TOKYO (JAPAN): Finance Minister Arun Jaitley on Monday said the goods and services tax (GST) will not have an inflationary impact since the tax on goods may actually reduce.Terming the current indirect tax structure in India as "fairly complicated", he assured there would be no cascading impact of tax on tax. "I don't anticipate this to happen significantly. "As far as services is concerned, obviously they will go up marginally and therefore, there will be some impact on this. "It looks like we will be able to begin on schedule....there could be some small hiccups in the beginning but I think it's understandable," he said.The finance minister chaired GST council is scheduled to finalise and approve the rates of different commodities and services on May 18-19.The GST Council has worked a four tiered tax structure -5,12,18 and 28%- for the new indirect tax regime. Besides a cess would be levied on top of the peak rate on demerit and luxury goods.

Source: Economic Times May 08, 2017 04:07 UTC