The Federation of Telangana Chambers of Commerce and Industry (FTCCI) organised a full-day “Conclave on GST and Globalization” on Saturday at Marigold Hotels (Green Park), Greenlands, Begumpet, Hyderabad.
Justice Challa Kodandaram, retired Judge of the High Court of the unified Andhra Pradesh was the Chief Guest. Addressing the gathering of 250-plus delegates composed of Tax Practitioners, Consultants, Govt officials of IT and GST, and Industry representatives, he said, the GST which has completed 11 years of existence with a unified tax structure united the nation. The rule makers must have a practical approach for better compliance.
GST has reduced the number of visits of the tax officials to the business entities. It will further reduce their visits if the Telangana Government listens to the representation FTCCI made to increase the threshold limit for GST registration to an annual turnover of Rs 40 lakhs as in most states.
The GST rates in many countries vary from 3 to 5%. Whereas the rate of GST varies from 5% to 28% in India depending upon the category of goods, he said
Speaking further Justice Challa Kodandaram asked people to comply with GST and make our society a better society. You be honest in your compliance. The biggest crime in the USA is lying. In India, Satyameva Jayate (Truth alone triumphs) is inscribed as part of the Indian national emblem. The emblem and the words "Satyameva Jayate" are inscribed on one side of all Indian currency and national documents. But in reality, Asatyam (lie) only takes you forward. We have stopped teaching this important quality to our children. Parents do not practice, so also the children, he said.
The Guest of Honour Srinivas Mandalika, a retired Principal Chief Commissioner of CST and GST said we have now settled with the best suitable GST. And it is evolving rapidly. GST in India is a mammoth success. Several countries faced turbulence. Malaysia has even gone back on it. Despite such diversity, GST is a huge success in India.
France was the first country to implement GST. It was followed by 160-plus countries. GST was introduced as part of the “One nation one tax” concept to unite indirect taxes under one umbrella and facilitate Indian businesses to be globally competitive. The Indian GST regime is structured for efficient tax collections, reduction in corruption, easy inter-state movement of goods etc he said. GST in India is a huge success because of the Trade and Industry, he said.
GST has also helped to increase the number of Taxpayers from 63. 5 lakhs to 1.4 crore, which is a 120% growth he said. The revenue has also jumped from 82,294 crore to 1,67,000 crore which is a 100% jump.
Let us hope that the newly formed Telangana Government listens to FTCCI’s demand to increase the threshold limit for GST to Rs 40 lakh as in many states from the current Rs 20 lakh. Earlier, Meela Jayadev, welcoming the gathering, asked the Government of Telangana to increase the limit for GST registration from 20 lakh to 40 lakh for businesses. Though several representations were made to the earlier government, still the issue is not addressed, he said and appealed to the Chief Minister and State Finance Minister to consider their representation and increase the threshold limit from Rs 20 lakh turnover to 40 lakh for GST registration. This will help many SMEs, he added.
Speaking on the importance of e-invoices, the retired Tax official said E-invoicing helps businesses in data reconciliation and accuracy during manual data entry. It allows interoperability across businesses. Don’t just raise your voice, but invoice, and not just invoice, e-invoice, he gave a call. The E-Invoicing initiative of the government of India goes a long way in ease of compliance and revenue collection. You can track the e-invoices in real time. The e-invoice details will be auto-populated on tax return forms and e-way bills, making the tax return process easy.
Irshad Ahmed, Chairman of GST and Customs Committee of FTCCI said ST, since its inception, has been a cornerstone of economic reform, reshaping the way we perceive and conduct business. This unified tax system has streamlined processes, eliminated cascading taxes, and bolstered transparency and compliance. It stands as a testament to our nation's commitment to fiscal efficiency and equitable growth.
Speaking further he added that the synergy between GST and globalization is undeniable. GST, with its simplified tax structure and reduced barriers, has facilitated smoother trade flows across borders, fostering a conducive environment for international commerce. Conversely, globalization has exposed our businesses to a broader market, amplifying the benefits of GST and encouraging competitiveness and efficiency.
Amidst these challenges lies an opportunity—an opportunity to leverage the synergies between GST and globalization to propel our businesses towards sustainable growth and resilience.