India marks 100 days since national sales tax rollout
Today marks the first 100 days of the implementation of the landmark Indian GST legislation, which came into effect on July 1.
Although there were initial problems with the GST rollout, due in part to confusion surrounding the de-stocking of goods– which led to a slowdown in economic activity– such issues have since been largely ironed out, and economic activity has stabilised since August. Over the first three months, tax revenues have surpassed forecasts.
The first 100 days will see further government massaging of the GST rollout for small scale industries, as major industries, like automobiles, have reported a smooth transition to the new tax code.
It is likely that the report card for the GST will not be fully appraised until early in the new year, but, given that there have been no major issues so far, it is likely that New Delhi will report an increase in tax revenues and heightened investor confidence.
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