Positive effects of cash ban, GST to help GDP grow by 8%: KPMG

The positive effects of demonetisation and goods and services tax (GST) rollout may help India's GDP growth rate to rise above 8 percent due to better tax collections, says Girish Vanvari, Head of Tax at KPMG India. But factors like oil prices, Donald Trump impact pose a negative impact on our economy, he adds.Budgeting for the year is going to be tricky this year due to the rollout of GST, he says. People usually don’t expect a lot of tinkering with indirect tax rate in the Budget. Government intends to get the indirect tax reform out by July 1. However, Vanvari sees widespread chaos when the GST is rolled out just like demonetisation.India Inc is expecting a two percent cut in the corporate tax rate this Budget, says Vanvari.The government's plan should be to get more individuals into the tax base, he says. For this, Finance Minister Arun Jaitley can look at adding one more slab in the income tax bracket. There is also some expectation building up on the personal tax front from Budget.Watch video for more.