Goods and service tax is captivating our nation by the storm. GST brings in “One nation one tax” and unites all indirect taxes under one roof. It also facilitates Indian businesses to be competitive worldwide. The Indian GST case is planned for efficient tax collection; drop in corruption, trouble-free inter-state movement of goods.
How GST in India different from GST in other countries
More than 160 nations have GST and although, European tax economy has visualized the GST further than 50 years ago. The perception of GST is similar to other countries. Though, rates and fulfillment procedures may vary from country to country as per person requirements of that country.
The only main variation is that India has several rates of GST. While in numerous other countries, the rate is even irrespective of the product. Let us know about the execution of GST in India vs GST in other countries:
1. GST Singapore
GST commenced in Singapore in 1994 with the flat GST rate of 3 percent which was lowest in the overall market. Singapore pursues the single and steady rate system on each purchase. With upshot from 2007, the GST rate has been augmented to 7 percent which also very less in comparison to GST rates of India.
2. GST Australia
In Australia, the GST is a central tax collected by the ultimate authority and so divided further among the states without any clash arising throughout the process. The GST was initially commenced in 2000 with the 10 percent tax rate which is steady till now.
3. GST New Zealand
GST in New Zealand was executed in 1986. It had been pertaining the taxes on everything at a single and constant rate of 10 percent till 2010. The tax rate following 2010 has augmented to 15 percent which is valid on all purchases. Residential rents and financial services have no GST on them.
4. GST Canada
Canada governs the taxation system beneath three schemes, i.e. Federal GST, Joint federal as well as separate federal. Federal tax is usually accepted tax scheme, whereas joint federal runs on the base of the synchronized actions of the economy. States and the final one separate federal which only pertains to the Quebec as it is deemed as a quasi-independent province. The GST rate in Canada is 5 percent on supplies of goods and services excluding some provinces; there is harmonized sales tax up to 15 percent.
5. GST Brazil
GST in Brazil is much free and untroubled in comparison to numerous other nations. It has an isolating rule of taxes amid the states and the center. Brazil has six tax slabs comprises 0%, 1.65%, 2%, 7%, 12%, along with 17%.
6. GST USA
The US is a central republic where taxes are composed at a separate echelon from federal, state, as well as local governments. Federal tax rates are amid 10 percent plus 39.6 percent of taxable income whereas state and local government is levying the tax from 0 percent to 13.30 percent of entire taxable income.
7. GST France
GST has been initially executed in France in 1954 with 4 percent tax rate. The rates here are on account of 2.1%, 5.5%, 10% as well as 20%. Amid the tax rates, 20 percent is the standard rate pertinent to most of the goods in France.
8. GST Malaysia
GST in Malaysia executed from 1 April 2015 with the steady rate of 6 percent. Sales tax, as well as service tax, are categorized by different tax rates which are 10 percent and 6 percent correspondingly.