GST results in growth in sales for corporates and higher industrial activity
Saturday - March 24, 2018 10:13 am ,
Category : WTN SPECIAL
March 24 (WTN) - GST was a step by NDA Government to reduce the multiplicity of taxes and has thus created a simpler tax regime to promote ease of doing business. While the economist and intellectuals had divided opinion about its implementation and most were of opinion that India is not well prepared for GST. Industry associations such as CII, FICCI, and ASSOCHAM have reacted positively to introduction of GST in India.
According to Union Minister of State for Law & Justice and Corporate Affairs, the total number of companies registered during the period July, 2017 to February, 2018 (post GST) is 68,299. The number of companies registered in the corresponding period of the previous year i.e. from July, 2016 to February, 2017 was 63,106 (pre GST) . Thus, the increasing trend in the number of companies’ registrations has been maintained post GST.
The average growth rate of Index of Industrial Production (IIP) was 5% during July, 2017-January, 2018 which was higher as compared to that of 3.9% in July, 2016-January, 2017. Industrial activity, post introduction of GST, has thus accelerated.
According to the data released by RBI shows that the growth in year-on-year sales for corporates in Q2 and Q3 of 2017-18 stood at 7.2% and 11.3% respectively. The corresponding figures for Q2 and Q3 of 2016-17 stood at 1.9% and 2.8% respectively. Thus, the growth in sales for corporates has also seen a increase in the post GST period so far.
Also, the overall growth rate of GDP increased from 6.5% in Q2 to 7.2% in Q3 of 2017-18. The corresponding figures for 2016-17 were 7.6% and 6.8% respectively.
More has to be done in tax reforms. The India Development Update, the biannual publication of the World Bank released in Delhi on March 15th says that the country's 28 per cent GST rate - the highest of the four non-zero slabs - is the second highest among a sample of 115 countries that have a GST system. India has the highest standard GST rate in Asia.
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According to Union Minister of State for Law & Justice and Corporate Affairs, the total number of companies registered during the period July, 2017 to February, 2018 (post GST) is 68,299. The number of companies registered in the corresponding period of the previous year i.e. from July, 2016 to February, 2017 was 63,106 (pre GST) . Thus, the increasing trend in the number of companies’ registrations has been maintained post GST.
The average growth rate of Index of Industrial Production (IIP) was 5% during July, 2017-January, 2018 which was higher as compared to that of 3.9% in July, 2016-January, 2017. Industrial activity, post introduction of GST, has thus accelerated.
According to the data released by RBI shows that the growth in year-on-year sales for corporates in Q2 and Q3 of 2017-18 stood at 7.2% and 11.3% respectively. The corresponding figures for Q2 and Q3 of 2016-17 stood at 1.9% and 2.8% respectively. Thus, the growth in sales for corporates has also seen a increase in the post GST period so far.
Also, the overall growth rate of GDP increased from 6.5% in Q2 to 7.2% in Q3 of 2017-18. The corresponding figures for 2016-17 were 7.6% and 6.8% respectively.
More has to be done in tax reforms. The India Development Update, the biannual publication of the World Bank released in Delhi on March 15th says that the country's 28 per cent GST rate - the highest of the four non-zero slabs - is the second highest among a sample of 115 countries that have a GST system. India has the highest standard GST rate in Asia.
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