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.

Airlines, for example, are uncertain whether to tax premium economy seats as economy or business class - a…