The flip side of GST: its impact on the informal economy
The move to GST has the potential to cause immense disruption to the shadow economy that is the source of livelihood for many
The markets are gung-ho about the shift to the goods and services tax (GST). One factor driving this optimism is the anticipated shift of business from small, unorganized firms in some sectors to organized ones. Since the latter are already in the formal economy, comply with regulations, are generally larger in size and pay taxes, the switch will be much easier for them, which will ultimately translate into increased market share.