Indian businesses blindsided by unclear GST rules as doubts linger

New Delhi

INDIA'S nationwide sales tax was meant to unify the US$2 trillion economy and make it easier for companies to transact across state borders. Nearly a month on, many are finding that doing business is more complicated than ever.

Ambiguous rules under the new, multi-rate Goods and Services Tax (GST) that went into effect on July 1 have left firms confused about how to price their products. The tax's complex structure - four main rates ranging from 5 to 28 per cent - has hurt sales and risks denting economic growth and government revenues in the months ahead.