GST Roll Out By July 1st Confirmed; FDI Rules Would Be Eased For Multi-brand Retail
Goods and Services Tax (GST), which has been hailed as the biggest and most influential tax reform since 1947, is all set to be implemented by July 1st, 2017. This has been confirmed by Shaktikanta Das, who is the Economics Affair Secretary, and coordinating with various states for GST’s smooth implementation.
He has confirmed that finally, all states are now on the same page, and differences have been sorted out. He said, “GST implementation is a huge one and that is going to be implemented by July 1. Both central and state governments are working on this..”
Implementation of GST pan-India has been delayed for some time. Earlier, it was announced that GST would roll out effective April 2016, which was postponed due to States objecting to some issues pertaining to cross-border taxes.
However, it seems that July 1st is the final date for GST implementation, as stock prices of several companies witnessed a sudden surge, immediately after Shaktikanta Das made the announcement of July 1st date.
Prominent among those were stocks of logistics companies, because transportation would be the biggest beneficiary of GST regime, as it will abolish a plethora of central, state-level, excise, local and other forms of taxes for transportation of goods.
Some of the shares which witnessed highest surge post-July 1st announcement include:
- Gati: Share price increased by 6.82% to reach a high of Rs 131.6 on BSE
- Snowman Logistics: Share price surged by 6.74% to reach Rs 61
- Alcargo Logistics: Share prices increased by 5.36% to reach a high of Rs 174
- VRL Logistics: Share price increased by 3%
- Bluedart: Increase of 3-4% in intra-day trading
Last year, Finance Ministry had already started the groundwork for GST implementation, when Rs 2256 cr Project Saksham was approved for integrating GST with Central Board of Excise & Customs’ IT Network. And the actual migration of more than 65 lakh VAT payers, and 20 lakh service tax payers into the new GST regime started in November 2016.
Some of the GST Related news we covered in the past:
FDI Rules May Be Relaxed
Meanwhile, in a related business news, Govt. has strongly indicated that FDI rules would be further relaxed for multi-brand retail and some sections of the commodity market, which will trigger more FDI and help foreign investors to invest more.
Under multi-retail brands, Govt. may allow FDI for sale of beauty and personal care products, which are sold inside food retail outlets and hypermarkets.
Besides, banks and mutual funds would be soon allowed to invest in commodity markets, thereby allowing more FDI into the market.
Interestingly, once this happens, $10 billion personal and beauty care market in India will get stiff competition from foreign players. Baba Ramdev’s Patanjali, which has beaten all existing players in this niche, should be worried now.
We will keep you updated as more details come in..