Goods and Services Tax (GST) in India
Six months after the introduction of the national Goods and Services Tax (GST) in India, reactions to the measure are still mixed. The “one nation, one tax” policy was intended to make trade among India’s twenty-nine states and seven union territories easier and faster.
Supporters argue that the reform brings transparency to India’s taxation and that a unified tax will increase trade within India as well as internationally. Detractors have said that the government was not ready for such a major overhaul, as evidenced by technology errors and fluctuating revenue collection.
Simplicity: To be or not to be?
They have also complained that the new system is no simpler than the old one. Still, the GST Council is pushing ahead, calling for a new electronic waybill (e-way) system to begin on a voluntary basis in January with a staggered introduction, then to become mandatory in late spring for transactions over 50,000 rupees. Redoubled efforts for invoice matching are also intended to reduce tax evasion. On-site AIRINC surveys found that prices were up since the GST roll-out. As the GST transition continues, AIRINC will continue to monitor the news and survey on-site to track changes as they happen.
Want to learn more? The above excerpt is taken from Data Points, AIRINC's quarterly newsletter. Data Points brings you the latest updates from our Housing, Goods & Services, and Tax departments based on our expert international surveys, which are conducted by our global data collection team on-location.
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