By Faiz Askari
This week had witnessed a historic development in the Indian Economy. GST Bill is passed in Lok Sabha and here are some key observations that Mr. Bharat Goenka, MD – Tally Solutions has shared. As an India’s leading private organization, which has strongest connect with Indian SMEs from the perspective of their financial health, Tally is an important influencer, from the industry feedback perspective, in getting the GST Bill passed.
Sharing industry wide insight on this landmark bill, Mr Bharat Goenka shared his concerns by adding, “The payment linkage for input credit must be done away with, as SMEs will not be able to find new buyers, or only find buyers who will pay after ITC mismatch report – making it impossible for anyone to start a new business, or grow an existing business.”
“In addition to the above, making the “ratings” public which will show companies in poor light for a minor default and start causing customer erosion leading to spiraling of problems, and forcing SMEs to take ‘panic loans’. Infact several lending companies have already reached out to us to ‘give loans to SMEs for tax payments’, since they see it as a big opportunity for themselves.” He also pointed out, “There has to be a clear demarcation between products and services in the IT/ITES space as currently it is open to interpretation.”
“GST on branch transfers will lead to different sets of business numbers for different branches and Head office and not allow for triangulation of business and IT returns, syas Mr Goenka.
“GST on advance tax payments must be done away with as credit will only be available for businesses after the transaction is completed,” Mr Goenka demanded.