Rashmi Deshpande, Associate Partner on E-commerce
Budget 2017 has prepared a solid foundation for another disruption in form of the incoming GST reform. With the clear agenda of honoring the honest tax payers and paving the way for increased digitalisation of the economy, the Finance Minister indicated that technology is going to play a major role in implementation of Government's clean up agenda. Accordingly, indirect tax on devices related to digital infrastructure is exempted to give a boost the industry.
Nevertheless, contrary to common beliefs, the service tax rates along with excise rates that were pegged to increase to be line with the proposed GST rates, surprisingly remained untouched.
The e-commerce industry should now gear up for an overhaul in terms of its system to keep in line with GST as the Government made amply clear its readiness for the tectonic policy reform.
Aakash Choubey, Partner on FIPB abolished
"Given most sectors are under automatic route, FIPB was losing its significance. Move to abolish it is positive and may give a fillip to FDI, but a lot will depend on a consistent roadmap that Government should lay down.", said Aakash Choubey, Partner, Khaitan & Co.