Moving to GST regime will be beneficial for economy-:- Equity Research

The government faces a fine-balancing act , as it works to reach a consensus with the state governments and opposition parties, whilst also ensuring higher taxes don't impinge on growth/ incomes. The odds are high that the authorities initially adopt a multi-tiered and diluted version of the GST. If so, a move to a single rate remains possible over the medium-term. Either version is preferable to the current VAT, DBS said.