New Delhi: India is launching a new national Goods and Services Tax (GST) on July 1 that will unify its $2 trillion economy and 1.3 billion people into a single market for the first time.
The GST embodies the principle of "one nation, one tax, one market", according to the government. But in practice the Indian version is more complex and will be tougher to comply with than is the case in many other countries.
Here`s how the Indian GST compares with its counterparts in Asia:
INDIA
Standard rates: 5, 12, 18, 28 percent
Exemptions: Yes
Reduced rates: Yes
Filing: Three times monthly and once annually. Separate returns required for each state in which a company operates
AUSTRALIA
Standard rate: 10 percent
Exemptions: Yes
Reduced rates: No
Filing: Quarterly; monthly for large businesses
MALAYSIA
Standard rate: 6 percent
Exemptions: Yes
Reduced rates: No
Filing: Quarterly or monthly for larger businesses
NEW ZEALAND
Standard rate: 15 percent
Exemptions: Yes
Reduced rates: Yes
Filing: Half yearly, every two months or monthly, depending on the size of the business
SINGAPORE:
Standard rate: 7 percent
Exemptions: Yes
Reduced rates: No
Filing: Typically every three months
Source: KPMG Asia Pacific indirect tax country guide; Indian government
