"The Indian Goods and Services Taxes system is one of the most complex in the world."
What do you feel about the GST system proposed by the Indian government. Share your knowledge on this.
The World Bank report on the Indian Goods and Services Tax system says that it is one of the most complex in the world. Out of the sample of 115 Nations whose data is available to the World Bank, the tax rates in India are the second highest after Chile. India has the largest number of tax slabs when compared to the other countries. Presently we have 5%, 12%, 18%. and 28% slabs of GST on various items and services. Gold in India is taxed at 3%. Most of the countries have lesser number of tax slabs. 49 countries use only single rate of tax while 28 countries use two rates only. There are only five countries including India which use four rates.
It is high time for the Government of India to take rigorous action to reduce the number of slabs and also a reduce the tax rates. One India, one tax is also not being implemented with petroleum and alcohol kept away from GST. The petroleum products need to be brought under GST immediately.