In a historic moment for Indian economy, India's biggest tax reform, Goods and Services Tax (GST) has been rolled out by Prime Minister Narendra Modi on 1 July at Parliament's historic Central Hall which is altogether different from the GST adopted by other countries.
France was the first country to implement GST aiming to reduce tax evasion. Since then, more than 140 countries have implemented GST with some countries having Dual-GST system.
The dual GST system adopted by the countries includes Brazil and Canada.
India has chosen Canadian model of dual GST as the country has a federal structure in which state and centre have powers to levy and collect taxes.
The new tax regime has been rolled out by PM Modi in the presence of President Pranab Mukherjee in a special midnight parliamentary session.
Addressing the Central Hall of Parliament ahead of the midnight GST rollout, Prime Minister Modi said the scope of the GST is unlimited to financial system, now India will move in a new direction.
"It is not a success of any party or any government. It is the result of everyone's effort. The scope of the GST is unlimited to financial system. Now, India will move in a new direction. With the launch of the GST, we are ensuring the progress of the country. The launch of the GST is not the achievement of a particular party or a particular government; it's a collective achievement," Prime Minister Modi said.
Let's have a look at the GST charge by other countries:
Canada 13 to 15%
New Zealand 15%