http://www.biospectrumindia.com | August 2017 | BioSpectrum BIOAnalysis^33
Corporate Members from all over the county.
“The retail inflation, measured by the Consumer
Price Index (CPI) was at a four year low of 2.18 per
cent in May, 2017. Likewise, the Whole Price Index
measured inflation was mere 2.17 per cent for the latest
month, providing an ideal platform for the GST. With
Monsoon showing a good spell in its initial phase, the
prices should further ease for a large number of items.
While the weighted average of net tax incidence would
be lower post-GST, consumer prices in any case have
seen a drastic fall in the last one year from 5.76 per
cent in May 2016 to the 2.18 per cent in May this year.
For consumer food prices, the drop in inflation on CPI
scale has been even sharper from 7.47 per cent to 1.05
per year –on-year”, ASSOCHAM Secretary General D
S Rawat said.
ASSOCHAM also said while the GST may face some
initial hiccups, the broad and the most important
macro matrix is “perfectly placed”. “So, even if there is
some increase in some of the items because of shuffling
of tax incidence, abundant supply side would ensure
prices ruling easy”.Pharma companies are
busy with implementation.
Understandably there have
been frustrations with the
tight timelines initially they
are looking to get the first
invoices out and tech systems
ready. A lot depends on the
vendor ecosystem readiness
that will determine cash flow
issues. Long term there will
efficiencies in supply chain
but in short them there are
teething problems.- Sujay Shetty, Partner and
Leader, Pharmaceuticals and
Life Sciences at PwC India
business environment.”
The CII President said that GST is based on self-
compliance with the input tax credit as a powerful
incentive to businesses to step into the tax fold. “Input
tax credit will curb inflation by avoiding tax-on-tax. We
believe that most businesses would pass on the benefits
of input tax credit to consumers so that inflation would
be curbed,” stated Kamineni.
“Industry is prepared for the rollout of the GST.
Large numbers of government officials, tax experts,
and CII stand ready to support enterprises in its
implementation,” noted Kamineni, adding that initial
glitches are expected to be quickly sorted out.
Reacting to the GST launch the ASSOCHAM said,
“With retail prices growing by the slowest pace in the
last four years by mere 2.18 per cent, it is the perfect
time for the launch of the GST, from inflation point of
view, as this particular macro fundamental is placed at
an ideal position for the roll out of the country’s most
ambitious tax reform.
ASSOCHAM is a not for profit organization,
facilitating reach of India to all businesses around
the globe, for wanting to do business with India. It
is also referred to as the “Chamber of Chambers”
having in its fold more than 400 Industry Chambers,
Trade Associations and serving more than 4,50,000