State of the Economy 2018

Eye on the Future

Businesses across the country’s industrial clusters are optimistic about FY19

Soumik Kar

If demonetisation was at the front and centre of all our discussions during our State Of The Economy survey in 2017, GST rightfully took its place this year. It is only natural that the biggest tax reform the country has seen and its impact on business formed the meat of our conversations with large corporates, SMEs, small entrepreneurs and industry associations. While the transition to a unified tax regime was far smoother for larger players, smaller players struggled with the move from dealing only in cash to filing returns and paying taxes. According to the latest Economic Survey, GST implementation has increased the indirect taxpayer base by more than 50% with 3.4 million businesses coming into the tax net.