GST positive for India's credit profile, will boost tax compliance: Moody's

GST to bring down overall cost of compliance; make India more attractive for foreign investors

The Goods and Services Tax (GST) regime is positive for India’s credit profile as it will improve tax compliance and increase government revenue, said global ratings agency Moody’s on Sunday. It will also enhance the country’s attractiveness as a foreign investment destination, it added.

The GST regime came into force at midnight on July 1, 2017.

William Foster, vice-president, Sovereign Risk Group, Moody's Investors Service, in a statement said that GST would support higher government revenue generation through improved tax compliance and administration. It would be positive for India's credit profile, which is constrained by a relatively low revenue base, Foster said.

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