GST Rate Research Articles

PERCEPTIONS OF MALAYSIAN CONSUMERS REGARDING THE RE-IMPLEMENTATION OF GOODS AND SERVICE TAX (GST) AND ITS IMPACT ON SPENDING BEHAVIOR

This study examined the mediating effect of consumers’ awareness and perception on the re-implementation of the GST on consumer spending behaviour in Malaysia. The study involved 537 respondents in the online survey. Findings reveal that the GST rate and the tax system’s complexity positively influence consumers’ awareness and perception towards the re-implementation of GST. Additionally, demographic factors, consumer awareness and perception significantly impact on consumer spending behaviour. Interestingly, consumer awareness mediates the relationship between tax rate and consumer spending behaviour, but not consumer perception. Thus, this provides insights to various stakeholders such as scholars, consumers, industry players and the Malaysian Government.

Pre and post impact of GST on medicines: Retailers’ perspective

GST is known as the Goods and Service Tax levied to improve economic condition of nation. The implementations of GST have impact on the entire sector including the pharmaceutical industries. The GST Rates for medicines were decided by the GST council. GST is levied under 5 different rates, namely NIL, 5%, 12%, 18% and 28% based on the HSN code of the item. The general statement is GST is positively impact on the Indian Pharmaceutical Industries via the four different taxes levied on the medicines and it reduced the cost of production and it helps to business daily operations. Retailers are supplying medicine to the ultimate customers from manufacturers; but the medicine retailers’ survival depends on Government rules and regulation. To trace out the reliability of the statement “GST makes some positive impact and some negative impacts” the researchers have chosen the research area entitled “Pre and Post Impact of GST on Medicines: Retailers’ Perspective”. The researchers to attain the objectives, the primary data collected from 67 retailers by adopting Convenient Sampling method with help of structural questionnaire. Garrett Ranking Techniques has been adopted to prove the result qualitatively as well as quantitatively.

Jewellery Business in India: Opportunities & Challenges

This text provides a comprehensive overview of the global gold market, with a particular focus on India and its bustling city of Mumbai. Gold, a precious metal, holds multifaceted significance worldwide, from jewelry to investments. The global gold reserves, distribution, and usage are analyzed, highlighting its dominance in the jewelry industry. India, known as the "Golden Bird," plays a pivotal role in the global consumption of gold, and its gem and jewelry industry is a significant contributor to the nation's economy. The text delves into India's consumption patterns, gem and jewelry exports, and the impact of government policies, including import tax fluctuations. Festivals like Diwali significantly influence gold demand. Mumbai, India's financial capital, stands out as a major consumer of gold, with the historic Zaveri Bazar being a hub for jewelry enthusiasts and artisans. The Gem & Jewellery Export Promotion Council (GJEPC) hosts the prestigious "India International Jewellery Show" in Mumbai, attracting international attention. Government initiatives, including hallmarking requirements and changes in GST rates, aim to regulate and standardize the gold jewelry industry. The text also discusses the establishment of a gem and jewelry park in Navi Mumbai, promising significant investments.

The Myopic GST Update in the Maldives

The Maldivian parliament has recently amended the Goods and Services Tax Act 2011 to increase the country’s GST rates. In this article, the author discusses the change in the Act, the purpose of the reform and the impact of this reform on businesses and on the Maldivian economy.

Who would win from a multi-rate GST in New Zealand: evidence from a QUAIDS model*

The merits of New Zealand moving away from its broad-based single-rate GST structure – particularly by removing GST on food – are often raised in public discourse and political campaigns. This paper investigates who would benefit from the introduction of a multi-rate GST structure in New Zealand and, in particular, whether reduced GST rates would be a more effective way of providing support to poorer households than New Zealand’s current income-tested tax credit approach. Behavioural simulation results from a QUAIDS model confirm previous findings that applying reduced GST rates to food and beverages would have a small progressive effect, but that richer households would benefit more than poorer households in aggregate terms. Meanwhile, reduced GST rates applied to recreational and cultural expenditure would have a regressive effect. Additional simulation results clearly show that the family tax credit is a far superior mechanism for providing support to poorer households than reduced GST rates. New Zealand should therefore maintain its current approach of a broad-based single-rate GST and income-tested tax credits.

