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1. FOREIGN TRADE . EXPORTS . IMPORTS
While GST has become popular as
a 'One Nation-One Tax' formulation,
the realities of implementation may
be more complicated than political
negotiations in the Parliament.
Will reorganisation of the complex
indirect tax structure of the country
augment India's GDP, inspire
Make In India and boost exports?
The Dollar Business analyses
GOODS & SERVICES TAX (GST)
IS GST SIMPLY
OVERRATED?
Bumpers
Time to bump up your profits
They are in for a smooth ride, globally
Dates
Writing a mouth-watering script
What makes India its largest importer
Cotton handbag
It's all about style!
Double-digit profits are not a big deal
www.thedollarbusiness.com Vol.3 Issue 09 September 2016 100 $2
RICHARD R. VERMA
US Ambassador to India
ARUN MALHOTRA
Managing Director,
Nissan Motor India
KIRAN V.
GM, International Marketing,
Bharat Electronics Ltd.
KUNWER SACHDEV
Founder & MD,
Su-Kam Power Systems Ltd.
VIKAS ANAND
Managing Director,
DHL Supply Chain India
SANJEEV AGARWAL
CEO, Gitanjali Exports Corp Ltd.
...AND MORE!
EXCLUSIVE INSIDE

2. 8 THE DOLLAR BUSINESS II SEPTEMBER 2016
Volume: 3 Issue: 09 September 2016
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COVER STORY22
The Goods & Services Tax (GST) Bill was finally
passed in the Upper House of the Parliament in
early August. It has been touted by many to be
the catalyst that India requires to grow – create
a sustainable economy, generate employment,
promote ease of doing business and make Indian
goods more competitive in global markets, thus
providing a boost to exports. The all-important
rate though still needs to be decided. But will GST
really able to live up to India’s expectations?
The Dollar Business analyses
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GOODS & SERVICES TAX (GST)
FINAL
PIECE OR
A NEW
PUZZLE?
SEPTEMBER 2016 II THE DOLLAR BUSINESS 9
TDB POWER SERIES
CONCLAVE 2016-17
Glimpses of the Monsoon Edition of
The Dollar Business Power Series Conclave,
held at New Delhi, on August 24, 2016
INBOX
LETTERS TO THE EDITOR
Readers’ feedback, criticism, and
appreciation that hit our mailbox
in August 2016
MONOLOGUE
PEOPLE SPEAK
From Narendra Modi on GST, to
Theresa May on life after Brexit, to
Barack Obama on TPP& more
GLOBAL TRADE
Hillary Clinton turning her back on
TPP, impact of Brexit on Ireland,
oil exports from Libya and more...
INDIA TRADE
India’s changed stance on RCEP,
to Goan Feni being granted the
heritage tag & more...
SPOTLIGHT
UNITED STATES OF AMERICA
The economic powerhouse is fac-
ing a challenge from China
SECRET INGREDIENT
BUMPERS
The growing global aftermarket for
bumpers promise generous profits
for Indian exporters
IMPORT’ONOMICS
DATES
Zealous Indian importers of this de-
lectable fruit may make some good
bucks this season
THE MIDAS TOUCH
COTTON BAGS
These dainty little bags offer big
opportunities to exporters
CASE STUDY
ORGANIC HARVEST
The company is slowly and surely
making its presence felt overseas
DOCKYARD
VISAKHAPATNAM PORT
This port will play a pivotal role in
the East Coast in the coming times.
TDB FORUM
Questions about foreign trade that
hit our mail box in August 2016
DATEBOOK
Some must visit trade shows
ARUN MALHOTRA
MANAGING DIRECTOR,
NISSAN MOTOR INDIA
Talks about the company’s
stellar export performance,
and his faith in ‘Make in India’
KIRAN V.
GM – INTERNATIONAL
MARKETING, BHARAT
ELECTRONICS LTD.
Unravels the opportunities in
India’s defence sector
RICHARD R. VERMA
US AMBASSADOR TO INDIA
Talks about the strengthening relationship between US and India
and the need to create consensus on bilateral trade issues
10
12
14
20
66
78
72
92
62
52
48
54
KUNWER SACHDEV
FOUNDER & MD, SU-KAM
POWER SYSTEMS LTD.
