The 40-plus days of advance notice should be a relief for corporates and enterprises, as not only does it allow them to assess the impact on their profitability and operations, it also allows for some to-and-fro and clarifications before the clock starts. The release of rates therefore was a welcome move. What is important is the weight of the items in the consumption basket, and how the new rates compare to existing rates. We are still working through the numbers, but it would seem that the government’s tax take would be higher than it is now, assuming the economic momentum stays unaffected. If so, it would be positive for fiscal deficits, lower bond yields and interest rates.
via GST can be positive for fiscal deficit; help lower rates: Neelkanth Mishra | Business Standard News
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