GST to have wide ramifications on economy: RBI State Finances Report

Says GST best bet for states in returning to path of fiscal consolidation

In its state finances report, the Reserve Bank of India said the proposed Goods and Services Tax will have wide ramifications on economy in terms of growth, inflation, govt finances and external competitiveness.

The report further said, "GST best bet for states in returning to path of fiscal consolidation without compression of productive expenditure."

RBI said that GST implementation challenges should be addressed through a robust dispute resolution mechanism.

Details awaited...