India Ready For Gst Rollout, Experts Weigh In On Challenges, Results

One of India’s most ambitious economic reform plans in 70 years will ultimately boost tax receipts and provide simplicity for businesses, but the true impact may not be felt for at least a decade due to implementation challenges, experts said.
The government will introduce GST for a variety of goods and services along four main rate bands: 5-, 12-, 18- and 28 percent irrespective of the location of purchase.
HSBC in a report in May also predicted the GST rollout will add about 40 basis-points to India’s GDP growth in the medium term, lower than their initial forecast of 80 basis points.
Certain goods such as fresh meat, eggs, milk, among others, will not be taxed, according to a list compiled by the Economic Times newspaper.
In the near term, the reform will formalize more of India’s untaxed economy, which would increase efficiency but not the size of the gross domestic product (GDP), he added.

Read more on: http://www.cnbc.com