Atul Jain, COO — Smart Devices at LeEco India, and Narendra Bansal, chairman and managing director of Intex Technologies, said their companies will enjoy benefits from GST. The GST will also benefit Indian smartphone buyers.
At present India had almost 30 different markets within the country. GST will bring down the vast number of markets into one.
“We were saddled with a plethora of diverse state-level taxes and levies of around 25-30 percent – or even higher in the case of some sectors. GST will ensure India finally emerges as one common market with an approximate tax rate of around 18 percent, with no double taxation and no cascading effect of multiple levies,” said Narendra Bansal of Intex.
Being a manufacturing entity, Intex Technologies will benefit from a uniform tax regime because this will boost operational efficiency, increase cost savings and make products more competitive.
For smartphone companies such as LeEco, the implementation of a unified GST in India will be one of the most significant reforms introduced in recent times.
Atul Jain of LeEco India said: “GST will bring in much needed transparency in the taxation norms and a have an overall positive impact on the Indian economy. LeEco is still in a startup phase in India and therefore we are very appreciative of the long term cost benefits that it will accrue to our Indian operations. It will ease our cost burden of logistics and benefits of reduced taxation can be passed on to our end consumers.”
Intex Technologies said the GST, which was approved in Rajya Sabha today, will help in a major way to simplify the way we do business and will boost government initiatives on ease of doing business in India. The entire world will recognise India’s potential and the government’s willingness to take bold steps to boost the economy.
As 1.3 billion consumers across India benefit from lower prices, GST will spur higher consumption and increase the tax base through better compliance with the help of information technology enablement. In the long run, these factors will raise India’s GDP growth by 1 or 2 points, generating millions of new jobs and driving greater prosperity.