WTC Jaipur organized programme on GST and Union Budget 2017
World Trade Centre Jaipur in collaboration with “Hotels and Restaurants Association”(HRAR) of Rajasthan, invited 75 eminent partakers comprising of Hoteliers, Media personnel, representatives from Construction companies and Academician’s to discuss on the Union Budget2017 and GST on 24th February 2107 at Jaipur. The expert panel speakers comprised of Mr. Rajeev Sogani, Senior Partner- R.Sogani & Associates, Prof. Kshama Agarwal, Dept. of EAFM- University of Rajasthan, Mr. Jatin Harjai, Managing Partner & Founder, J. Harjai & Associates.
Mr. Sogani highlighted, the biggest feature of the Union Budget proposals, contained in the Finance Bill 2017, is about restricting cash transactions in the economy. This particular piece of proposed legislation will, in an all pervasive manner, affect the way business is conducted in India. Four major proposed changes in this regard are reducing cash expenses limit, capital expenditure like purchase of machinery, car etc. are also brought within the restriction. Other proposal worth inviting attention is about Real Estate sector, where various amendments in law are proposed to give fillip to this otherwise sagging sector.
Mr. Jatin Harjai said, Compressive Value Added Tax on goods and services, in the name of GST, is expected to be introduced in the country from July 1, 2017. Even if, by any reason, it doesn’t get implemented by this date, due to constitutional provisions the same has to be introduced latest by September 16, 2017. It is commonly referred as ‘biggest indirect tax reform’ since independence, whereas apart from tax reform it will prove to be great ‘Business Reform’. It is going to change the way business is done in India. The GST is going to affect almost every business process, be it Taxation, Finance, Procurement, Sales, HR etc.
He further added, we are going to have Dual GST, i.e. the state and union will levy the tax on all intra state supplies of goods and services. Whereas the Inter-State transactions will attract central levy i.e. IGST which will be sum total of State and Centre GST. Most of existing indirect tax laws including Excise Duty, Service Tax, VAT, CST, Luxury Tax and Entry Tax will get subsumed into GST for all products except alcohol and petroleum products. In GST regime credit flow of taxes will be far better than existing indirect taxes regime, however on the other hand in most industries working capital investment is bound to increase due to levy of tax on interstate stock transfers & principal – agent supplies. Provisions of time of supply will add some more flavour to it. Proper analysis of all business processes regarding impact of GST followed by requisite restructuring and realigning of the same with new law will ensure eligibility for maximum advantages and requirement of additional working capital to least possible.
Ms. Kshama Agarwal, noted economist said that The Union Budget for FY18 was pragmatic and positive and stepped on the expected lines. While the target of achieving fiscal deficit of 3.2% seems to be expectant, it might be achieved on the back of rationalization of taxes, implementation of GST and additional measures to enhance the tax base. The event concluded with vote of thanks proposed by Mr. Kuldeep Singh Chandela, Hotels and restaurant association of Rajasthan. She further added, the budget aptly takes into consideration short-term impact of demonetization and uncertainty on account of significant external political developments, global interest rate behaviour and capital flows.
Vote of thanks was proposed by Mr. Kuldeep Singh Chandela, Hotels and restaurant association of Rajasthan.