GST impact on the Infrastructure sector
The infrastructure sector is the backbone of the Indian economy. The government has been making efforts to boost the sector through various schemes and incentives.According to the government, total infrastructure spending is expected to be about 10% of GDP (gross domestic product) during the 12th Five-year Plan (2012–17), up from 7.6% during the previous Plan.
GST impact | Background
GST impact | Analysis
GST being a concurrent tax on supply of goods and services is expected to bring in predictability for infrastructure projects.
GST impact | Conclusion
Therefore, the introduction of GST seems to be a mixed bag for the infra sector—predictability and efficiency being the key advantages, while non-inclusion of sub-sectors, higher rate and certain restrictions are negatives.
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