New Delhi, Aug 3 (KNN) With one month already passed since the implementation of the Goods and Services Tax (GST) in the country, a study reveals that for a big share of the industry, the new tax regime has proved to be challenging so far. Also the manufacturing sector has been affected the most, the study reveals.

According to the Deloitte Annual CFO survey, over 31 per cent of the CFO’s from various sectors of the industry were of the opinion that the implementation of GST has not been very smooth.

The study further revealed that with the GST coming into play, the companies are now beginning to focus on supply chain modification and inventory management. Because of the added burden, the manufacturing processes might face disruption as the focus gets dispersed.

The change in tax regime is likely to fuel inflation, however with the flow of input credit, it will negate the impact of higher tax rates on services, the study observed.

On a larger perspective, there is optimism over the economic growth in the country for the next 4 to 5 years.

With regard to the demonetization drive of the government last year, there is a mixed opinion in the sector with half of the respondents of the opinion that it had a neutral impact on the economy. (KNN/ DA)