GST bill passed by the Indian government
|GST bill passed by the Indian government, source via - google search, business news|
GST bill passed by the Indian government may lead to some higher prices in the service industry, which has a larger share in the constitution.
GST bill is the India's biggest tax reforms passed since independence, this may also lead to cut down in business transaction costs.
Economists project the GST could add 0.4 to 0.8 percentage points to India's economic growth within three to five years of the rollout.
"The infrastructure to enforce the tax needs to be set up, while crucial details - such as the GST bill rate, exemptions, and dispute resolution mechanisms - still need to be hammered out."
The companies will also need to implement new technology structures in preparation for the new taxes and filing of the same has to be done according to the standard fixed.
The analysis said that GST could negatively impact the economy in the immediate term and can push up inflation for the first year of implementation.
Short term impact of the GST bill could be mixed but long term impact of the same will be clearly positive says a research.
The most beneficial sector will be the company who are into automaking.