New Delhi - Indian industry considers the Goods and Services Tax (GST)a step in the right direction and a majority are satisfied with its overall implementation, the Confederation of Indian Industry (CII) said citing its own survey.
Releasing a survey of over 200 businesses on the the first anniversary of the roll out of GST, CII said that 83% of respondents saw the new indirect tax regime a step in the right direction and 65% are satisfied with its overall implementation, despite some teething problems.
"A year into the implementation of GST, there is great optimism among businesses about the impact of GST on the economy. Satisfaction was high across the spectrum on GST implementation issues as well," a CII statement said.
GST implementation led to increased efficiency for businesses by reducing their transportation time, on account of absence of state barriers, the report said.
"GST has had a moderating impact on retail price inflation, which may have risen to higher level without the new tax regime," CII Director General Chandrajit Banerjee said in the statement.
One-third of the survey respondents witnessed a downward movement in the wholesale prices of their supplies, while nearly 30% saw a fall in the retail prices of supplies. A majority of respondents witnessed no change in their supply prices.
"The survey also indicates a positive impact of GST on employment as well as on the demand for goods and services. Given that it is the biggest tax reform of independent India, one must compliment the government on its efficient and transparent administration despite some 'teething problems'," Banerjee said.
On product coverage under GST, a majority of 87% of respondents said the products manufactured by them have been listed or classified under GST, and were largely satisfied with the tax rates and the exemptions provided on the supply of goods and services.
According to the report, many businesses reported satisfaction with the process for payment of taxes and interest under the GST and felt that the maintenance of records is also simpler.
Respondents also showed a high level of comfort with the provisions on valuation.
"The survey has confirmed the fact that filing of returns and payment of tax is much easier and simpler under the new regime, as also the maintenance of records," Banerjee said.
Regarding demand, 78% of the respondents witnessed either an increase, or no change, in the demand for goods post-GST implementation, while the same figure was 90% for services.
The survey was based on responses from over 200 firms of different sizes, with 46% having an annual turnover of over Rs 100 crore, 29% with a turnover between Rs 5 crore to Rs 100 crore, 11% have a turnover of between Rs 1.5 crore to Rs 5 crore and 13% are with a turnover of less than Rs 1.5 crore.
At an event here earlier on Sunday, Finance Secretary Hasmukh announced that the GST revenue collection in June at Rs 95,610 crore was higher than the average monthly collection of Rs 89,885 crore during 2017-18.
The collection in May amounted to Rs 94,016 crore.