Phillip Capital
After many years of debate and consultations between political parties, the GST bill has finally been clearedbytheupperhouse(RajyaSabha).Whilethebillhasbeenconstitutionallyclearedandwillbe implemented sometime in FY18 (central government's guideline is April 2017), its actual impact on corporates,consumers,andtheeconomycannotbegaugeduntilthecentralgovernmentfinalisesthe GST rate. Assuming a revenueneutral GST rate of 18% (as recommended by the Chief Economic Advisor), the GST implementation would result in higher services inflation (CPI) and would have no impactonGDPandfiscaldeficitinFY18.However,itcouldhaveapositiveimpactonGDPandfiscalin thenext34years.CompanieswilltakeafewquarterstounderstandtheGSTmechanismandevaluate...
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