A day after the GST council decided on the rates, domestic rating agency Icra today said, the structure is unlikely to fan inflation. It said in a note, with the effective tax rate intended to be brought down on most items, as well as a large portion of the CPI basket being kept in the exempted category, there is likely to be a limited impact of the GST on goods inflation. On services front, where the standard rate has been kept at 18 per cent, it said availability of input tax credit may soften the impact of GST on services inflation in the future.
News On AIR | May 20, 2017 12:05 AM
GST rates unlikely to hurt inflation, RBI to be less hawkish