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Here’s how various sectors in India have reacted to the implementation of the Goods and Services Tax (GST) and how it will impact business.
With India moving towards its biggest tax reform, here’s how various sectors in India have reacted to the implementation of the Goods and Services Tax (GST) and how it will impact business.
Hotel owners find 28% tax steep for cheaper rooms; travel sector satisfied
Following the implementation of the GST, the hospitality and travel sectors expect teething issues in the first few months but are not unduly worried, expecting support from government.
OYO Rooms Founder and CEO Ritesh Agarwal said, “There may be challenges in compliance and implementation but over time, there will be more clarity and familiarity, enabling all stakeholders to adjust, adapt and adhere.”
However, the Federation of Hotel and Restaurant Associations of India (FHRAI) Vice President Garish Oberoi said the 28 per cent GST for hotel rooms with a tariff of Rs 7,500 per night and above is very steep. He asked the government to keep that rate only for rooms with tariff of Rs 10,000 per night and above.
As far as the travel sector goes Cheap Jerseys Online , the GST rate for tour packages has increased marginally from 4.5% to 5% and players do not expect that to impact the holiday demand.
Industry: CII says GST will make India Inc. more competitive
The Confederation of Indian Industry (CII) has said that the GST will incentivise exports, help expand the tax net, contribute to the ease of doing business and accelerate new business ventures. “Input tax credit will curb inflation by avoiding tax-on-tax. We believe that most businesses would pass on the benefits of input tax credit to consumers so that inflation would be curbed,” CII President Shobana Kamineni said. She added that the industry is prepared for implementing the GST.
Exports: Exporters worried about new restrictions in using duty credit scrips
The Federation of Indian Export Organisations (FIEO) has approached the government to reduce the restrictions on using duty credit scrips. A duty credit scrip is an incentive provided by the government to exporters. It is given to promote exports by providing tax incentives to exporters. It is a pass that allows holders to import goods by not paying a certain amount in import duties. But with the implementation of GST, the new rules say that these scrips can now be utilised only for payment of basic Customs duty and not Integrated Goods and Services Tax (IGST). Earlier, manufacturing exporters who import raw material for export purposes were allowed to utilise these scrips for payment of Customs, excise duty and service tax.
FIEO Director General Ajay Sahai said exporters are worried as they have to arrange funds for payment of GST, which will be refunded to them upon exports. “Th. Cheap Jerseys From China   Cheap NFL Jerseys   Wholesale Jerseys   Cheap NFL Jerseys   Wholesale Jerseys   Wholesale NFL Jerseys China   Wholesale Soccer Jerseys From China   Cheap NFL Jerseys   Cheap NFL Jerseys   Wholesale NCAA Jerseys

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