GST rate and inflation: Brokerages weigh in on how it will impact you

Experts foresee only a 15 ? 25 basis points increase in inflation

As various aspects of indirect taxes are being brought under one umbrella, the common fear for most people was the possible inflationary impact of the goods and services tax (GST). But, with the finance ministry announcing a four-tier tax structure for GST, most experts prefer to wait for clarity specifically with regard to classification of items under GST to get a true picture on how inflationary the proposed GST could be for consumers.

However, going by information currently available, experts believe that GST’s impact on inflation may not be too severe. This is mainly because a major chunk of goods