France was the first country to implement GST.
Finance Minister Nirmala Sitharaman has announced a change in Goods and Services Tax (GST). Now the slab of 12 percent and 28 percent has been abolished to 5 percent and 18 percent. The new change will be applicable from 22 September. GST started in India from 1 July 2017. Many arguments were made behind implementing it.
It was claimed that this would reduce the burden of inflation. The tax collection will increase. Tax evasion will be controlled. The country’s GDP will increase. GST Council is trying to stop tax evasion. Even though GST in India has started in 2017, this system was already applicable in many countries of the world.
71 years ago GST implemented country
France was the first country in the world to implement GST. Goods and Services Tax (GST) was implemented here in 1954. After this, many countries of the world implemented GST or VAT (on both goods and services). Some countries also have double GST model. Like- India.
France gave the reason behind doing so.France wanted to simplify the complex tax system. At that time, many indirect taxes were levied at different national and regional levels in France. Understand in easy language, France’s tax system was quite complex and scattered. This used to increase the burden on business and there was more possibility of tax evasion. France improved a single tax system by improving it.
At that time, France needed a more stable and reliable tax system to rebuild its economy after the war. Therefore, France took a big step by reforming tax and implemented GST.
Where is GST?
New Zealand: GST was implemented here in 1986. From July 1989 to September 2010, GST was levied at the rate of 12.5%, and 10% was imposed before that. Later this rate was 15%. GST collects 31.4% tax of total taxation.
Canada: GST came into force here in January 1991. Through this system, both federal and provincial governments charge taxes on most goods and services. Federal GST, whose rate is 5% fixed, is applicable throughout the country, while province imposes provincial sales tax (PST), which is between 6% to 7%. Some things, such as normal grocery items, doctors’ prescription medications, and exports, zero-by-zero. Businesses with annual trading more than 30,000 Canadian dollars have been made mandatory to register for GST.
Australia: It was implemented in 2000 in Australia and has a current tax rate of 10%. There are many domestic consumption items that do not tax, such as food, health services and education. Government fees and fees are also tax -free, as it is already considered tax.
Maldives: GST was implemented here in October 2011. Except for some things, a standard rate of 8% (first 6%) was applied to most goods and services. If your annual taxable supply is more than 1 million MVR (Maldives’ currency) over a period of 12 months, then you have to register for taxes.
Papua New Guinea: The GST rate here is 10% and it applies to most goods and services. However, GST is not imposed on the goods and services exported. The supply of some goods and services, including medical, educational and financial services, is exempted. Any business or person whose annual turnover is more than 2,50,000 Kn will have to register for GST. Businesses whose annual turnover is less than this limit can register for GST on voluntary basis.
Also read: Quran, Hadith or War Art, what did the Guru of the Mughals teach them?