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India GST rate cut plans

  • Nov 3, 2017 | Richard Asquith

India GST rate cut plans

India is considering removing many daily essential goods form the top Goods & Services Tax (GST) band of 28%.

GST was launched in India on 1 July 2017, replacing many overlapping consumption taxes including VAT, CENVAT and Service Tax.  Whilst there remain many issues with the new indirect tax, including the reconciliation process between purchase and sales invoices, the new tax implementation has gone relatively smoothly.

This has prompted Prime Minister Modi to indicate that a reduction in GST for essentials would be possible on the back of higher than expected GST receipt.  The government is also considering to lower the 18% GST levied in air-conditioned restaurants to the 12% due in all other restaurants.

There are presently four main GST rates in India: 28%, 18%, 12% and 5%.

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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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.