GST Rollout has been officially declared and the world is busy in deciding the positives and negatives of it. Here is the view of the Moody’s, one of the top firms that decide the credit rating of a country. The Moody’s is very hopeful about the GST and the Unification of the market. According to the Moody’s Vice President for Sovereign Risk, William Foster, the GDP Growth of India is expected to grow at a higher rate thanks to GST. The productivity gains are also expected to be more.
The India’s rating is expected to be better under the GST believe the Moody’s Investor Service. According to a report published by The Indian Express, GST Rollout in India can increase the revenue base. Moody’s presently give India a rating of “BAA3” which is definitely not on the higher side. However, this is set to improve as per the Moody’s. There are different reasons for it as well according to them.
The improved tax compliance is one of the key factors for the improving credit profile of India. Increase Tax Credits, uniform market, simplified tax rates, shared infrastructure between Central and State are the other key players. India’s Credit Profile has not seen a good surge despite the economy is doing quite well.
However, there are multiple reasons behind the credit profile of a country. GST is the primitive stage and the real benefit may take some time.
Is GST Rollout good for the country? Well, the experts believe that India is non-Tax compliant country and it is required to bring in some compliance. It is probably the time when the Tax would make a difference in the economy in India.