GST: Awareness and Overview in Haveri District

The single tax system reduces transportation time. But, the services of external consultants are used for various tax matters. The country’s taxation system has improved with the help of GST and the government should take more efforts to training and educating public. Due to frequent change in GST law, companies need to change their accounting system. The technical cost and legal cost in GST are very high and not satisfied with available required services of GST. So, transition to GST is very difficult. Some common problems faced by business are increased overhead expense, supply chain structure, excessive compliances and filling, delays in refund, GST filling, decline in business, refund mechanism and rise in input cost. The satisfaction level of GST after implication has not reached the expectation of all Governments, consumers & business. The urgent requirements for improvement in the nation’s interest include rationalizing GST rates, removing excess processes, creating efficiencies and removing debatable aspects. The present study analyzes the awareness and overview of GST in the study area. Key Words: Tax, GST, Revenue, Difficulties, Awareness, Overview, India.

Goods and Services Tax in India and Other Countries: A Comparative Study

Taxation is the major source of development of any economy. France was the first country who implemented GST with four tax rate slabs in 1954 in the world. At present, there are 160 countries in the world that have implemented GST/VAT. GST is a single unique tax structure which reduces the cascading effect. As per the World Bank Report, India’s GST top slab of 28% is the second highest of the 115 countries. In India Goods and Services Tax was implemented on 1st July, 2017. GST model of India is based on a dual structure like Canada and Brazil. This study highlights the system of GST, threshold limit, and GST rates around the world. This paper compares the structure of GST in India to some other countries of the world. This study is based on the secondary data taken from various sources such as Government websites, articles, research papers, etc.

Supporting Growth, Restoring Confidence: A Shadow Federal Budget for 2020

Early 2020 presents Canada with two challenges: amenic economic growth, and nervousness about the federal government’s fiscal stewardship. The C.D. Howe Institute’s Shadow Federal Budget for 2020 addresses both. It contains a number of measures to improve the rewards from work, saving and investment – initiatives that will support near-term spending and job creation, and raise Canada's growth prospects and opportunities over time. It also contains measures that will enhance the efficiency of federal revenue collection, control spending, and eliminate federal government borrowing by the end of the projection period – initiatives that will give Canadians confidence in their national finances. Highlights of the 2020 Shadow Budget’s measures to support economic growth are changes to personal and corporate income taxes that will encourage talent and investment, elimination of distorting taxes and border frictions, more focused infrastructure investments, and measures to support Canada’s labour market. The Shadow Budget would foster opportunity and well-being by supporting saving for, and income in, retirement, establishing more generous treatment for medical expenses, supporting charitable giving, and implementing a more growth-friendly strategy to reduce greenhouse gas emissions with a new GST rate on motive fuels. It would further support fiscal sustainability through new regimes for federal estimates, federal employee pensions and compensation, levelling the playing field for taxation of digital services, and rationalizing ineffective tax expenditures. The result is a fiscal framework that will support growth now and in the future, and let Canadians work, save and invest with confidence, knowing that the federal government is dealing successfully with the country's longer-term challenges.

