Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the metal sector and auto sector witnessing maximum buying interest.
The BSE Sensex is trading up 24 points (up 0.1%) and the NSE Nifty is trading up 13 points (up 0.1%). The BSE Mid Cap index is trading up by 0.6%, while the BSE Small Cap index is trading up by 0.9%. The rupee is trading at 64.71 to the US$.
In a recent development under GST, the government has warned that legal action will be taken against manufacturers for not printing the revised maximum retail price (MRP) post the rollout of GST.
As per an article in the Economic Times, Food and Consumer Affairs Minister Ram Vilas Paswan said the government has allowed three months’ time till September to reprint the revised MRP with the implementation of the landmark Goods and Services Tax (GST).
With GST being implemented from this month, things are rolling at a fast pace and for the betterment of the economy. One of the major changes GST brings is making it difficult for the unorganised sector to get away with underreporting and cheating.
With the changes in GST, the unorganised sector is forced to report and pay taxes on everything they sell. And this development is set to give a big boost to the organized sector.
As we wrote in yesterday’s 5 Minute WrapUp:
This is perhaps why – when most of us are nervous about the roll out of this big-bang reform – stock markets are surging.
The above shift towards the white economy bodes well for all stakeholders including businesses, consumers, and the government.
While there may be short term hiccups in the implementation of GST, we believe the positives will far outweigh the negatives in the long term.
