MOSL: GST DAY-Managing the transition to a new tax regime – an on-the-ground view

​GST DAY: Managing the transition to a new tax regime – an on-the-ground view

• Our ‘GST Day’ event saw participation of stakeholders from across industries. We met with (a) an indirect tax expert, (b) a participant from the tiles industry, (c) the CEO of Retailers Association of India, (d) an adhesives distributor and (e) a major distributor of the largest FMCG company in India to discuss their experience after India entered a new tax regime under the Goods and Services Tax (GST). Key takeaways from our discussions:
  
• GST is the single largest tax reform India has witnessed in its history, combining multiple taxes into one broad framework.
  
• For modern retail, GST is already proving to be a blessing. Longer-term prospects appear encouraging too.
  
• For manufacturers, the reform promises to be a longer-term positive. It should help crack down on India's vast informal economy, driving trade in favor of the organized segment. Categories where materials are imported or sourced from large suppliers should benefit more.
  
• However, any major reform is accompanied by some confusion in the initial months of rollout. In case of GST, there appears to be lack of clarity over (a) division of GST into CGST, IGST and SGST, (b) transition of credits, (c) route of return filing and (d) uploading of forms with a large number of line items.