Public Opinion on Impact of Gst in Granite and Marbles

The Indian Government's yearning "One country one Tax" System, GST (Goods and Service access) is forced on each kind of Business. There are different GST rates of Building development material like Granite and Marble. GST rates on Marble and rock stone is forced utilizing the HSN Code. "Orchestrated System of Nomenclature" or basically HSN is a multipurpose item terminology composed by "world traditions association"(Ajay Kumar and Kumar 2017). Our Government utilized HSN code in GST invoicing to meet the tuning of Indian standard with universal Standard. The rock and marble industry is exceptionally divided and disorderly. It has high fares for crude and in addition handled squares. Stone records for about Rs. 13,000 crores of fares and local possibly around the equivalent however some part isn't accounted. This is amassed in Karnataka, Andhra, Orissa and so forth. Marble industry is to a great extent gathered in Rajasthan and Gujarat. India is the biggest maker of normal stone on the planet however China has the most elevated fares, in excess of 2 times the estimation of Indian fares. The (Cushing 1993)esteem included items in this industry duplicate the esteem which is gradually getting in India. .As of now strolling a tightrope, the little scale stone area is probably going to confront amazingly, one more tempest with presentation of Goods and Service Tax from on July 1, 2017. Despite the fact that it is touted as an improved duty framework, the GST could spell fate for the stone business spread crosswise over Karimnagar, Warangal and Khammam. With rock tiles going under the higher section GST rate structure, the industry will confront unstable interest in the universal market. Aside from the business and the vast workforce relied upon it, the customers will likewise need to confront its progressively outstretching influence.

Goods and Services Tax: Issues and Challenges in India

Number of indirect taxes is under one umbrella which simplifies taxation system for service and commodity businesses. GST can convey various advantages to economy as an indirect tax. The paper focuses on advantages to Indian economy, and various problems, issues and challenges in front of GST. These advantages include effect on GDP ratio, competitive advantages, price and consumption benefits and others. Present GST rates, exempted products from GST, issues and challenges are also discussed in this paper in which some problems such as lack of growth, complexity, filing charges, multiple returns are included.

Some results from the theory of optimal taxation and their relevance for increasing the progressiveness of Indian tax structure

Results in the theoretical literature on optimal taxation are reviewed to study their relevance for the design of income and commodity tax reforms in India. Given the recent steep increase in inequality, there is a need to increase significantly the overall progressiveness of the Indian tax structure. In the absence of a comprehensive income tax base in India, where much of income escapes taxation, this can be done by greater reliance on commodity taxation. GST slabs and GST rates have to be fixed in accordance with the “many-person Ramsey rule” for commodity taxation that is based on both equity and efficiency considerations. Currently, there is not much variation in the marginal income tax rates faced by people at the high end of the income distribution, even though there is a lot of variation in their incomes. This implies that the existing income tax design gives nearly the same social welfare weights to both billionaires and salaried people with incomes close to Rs. 10,00,000. Thus, to combat the growing inequality in India, the progressiveness of income taxation at the tail of the income distribution also needs to be significantly increased, as this will be equivalent to making social preferences more inequality-averse.

How the GST rates will affect your money?

How the GST rates will affect your money?

Effect of Declaration of GST Rates and Changes in the GST Rates on the Sectorial Indices of National Stock Market

As per the Hypothesis of efficient market, the market is sectioned in three sections in view of how efficiently the market reacts to the private and public information. The main objective of this paper is to check whether there is a presence of volatility in the market due to declaration of GST rates and the declaration of changes in the GST rates and test semi-strong efficiency of Indian stock market. It was discovered that the declaration of GST rates and declaration of changes in GST rates did create an effect on the volatility of stock market. Goods and Service Tax has replaced the existing cascading taxes levied by the governments. It is going to change the way taxes are levied which effects the sentiments of the investors which can been analysed on the reaction of the investors towards stock market. The closing prices of NSE 10 sectorial indices and Nifty index has been used for conducting the study. The study is conducted using OLS, GARCH, and TGARCH. Thus, the study is useful to the regulatory bodies, investors and portfolio managers.

