Global rating agency Fitch on Tuesday said the GST will hurt small and medium enterprises, as implementation risks will remain for at least one more year.
The rating agency, however, said the new tax regime will not have any big impact on property, electricity, telecom, pharmaceutical and fertiliser sectors.
According to Fitch, the indirect tax overhaul will also hurt the oil and gas sectors. Auto, cement and organised retail sectors will however benefit.
“The new GST regime, which came into effect on 1 July 2017 and will replace a vast array of indirect state taxes and the national service tax, is unlikely to lead to rating changes for any of Fitch’s internationally rated corporates despite being negative for certain sectors,” Fitch said.
Fitch had earlier raised the concerns about GST implementation issues in emerging economies throwing up compliance concerns.
Published 18 July 2017, 18:22 IST