What GST means to printers: Part II

M Shivakumar, Capital Color Lab

We have high hopes pinned on the GST roll out. This will ensure there are fair and standard trade practices throughout. Currently, if you consider the raw material prices it is different at different places due to the tax components. In Karnataka, the tax rates are quite high as compared to Tamil Nadu. Hence, GST will be quite helpful for our business.

Dinesh Gajria, Print Plus

GST is set to become one of the biggest fiscal reforms that our country is going to witness. All businesses, small or large, are going to get impacted because of this paradigm shift in the indirect tax regime. There is a long list of benefits, which are being claimed as a result of GST law and one such benefit is the removal of the cascading tax effect. The success of one of the world’s largest and complex tax reform depends on the glitch-free performance of the goods and service tax network. The proposed law shall affect the finances of the small and medium-sized enterprises (SME) sector the most, as tax payments on declared deadlines to get credit is going to put a strain on the already limited financial resources of SME sector. The present government is very proactive in addressing the issues of the businesses and hopefully, in the coming days, there should be more clarifications on GST matters impacting the SME sector. In conclusion, we hope the exemptions currently present in the print industry shall continue under GST regime and that there are reasonable tax rates, besides reducing the quantum of paperwork and compliances under GST. 

Ankit Tanna and Tejas Tanna, Printmann Group

Demonetisation was a good idea which was badly executed. The overall economy has taken this in its stride and seems to be resurfacing. I believe that successful execution of GST will take the economy to new heights. 

Ayush Jain, Vijayshri Packaging

The implementation of GST would open up new avenues of business and we will be in a better position to cater to them since we are centrally located. Also, if we have a uniform tax system, the cost of raw material may go down, since it will nullify the cascading effect of tax.

(c) M Palani, Subam Printers

The impact of GST to print industry is still vague, however it seems like the print industry will benefit a lot because of GST.

(r) Girish Rao, Akruti

GST is a welcome move. In the GST regime, not only will the inter-state business transactions be streamlined but it would also be possible for a printer in Pune to compete with a printer in Mumbai or for that matter anywhere in India. That’s because transport cost is not a big cost, it is the local taxes that make competing difficult.

(l-r) Ramakrishna Musunuri and Naresh Kumar Dasari, Macromedia Digital Imaging

Presently, the tax rate varies from state to state on the products that we supply due to an improper classification of our product. After the implementation of GST, uniformity in tax structure will be a big advantage for our business.

(l) K Janakarajan, Star Colourpark

We definitely expect the implementation of GST to change the way business is being done now. Also, we think digital printers like us can derive greater benefit from GST because at present in the VAT (Value Added Tax) regime. Right now, we are able to avail input credit for only part of the AMC (annual maintenance contract) invoices of the machines whereas with the implementation of GST, the possibility to avail the total value as input becomes a reality.

Srinivas Racha, D’Signs Workspace

GST should affect our business positively, as we are anticipating ease in taxation systems for both us and our customers.

(r) Thavasi Kumar, Shumunga Thermal Systems

In general, we think GST will benefit the print industry by protecting against double taxation and streamlining the tax accounting structure. Specific impact can be assessed only when there is additional clarity on the new rates of ink, paper and consumables. We also need more data on how the GST will impact import duty.