NEW DELHI: Moody's has said that Rajya Sabha's approval to the constitutional amendment bill paves the way for the implementation of the goods and services tax (GST), and is a positive development for India's credit rating. "The GST will have a positive impact on growth and tax revenues over the medium term, supporting the sovereign's credit profile," the ratings agency said while counting other positives. Moody's expects effective total tax rates on some goods to decline in a GST, while other goods and some services will be subject to a higher effective tax rate. The rating agency said there will not be a short term impact as effective implementation will take some time, and the recommended GST rates are intended to be revenue neutral. Moody's has a positive outlook on India's Baa3 rating.

Source: Economic Times August 05, 2016 13:51 UTC