‘GST will make domestic companies more competitive’

TIL Desk/Business/Vadodara/ Revenue Secretary Hasmukh Adhia is hopeful of a smooth transition to the GST regime and says it will help domestic firms to become more competitive apart from streamlining the taxation for all business activities.

“Unlike in other countries, the transition to the new tax regime would be smooth here because there are multiple points of taxation in the country. Hence, the possibility of sudden spurt in inflation is remote,” said Adhia, who is spearheading the implementation of the Goods and Services Tax.

He was speaking at a conference on GST organised by the Federation of Gujarat Industries and the chief commissioner, Central Excise, Customs & Service Tax, Vadodara zone. Explaining GST’s importance for giving a boost to the manufacturing sector, he said, “Cascading taxes along with non-availability of input credit meant that domestically produced goods found it harder to compete with imported ones.

“GST is a multi-point tax on value addition with seamless input tax credit,” he said. Adhia’s comments come amid calls from some experts and a section of the industry for deferring the GST roll-out to September-October instead from July 1.