Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a positive note with stocks in the power sector and realty sector witnessing maximum buying interest.

The BSE Sensex is trading up 101 points (up 0.3%) and the NSE Nifty is trading up 36 points (up 0.4%). The BSE Mid Cap index is trading up by 0.3%, while the BSE Small Cap index is trading up by 0.8%. The rupee is trading at 64.90 to the US dollar.

In the news from Goods and Services Tax (GST) space, the tax regime, in a recent development, has eased invoicing norms for retailers.

As per an article in the Economic Times, retailers under the tax regime won’t have to issue long invoices detailing prices and taxes for each item. They will also not have to issue separate invoices for exempted items taxed at the 0% rate and can club all purchases in one bill.

The GST Council has approved these changes based on the recommendations of the law committee set up to review demands by stakeholders.

The above development will further ease the billing and compliance burden on retailers.

Note that while GST have benefitted the organized players in a big way, it is the unorganized segment who have taken a big hit. First, it was demonetization and now it is the implementation of GST. This hit is well reflected in the gross domestic product numbers. GDP growth has slumped to 5.7% in the June quarter from a high of 7.9% clocked in the June quarter of 2016.

So relaxations for small and medium businesses will certainly boost performance of such companies in various industries.

The transition to goods and service tax (GST) is a tough one. However, if implemented properly, the tax will reap huge benefits for such businesses in the long run. Also, the tax regime will aid India’s tax revenues to a greater extent in the coming future. This augurs well for the country that has one of the lowest tax revenue as a percentage of GDP compared with other countries, as can be seen from the chart below: