India moves towards GST Bill in the Autumn
- Aug 7, 2014 | Richard Asquith
India is hopeful of introducing a much-anticipated Goods & Services (GST) introduction Bill this winter. It is hoped that consensus will be reached with the 29 States by late September, paving the way for the introduction of a Bill before the year end.
The have been many attempts to reform the creaking Indian VAT system, which includes many overlapping VAT, CENVAT, Service Tax and Central Service Tax CST. The principle blockage is now compensation for the loss of tax on petroleum-related goods to the States.
It is estimated that a properly functioning GST regime, similar to the EU VAT system, could raise India’s GDP by over 1%. By contrast, Malaysian GST and Chinese VAT reform is well advanced.