‘GST impact on inflation to be less than 20 bps’

The implementation of Goods and Services Tax (GST) is likely to be fiscally neutral and its impact on inflation is expected to be less than 20 basis points, according to a Nomura report

STEADY PROGRESS

The GST council is making steady progress and GST is likely to be implemented in the July-september quarter this year

EFFECT ON GROWTH

Though the impact of GST is likely to be minimal, growth numbers are expected to get affected in the run up to its implementation

FINANCIALLY NEUTRAL

In the near term the GST will be fiscally neutral and

resulting inflation impact to be minimal at less than 20 bps, says the report

PRODUCTIVITY BOOST

Over time, the elimination of cascading taxes and its simplified tax structure will boost productivity, lower costs, aid in the formalisation of the economy and result in large revenue benefits for the government

THE STATUS

■ The GST council has formally approved all five of Bills related to the implementation of the GST: central GST, state GST, integrated GST, Union Territories GST (UTGST) and the compensation law

■ Four of the five bills — CGST, IGST, UTGST and the compensation law — have got the Cabinet nod and are set to tabled in the Lok Sabha in the ongoing Budget session