GST to boost domestic mfg, won’t be inflationary: Adhia

Tribune News Service

New Delhi, April 25

The government today dismissed apprehensions that Goods and Services Tax (GST) will be inflationary and said while prices of many goods will come down the price of services in most cases will remain the same under the new indirect tax regime.

Revenue Secretary Hasmukh Adhia in a presentation on the operational details of the GST regime said the GST will also boost ‘Make in India’ campaign and empower domestic industry as imported goods will attract the same tax as those manufactured within the country thereby providing a level-playing field.

He dismissed apprehensions that the introduction of GST will be inflationary as has been the case in many countries.

He said several countries witnessed inflation following GST as they migrated from a single point taxation system. In the case of India, there are multiple points of taxation and hence the possibility of sudden spurt in inflation is remote.