| |DECEMBER 20198Consultants ReviewSchneider Electric provides energy and automation digital solutions for efficiency and sustainability. Also, combine world-leading energy technologies, real-time automation, software and services into integrated solutions for homes, buildings, data centres, infrastructure and industries.By Sugata Sircar, CFO & Country Finance Partner, Greater India Zone, Schneider Electric Indiahis is a good time to talk about the status of a couple of pathbreaking changes which were brought-in by the Government in the recent past. The first is Goods And services Tax (GST).An ambitious and bold move, this has put millions of business transactions on a common digital platform under a common framework. The fact VAT, Excise Duty and other indirect taxes were subsumed, brought us among the most progressive nations. Indeed, I do not know of any other country in the world which has a platform of the size of GSTN.As GST brought-in rationalization of taxes, tax elements clogged at different stages of the value chain have been released, leading to reduction in prices to the end user in many cases. This has undoubtedly led to efficiencies in the value chain.GST also forced traders and small businesses which operated outside the system to pay tax and process transactions on the common platform. This, I hear, may be pushing some small businesses to the brink. My view on this is that if a business model was operating on the basis of margins derived only from tax evasion, then there is a fundamental issue. Those models never worked. Therefore, it is a larger question as to how people in such businesses should find their livelihood. It is to be seen in the context of how the economy can support higher price levels and therefore provide a viable compensation to such small businesses.For the organized sector, like our company, the structural positives are strong and much welcome. The efficiency due to the subsuming of several taxes, a clear input credit chain and harmonization of tax rates are leading to better efficiency, and business decisions are no longer required to be based on taxation.Appreciably, the GST Council has been amending the provisions of GST to address issues being raised. Critics will say that these should have been thought of TWO PATHBREAKING CHANGES & HOW THEY ARE FARINGIN MY OPINIONT
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