GST impact at a glance: Here is how key sectors of economy will be affected

Sectoral impact of GST, which aims to facilitate seamless input credit flow across supply chain

In one of its biggest indirect tax reforms, India implemented the Goods and Services Tax (GST) with effect from July 1, 2017. But what will be its impact on key sectors of the economy?

In in the long run, GST is expected to simplify and rationalise taxes, shift trade from the unorganised to the organised segment, and improve efficiency in the system.

GST is likely to keep effective tax rates intact for most sectors. However, this would have a material implication for those companies that have the pricing power to absorb the change in rate and not pass on