Goods and Services Tax (GST): A Comparative Study of Select ASEAN Countries

Abstract

After a decade long struggle, overcoming all the issues acting as roadblocks in its implementation, Goods and Services Tax (GST) has finally been implemented in federal India from 1July 2017. By subsuming majority of indirect taxes and cesses levied at the central and state government levels it has simplified the indirect tax regime in India and has put an end to the complex and cascading nature of the multiple tier indirect taxation. GST has already been implemented by more than 160 countries around the world. Hence it carries rich history of successes and failures. In India, both policy makers and public have a lot of expectations from the GST in terms of resolving loopholes in the pre-existing indirect tax structure. In this context, this paper attempts to study the functioning of VAT/GST of 6 ASEAN countries - Philippines, Indonesia, Singapore, Vietnam, Thailand and Malaysia - and compare it with the Indian GST regime. An attempt has also been made to draw lessons for India from the experience of these countries. India should learn from the pitfalls in administration and application of law in developing countries as well as from the successful administrative strategies of the developed countries like Singapore.