GST unlikely to push up inflation

Lower rates lead to concerns over shortfall in government revenue, say economists

On Friday, the goods and service tax (GST) Council finalised the tax rates to be levied on services under the new indirect tax regime. This comes after the council had finalised the tax rates for 1,200 goods the day before.
 
A preliminary reading of these rates suggests initial concerns that GST would push up inflation in the short term may have been misplaced. But, economists worry that lower tax rates under GST may dampen government revenues.
 
A look at the existing basket of the Consumer Price Index (CPI) shows that food and beverages together account for 45.86 per