GST: Indian system among the most complex globally, says World Bank report
India has the highest standard GST rate in Asia, and second highest in the world after Chile
The Indian Goods and Services Tax (GST) system is among the most complex in the world with not only one of the highest tax rates but also one of the largest number of tax slabs, the World Bank has said.
"The tax rates in the Indian GST system are among the highest in the world. The highest GST rate in India, while only applying to a subset of goods and services traded, is 28 per cent, which is the second highest among a sample of 115 countries which have a GST (VAT) system and for which data is available," the World Bank said in a report.
India currently has four non-zero rates: 5, 12, 18 and 28 per cent. Apart from that, several items are taxed at zero per cent while gold is taxed at 3 per cent. To make things worse, petroleum products, power and real estate have been kept outside the GST ambit.
According to the World Bank's biannual India Development Update report, most countries in the world have a single rate of GST: "49 countries use a single rate, 28 use two rates and only five countries including India use four rates," it said.
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