As the GST rollout completes one year on July 1, industry and tax experts on Friday said they believe that the indirect tax regime will lead to improved revenue realisations and compliance going forward.
"Some of the fears that the GST could lead to inflation or could cause huge disruptions in the industrial supply chain have been allayed as whatever rise is seen in prices is due to the pressure of crude oil prices and food," Assocham President Sandeep Jajodia said.
The new structure will help increase tax to GDP ratio in the next three to four years, experts said.
"GST is a great step forward towards one nation one tax and benefits will be transferred to the consumers in terms of lower price of products. Better tax compliance will be observed that will lead to increased tax to GDP ratio in next three to four years," HelloTax co-founder Himanshu Kumar said.
However, Kumar said there is an urgent need to re-look at the MSME space to reduce the compliance cost related to the indirect tax.
According to Jajodia, while the last one year of GST rollout has been a mixed experience for the tax-payers as also the tax collectors, the formalisation of the economy through GST should not be seen from the prism of only a punitive kind of a measure whereby willy-nilly you have got to be part of the taxation net.