New Delhi, July 18 (KNN) With the Goods and Services Tax (GST) rolled out from July 1 in the country, initial assessment with three week into the regime suggest that the new tax scheme might have a negative impact on the Small and Medium Enterprises (SMEs) in the country, as per reports.

According to the study conducted by US based agency- Fitch Ratings, the GST might be beneficial for certain sectors. The auto industry, cement industry as well as the organized retail sector might benefit largely under the GST regime.

Whereas sectors including oil, gas and the Small and Medium Enterprises might not yield positive results under the One Nation One Tax policy of the government.

The report further suggests that sectors such as fertilizers, telecom, electricity, property might have neutral impact of the GST.

Since the GST has a number of compliance rules, while the large corporates will be quick to adapt, the financially weak and smaller enterprises might take time to become compliant.

The report also lists the challenge the corporate sector will face in applying for GST input tax credits. The smaller enterprises that are yet to be a part of the GST, might also result in limiting input tax credit availability for the bigger firms.

The Goods and Services Tax was implemented earlier this month eliminating over 17 different taxes that existed in the country. (KNN/ DA)