CEO Poll – Industry's Preparedness of GST CNBC-TV18 | BMR Advisors CEO Poll – Industry's Preparedness of GST May 2017

Respondent Demographics 9.38% 3.13% 4.69% 4.69% 4.69% 3.13% 3.13% 4.69% 6.25% Automobile Aviation Chemicals E-commerce Energy Engineering Fin Services FMCG IT/ ITeS Logistics Manufacturing Media Pharmaceuticals Power Real Estate Services Steel Others 3.13% 20.31% 3.13% 3.13% 3.13% 3.13% 4.69% 3.13% 12.50%

Question 2 45.31% How prepared is your organization to implement GST from July 01, 2017? Less than 10 percent 10 to 50 percent 50 to 80 percent More than 80 percent 31.25% 18.75% 4.69%

Financial and operational loss Question 3 Do you expect your organization to benefit from GST - operationally and financially? Yes, there would be benefit both operationally and financially Financially there would be benefit but operationally there would be loss Financially there would be loss but operationally there would be benefit No, there would be loss both operationally and financially Operational Benefit Financial Benefit 35.94% 20.31% 17.19% 26.56%

Question 4 Please rate the following impact areas in order of their importance for your organization for GST implementation. (1 being the lowest and 5 being the highest) Alignment of IT systems and undertaking compliances Personnel training and HR management Logistics and supply chain management Review of pricing policy in view of changes in tax structures Addressing policy level issues with the government specific to your industry

No Yes Can’t say 62.50% 17.19% 20.31% Question 5 Given the current level of government’s preparedness, do you expect July 1, 2017 to be a realistic timeline for GST implementation? Yes No Can’t say No 17.19% 20.31% Yes Can’t say

Deferral by more than 2 months Deferral by 2 months Question 6 Deferral by 1 month No deferral Would you want GST implementation to be deferred? Don’t want GST to be deferred Yes, GST should be deferred by 1 month Yes, GST should be deferred by 2 months Yes, GST should be deferred by more than 2 months 42.19% 31.25% 7.81% Deferral by more than 2 months 18.75% Effectiveness of Digital India

Yes No Can’t Say Question 7 Do you expect your IT system vendors to provide robust GST solutions well in advance? Yes No Can’t say Yes No

18.75% 0-50 percent 32.81% 50-80 percent 48.44% > 80 percent Question 8 What is the expected level of IT automation (vis-à-vis manual intervention) for tax determination and invoicing requirement? Less than 50 percent 50-80 percent More than 80 percent 18.75% 0-50 percent 32.81% 50-80 percent 48.44% > 80 percent

Question 9 What is the level of preparedness of your IT systems presently to undertake compliances under GST? Less than 50 percent 50-80 percent More than 80 percent 50.00% 40.63% 9.38%

Question 10 YES NO Do you think that your organization/ industry has been able to adequately advocate their key concerns before government/ working groups? Yes No 46.88% 53.13%

Can’t say Yes receptive but no change has been made in laws and rules yet Question 11 Do you think the GST Council has been receptive to the concerns represented? Yes, the final laws and rules address most of our key concerns Yes receptive but no change has been made in laws and rules yet Not receptive Can't Say 40.63% Yes, the final laws and rules address most of our key concerns 31.25% Not receptive 18.75% 9.38%

Question 12 According to you, what is the level of preparedness of your partners – vendors and customers? Less than 30 percent 30-70 percent More than 70 percent

15.63% 45.31% 21.88% 17.19% No impact No analysis undertaken Question 13 45.31% 21.88% Do you think your pricing would be impacted by GST? No, there would be no impact on pricing since GST rates are expected in line with current rates Pricing would be impacted marginally Pricing would be impacted substantially No analysis of pricing undertaken since GST rates are awaited No impact No analysis undertaken 17.19% Marginal impact Substantial impact

Question 14 34.38% Yes 48.44% No 17.19% Can’t Say Have you finalized your transition strategy and cut- over strategy including inventory management, yet? Yes No Can’t say 34.38% Yes 48.44% No 17.19% Can’t Say

YES 18.75% CAN’T SAY NO 9.38% SOME OF THEM 34.38% 37.5% Question 15 Do you expect your distributors/ retailers would de-stock or stuff ahead of GST implementation? Yes Not all, but some of them may No Can’t say NO 9.38% CAN’T SAY 37.5%

Question 16 In terms of criticality, rate the following measures expected from the Government for assisting the businesses for a smooth transition to GST. (1 being lowest and 3 being highest) Effective advance ruling mechanism, possibly providing for additional benches during the transition phase Establishing grievance cells and Expert Committees for redressal of various operational and legal issues Lenient approach by the authorities in invoking penal provisions during initial phase of implementation

Question 17 What according to you would be most challenging under GST? Undertaking compliances Maintaining accounts and records Training people internally and externally in the organization

57.81% 26.56% 15.63% Question 18 1-2 years 2-3 years 3-5 years How soon do you expect excluded sectors (electricity, petroleum, real estate) should be brought within the ambit of GST? 1-2 years 2-3 years 3-5 years 26.56% 1-2 years 2-3 years 3-5 years 15.63%