Despite a temporary economic slowdown after the implementation of the Goods and Services Tax (GST) in July 2017, India is on the threshold of sustainable growth, according to an ASSOCHAM report.
In its study, titled: "Ideate, Innovate, Implement: the apex industry body held that despite slowdown in growth after GST implementation, India is on the path to growth.
It said that faster GST implementation, removal of check gates between states that have smoothened inter-state movements and central sales tax (CST) no longer being a cost will help improve the situation.
The report maintained that GST will have a significant impact on all aspects of the businesses operating in the country including-supply chain, logistics, cash flows and transactions.
The study said that GST will have an impact on prices agreed for contracts entered under the pre-GST regime and proposed to be executed either partly or completely under the post-GST regime.
Also, the introduction of GST should entail a reduction in overall process on account of reduced tax costs.
The Assocham-EY report also suggested central and state governments need to work in tandem by executing investor-friendly policies to further strengthen investment prospects.