India: Industry to add USD280bn to GDP from GST in 8-9 years – 5 Jul 2017

  • Industry is expected to contribute USD280bn to India’s GDP in 8-9 years due to a positive fallout of the Goods and Services Tax (GST), as structural changes in the ease of doing business will propel growth, said a study by ASSOCHAM-Ashvin Parekh Advisory Services, a Mumbai-headquartered global management consulting firm.
  • Describing the GST, in the short-term, as a “mini budget short of projection of estimated revenue”, the paper said most businesses would be able to get significantly more credits under the new indirect tax regime, leading to a benefit for most of them.
  • One of the most visible benefits accruing immediately from the GST is the removal of the checkposts at the inter-state borders.
  • The paper said that notwithstanding the teething troubles, the GST would make even the micro, small and medium enterprises (MSMEs) more efficient and confident, integrating them well into the mainstream of the economy.

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