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Is GST in India very complex ?


India is launching a new national Goods and Services Tax (GST) on July 1 that will unify its $2 trillion economy and 1.3 billion people into a single market for the first time.

The GST embodies the principle of "one nation, one tax, one market", according to the government.

But in practice the Indian version is more complex and will be tougher to comply with than is the case in many other countries.

Comparison of India's GST with some other countries.

INDIA

Standard rates: 5, 12, 18, 28 percent   Exemptions: Yes    Reduced rates: Yes

Filing: Three times monthly and once annually. Separate returns required for each state in which a company operates

AUSTRALIA

Standard rate: 10 percent           Exemptions: Yes          Reduced rates: No

Filing: Quarterly; monthly for large businesses

MALAYSIA

Standard rate: 6 percent         Exemptions: Yes           Reduced rates: No

Filing: Quarterly or monthly for larger businesses

NEW ZEALAND

Standard rate: 15 percent       Exemptions: Yes    Reduced rates: Yes

Filing: Half yearly, every two months or monthly, depending on the size of the business

SINGAPORE:

Standard rate: 7 percent              Exemptions: Yes              Reduced rates: No

Filing: Typically every three months

Source: KPMG Asia Pacific indirect tax country guide; Indian government
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Item Reviewed: Is GST in India very complex ? Rating: 5 Reviewed By: PRASHANT ENTERPRISES