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If GST tax is capped at 18-20%, it will benefit chemicals industry: Ajay Durrani

The trickle-down and cascading effects of the GST in other sectors such as logistics, manufacturing, auto and consumer products too will impact the chemicals and polymers industry

Ajay Durrani, MD, Covestro India Pvt Ltd
Ajay Durrani, MD, Covestro India Pvt Ltd

The Goods and Services Tax (GST) is one of the most significant reforms introduced in the history of the Indian fiscal evolution. It is definitely a progressive and pragmatic approach to taxation that will improve ease of doing business in the country. That being said, the government could only muster consensus on the nature of levies that shall be subsumed in the GST. There is no consensus on the final GST rate; which is key to determine the impact. Nevertheless, the current tax for the paints and industrial chemicals sector is between 24 per cent and 26 per cent. If the ...