Righting the Course: A Shadow Federal Budget for 2018

The C.D. Howe Institute’s Shadow Federal Budget for 2018 looks past the deficits the federal government has deliberately created in the near term, and urges the government to think longer term, with a framework that will reassure Canadians about the sustainability of fiscal policy while responding to sharper competitive pressure on trade and taxation. Balancing astute spending measures and cost savings with revenue generation can inspire confidence that the country is ready for the longer-term challenges of slower growth and an aging population – a good backdrop for measures that support economic growth and job creation, and promote opportunities for all Canadians. This Shadow Budget responds to competitive pressures from US tax reforms with some immediate measures, and lays the foundation for more fundamental reforms that will have a lasting impact on Canadian productivity and incomes. Two quick changes to accelerate write-offs of business investment will signal Canada’s readiness to restore some of our lost competitiveness for new investments. Longer term, establishment of an allowance for corporate equity that relieves ordinary returns to capital from corporate income tax would make Canada more attractive for domestic and foreign investors. This Shadow Budget holds the line on the federal government’s own operating costs and eliminates some poorly designed or targeted tax preferences. It improves environmentally motivated taxation by establishing a higher GST rate on transportation fuels and eliminating the aviation fuel tax. It reorients infrastructure spending toward projects on which the federal government can move quickly and efficiently. It further improves the transparency of government finances and the ability of legislators to control public money. Other policies advancing Canada’s openness to trade and competition, and supportive of higher student achievement, will further strengthen the country’s economic capacity. This Shadow Budget also expands individual opportunities by facilitating the movement of human talent to where job prospects are brighter and rewards greater, and by fostering more saving opportunities and income security for our seniors, now and in the future. On the spending side, this Shadow Budget proposes to dispose of non-core assets and increase private investment in infrastructure by selling selected airport leases, reduce punitive personal income taxes, continue to invest in education for Indigenous children, and provide a more generous tax treatment for nondiscretionary medical expenses. In summary, this Shadow Budget promotes economic growth with reforms that will attract investment, promote international trade, and encourage work and saving. It sets federal finances on a longer-term course back to balance, assuring Canadians that they can pursue their lives and work, save and invest with confidence.

Effect of GST Rate Announcement on Sectorial Indices of National Stock Exchange

The present article aims to study the reaction of Indian Capital Market with respect to the announcement of GST rates and also tries to test semi-strong efficiency of the stock market. The performance of stock market and its behaviour serves as an indicator of the reactions of the economy of the nation. The Goods and Services Tax is a major tax reform in India which is most likely to boost the economic growth of the country. This expectation of the investors is assumed to be transformed to stock price returns that are either negative or positive. Therefore the present study observes the reaction of stock market to the announcement of much awaited GST rates on May 8th 2017. The study is conducted using the daily closing prices of various NSE sectorial and thematic indices. OLS, GARCH and TGARCH and event study is used for the study. The findings of the study are useful to the portfolio managers, investors, and regulatory bodies.

A Study on Public Awareness towards Goods and Services Tax (Amendment) Bill in Sivakasi Region

Goods and Service Tax GST is all set to be a game changer for the Indian economy. The tax is expected to reduce the concept of ‘tax on tax’, increase the gross domestic product of the economy and reduce prices. In India, there are different indirect taxes applied on goods and services by central and state government. GST is intended to include all these taxes into one tax with seamless ITC and charged on both goods and services. For the introduction of GST, the Government needs to get the Constitution Amendment Bill passed so that the proposed objective of subsuming all taxes and allowing states to tax subjects in Union list and vice versa is achieved. Without these powers, it is not legally possible to move towards GST. Conceptually GST is expected to have numerous benefits like reduction in compliances in the long run since multiple taxes will be replaced with one tax.It is expected to bring down prices and hence the inflation since it will remove the impact of tax on tax and enable seamless credit. It is expected to generate revenue for the country as the tax base will increase as the GST rate will be somewhere around 27% with both goods and services covered. It is also expected to make exports from India competitive and India a preferred destination for foreign investment since GST is a globally accepted tax. Unless the issues relating to GST has been overcome, the GST would become a bare wall without any scripts to describe in future.

