Journal Press India®

GST in Select Countries of the World: Lessons for India

Vol 3, Issue 2, July - December 2016 | Pages: 81-91 | Research Paper  

 
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https://doi.org/10.17492/vision.v3i2.7901


Author Details ( * ) denotes Corresponding author

1. * Rahul Bhasin, Ph. D. Research Scholar, Mewar University, Chittorgarh, Rajasthan, India (rahul_b12@rediffmail.com)
2. Anuraag Mittal, Associate Professor, Guru Nanak Institute of Management, Affiliated to GGSIPU, Delhi, India (anuraag197s5@gmail.com)

With the impending GST law in India, this paper examines the functioning of GST in certain select countries of the world such as Canada, Australia, Malaysia, New Zealand and Singapore. The experience of other countries have shown that exempting or reducing GST on certain items did not mean that tax savings would be passed on to consumers. Therefore, the GST should be kept broad-based to keep the GST low and the GST system simple, while help is directly provided to the lower-income through transfers and subsidies. Critics have argued that the GST is a regressive tax, which has a more pronounced effect on lower income earners, meaning that the tax consumes a higher proportion of their income, compared to those earning large incomes. However, due to the corresponding reductions in personal income taxes, state banking taxes, federal wholesale taxes and some fuel taxes that were implemented when the GST was introduced in some of these countries, it is claimed by some that people were effectively paying no extra tax.

Keywords

Goods and Services tax (GST); Broad-based tax; Federal taxes

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