India Economist at DBS Bank discusses the macro impact of the Bill after its implementation.

With the Goods and Services Tax (GST) Bill likely to be passed in the Rajya Sabha today, Radhika Rao, India Economist at DBS Bank discusses the macro impact of the Bill after its implementation.

In an interview with CNBC-TV18, she said that learning from the experience of Asian countries where GST has been implemented, it is clear that there will be a temporary impact on inflation and if the revenue neutral rate is set around 17-18 percent the inflation may rise by 0.4-0.7 percent in the year of its implementation.

DBS Bank sees GST likely to be more positive for the Central government compared to the State governments when it comes to the fiscal revenues.