India Inc stakeholders react to passage of GST Bill

* Nitin Sood, CFO, PVR
“Transition to the GST regime would be a  significant positive impact area  for the multiplex sector and the over- all entertainment industry, as it eliminates the complex web of taxation which the industry is currently subjected to. All the multiple taxes that the industry is presently subjected to like the entertainment tax in each state (as high as 40%- 45% in states like Delhi and Maharashtra), service tax on advertising revenue and VAT on Food and beverage revenues will be subsumed as part of GST. The biggest benefit of the bill would be the evasion of duplicity of taxes and ability to claim input credit of huge amount of taxes that we currently pay on all our input costs which are lost in the system due to inability to claim any credit of the same.  We think that it will be a substantial watershed moment for the industry and positively impact margins for the entire sector.
At the macro level, GST would also simplify the regulatory environment and bring ease of doing business which should further encourage and fuel investments in the sector from FIIs and international investors.”
* Ullas Kamath, Jt Managing Director, Jyothy Laboratories:
“The passing of GST bill is a remarkable reform in the history of Indian taxation structure. If 1991 set the base for growth for Indian economy, after 25 years, GST will set the base for the next phase of economic growth. GST will not only simplify the taxation in the manufacturing sector and consumer goods space but it will also improve the overall efficiency in the FMCG space. Also the advent of GST will further enhance the operating efficiency which will result in saving cost and time, the benefits of which can be passed on the end consumer. Overall it will be a win -win for the economy, industry and the consumer.”
* Oliver Mirza, Managing Director & CEO, Dr. Oetker India
“We are pleased that the much awaited Goods and Services Tax (GST) Bill was passed in Rajya Sabha yesterday and are hopeful of it being implemented by next financial year. The implementation of GST will positively impact the FMCG industry, which is on a growth trajectory. The sector is sure to avail significant benefits in transport, logistics and warehousing apart from other input costs. It will be beneficial not only for the players in the sector but will also have a positive impact on the economy at large. The GST would entail a unified tax regime to increase transparency and fair trade.”
(With inputs from Charu Lamba)