Goods and Services Tax – GST – Dated:- 4-7-2017 – New Delhi, Jul 4 (PTI) Implementation of GST, albeit complex, will remove domestic trade barriers and help boost GDP growth over long term, but poses significant short-term risks, Fitch Ratings said today. The four slab Goods and Services Tax (GST) was rolled out from July 1. The new regime taxes various goods and services at 5, 12, 18 and 28 per cent, while keeping essential commodities out. The GST that came into effect on 1 July is relatively complex, including multiple tax rates for different goods – ranging from 0-28 per cent, or higher where 'sin taxes' are applied – and requires frequent filing in all states in which a company operates, Fitch said. However, it is far simpler
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of demonetisation, Fitch said. The unified national system should offer significant opportunities for productivity, it said, adding that it will become much quicker and less costly to move goods across the country now that trucks will not be held up at checkpoints at state borders. Smoother logistics should reduce retailers' need for working capital and allow them to operate centralised warehouses, rather than in every state. Supply chains could extend, encouraging specialisation, now that there is less incentive to source goods within state borders, it said. Tax filing may also become less time-consuming as a result of the new electronic system. Large companies will now have an incentive to pressure smaller suppliers into compliance. T
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