GST and its affect on Indian IT environment

The ‘Constitutional Amendment Bill’ was passed in the Rajya Sabha recently to introduce a country-wide goods and services tax (GST), shifting the focus on the tax rates. So, how will it affect the Indian IT environment? “We see GST as a big move towards a ‘One Nation One Market’ concept that turns India into a single largest common market. It will lead to savings in not only logistics & distribution costs, but also in the overall tax savings for companies that have pan-India operations like Xerox. While the rate of GST is yet to be decided, a rate of around 18-19% in which multiple levies get consummated, should reduce the overall tax impact on companies - thus resulting in further savings. With respect to channel partners, we believe it will also enable a faster supply fulfilment and efficient allocation of resources,” said Ashraf ElArman, managing director, Xerox India.

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