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U.S.-India Business Council Applauds Passage of the Goods and Services Tax (GST); Calls it a Game-Changer for the Indian Economy
August 3, 2016 - Washington, DC – The U.S.-India Business Council (USIBC) congratulates the Government of India and members of Parliament for approving The Constitution (122nd Amendment) Goods and Services Tax (GST) Bill, 2014. This is a significant milestone in India’s ongoing efforts to improve its ranking in the World Bank’s “Ease of Doing Business” index. 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. This is bound to increase India’s global competitiveness as an investment destination.
“Industry has been hopeful for this reform for almost a decade and we commend 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,” said Dr. Mukesh Aghi, President of the U.S.-India Business Council. He 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. 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 percent. This far-reaching reform places India at the cross-roads of an incredible economic opportunity.”
Following the passage of this crucial reform, USIBC encourages 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. This reform also comes ahead of the U.S.-India Strategic and Commercial Dialogue, slated to take place in New Delhi in August, where the commercial track of the dialogue will continue to see heightened focus on the “ease of doing business”.
About U.S. - India Business Council:
Formed in 1975 at the request of the U.S. and Indian governments, the U.S.-India Business Council is the premier business advocacy organization, comprised of 400 top-tier U.S. and Indian companies advancing U.S.-India commercial ties. USIBC is the largest bilateral trade association in the United States, with liaison presence in New York, Silicon Valley, and New Delhi.
Contact: Sukanya Sen | Ssen@usibc.com| 202-463-5837