Goods and Service Tax or GST was introduced in July last year. The unified tax system was aimed to restructure the indirect taxation system in India. GST was touted as a compulsory medicine for India’s lethargic tax system. In the long run, GST aims to establish the following key points:
- Foster business transparency.
- Facilitate ease of doing business.
- Increase tax compliance.
- Check and curb tax frauds.
In this blog, we look at the impact of GST on Manufacturing Sector. It has been more than six months since the new tax regime was implemented. As per industry experts and data from the Central Statistical Organization (CSO), the initial jolts of GST have withered away and there are good omens ahead for the Indian Economy. However, Manufacturing Sector it seems will still take some time to pick up the pace. 16 out of the 23 industrial groups in the manufacturing industry registered positive growth for the month of January 2018.