As policy makers huddle, India Inc is still not ready for GST
It is virtually a race against time for India Inc as the April 1 deadline for the Goods and Services (GST) Tax rollout stares at them. While companies have appointed consultants to advise them on GST, nothing much has moved beyond that especially with small and medium enterprises. Large companies, however, say they can meet the April 1 deadline. Conversations with multiple tax experts reveal that not more than 40-50 per cent of large companies are ready for a GST rollout on April 1.
“Manufacturing companies in categories such as consumer goods, auto, auto ancillaries etc were conscious of GST early on and did begin their groundwork in time. But, the services sector such as banking, insurance, media and entertainment are not quite ready for an April 1 rollout,” says Sachin Menon, partner and head of indirect tax at KPMG.
Retail majors such as Future Group and Shoppers Stop say that they have kicked off the process of being GST-compliant and can meet the April 1 deadline.
Nihal Kothari, executive director, Khaitan & Co, says one of the reasons for the slow pace of work on the part of companies is on account of the ongoing talks and deliberations between the Centre and states pertaining to GST.
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