GST changes from Monday may put pressure on retail inflation: Experts

Falling global commodity prices may neutralise the impact, say experts

A 5 per cent goods and services tax (GST) on pre-packaged unbranded food items from Monday onwards may push up retail price inflation moderately but this is likely to be more than neutralised by falling global commodity prices, as well as easing vegetable and fruit rates domestically, said experts.

Also, Karnataka Chief Minister Basavaraj Bommai, a member of the GST Council, told reporters in Bengaluru that he would ask the Central Board of Indirect Taxes and Customs (CBIC) to issue relevant directions on reimbursement so that the GST hike on food items is not passed on to the consumer.

The new GST