Implementation of GST will enhance competitiveness of industry: FICCI

Welcoming the recommendations put forth by the Arvind Subramanian panel on GST, the FICCI has said that its implementation would bring about efficiency and transparency in the indirect tax system enhancing the competitiveness of India's industry.

"GST has been a long pending reform measure and its implementation would bring about efficiency and transparency in the indirect tax system enhancing the competitiveness of India's industry. GST is expected to add about two percent to our GDP and will accrue long-term benefits not only to government, industry or traders but to the final consumers as well. We look forward to the implementation of an optimal GST," said FICCI secretary general Dr. A. Didar Singh.

"FICCI welcomes the recommendations put forth by the GST panel today. The industry has been looking forward to this report and puts to rest the taxpayers' anxiety on the expected rates and many other issues relating to GST regime," he added.

A panel led by Chief Economic Advisor Arvind Subramanian yesterday submitted its report to Finance Minister Arun Jaitley that outlines the scope of the ambitious tax that aims to create a national market.

The panel has recommended standard rate for GST at 17 to 18 percent, the rate at which most products would likely be taxed.

The committee has excluded real estate, electricity and alcohol and petroleum products while calculating tax rates but has suggested to bring them under the ambit of GST soon.