Led by massive growth in demand for cutting edge LED technology, the LED lighting sector as a whole has been overtly successful in rapidly occupying the major pie of the overall lighting market. This proportion will grow even faster with the ongoing massive LED revolution and the implementation of Goods and Services Tax (GST).
By Mr. Rakesh Zutshi, President, Electric Lamp and Component Manufacturers Association (ELCOMA) of India and Managing Director, Halonix Technologies Pvt. Ltd
The impressive scenario that has emerged after the implementation of Goods and Services Tax (GST) will definitely expedite the infrastructure development across the country. Sooner, or later, both LED sector as well as its consumers will be equally benefitted, as GST has already transformed the country into one homogenous market.
However, it should be noted that only the companies from organised sector will be benefitted from the facility of input credits and other advantages under the revolutionary GST regime. Promoting transparency and ensuring compliance at every stage of business transactions is the other salient features of GST which promises equal opportunities for all. Most important benefit of GST is that now there will be no place for the fly-by-night operators in the market and so, the consumers can be rest assured of getting only genuine products and services.
The other factor that has forced the unorganised players to make an exit from the industry is the compliance cost. Procuring digital technology has been the foremost requirement for the companies to do business and it certainly requires considerable capital investment. Even though it’s just one time investment which the organised players have managed conveniently, for the unorganised players on the other hand it is not at all favourable and a decisive blow on their unaccounted profits. Off course, such a situation is beneficial for all, be it manufacturers, or the consumers, GST has created a level playing field for all.
Apart from the organised players, the biggest beneficiaries of GST are the logistics entities and the warehousing companies. Besides, the available traditional warehousing locations, the market is now open for regional warehouses required all across the country. The customers would also be equally benefitted by GST, due to anti-profiteering clause which forces the manufactures to pass on the benefits of input-tax credit to the consumers. In a nutshell, GST promises increased transparency and better compliance, and so, all the stakeholders stand to benefit from it.
Such positive scenario will further help the entire LED sector to achieve exponential growth. On behalf of Halonix Technologies Pvt. Ltd., I take pride to share that we are already enjoying the leading position in the market. Due to our keen focus on innovation and quality control, the brand Halonix is widely accepted all across India by consumers and trade alike. The success of Halonix has been built on the back of its unparalleled ability to develop, test and deploy lighting solutions relevant and suitable for Indian conditions. Moreover, at Electric Lamp and Component Manufacturers’ Association (ELCOMA) India, we are working towards transforming India into a global manufacturing hub of superior, but economical LED products. We are sure, all our efforts in this direction will continue to assume even greater significance in GST regime.