'There may be little inflation due to GST'

Goods and Services Tax (GST) regime might result in "little inflation" as tax on certain items has been kept at 28 per cent, chartered accountants' apex body ICAI said today.
The landmark tax reform will come into force from July 1.
"In the initial stages when we thought the rates are going to be pegged at 18 per cent, it was very clear that 70 per cent of the products' prices are going to come down.
"Now with a few items in 28 per cent, some of the major items (luxury goods), I think it may have little inflation because of uncertainty. Not because of the cost," Chairman of ICAI's Indirect Taxes Committee Madhukar Narayan Hiregange told reporters here.

People are not aware what are all the benefits that they can get out of the GST. If they take the benefits probably inflation may not be there, he noted.
Under the GST, there are four tax slabs -- 5, 12, 18 and 28 per cent.