Bre-Exit and GST

Bre-Exit and GST

A contemporary event in Business has now immediate and direct bearing on State policy, which is popularly also known as fiscal state of affair. Here both domestic and International event finds mention in our scope of analysis.

We will analyze two event, one each from International and domestic arena which have been significantly discussed in Business world recently. The international event refers to the just concluded referendum by British citizen endorsing the decision to withdraw from European Union. The outcome for Britain and its economy is long event to unfold, but hype around its impact on Indian Business has largely dissipated. Victorian British could be the largest stake holder of Business in India in pre Independence days, but now it is diversified. Out export/ Import quantum, Invisible transfer, remittance movement, rent, dividend and royalty collection are significantly low to be remotely called alarming given any impending stress. Further the investment in Pond and by Pond between the two economies have been on measured side. British stands in our hierarchy  much below than our other preferred destinations like USA, Japan, Germany, Mauritius and Hong Kong. Few individual companies with a concentration of Business portfolio in Britain could agree to the challenging ripples for few months. But Britain certainly would not jeopardize its business interest by blocking or disenfranchising the continuing businesses. The hype surrounding the horror and belligerence of this event has certainly evaporated for commerce.

The other event which is domestic has lingered for longer than it deserved. The Political squabbling over GST in India is unfortunate and pejorative. Good sense and Good Business will let it rewrite someday soon. Why GST? India such a large nation has both political federal structure and Business federal structure. We are one currency, one monetary but multiple business zones. There are invisible tax boundaries which restrict the uniformity in laws and Business legislation across India.  GST should cut these overlapping ambiguities. Guiding State for uniformity and predictability in taxation, standard distribution of taxation across the federal units and comfort of unambiguous enforcement bodies are few outright consequences. One should infer that taxes on Business will come down. It could be mix of two. There are going to be downward movement on few items of Business tax but there will be upward as well. But a uniform cap will be more relevant word to watch.

Wait to watch how we govern ourselves on this and how this does gets factored into our Business reality.