Business activity in India’s services sector took a harder hit than manufacturing, following the chaotic goods and service tax (GST) implementation in July last year. The Nikkei Purchasing Managers’ Index (PMI), a monthly survey, showed that services PMI has slipped below the 50 mark thrice since July. On the other hand, manufacturing PMI has fallen below this threshold only once during the same period. In general, the PMI for services has been lower than that for manufacturing after the GST implementation (see chart). Under GST, services are taxed at a rate of 18%, higher than the 15% levied earlier.

Source: Mint February 06, 2018 02:15 UTC