An Overview about the Impact of GST on Various Sectors of Indian Economy

Abstract

As different initiatives like Make in India and Digital India project have been taken to make India a manufacturing hub and to generate employment opportunities in various sectors and to attract foreign investment as well by improving business environment through easing process to do business in country. But the major impediments in the smooth development of different sectors are the multiplicity of taxes at different rates at different points. It also discourages to foreign countries to invest in India. Indian companies also loose competitiveness in foreign countries because of increase in prices due to higher taxation. So, GST is an economic reform which will eliminate multiplicity of taxes for goods and services by deciding a uniform rate for both. As GST bill has been passed in Lok Sabha &Rajya Sabha and also got approval from president so it will come in effect in India from 1^st April, 2017. This study is aimed to know the expected positive and negative impact of GST on different sectors like Startup Business, E-Commerce, IT, Hospitality& Tourism, Automobiles and Media & Entertainment etc. It has been found that GST will positively affect various sectors except some sectors having negative effect.