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

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.

By: | New Delhi | Published: July 1, 2017 4:05 PM
gst, gst rollout, GST rates, GST rates in india, gst launch, gst launch in india, gst india, GST rates in India highest, GST rates in India highest in world, goods and services taxes, goods and services tax launch PM Narendra Modi and President Pranab Mukherjee during the GST rollout. (Source: PTI)

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.

  1. S
    Sai
    Sep 5, 2017 at 12:49 pm
    Isn't the headline a deliberately misleading one? Since we have different slabs in GST, the most sensible thing to do is to take the weighted average (if it can be done) and then compare it with other countries. What are the commodities that fall in the 28 bracket? These articles are edited and posted by politically biased people.
    Reply
    1. A
      Arjun
      Sep 5, 2017 at 10:14 pm
      Every country that has implemented GST has different slabs in GST. You can check here : vatlive /vat-rates/international-vat-and-gst-rates/
      Reply
      1. A
        Arjun
        Sep 5, 2017 at 10:17 pm
        vatlive dot com/vat-rates/international-vat-and-gst-rates/
    2. R
      Renew
      Sep 5, 2017 at 9:38 am
      Please do compare the facilities we get in return in India and other countries listed above. I am happy to pay tax if I get same facilities as in Canada or other places in that list. We don't even have toilets, power, health, infrastructure..etc. Don't say now onwards these are all going to happen from this new tax collected. This is not going to happen, that is India and it's politics. Modi is not a god man.. in fact more narrow minded and dumb.
      Reply
      1. K
        Karthik
        Sep 5, 2017 at 2:28 pm
        Well said
        Reply
      2. A
        Advocate Jaya
        Sep 5, 2017 at 7:34 am
        GST. #IMPLEMENTED BY BJP. MORONS MUST BE ROLLOUT AS THE #TAX #RATE IN #INDIA IS THE #HIGHEST IN #WORLD. #BHRASTACHARI #JANATHA #PARTY HAS #PROVED ITSELF THAT WITH-IN 5 YRS. OF THEIR #POLITICAL #TENURE IN #INDIA, THEY WILL BE EMPTYING THE #NATIONAL #EXCHEQUER BRINGING EVERY #COMMON - #MIDDLECLASS #FAMILIES INTO #STREET. AND THEN, BJP. CAN EASILY BLAME OTHER POLITICAL PARTIES FOR THEIR OWN POLITICAL FAULTS..ITS HIGH-TIME, #FINANCE #MINISTER, INCLUDING #PRIMEMINISTER #MODI #STEPS DOWN #GRACEFULLY ON THEIR OWN ,MUCH BEFORE , PEOPLE OF THIS COUNTRY HUMILATE WITNESS MORE ECONOMICAL DOWNFALLS. THE REAL-ESTATE-MARKETS IN INDIA HAS COME TO THE LOWEST STANDARDS, CITIZENS IN THIS COUNTRY R NOT ABLE TO EVEN SELL THEIR SMALL PLOTS, /OR PROPERTIES FOR GENERATING MONEY BCOS PEOPLE R NOT FETCHING THEIR PURCHASE-VALUE TOO,AFTER BJP. CAME-TO POWER, AND MORE-SO AFTER THE HOPELESS DEMONETISATION BY THIS GOVT. GALI-GALI-MEH-SHOR-HAI, BJP. SABSE BADA "MAHA-CHOR HAI
        Reply
        1. R
          raj
          Sep 6, 2017 at 12:23 pm
          True what u said. no business nothing is happening. jobs are being cut on a daily basis. its difficult to survive..
          Reply
        2. G
          Ganesan S
          Jul 11, 2017 at 11:55 am
          Clearly motivated, factually flawed article. It uses information like a drunk uses a lamppost for support of the biased views, not for illumination. Best ignored.
          Reply
          1. M
            Mohan Karkal
            Jul 4, 2017 at 3:21 pm
            This article is misleading. It does not differentiate between average GST rate and maximum slab rate. There is no mention of average GST rate for India, which is put at 12.5 - 15.5 . The article compares maximum rate of 28 in India to average rates of other countries whereas comparable rate for India is 12.5 - 15.5 . France introduced GST in 1954, Canada in 1991 and China in1994. The statement that most European countries have single GST rate is also incorrect. France has 4 slabs, Germany - 2, Norway - 3, Spain -3, Sweden - 3, UK - 3, China - 6. Highest GST rate in Argentina is 27 , while average is 21 . These media articles mislead the readers by comparing highest GST rate in India with average rates in other countries. In an interview, When Manish Sisodia- Delhi DCM says Rs. 2800 extra when purchasing a household appliance worth Rs. 10,000, he wrongly complutes 3 to 4 increase due to GST (28 gst Less Excise 12/5 and 11-12 VAT) or he is lying deliberately.
            Reply
            1. V
              Vineet Ruia
              Jul 4, 2017 at 2:35 pm
              I was the first person in the country to recommend GST to the Govt about two decades back. They took so many years to implement it and still, this is not the right form. I dont know why the Govt always makes things difficult for the people. There is no need for charging any tax when the buyer declares his GSTIN. The last seller should collect tax and pay to the Govt. The headache of all input and output creates a hassle. The Govt watchdogs need to keep track of it so that they do not try to harass the businessmen.
              Reply
              1. R
                Renew
                Sep 5, 2017 at 9:34 am
                First person in the country. haha lol. don't make us laugh.
                Reply
              2. K
                karanamrao
                Jul 3, 2017 at 8:57 pm
                The roll out of GST, just its predecessor DeMon, has to suffer serious misgivings as the people are'nt yet prepared to receiving it.They may resent it, and abhore the haphazared implementation without corrective mechanism in place.Its dividends are many, but it's might face a plethora of troubles.#AAP
                Reply
                1. N
                  Nandini -Basu
                  Jul 2, 2017 at 2:43 pm
                  I am still in a cofused state. Don't know actually what is going to happen. May be another chaotic condition after Demonetisation😣
                  Reply
                  1. J
                    Jram Td
                    Jul 1, 2017 at 5:11 pm
                    Always it is Indians who bear all burden
                    Reply
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