Ashish Bhasin, Chairman & CEO South Asia - Dentsu Aegis Network, Chairman Posterscope & MKTG - Asia Pacific shares his thoughts on the passing of GST bill and its likely impact on the industry post implementation.
Bhasin is of the view that some industries will gain significantly, not just by the adjustment of rates but by the simplification of the process. “I think GST will be brilliant for business in general, once it settles down. It will significantly help in ease off doing business and for the first time, perhaps, make India a truly unified market. It was the need of the hour and I’m glad that it is moving forward, though there are a few more interim steps to be taken before it actually comes into effect,” he added.
However, Bhasin draws his concern for the service industries since it is has a focus on manufacturing. “As of now the advice from noted consultants seems to be that it will actually make it much more complicated, particularly for advertising agencies who operate in multi states because there will a Central GST and States GST which will increase the complexity rather than ease it,” he said.
Bhasin hopes the government is able to focus on this area and address this issue urgently so that the bill achieves its intent of simplification and ease of business, even for the service industry.
“There may be some interim inflationary effect because of the potential increase in rate from 15 percent Service tax to say 18 percent of GST. But I think since the set-off is going to be available, other benefits will far outweigh these disadvantages,” he concluded.