At the recent meeting of the BRICS heads of revenue and tax experts held from 25 July to 27July in Hangzhou, China, India's latest Goods and Services Tax (GST) reforms were appreciated and hailed by the BRICS countries.
The Indian delegation, led by Revenue Secretary Dr Hasmukh Adhia introduced the new tax regime along with its functioning, for which the panel received much appreciation from the leaders and representatives present here.
Subsequently, the matter was also taken up for discussion during a press conference held post the meeting, where the delegation explained the salient features and advantages of the reform.
During this meeting, the BRICS heads of revenue and tax experts also deliberated upon contemporary international tax issues, following which a joint communique was issued.
A Memorandum of Cooperation (MoC) in respect of tax matters identifying areas of cooperation, namely, coordination in international forums, capacity building, experience sharing and regular interaction was also signed by the BRICS heads of revenue.
The GST, which was rolled out at midnight on June 30, is expected to benefit all the stakeholders namely industry, government and consumer as it will lower the cost of goods and services give a boost to the economy and make the products and services globally competitive, giving a major boost to ' Make in India' initiative.
Under the GST regime, exports will be zero-rated in entirety unlike the present system where refund of some of the taxes does not take place due to fragmented nature of indirect taxes between the Centre and the States.
However, the GST will make India a common market with common tax rates and procedures and remove economic barriers.
The GST is largely technology driven and will reduce the human interface to a great extent. It is expected to improve the Ease of Doing Business in India.