The standard tax rate near 18 per cent under GST will prove to be an ideal one and in all probability, will not stoke significantinflation as assumed by many, the Confederation of All India Traders ( CAIT) on Sunday said. However, finalisation of the tax rate depends much on the classification of goods and services under the exempted category, and alsoundernominaltaxrate, which may be one per cent, CAIT said. CAIT national President BC Bhartia and Secretary General Praveen Khandelwal said under the current VAT regime, items placed under the the 5- per cent tax slab will be attracting standard rate of tax, which may be 18percent, and itisfearedsuch asituation will lead to inflation. However, it may be noted that goods placed under 5per cent are largely used as raw material for the finished goods and have been attracting excise and service tax so far with no advantage of input credit for MSME ( micro, small and medium enterprise). UnderGST, these will be placed under a higher sla