March 22, 2017
The Japanese fiscal research company Nomura has said that the impact of GST on price rates in India would be less than 20 basis points. Though this number is on the lower side, the company does predict that economic growth will suffer some setbacks in the run up to GST implementation. Nomura calls it a “marginally negative” impact on growth, and says that GST will prove to be fiscally neutral in the near term.
In addition, the finance major reiterated the government’s claim that over time GST will remove the cascading taxes and “boost productivity, lower costs, aid in the formalisation of the economy and result in large revenue benefits for the government.”