From July 1st 2017, the new GST law promulgated by the Government will enter into force and will facilitate companies’ commercial transactions
For a while we have heard about India and its enormous potential, however for companies it is not always easy to find the essential information in order to understand what are the advantages and business opportunities of this huge market: Italy today is just the twenty-fourth business partner of India globally,
Still, India presents all the characteristics to launch winning projects: many economists and analysts talk about an imminent overtaking to China, the economy is growing at a rate of more that 7%, and the current Modi Government is implementing several reforms with the aim of releasing the enormous potential of the country and to influence deeply the economic and social system, facilitating business.
Among these, the recent and ambitious Goods and Services tax (GST), that has been identified as one of most important tax reforms post-independence. It is a tax trigger, which will lead to business transformation for all major industries. It will be rolled out on 1st July 2017.
WHAT PROVIDES THIS LAW? AND WHICH ARE THE ADVANTAGES FOR COMPANIES?
This is a reform that should level out and simplify the complex Indian tax system and start a real revolution from a commercial and fiscal point of view: all the indirect taxes, local and central already existing, will be replace by a single lower tax, the GST. Today, the tax regime in India changes from State to State and from Federal to State (a condition that causes significant bottlenecks in terms of commercial transactions and raise of taxes), but the introduction of the single taxation system will favor the company’s business and they will be able to carry out their activities in a simply and more direct way, avoiding the so-called “cascading effect” of taxation.
Numerous effects of this reform:
- there will be a further economic growth;
- for foreign companies will be easier to operate in India, both in terms of Foreign Direct Investment and import-export operations;
- the entire manufacturing and service sectors will have important benefits.
WHAT YOUR COMPANY CAN DO? DO YOU WANT TO KNOW MORE?
Although the great progress in terms of doing business, India is still a country with some complexity: for this reason, and in line with the introduction of this new law, it is necessary for companies already working in India, or who want to enter in the market, to know appropriately the mechanism managing the new taxation system.
Octagona, present in the Sub-Continent since 15 years thanks to its direct offices in New Delhi and Bangalore, is able to support your business building tailor-made projects and assisting your business in terms of tax, legal, customs and administrative matters.
If you would like to receive more information about the law and our activities, please contact us at the telephone number +39.059.9770184 or by email at [email protected]: you will receive all the information you need.
DOING BUSINESS IN INDIA HAS NEVER BEEN SO EASY!