The council congratulates Indian government and members of Parliament for approving the Constitution (122nd Amendment) Goods and Services Tax (GST) Bill, 2014, an official statement by the US India Business Council (USIBC) said.
This is a significant milestone in India’s ongoing efforts to improve its ranking in the World Bank’s ease of doing business index, it said.
USIBC believes that the GST is a “game-changer” that will boost economic growth by streamlining domestic supply chains and removing the compliance burden of contradictory state tax regimes, the council said as per the PTI report.
This is bound to increase India’s global competitiveness as an investment destination, it added.
“A simplified tax structure can usher in greater compliance, increase the number of tax payers and therefore, widen the tax base resulting in higher tax revenue for the government,” USIBC president Mukesh Aghi said.
“GST is also likely to make goods cheaper for consumers, increase competitiveness of Indian exports in international markets and boost India’s GDP growth by 2 per cent,” he said.
“This far-reaching reform places India at the cross-roads of an incredible economic opportunity,” he added.
Noting that industry has been hopeful for this reform for almost a decade, Aghi said USIBC commends India’s political leaders in their commitment towards growing the economy and ensuring predictability and tax certainty for the global investment community.
There are deep benefits for both domestic and global industries in this clear, predictable, and unifying approach, Aghi said.
The USIBC has encouraged a streamlined implementation of the GST, which will provide sufficient time for stakeholders to adjust their internal systems, needed to address the new GST infrastructure.