GST tax rate: Citing Singapore model, experts bat for cutting multiple G... https://economictimes.indiatimes.com/news/economy/policy/citing-singa...

Business News › RISE › GST Search for News, Stock Quotes & NAV's

Benchmarks NSE Gainer-Large Cap FEATURED FUNDS 3Y RETURN Stock Analysis, IPO, Mutual
Funds, Bonds & More
Nifty CLOSED IGL Mirae Asset Tax Saver Fund 17.12 %
Direct-Growth
11,908.15 -103.90 418.15 24.95
★★★★★
INVEST NOW Market Watch

Citing Singapore model, experts bat for cutting multiple GST

rates in India
BY PTI | OCT 29, 2019, 04.35 PM IST Post a Comment

Singapore: Citing the example of Singapore, several experts have suggested that India
should do away with multiple tax slabs under the Goods and Services Tax (GST) for
greater ease of compliance.

Singapore has only one tax rate under GST— seven per cent -- on taxable goods and
services while India has multiple slabs to charge the indirect tax.

An achievement of India's GST implementation is that the measure hasn't been

inflationary, according to Abhijit Nath, who works with Insitor Partners, a consultancy firm
on GST.

Manu Bhaskaran, founding director and chief

“However, to avoid confusion and greater ease of compliance, India should aim for a two- executive officer of Centennial Asia Advisors, said
rate system over time to be in line with global best practices,” suggested Nath. GST is one of the most efficient taxes available “so it
is a good tax”.

GST introduction in India has the potential to be a long-term game-changer by unifying the
country as one market, he said. Big Change:
The end of Five-Year Plans: All you need to know

Singapore's practice of early announcement of GST rates for various categories helps in smooth transition, he added.

“This also makes the increase politically viable,” Nath said, suggesting that the same can be followed in India as well.

Singapore's Finance Minister Heng Swee Keat in his budget 2018 speech announced that there are plans to increase GST from 7 per
cent to 9 per cent sometime from 2021 to 2025, according to the Inland Revenue Authority of Singapore (IRAS).

Sandeep Chilana, managing partner of Chilana and Chilana law offices, said India should endeavour to move towards least tax slabs.

He said while other countries have considered a single rate of GST, keeping in mind the vast gap in per capital income and the need for
generating revenues, it may not be possible at this stage for India to consider it.

“However, India should endeavour to move towards least tax slabs possible, of 6 per cent and 14 per cent,” Chilana said.

Manu Bhaskaran, founding director and chief executive officer of Centennial Asia Advisors, said GST is one of the most efficient taxes
available “so it is a good tax”.

“By itself, it can be regressive so it needs to be combined, as Singapore did, with other measures so that the net effect is not
regressive,” he said, when asked what developing economies like India can learn from Singapore's GST model.

Stay on top of business news with The Economic Times App. Download it Now!

1 of 1 10-Nov-19, 18:09