Economy

‘Business has become smoother under the new tax regime’

Abhishek Law Shobha Roy Kolkata. November 27 | Updated on January 09, 2018 Published on November 28, 2017

Dilip Piramal, Chairman, VIP Industries   -  Debasish Bhaduri

GST has helped volumes grow: VIP Industries MD

The rollout of GST “is a good thing” and a positive step towards controlling corruption, Dilip Piramal, Chairman and Managing Director of VIP Industries, the country’s largest luggage-maker said.

According to him, the Centre has been “responsive” towards the needs of the industry, and so it took the “bold move” of reducing GST rates on a variety of items.

“Initially, I believe, they played it safe by bringing many items under the 28 per cent tax slab. However, later they took the bold move to bring down the tax rates on a number of items. This shows they are responsive to the industry and its needs,” Piramal told BusinessLine on the sidelines of the Horasis Asia Meeting, organised by the Indian Chamber of Commerce.

Visible benefits

“The benefits of GST are already visible,” he said to add that business has become “smoother” under the new tax regime.

Previously, luggage and travel accessory items— the segment in which VIP Industries is present through brands like VIP, Aristocrat, Skybags, Carlton and Caprese—were put under the 28 per cent tax bracket.

However, the rates were later revised to 18 per cent. The effective rate was close to 19 per cent under the VAT regime.

“My support for GST has nothing to do with the rate revision.GST is good for organised players, and I stand by it,” Piramal said.

Dishonest objections

According to Dilip, the objection from the political class is understandable. But the most vociferous objection is from the dishonest people.

These are the people who have been worst affected post GST roll out.

“Traders who do not want to enter into the tax bet or pay taxes are the ones objecting to GST,” he said.

Reiterating the positives, Piramal said reduced human interface of the GST network (the GSTN is primarily an online one) is another step towards reducing corruption.

“GST is one law where there is not so much scope of corruption,” he said.

“As volumes grow, how many people will they harass. Moreover, truck movements have improved. And a variety of state taxes like octroi have been done away with.”

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Published on November 28, 2017
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