About the new tax reform in India

About the new tax reform in India

India introduced a single tax on services and goods. This large-scale tax reform in India was named "revolutionary". Before the introduction of a single tax, each of the 29 Indian states had their own tax laws.

The introduction of the new system is aimed at the overall strengthening of the Indian market, stimulating economic growth and  simplification of goods movement  between states.

Narendra Modi, Prime Minister of India, believes that a single tax on goods and services will save India from a trade imbalance and will positively affect the growth of exports.

The Indian authorities expect this reform to accelerate economic growth of 2 percent of gross domestic product.
Depending on the type of goods, the single tax provides for 4 different rates.

Public goods will have the lowest rate of 5 percent, on the other hand luxury goods will have the maximum rate of 28 percent.

According to many experts, time is the main factor that can show the impact of this reform on the Indian economy

For more information, please contact Law & Trust International.