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Know what India’s top 10 people in building materials industry have to say about GST

How GST (Goods and Services Act), - the single biggest tax reform is going to affect building material industry

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How GST (Goods and Services Act), - the single biggest tax reform is going to affect building material industry

GST (Goods and Services Act), the single biggest tax reform undertaken by India in 70 years of independence, was introduced in the country with effect from 1st July. Corporate and consumer expectations of the tax reform, which some economists say could add between 1 and 2 percentage points to India’s annual growth rate, are high. GST which has subsumed 17 central, state and local body taxes in it, is expected to facilitate seamless movement of goods in the country. Though the building materials and home improvement industry suffered in the first quarter of this financial year as the distributors resorted to destocking, most of the people in the industry believe that it’s just a temporary phenomenon which will correct itself in the coming quarters.

How such an important taxation reform is going to affect building material industry? Here are views of some of the top people in the building materials and home improvement industry in the country:

Ashok Kajaria, Chairman and Managing Director, Kajaria Ceramics Ltd

“We consider ourselves fortunate to have witnessed the rollout of India’s path-breaking fiscal reform that will transform India into a single market place against the prevailing demand pockets resident in 29 states and 7 union territories. This, in our opinion, has provided an unprecedented opportunity for the organized players across sectors to assume center stage in driving India’s economic resurgence.”

Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd

“This revolutionary taxation system will be a game changer for India and will help the organized players to gain more market share from unorganized one.“

B.K. Goenka, Chairman, Welspun Group

“We see tremendous potential in the domestic market, especially with the introduction of GST.”

Rajinder Gupta, Chairman, Trident Group

“With our brand presence in around 450 Multi Brand Outlets and e-commerce platform, domestic business is growing at double digit and with introduction of GST we see this as a high potential market which is currently dominated by unorganized players.”

 Sajjan Bhajanka, Chairman, Century Plyboards India Ltd

“The implementation of GST from July 2017 will accelerate the shift from the unorganised to organised brands.”

P. MITTAL, Executive Chairman, Greenply Industries Ltd

“Following the implementation of GST and more focus on formalisation of the economy, established brands like Greenply will get a level playing field vis-à-vis unorganised player.”

Saurabh Mittal, Managing Director & CEO, Greenlam Industries Ltd

“This (GST) has marked the biggest tax reform in Indian history, potentially bringing all indirect taxes under a uniform tax structure. This, coupled with the government’s decision to demonetize high value currency notes, are seen as bold reforms expected to reset the economy towards a higher growth trajectory with several structural long-term benefits.”

Ashwin Choksi, Chairman, Asian Paints Ltd

GST is being looked at as the single biggest indirect tax reform and is poised to push India’s economic growth forward by creating a single national market and enhancing the efficiency of inter-state movement of goods and services. However, given the wide scale of implementation, it is likely to cause some disruptions in the initial period…

Sandip Somany, Vice Chairman and Managing Director, HSIL Ltd

“We believe that the country’s distribution sector is at an inflection point. Following the proposed introduction of Goods and Service Tax in FY2017-18, we foresee a dramatic realignment; as unorganized players find it challenging to stay in business, hence creating interesting inorganic opportunities, there could be a corresponding shakeout at the distributor level as well.”

Yadupati Singhania, Chairman and Managing Director, J.K. Cement Ltd

“This indirect tax framework (GST) will be a game changer for organised players like us as it will lead to greater formalisation and consolidation of the sector”

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