GST implementation caused ‘temporary slowdown’: Report

New Delhi : After its launch in July 2017, there has been a temporary slowdown post implementation of Goods and Services Tax (GST) even though Government of India has ideated and implemented a number of initiatives to improve business conduciveness, noted a recent ASSOCHAM-EY joint study.

“But a consensus view is that India is poised towards a sustainable growth in the near future,” stated the report titled, ‘Ideate, Innovate, Implement: Invest in India,’ jointly conducted by ASSOCHAM and EY.  It said that after GST implementation, with various inter-state check gates being removed and central sales tax (CST) not becoming a cost, inter-state movement of goods has smoothened. The report stated that the new tax regime will have an impact on prices agreed for contracts entered under pre-GST regime and proposed to be executed either partly or completely under post-GST regime.

The introduction of GST should entail a reduction in overall process on account of reduced tax costs, it added.