Budget Reactions: Need for GST implementation has gone up, says SAP Labs

By V R Ferose, Managing Director, SAP Labs India

"Although it was a STATUS QUO budget aimed at fiscal consolidation, there were quite a few bright spots for the industry. The Finance Minister re-emphasized the need for GST (Goods and Service Tax) to replace the existing Indirect Tax framework. This would have a far reaching impact on the industry as a whole and hence should be implemented on a fast track mode. It is also good to know that GSTN would be made operational by August 2012. Explicit fund allocation to UID-AADHAAR project is another positive indication and would have far reaching benefits to the social mass of India.  The Budget has also brought in certain changes to existing Excise and Service Tax structure. The introduction of New Tax slabs at Direct tax framework lays a foundation for early enablement of DTC (Direct Tax Code) in India.