On how the homegrown
company has expanded its
footprint across the globe
M. RAFEEQUE
AHMED
CHAIRMAN, COUNCIL FOR
LEATHER EXPORTS
Discusses the issues affect-
ing the Indian leather industry
86
94
58 76 84
82

3. 22 THE DOLLAR BUSINESS II SEPTEMBER 2016
COVER STORY GOODS & SERVICES TAX (GST)
BY TDB INTELLIGENCE UNIT
Prime Minister Narendra Modi was in his element when he congratulated the
country on the passage of the much-touted Goods and Services Tax (GST)
Bill in the Upper House of the Parliament, claiming that the new tax regime
will rid the country of tax-terrorism. The tax regime which was proposed about
a decade back as the panacea that would clean up the messy and complex
indirect tax structure of the country, is expected to give India's GDP a fillip,
apart from boosting exports. "Expected" is the word. While GST has become
popular as a 'One Nation-One Tax' formulation, the realities of implementation
may be more complicated than political negotiations in the Parliament. Truth
is GST, for which the ruling administration has set a go-live date of April 1,
2017, is in no way a one-tax rule. As things stand, the Centre has agreed to
subsume excise duty, additional excise duty, service tax, countervailing duty,
surcharge and cess, and central sales tax into the waiting arms of GST. The
States have agreed to give up VAT (sales tax), entertainment tax, luxury tax,
taxes on gambling, octroi and entry taxes, cess and purchase tax. GST will
thus replace all of these taxes. The all-important tax rate though remains to be
agreed upon. The Dollar Business analyses the impact of GST on the Indian
economy and its foreign trade.
GOODS AND SERVICES TAX
A PANACEA
FOR ALL WOES?
SEPTEMBER 2016 II THE DOLLAR BUSINESS 23
BY TDB INTELLIGENCE UNIT
A
wait of more than a decade
came to an end on August 3,
2016, when the 122nd
Con-
stitution Amendment Bill,
2014 (popularly known as GST Bill) was
passed by the Upper House of the Par-
liament of India. This is apparently the
country's biggest tax reform since Inde-
pendence. Some achievement therefore
for the Indian democracy. The new tax
regime, which subsumes all indirect tax-
es such as sales tax and excise tax, is ex-
pected to bring down tax rates in India,
while converting the country into a big
single market. In short, now, seamless
flow of goods and services will occur
across 29 states and 7 union territories!
Many believe the landmark Goods
and Services Tax Bill (GST) passed by
the two houses of the Parliament – after
years of back and forth by the ruling par-
ty and main opposition (both the present
ruling and main opposition parties have
supported and opposed the Bill depend-
ing on whether they were in power or in
the opposition) – is a key step that would
catapult India into the big league in glob-
al supply chain. The implementation of
the Bill is expected to ease India's cum-
bersome tax system, help goods move
seamlessly across state borders, curb tax
evasion, improve compliance, increase
revenues, spur growth, boost exports,
and attract investments by improving
ease of doing business in India.
In short, GST when implemented, is
expected to perform miracles. But, can it
really? And considering that the Bill still
needs to be ratified by at least 13 more
state legislatures (over and above the
three states Assam, Bihar and Jharkhand,
which had already passed the bill, as on
August 22, 2016) before the President of
India can notify the GST Council to de-
cide on the new tax rate and other issues
with respect to GST, will it be a easy jour-
ney for the GST to the finish line?
India is by no means the first country
to experiment with a unified tax regime.
160 countries already have some form of
GST or a value added tax. What makes
GST in India special is that as opposed
to a federally administered regime, the
Union and state governments will jointly
administer India’s dual GST. This means
it will be a set of many different taxes –
a GST for each of the 29 states and two
union territories (SGST), a Central GST
(CGST), and an Integrated GST (IGST;
which will be a combine of CGST and
SGST on inter-state supplies of goods
and services). That surely is not as uni-
fied as it seems.
Interestingly, India will be one of the
very few countries with a dual GST re-
gime alongside Canada and Brazil. The
all-important rate is yet to be finalised,
with the final standard rate possibly ly-
ing between 15% to 27%, though 18% is
the rate that seems to be gaining a sort of
consensus amongst pundits. The prob-
lem though is that the pundits won’t de-
cide the rate!
GST rate will be decided in the com-
ing months by a GST Council that will
prise the Finance Minister with a repre-
sentative from each state government.
As such it will be negotiated amongst