The Electronics System Design and Manufacturing (ESDM) industry would receive a major boost with the introduction of GST in terms of attracting foreign investment and creating a level-playing field.
India Electronics and Semiconductor Association (IESA) President M N Vidyashankar notified that once the GST is introduced, the total tax rates (for ESDM industry) will actually come down. So, it is something the industry is eagerly looking forward to.
A four-tier GST tax structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent that aims to lower tax incidence on most goods and keep out essential items was decided by a high-powered council yesterday.
Vidyashankar further mentioned that earlier, states were engaged in one-upmanship to offer lower rates to attract investment but it would now be a thing of the past (once GST is in place). Now, comparative advantage like merit, resources and manpower, and a level-playing field would come into force. “It (GST) will introduce transparency and accountability.
Vidyashankar recently said investments up to Rs 2 lakh crore are expected in India in the ESDM space within the next four years.
By Baishakhi Dutta