A multi-layered Goods and Services Tax slab always has the unintended consequence of dampening consumption and negatively impacting businesses. Hence, it is no surprise that Prime Minister Narendra Modi's Independence Day announcement of a proposal on GST reforms has been welcomed by people and industry alike.India currently has four main slabs 5%, 12%, 18%, and 28% that is proposed to be reduced to a simplified two-tier system of 5% and 18%. There will be another special tax rate for 'sin' goods, which is in place currently too. Many developed countries, such as Australia, Canada, New Zealand, and Japan, have a single GST rate, typically ranging between 5% and 15%.
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