MOSL: EXPERT SPEAK-GST – A change for the better-Economy to benefit as the new tax mechanism stabilizes

​EXPERT SPEAK: GST – A change for the better; Economy to benefit as the new tax mechanism stabilizes

Mr. Pratik Jain; Partner, National leader – Indirect tax, PwC India

Mr. Pratik Jain is a national leader – Indirect tax in PwC India. He is a member of the Institute of Chartered Accountants of India and a law graduate. Pratik has been involved with several India and MNCs & advises them on tax planning, management, dispute resolution and policy related issues. He also plays an active role in formulation of the GST policy and is actively involved/ consulted by industry and industry associations. Pratik regularly contributes in public debates/discussions on tax policy related issues and is member of tax committees of leading trade bodies. He chairs the GST committee of CII (Northern region). Pratik has been a member of Tax Advisory Group of Organization of Economic Co-operation & Development (OCED).

• We hosted a conference call with Mr Pratik Jain (partner and leader indirect tax at PWC India) to understand his views on how Goods & Services Tax (GST) transition has been absorbed by the economy post its implementation in July this year. He believes that GST – one of the most important structural reforms of India – should contribute significantly toward the economy by way of promoting more investment and manufacturing in India over the long term. However, Mr Jain agreed that the first 100 days of implementation have not been as smooth as originally envisaged and that businesses, especially smaller ones, have struggled to make major changes required under the process. On transition to GST, the tax benefits for companies with establishments in backward areas are unlikely to be restored fully. He also anticipates that once the new tax mechanism stabilizes, the GST Council will take measures to reduce the GST rates, especially for items that are taxed at 28%. Also, once the initial hiccups are behind, businesses will look forward to re-structure themselves – improve the supply chain model, reduce the number of warehouses and establish a central procurement mechanism..