News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« GST - Goods and Services Tax »
 GST on educational services from current session at GNDU
 GST TRAN-1: Delhi High Court Judgment is Nullified by Finance Act, 2020
 GST council may extend compensation cess levy beyond 5 years
 Government considering to bring natural gas under GST
 Need more stimulus with focus on GST cut, wage support, higher MNREGA spend'
 Tamil Nadu extends dates for GST compliances
 Incomplete claim memos stall GST refunds
 GST on director’s remuneration: Cannons of taxation sacrificed at the altar of revenue collection
 Centre considers market borrowing for GST compensation to states
 Govt may not heed calls to lower GST
 GST & Other Indirect Tax Appeals to be Heard through Whatsapp: Dept issues Guidelines

Citing Singapore model, experts bat for cutting multiple GST rates in India
October, 30th 2019

While India has multiple slabs to charge the indirect tax, Singapore has only one tax rate under GST. GST introduction in India has the potential to be a long-term game-changer by unifying the country as one market, Abhijit Nath said.

Singapore: Citing the example of Singapore, several experts have suggested that India should do away with multiple tax slabs under the Goods and Services Tax (GST) for greater ease of compliance.

Singapore has only one tax rate under GST— seven per cent -- on taxable goods and services while India has multiple slabs to charge the indirect tax.

An achievement of India's GST implementation is that the measure hasn't been inflationary, according to Abhijit Nath, who works with Insitor Partners, a consultancy firm on GST.

However, to avoid confusion and greater ease of compliance, India should aim for a two-rate system over time to be in line with global best practices,” suggested Nath.

GST introduction in India has the potential to be a long-term game-changer by unifying the country as one market, he said.

Singapore's practice of early announcement of GST rates for various categories helps in smooth transition, he added.

This also makes the increase politically viable,” Nath said, suggesting that the same can be followed in India as well.

Singapore's Finance Minister Heng Swee Keat in his budget 2018 speech announced that there are plans to increase GST from 7 per cent to 9 per cent sometime from 2021 to 2025, according to the Inland Revenue Authority of Singapore (IRAS).

Sandeep Chilana, managing partner of Chilana and Chilana law offices, said India should endeavour to move towards least tax slabs.

He said while other countries have considered a single rate of GST, keeping in mind the vast gap in per capital income and the need for generating revenues, it may not be possible at this stage for India to consider it.

However, India should endeavour to move towards least tax slabs possible, of 6 per cent and 14 per cent,” Chilana said.

Manu Bhaskaran, founding director and chief executive officer of Centennial Asia Advisors, said GST is one of the most efficient taxes available “so it is a good tax”.

“By itself, it can be regressive so it needs to be combined, as Singapore did, with other measures so that the net effect is not regressive,” he said, when asked what developing economies like India can learn from Singapore's GST model.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting