CII-Deloitte Report

Before the Goods and Services Tax (GST) reform is rolled out, India should take cautious lessons from other nations which have also introduced similar legislation, industry leaders have warned.

A report released on Monday by the Confederation of Indian Industry and tax consultancy major Deloitte, which incorporates the views of Chief Financial Officers (CFO) of major companies, said the experience of other nations like Malaysia, Canada resonated with challenges currently being faced by India.

With the GST Council approving on Saturday a draft law that seeks to compensate states fully in case of revenue loss as a result of GST, the tax reform is widely expected to come into usage by July 1.

The report also revealed that almost 57 per cent of all surveyed CFOs felt that GST will have the biggest potential impact on operations with wide repercussions for cash flow, tax accounting, supply chains, procurement as well as the technology framework.

On this note, the report called for adequate preparation and advance knowledge of the tax laws and rules is crucial for the success of GST.

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