Difference between Indian GST and GST of other countries?


What is Goods and Service Tax (GST)

GST, frequently asked Questions


Difference between Indian GST and GST of other countries?


We are discussing here, how Indian GST is differing from GST of other countries.  More than 150 countries in the world have GST system of tax collection.


In India we do not follow an ideal VAT.  In central, we follow central VAT.  In state, we follow state level VAT.  Same is the case with GST.  We do not follow ideal GST which all indirect taxes will be subsumed in to one.  We follow an Indian version of Goods and services tax called as all India goods and services tax.


Central sales tax which the central imposed on the sale of goods from one state to another will continue in the different form called Integrated GST.     


One of the major difference between GST in India and GST in other countries is that in India, two types of GST is charged (duel GST).  

Reasons for charging two elements of GST instead of one GST in India?

India is a federal country where both the Centre and the States have been assigned the powers to levy and collect taxes through appropriate legislation. Both the levels of Government have distinct responsibilities to perform according to the division of powers prescribed in the Constitution for which they need to raise resources. A dual GST will, therefore, be in keeping with the Constitutional requirement of fiscal federalism.


GST 4 copy

There are some items exempted from GST at present.   The major items exempted from GST are Alcoholic liquor for human consumption, Aviation turbine fuel, Diesel, Petrol etc. In other words, GST council has to decide when those items should be covered under GST.  If those items excluded from GST, again the purpose of GST is defeated.  Because, state government gets 40% revenue from these items.  So we can call this GST as Indian GST, as it differs from GST of other countries.  These are some issues related to GST.


A constitutional amendment required to give concurrent power to both state and central to make laws for the taxation of GST.  In Indian case, there will be a dual GST.  Central GST comes under central and State level GST comes under each state of India.   The central level VAT comes under central GST and state level VAT comes under state GST and will also have integrated GST.


Also Read


Click here to know GST rate on Goods and Services


GST Exemption list of goods and services


Find HSN number or Service tariff code for GST


GST registration guidelines


Indian GST Laws


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CMA VIKASH KUMAR MISHRA: How will the goods and services be classified in India under GST regime? Ans. Harmonised System of Nomenclature Code (HSN Code) shall be used for classifying the goods in India under GST regime. Table S. No. Tax payer whose T.O Shall use HSN code on their Invoice 1 Bellow Rs.1.5 Cr Not required 2 Above Rs. 1.5 Cr But bellow Rs. 5 Cr 2 Digit code 3 Rs. 5 Cr and above 4 Digit code Service will be classified as per the Service Accounting Code (SAC).

mabalDass: In this article i consumed a lot of information about gst Warm Regards, mabal.

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