Share markets in India are presently trading marginally lower. Sectoral indices are trading on a mixed note with stocks in the metal sector and FMCG sector witnessing maximum selling pressure. Consumer durables sector is trading in the green.

The BSE Sensex is trading down 72 points (down 0.2%) and the NSE Nifty is trading down by 11 points (down 0.1%). The BSE Mid Cap index is trading up by 0.2%, while the BSE Small Cap index is trading up by 0.1%. The rupee is trading at 64.10 to the US$.

As per a leading financial daily, the revenue department is stepping up its outreach programme to get taxpayers to register with the goods and services tax (GST) Network by the end of this month.

The above push comes as only 34% of the existing service tax assesses have so far migrated to the new payment portal.

As per the data, there are a total of 80 lakh VAT, excise and service tax assesses in India. While over 75% of VAT and 73% of the central excise assesses have switched to the GST Network (GSTN), the figure for service tax stands at a meagre 34% of the existing assesses.

The above developments are in line with the government’s plan to roll out GST from July 1.

Implementation of the GST promises to transform India into a single common market and there are many sectors which stand to gain immensely from this transition.

The tax regime is said to bring about a structural change in the Indian economy. The implementation of the same is bound to bring more companies under the new tax regime. This will provide a level playing field to organized players forming part of sectors having a high proportion of the unorganized segment.

Shrinking share of India’s informal economy

This could be a positive for stock market participants too, as the above transition will lead to a value migration from unorganised players to organized players. And companies with solid fundamentals and a competitive moat will capture most of this value.