Implementation of GST Bill to attract more FDI across sectors: Survey

According to a survey of corporate India by Feedback Business Consulting Services, which covered 67 companies from various sectors, GST rollout will be positive for the economy as it will generate more revenue and bring in transparency. Around 72 per cent of the survey respondents felt investments will rise across sectors and a significant portion of this will come in the form of FDI especially in heavy engineering and automotive sectors.

The survey stated that once GST gets implemented there will be some other benefits  including tremendous reduction in the overall transportation and logistics costs, supply chain efficiency and better penetration of markets and export effectiveness. The bill is also expected to boost tax collection by making compliance easy for retailers and other businesses as also reduce overall taxation levels.

However, it also said that companies are worried about the timing of implementation of GST bill and fixing of rate at which tax will be charged. There might be some heartburns like inflation in the early days of implementation but GST will improve GDP of the country in the long run. It also added that states where the goods and services are consumed will benefit more as GST is consumption-based tax and not production-based. For India to grow faster, foreign direct investments (FDI) is important, for that purpose the implementation of GST bill is important as this will help to attract more FDI across sectors due to tax transparency and ease of doing business which will significantly boost markets in India.