Quote on GST 2.0 Reforms by CA Mandar Telang, Secretary - Bombay Chartered Accountants` Society (BCAS)
Below the Quote on GST 2.0 Reforms by CA Mandar Telang, Secretary - Bombay Chartered Accountants` Society (BCAS)
"The recent GST announcements mark a true Diwali bonanza for consumers and trade, with a thoughtful rate rationalization and detailed clarity introduced at remarkable speed. The decision to allow post-supply credit notes without the pre-condition of contractual stipulation reflects a pragmatic approach, ensuring a smooth transition into the new regime. The proposed rate rationalization is expected to make consumer goods more affordable, providing a boost to domestic consumption. For the food and agriculture sector, rate correction will ease working capital pressures. Individual Life and Health insurance will become cheaper. The pharmaceutical sector may face challenges from the widened inverted duty structure as APIs remain taxed at 18% against 5% on drugs, though timely 90% provisional refunds can mitigate the burden. The automobile industry stands to gain from reduced rates on small petrol and diesel vehicles and overall balanced tax incidence on high-end models, likely driving demand. Similarly, residential real estate projects should benefit from input tax reductions, lowering overall project costs."
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