One year after GST, India’s smaller companies are on the backfoot

On July 1, 2017, India introduced the Goods and Services Tax to replace the patchwork of indirect taxes that existed at the time and to improve tax compliances. As the tax regime completes its first year, Scroll.in reporters interviewed people running a variety of businesses: handicraft-makers in Guwahati, textile manufacturers in Surat and Tirupur, paper-goods dealers in Mumbai, weavers in Banaras, large and small engineering units in Hosur. Most of them were people Scroll.in had spoken to a year ago to understand their hopes and apprehensions about the new tax. This time around, they were asked a different question: what were their experiences with GST like? The sum of their observations provides the answer to a larger pattern: how GST is reshaping India’s manufacturing economy.