GST will fuel inflation: P Chidambaram

Karaikudi (Tamil Nadu): In a scathing attack on the GST in its current form, former Finance Minister P Chidambaram on Saturday said it will lead to inflation.

The anti-profiteering provision in the new law will be an instrument of harassment in the hands of officials, he told a press conference here. Chidambaram said 80 per cent of all goods and services will bear a tax and prices will be higher. "There will be inflation.

What is the government going to do about it?" he asked. He said small, medium and micro scale entrepreneurs and traders will be affected in a "big" way because they are not ready for the roll out of the new law. "They asked for more time. They have been denied time," he said.