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Tax Reforms And GST

 Tax Reforms And GST

 Tax Reforms And GST

Tax Reforms And GST


 
It is vey interesting to note that India has had seen various tax reforms like CENVAT & VAT . The biggest tax reform will be the much awaited Goods & Service Tax (GST) in India .
The saga of tax reforms in India and the implementation of GST in other parts of the world can be understood from the following :
1.Tax reforms started in India from 1974 i.e almost 41 years back.
2.India began talking about GST since 2007 when Mr. P. Shome  released a white paper on GST .
3.It was followed by Finance Minister of India  announcing the vision of  GST during his F.Y 2007 budget speech .
4.India committed to GATT for implementation of GST by 2009-2010 . But, we failed miserably to make a consensus amongst various states of India. 
5.So far almost 161 countries has implemented the GST worldwide.
6.The last country to implement GST was Malaysia w.e.f 1st April 2015 .
7.GST was first introduced in Singapore on 1 April 1994 and the first GST rate was  3%.
8.The GST rate in Singapore was increased to 4% in 2003 and then to 5% in 2004. At present, GST rate is 7% in Singapore .

GST-A New Tax System

GST- A New Tax System


9.Indian GST model have framework from  Brazil and Canada . However, oflate we are influenced by Malaysia model as well.
10. The reason of following Brazil was its structure of  27 states nearing to the Indian structure .
11. Brazil has average GST rate of  17% . Whereas, Indian average rate is also going to be 17%-18% .
12. Canada had introducted GST in January 1991. It is pertinent to note that the implementation of  GST  saw controversies at par  India before GST was finally implemented in Canada . 
13.GST in India will boost the GDP of India by 2% . This  boost in GDP can be very substantial especially when European nations are struggling to achieve  a growth in GDP even by 0.5% .
Hence, GST really matters the most for real growth of India .

 Are you ready for GST in India ?
 

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