GST has reduced effective tax payable for all sectors, except power: Study

At 23.2%, the transport sector saw the largest drop in the marginal tax rate. At 0.9%, agriculture saw the lowest drop

The goods and services tax (GST), rolled out on July 1, 2017, cut marginal tax rates–the real, effective tax a business pays, technically the difference between the pre-tax and post-tax rate of return on an investment–on businesses in India in all sectors, except electricity, which is exempt from the new tax regime, according to a new study.

The fall in marginal tax rates was in the range of 1-23 percentage points across sectors, according to estimates by Gaurav S. Ghosh, senior manager, EY, a global consultancy, and Jack Mintz, director of