The government may see a revenue loss of around Rs 1 lakh crore and some jump in inflation in the coming year due to goods and services tax (GST), Thomas Isaac, Kerala's finance minister said on Thursday.

The revenue loss could be due to reduction in taxation rates for certain goods under GST compared to earlier. On the other hand, there could be inflation for first five months, said Isaac.

Sanjay Mahendru, commissioner (service tax 1), Mumbai however added that several companies that had managed to escape taxes earlier would now be under GST's net. This would lead to increase in the number of tax payers. “Around 6.5 million people have already registered on GSTN. GST will lead to more transparency, due to minimum interaction between the taxpayer and the tax official,“ said Mahendru.

The government expects more a total of little more than 80 lakh registrations within a month.

Mahendru added that as of today, there were around 50,000 trained tax officials who not only understand GST fully, but would be in a position to monitor and implement it in the best possible manner.

R Kavita Rao, professor at the National Institute of Public Finance and Policy, said that inflation may rise for next few years but would even out.

Concerns were also raised whether GST could impact working capital requirements of Indian companies.