Myself Deepak Jain, Director General of Federation of Indian Industry. And my appropriate Salutations to the readers.
I believe it is a celebration occasion as GST has turned 5 today. Although GST implementation went through some teething problems but by and large it is successful.
At this time, we are fondly missing our friend late Sh. Arun Jaitely Ji. He was a man of immense calibre. Along with the loving guidance of Honourable Modi Ji, Arun Jaitely Ji united all states n union territories on this topic. Trust me this was a tough job like weighing a bunch of live frogs (as frogs can’t sit stable and keep jumping to and fro)This is due to Arun Ji’s tall persona only that this difficult task could be achieved. Unfortunately, he is not amongst us today. Our sincere Homage.
A little bit about the Federation of Indian Industry now. Most of you might not have heard about it as it’s not a very old institution. Earlier in 2015, FII started working although its functions since 2013. We felt like there is a need to build a chamber that can give strength and economic growth to Nation and hence FII was launched. We at FII, wish to be growth partners of the Nation and bring an ECONOMIC REVOLUTION. Our team is very strong n calibrated. Profoundly, we claim our presence in 42 countries on the global map and have a strong team of 5000 members.
I have been privileged to be a part of the BJP Economic Advisory Committee and we have taken some great policy initiatives like economic vision documents, CSR Schemes for public toilets, Gold Bond Schemes, Health Care schemes, Cancer Care schemes for the poor, Yamuna Action Plan, Policy Documents, Voluntary Disclosure Scheme, Demonetisation scheme. A couple of these schemes were announced by Hon. Modi Ji too.
We are proud of the fact that during Covid, we have figured out many Initiatives, which were also implemented by Government. People have hugely benefited from those schemes.
Even in the case of GST, after initial hiccups, businesses are relieved now, and no one is bothered about unnecessary unorganized tax deductions formerly known as Octroi.
All business operations are with bill only now, as businessmen know benefit is with bill transactions only. There is a lesser headache. All these harassments and tax evasion are things of the past now. There is a positive shift of mindset toward GST and we have achieved that within the last 5 years only.
I must say it’s a welcome change. With GST, our businesses are going global and there is no domestic tax impediment. It is pertinent to add majorly all sectors of industries are gaining from GST except a few.
FII is all for an exercise to review GST every 5 years. All amendments and discussions should be reviewed and implemented. We should be vocal about our suggestions from all eminent platforms.
Currently, India’s economy is at USD 3.50 trillion and those who are policymakers for India’s economic growth have huge plans to take it to USD 30 trillion economies soon. To make that happen old conventional methods, taxes, policies, rules, and regulations won’t work.
With GST implementation, there is EASE OF DOING BUSINESS and with that ease foreign investment will flow in.
Please note that for any business, a most valuable asset is the owners’ time and that time must be well consumed on product enhancement rather than paperwork, which is very complicated and time-consuming. The government will have to value time wastage sooner or later. We have done a lot, yet a lot has to be done.
During the last 5 years, whatever suggestions are forwarded to the government, those got through within that meeting itself. Government is proactive in implementing nation-building suggestions.
During the last 11 months, GST collection is above one lakh crore per month. This is enough to gauge the mood, direction, and mindset of businesses here. One can guess what kind of opportunities are available in near future.
There is a huge positive shift in mindset for GST. Annual GST collection of INR 20/25 lakh crores is normal and hopefully, other tax collections too shall improve.
Income tax collection shall also improve from the present levels of INR Rs. 14/15 lakh crores as these are our positive points and assets.
The government was able to successfully implement these huge plans because of the Chartered Accountant fraternity only. Officially, they are formally known as CA but for me, they all are “ECONOMIC WARRIORS (AARTH YODHA).
Chartered Accountants are not only taxpayers but are also answerable and responsible for our nation’s growth. Same for taxpayers. We are not only the tax assessees but we are also building blocks of growth. Entrepreneurs too are the real assets and heroes of the Nation. They deserve a big applause. They all deserve due respect.
There is one worrisome topic too. ‘The mindset of free ‘. We are a hugely populated Country and this mindset of everything free is a worrisome affair. For instance, 80 crore people are getting free ration but my question is for how long?
In my opinion, whosoever is concerned for our Nation must be equally worried about this “free mindset” People want everything for free. Free water, free electricity, subsidy for crops (approx. Rs. 6000 per acre), etc. My question is what will be the end result of this mindset?
I can very well quote an example of our neighboring country. They have doomed their economy, as everything was free over there. They have made Income tax exemptions up to an income of 30 lakhs, corporate tax was reduced to 14%. All this for the sake of votes only. We should not tread on that path I suggest. We should think of pressing the brake button now.
In our nation, there is only 11 crore MSME out of which 3 crores are closed during covid. It is a topic of consideration for me how long our MSME can shoulder the economic growth?
In my opinion, in the coming future, only skill-based, knowledge-based, ideas-based, and technology-based industries will grow and survive. All these will take our economy from 3.50 trillion to 30 trillion. During this gradual transformation, the compliance burden shall be reduced.
Form filling shall be lesser complicated n lesser time-consuming. In fact, an ordinary person should be able to fill it easily.
GST officers should not devise ways to make things harsh for business persons. Basically, there are 2 types of officers. One is the old school graduates who believe in making things harsh for business persons. And there are others who believe in making things smooth, fast, and uncomplicated. Unfortunately, we can’t change much with the old school graduates and we will have to bear with them till they retire.
My vision for a 30 trillion economy makes me wish for more ease, more productivity, and more contribution. Let me remind you that the most expensive asset is Entrepreneur’s time and it should be consumed in constructive ways of growth rather than paperwork.
Entrepreneurs are the most valuable assets of growth. My dream BHARAT will give them due and well-deserved accolades. And same for taxpayers and all growth partners like the Chartered Accountant fraternity.
Everyone in our nation is hopeful of new Shining BHARAT and we must do whatever it takes to be one. With Best Wishes and gratitude towards all involved in Nation Building,
Deepak Jain
Director General-FII