paper at the US Central Bank reckoned the biggest indirect tax reforms since Independence could enhance India's GDP by as much as four per cent or Rs 6.5 lakh crore.