India Inc today hailed the forthcoming rollout of the GST, and said the sweeping tax reform will give huge momentum to the country's economy and tempt global businesses to invest here.
The industry bodies said they were "fully prepared" for the implementation of the new indirect tax regime, which comes into effect from midnight, while commending the government's efforts towards its rollout.
The nationwide Goods and Services Tax (GST) will overhaul India's convoluted indirect taxation system and unify the over USD 2 trillion economy with 1.3 billion people into a single market.
"The medium-term impact of GST on macroeconomic indicators is expected to be extremely positive. Inflation will be reduced as cascading of taxes will be eliminated.
"Tax revenues of the government would go up with expanded tax net, and fiscal deficit would remain under control. Further, exports would emerge as more competitive in global markets, while FDI is likely to be encouraged," CII Director General Chandrajit Banerjee said.
Assocham President Sandeep Jajodia said India would move many notches up the global ease of doing ladder by this single, but the most important tax reform in the country.
"Finally, a big bang reform is here, rolling out and creating a history," Jajodia said.
PHD Chamber of Commerce and Industry President Gopal Jiwarajka congratulated Prime Minister Narendra Modi, Finance Minister Arun Jaitley and other members of the Union Cabinet saying their 'unflinching and consistent efforts' led to evolving a consensus for the launch of the new tax regime.
Ficci expects the rollout of GST will bring about significant gains to the country's economy and advantages for the stakeholders, while easing the burden of taxpayers in understanding and complying with various tax laws.
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