Are Business people ready to welcome GST?
Meerut sources have
reported that leading businessman Pankaj Jain is
currently tensed about the impending release of a new sales tax in India that
he is thinking of shutting down his tiny textile factory for a month to give
himself time to adjust and think of small business owners who data-face wrenching
change from India's biggest tax reform since independence that will unify the
country's $2 trillion economy and 1.3 billion people into a common market.
But he is simply not ready for a regime that from July 1 will
for the first time tax the bed linen his 10 workers make, and require him to
file his taxes every month online. Meanwhile Prime Minister Narendra Modi’s government says that by replacing several federal
and state taxes, the new Goods and Services Tax (GST) will make life
simpler for business.
It
was also stated that one particular concern is
how a new feature of the GST, the input tax credit, will work, which allows a
company to claim refunds on its inputs and means it should only pay tax on the
value it adds and encourages companies so that tax credits can flow down a
supply chain continuously.