International Trade and Goods and Services Tax: A Global Assessment

The paper under review highlights the concept of GST(Goods & Services) Tax, its origin and background from international perspective. The research paper focuses on the significance of GST, its impact on various economies i.e. developed, developing, underdeveloped and undeveloped economies. It dwells into the aspects of impact on purchase of goods under GST, procurement of services, road map and challenges of GST on various economies mentioned above, GST and its operations, behaviour of economies on implementation of GST and linkages arising out of the implementation of GST in these economies. So far as the global economic scenario is concerned, this paper studies the impact and assessment of implementation of GST, challenges and their future consequences and course of action to be taken by certain economies after the implementation of GST. These group of economies are OECD countries, Asian, African and Latin American countries. It is observed that the GST rates vary widely among economies. This is evident from the statistical tools that have been used to calculate the median and modal value of GST rates and the coefficient of variations of the GST rates of various economies. Due to the large variations in the median and modal values of GST rates including the coefficient of variation of the GST rates of these economies, the terms of trade between these countries gets affected to a great extent, thereby affecting international trade among these economies. Certain standard models on GST have also been discussed in the paper. Globally, it is seen that 160 countries have adopted GST in one way or the other. This research paper highlights certain key advantages of implementation of GST by the various economies and they include welfare effects, distributional effects, trade effects and macroeconomic effects.

Budget Repair Measures: Tough Choices for Australia's Future

This study quantifies the macroeconomic and welfare effects of three proposed fiscal measures to eliminate Australian government budget deficits and to reduce public debt by 2030, namely: (i) temporary income tax hikes; (ii) temporary consumption tax hikes (increases in the GST rate); and (iii) temporary transfer payment cuts. Our quantitative analysis is based on a computable overlapping generations (OLG) model that is tailored to the Australian economy. The simulation results indicate that all three examined fiscal measures result in favourable long-run macroeconomic and welfare outcomes, but severe adverse consequences during the fiscal consolidation period. Moreover, our results show that cutting transfer payments leads to the worst welfare outcome for all generations currently alive, and especially the poor. Increasing the consumption tax rate results in smaller welfare losses, but compared to raising income taxes, the current poor households pay much larger welfare costs. Overall, the welfare trade-offs between current and future generations, as well as between the rich and poor, highlight key political constraints and point to tough policy choices for the wellbeing of future Australians.

How to Zero-Rate the GST on Food: Best and Worst Practice from the United Kingdom, Canada, and Australia

The international norm in countries with consumption taxes is to exclude, by zero-rating, certain food items from taxation. New Zealand has to date been an exception, in part due to its low rate of GST compared to other countries. The recent increase in the GST rate from 12.5 to 15 percent, along with concerns about obesity and rising food prices, has put pressure on New Zealand’s position on taxing food. This article considers what would be the best way to implement zero-rating food were New Zealand to adopt that policy, by distilling lessons from the United Kingdom, Canada and Australia.This article does not address directly the already well-canvassed question of whether food should be zero-rated. However, by proposing a best practice for zero-rating food in New Zealand, and identifying potential implementation traps, this article may inform debates about the pros and cons of zero-rating.This article concludes that is possible to craft a simple, principle-based approach to zero-rating certain food items that avoids or mitigates the problems faced in other jurisdictions. Many of the problems faced by other countries when zero-rating food were due to unique political circumstances that New Zealand is unlikely to face. Nevertheless, there are some universal traps in zero-rating food, which some countries have fallen straight into, and others have avoided. New Zealand can learn from those experiences.

The GST Cut and Fiscal Imbalance

The federal government is reducing its GST rate from 7% to 5%. We examine a broader reform in which this reduction in federal tax rates and revenues is accompanied by a similar reduction in federal transfers to the provinces. At the same time, the provinces may if they wish increase their own sales tax rates to make up the difference, while some provinces, including Ontario, reform their retail sales taxes to emulate the federal GST more closely. We analyze the likely impacts of such reforms on provincial revenues, tax incidence, and business investment. The result of combining these measures would be (1) a better 'balanced' federation, with less room for 'blame-shifting' between levels of government and consequently greater accountability at all levels, and (2) owing to the removal of the present surprisingly heavy tax on investment imposed by the provincial retail sales taxes an expansion in investment and, over time, in productivity, employment, and perhaps economic growth.