India’s GST bill rollout: Structural benefits in the offing

Largest-ever indirect tax reform is expected to promote sustainable economic growth

On July 1, 2017, India ushered in its largest-ever indirect tax reform — the rollout of the Goods and Services Tax (GST) bill. The GST replaced 16 different types of state and federal taxes with one common tax system, comprising four major tax rates (5%, 12%, 18% and 28%) and a few other special categories for specified items. The bill is intended to simplify the taxation structure and be tax-neutral, by charging at the rates of the goods and services close to the existing rates.

Major tax categories