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India deadlock on GST rate

  • VAT
  • 02 April 2016 | Richard Asquith

India deadlock on GST rate

Negotiations for the implementation of the new Goods & Services regime in India remain in deadlock.

The opposition Congress party remains adamant that the ruling BJP party must commit to a headline GST rate of below 20%.

The reform of the existing plethora of VAT, Service Tax, CENVAT and other indirect taxes is seen as crucial to help India boost its internal markets. The current regimes are overly complex, and deter intra-state goods trading due to double taxation.  The original blueprint for the new regime was proposed in 2003, but the two leading parties have failed to agree on the details ever since.

It has been estimated that the imposition of GST, based on a standard OECD model, could lead to up to 2% rise in annual GDP growth for India.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.