A survey of more than 200 businesses on the one-year of GST has said 83% respondents see the new indirect tax regime as a step in the right direction and 65% are satisfied with its overall implementation, despite some ‘teething problems.’
According to a CII report on the transition to the Goods and Services Tax (GST), its implementation led to increased efficiency for businesses by reducing their transportation time, on account of absence of state-level barriers.
Significantly, one-third of the respondents witnessed a downward movement in the wholesale prices of their supplies, whereas almost 30% witnessed a fall in the retail prices of supplies, amid concerns that the tax regime may lead to a spike in inflation.
‘No change’
A majority of respondents witnessed no change in their supply prices.
GST has had a moderating impact on retail price inflation, which may have risen to higher level without the new tax regime, CII director general Chandrajit Banerjee said.