Agricultural prices to rise post GST: Vijay Kelkar

NEW DELHI: Prices of agricultural items and services are expected to rise after implementation of the GST, although the overall inflationary impact of the proposed indirect tax regime will be negative, former Finance Commission Chairman Vijay Kelkar said.

Kelkar told the Parliamentary Standing Committee scrutinising the GST Bill that while prices of agricultural commodities and services are expected to rise, most of the manufactured goods would be available at relatively low prices, especially textiles and readymade garments.

“The prices of agricultural goods would increase between 0.61% and 1.18% whereas the overall prices of all manufacturing sector goods would decline between 1.22% and 2.53%,” Kelkar said in a reply to the committee headed by senior BJP leader Yashwant Sinha.