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India’s GST most confusing? Here is a comparison with other countries
India's GST rate is broken down into four slabs and various articles are being placed under the slabs.
New Delhi, June 23: India is gearing up for the implementation of the Goods and Service Tax (GST). Companies are clearing up their stocks. Many offers are in the market for consumers. The GST will be implemented from July 1. The government says that it will revolutionise India’s taxing system. The GST is being marketed as one nation one tax. However, there are many slabs of taxation. If we compare our GST with other countries, ours is one of the most confusing GST.
India’s GST rate is broken down into four slabs and various articles are being placed under the slabs. There are four GST rates–5, 12, 18, and 24 per cent. There is also a sin tax–40%–which will be implemented in rare occasions. However, for other countries, GST actually means one country one tax.
For instance, Singapore’s GST is 7%, Malaysia 6%, New Zealand 15%, Thailand 7%, Australia 20%, Denmark 25%, Germany 19%, Indonesia 10%, Mauritius 15%, South Africa 14%, and the United Kingdom 20%. While all these countries just have one rate of tax, India will have 5 taxes in the name of only one tax.
The Central government will launch the GST on June 30 midnight. The government has called a midnight session for this. According to a report in the Economic Times, the preparation for the launch will be like a normal joint session of Parliament. All the CMs and finance ministers have also been invited to the function. President Pranab Mukherjee, Prime Minister Narendra Modi, previous two PMs–Manmohan Singh, HD Deve Gowda–and Speaker of the Lok Sabha will be present. (Also read: Pre-GST Sale: Amazon fashion sale offers up to 80% off, cashback offers and more)
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