GST: Indian system among the most complex globally, says World Bank report
Report in Business Standard March 2018
India has the highest standard GST rate in Asia, and second highest in the world after Chile
The Indian Goods and Services Tax (GST) system is among the most complex in the world with not only one of the highest tax rates but also one of the largest number of tax slabs, the World Bank has said.
"The tax rates in the Indian GST system are among the highest in the world. The highest GST rate in India, while only applying to a subset of goods and services traded, is 28 per cent, which is the second highest among a sample of 115 countries which have a GST (VAT) system and for which data is available," the World Bank said in a report.
India currently has four non-zero rates: 5, 12, 18 and 28 per cent. Apart from that, several items are taxed at zero per cent while gold is taxed at 3 per cent. To make things worse, petroleum products, power and real estate have been kept outside the GST ambit.
According to the World Bank's biannual India Development Update report, most countries in the world have a single rate of GST: "49 countries use a single rate, 28 use two rates and only five countries including India use four rates," it said.
Local Circles may take up this issue with government. more
India has the highest standard GST rate in Asia, and second highest in the world after Chile
The Indian Goods and Services Tax (GST) system is among the most complex in the world with not only one of the highest tax rates but also one of the largest number of tax slabs, the World Bank has said.
"The tax rates in the Indian GST system are among the highest in the world. The highest GST rate in India, while only applying to a subset of goods and services traded, is 28 per cent, which is the second highest among a sample of 115 countries which have a GST (VAT) system and for which data is available," the World Bank said in a report.
India currently has four non-zero rates: 5, 12, 18 and 28 per cent. Apart from that, several items are taxed at zero per cent while gold is taxed at 3 per cent. To make things worse, petroleum products, power and real estate have been kept outside the GST ambit.
According to the World Bank's biannual India Development Update report, most countries in the world have a single rate of GST: "49 countries use a single rate, 28 use two rates and only five countries including India use four rates," it said.
Local Circles may take up this issue with government. more
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Agree with most members on the GST issue. Can the local Circles Manager, please take it up with the government. Stop GST collections for Co-op societies and mediclaim policies for senior citizens. I am paying about Rs.7,000/- GST on my mediclaim policy today. Ridiculous isn't it while the Babus and politicians enjoy immense benefits we the common man has to suffer. more
Feb 21
It is felt that the higher the tax rate , the evasion/ misappropriation/ misuse/abuse is proportionate to the rate of tax. As it is rightly observed /pointed out by some of the learned members, it is high time to rationalize the tax structure by taking the historical data, since the inception of the GST regime and come out with a tangible solution to rationalize the tax structure, along with severe punishments irrespective of the Socioeconomic standing of a particular individual or a corporate and instill a kind of fear that once it comes to light, they would lose the face/credibility and barred from doing the business like the punishment for Drunken driving where after certain number and frequency of offence, the Driving Licence is cancelled. It has become order of the day, Rather than the voluntary compliance, most people prefer to face the consequences for punishment for illegal activities if it is detected and they would go to any extent to escape, hide such heinous acts. The lower the tax rate, will act as a deterrent to avoid tax payment, as it is not worthwhile. more
Feb 20
Yes. A single slab rate of GST would be more appropriate with abolition of Input Tax credit(to check fake input credit invoices). Since, the GST regime introduced only in July, 2017, we should wait a little more. more
Feb 20
People are making fictious Invoices and Claim Credit. Such people and their C A 's must be punished severely. There are many people who are Rich enough but do not pay single penny as Tax. This must stop. This is specially prevelent among Agriculturists. This must stop. more
Feb 20
The richest people in india are babus and politicians and no one can touch them our ias irs is and engineers ste biggest tax evaders cbdt is the centre of tax evaders they are simply looting people who will take action against cbdt itself more
Feb 20
India is a country where every ine from peon to president are corrupt and simply intereste din Hafftta collection so in these circumstances how do you expect a simple system. Unless these sarkari haramkhor jhaffttahkor chor lutere babus and elected representative arew booked and thrown into jail or are sacked en massee including entire cabinet nothing shall improve. Our babus abd politicians including judiciary are root cause of all problems. more
Feb 19
What you say is OK though not fully correct. Anyway, with the present PM the actions being taken are such that corruption level has gone down and should go down further in due course. Note that whenever a rule or system is made there are people who are trying to find out how to break the rule without getting caught. At least we know that the present Ministers are not corrupt. I agree that the Judiciary also is highly corrupt. But getting people into jail in India is not that easy. Even onia Gandhi and Rahul Gandhi are highly corrupt but the courts still give them bail which is continuing since 2 years. It is also the people of the country who have to follow systems, which will help to reduce taxes all around. more
Feb 19
