It could work in the medium term through higher GDP growth, as per the global rating agency.
The Goods and Services Tax (GST) reform, slated to be implemented from July 1, may not see a significant boost in revenues in the next few years.
However, it could work in the medium term through higher GDP growth and more transparency, according to a global rating agency.
"We do not expect it will lead to significantly higher government revenues in the coming few years," IANS quoted Thomas Rookmaaker, director, Sovereigns and Supranationals Group, Fitch Ratings, as saying.
Acknowledging GST as "an important reform being implemented", Rookmaaker added that it would facilitate trade within India and reduce transaction costs.