New Delhi, Sept 15 (KNN) Analysing the impact of the newly rolled out Goods and Services Tax (GST) in the country, UNCTAD's Trade and Development 2017 report by the United Nation suggests that the informal sector in the country comprising of the tiny and micro enterprises are likely to be hit hard in the new tax regime.

The report mentioned the impact of demonetization and said that the informal sector was hit badly due to the government’s decision to pull out the higher currency note. In the aftermath of demonetization, the sector will have to suffer further because of the Goods and Services Tax.

Referring to the impact, the report said that the growth level might slow down to 6.7 per cent in 2017 from the 7 per cent growth figure of the previous year.

The prime reason for the imbalanced growth, according to the UN Report, is because the growth performance of India is hugely dependent on the baking reforms.

At present the financial institutions are already burdened with large volumes of stressed and non-performing assets.

The banks in the country are bearing NPAs amounting to over 8 Lakh crore rupees already, following which there are signs of a reduction in the pace of credit creation, the report added. (KNN/ DA)