RBI releases State Finances Study, says GST to 'champion cooperative federalism'

The Goods and Services Tax (GST) is likely to impact inflation over one and half years but may have a positive impact on state finances and ensure higher tax buoyancy over the medium term, according to the Reserve Bank of India. “The impact of GST on CPI (consumer price index) inflation would largely depend on the four-tier standard rate (5, 12, 18 and 28 per cent) that has been decided by the GST…