Industry

‘77% CFOs believe GST has positive impact’

Close to a year since its implementation, 77% of CFOs surveyed by Deloitte believe that GST has had a positive impact on overall business.

Deloitte India’s annual CFO Survey, for 2018, indicates that the GST impact reflected better on the revenue and supply chain, while 58% CFOs saw an improvement in ease of doing business.

On the other hand, the industry witnessed negative impact on the working capital (as responded by 66% CFOs) and finance cost (according to 55% CFOs) post GST implementation.

CFOs were optimistic in their short and medium term economic outlook. While two-thirds of the respondents were positive about economic prospects in the near term, 94% were optimistic about the next 2-3 years. 57% of CFOs are now willing to take greater business risks, as the next couple of years are expected to consolidate the gains from recent reforms, according to the survey, which represents the viewpoint of over 250 CFOs in India.

Porus Doctor, Partner, Deloitte India, said, “Introduction of GST necessitated a relook at the existing business models by CFOs. It had far-reaching implications on business functions, where the impact was on taxation, finance, legal, IT systems and supply chain. Overall, GST’s value proposition has been appreciated by CFOs.”

The respondents included listed and unlisted companies, from both private sector and PSUs; Indian and multinational companies, said a Deloitte statement

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Printable version | Sep 29, 2020 10:24:25 PM | https://www.thehindu.com/business/Industry/77-cfos-believe-gst-has-positive-impact/article24273166.ece

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