GST rollout: Did you know? Tax rate in India highest in the world

[Kal Muah]

are you a fellow redditor/randian ...?

Ahaha shoutout to r/india

 

[SingaporeGuy]

end of the day consumer gets hit, it will only prove very unpopular but remember u all voted for it.

Unless the gst monies gets redistributed to the peasants but this is not the case i suppose

The best way to cover the gini coefficient is to ensure meritocracy and good education plus free resources for all to enter university.

 

[MULUBJA]

Thats why I have been ranting in the past that India is not a rich country to absorb such blow. India is a low income country, which should have looked at Malaysia who introduced its GST at 6 percent only, being richer country than India.

Imagine a shampoo attracts 28% GST rate in India.

Inflation is waiting in the wings.

The real reason is to raise money to utilize in defense purchases from overseas vendors.

10th pass PM, what would you expect from him?

He is post graduate with first rank in political science. We can expect him to make wahabis fall in line.

GST rollout: Did you know? Tax rate in India highest in the world
As per the new system India will have four tax slabs: 5%, 12%, 18% and 28% which now, makes it the country with highest GST rate going past Argentina that levies 27% tax on goods and services.

The Goods and Services Tax or GST rollout took place at a grand midnight event in the Central Hall of the Indian Parliament on June 30. The event was attended by Prime Minister Narendra Modi, President Pranab Mukherjee, Lok Sabha Speaker Sumitra Mahajan, BJP chief Amit Shah and Finance Minister Arun Jaitley. All the political leaders hailed GST as a positive move for the Indian economy but only a few people would know that GST rates in India are highest in the world among the 140 countries that have implemented it so far, according to a report by Business Today.

As per the new system India will have four tax slabs: 5%, 12%, 18% and 28% which now, makes it the country with highest GST rate going past Argentina that levies 27% tax on goods and services. The reason why some European countries have one rate of GST is that they don’t have worry about a large population poor like India. Also, a majority of Indian population still stays in rural areas and is not economically stable.

France was the first country to introduce this type of tax regime and since then 140 countries have implemented it, with some of them following the dual-GST model, for example, Brazil and Canada. India to followed the footsteps of Canada and introduced a structure where both Centre and states have the powers to levy and collect taxes. Also, goods have been divided into four tax slabs in the country.

READ | What is GST Act 2017: Full details, specifications, PDF, rules, forms, and FAQs

However, some countries are still struggling to rationalise an adopted rate structure. Some countries had to increase the rates while others had no other option but decrease it. For example, Canada reduced the GST rates multiple times.

Here are the GST rates levied by other countries as per the report:

Canada – 13 to 15%

France – 20%

UK – 20%

New Zealand – 15%

Malaysia – 6%

Singapore – 7%

France was the first country to implement GST to reduce tax-evasion. Since then, more than 140 countries have implemented GST with some countries having Dual-GST, for example, Brazil and Canada. India has chosen the Canadian model of dual GST as it has a federal structure where the Centre and states have the powers to levy and collect taxes.


http://www.financialexpress.com/eco...ax-rate-in-india-highest-in-the-world/744520/

How France, UK and newzealand has lower GSt rate than India which has 5%, 8%, 12%, 18% and 28% rate?

 

[ashok321]

end of the day consumer gets hit, it will only prove very unpopular but remember u all voted for it.

Unless the gst monies gets redistributed to the peasants but this is not the case i suppose

The best way to cover the gini coefficient is to ensure meritocracy and good education plus free resources for all to enter university.

There was a 50% jump on service tax on phone recharge.
Before, for every 100 Rs. recharge you get 100 Rs. minus 12% = 88 Rs. talk time.

Now from 12 to 18%.
You get 82 Rs. worth of talk time.

Rich do not care. Its middle class.

 

[SingaporeGuy]

There was a 50% jump on service tax on phone recharge.
Before, for every 100 Rs. recharge you get 100 Rs. minus 12% = 88 Rs. talk time.

Now from 12 to 18%.
You get 82 Rs. worth of talk time.

Rich do not care. Its middle class.

i hope india know what she doing.

usually when introduce gst, its always best to do it in small percentage increase, gst might even cause riots

 

[The_Showstopper]

i hope india know what she doing.

usually when introduce gst, its always best to do it in small percentage increase, gst might even cause riots

GST protest in a city

Cloth merchants protest against GST rate - Times of India

 

[SingaporeGuy]

GST protest in a city

Cloth merchants protest against GST rate - Times of India

If this is the case i feel india is not ready for gst yet.

especially certain sectors in the economy are highly price sensitive like basmati rice and medicine, the merchants and consumers will get very angry.

gst should be on luxury goods like rolex or luxry sectors like apartments above 1 million USD etc.

if the gst net catches the poor, it will only end up destroying modi government and what they stand for

 

[Soumitra]

If this is the case i feel india is not ready for gst yet.

especially certain sectors in the economy are highly price sensitive like basmati rice and medicine, the merchants and consumers will get very angry.

gst should be on luxury goods like rolex or luxry sectors like apartments above 1 million USD etc.

if the gst net catches the poor, it will only end up destroying modi government and what they stand for

Ha a few hundred peiople out of 1.25 billion take out a march, which by the way is their democratic right, and you say India is not ready for GST

Let me tell you the ground reality. I work in an organization where we are helping other comapnies and businesses to come under GSt. Every day we are getting hundreds of enquiries of how to convert to GST. GST is neccesary to bring the black economy into the formal sector. with GST the tax revenues are set to increase many fold becaue all business will have to report their transctions.

I will not go much into technical details but in GST there is a concept of Input tax credit. Basically whatever GST that you have paid at the input stage from your supplier you can claim a credit for that from the govt. However that will work if and only if the entire value chain is under GST. So in order to get the benefit of Input tax credit the companies are insisting that they will buy from only those vendors and suppliers who are GST compliant. This is why even small traders are getting into GST. The people who never paid any taxes in their life are now in the formal taxation structure. Because of this obviously they are protesting.

Another thing is GST number is linked to your PAN Card which is a card for the income tax department. So any transaction which is done will be visible not only to the indirect tax authorities (GST) but also to the direct tax authorities (income tax) so no more possibility of hiding your income using off the book transactions

 

[ashok321]

Farm sops may hit GDP by Rs 1.1 lakh crore