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Tuesday, June 20, 2017

[CUTS-TradeForum] Getting GST right.

From: CUTS International

Getting GST right
Pradeep S Mehta, Amol Kulkarni and Sanjay Kumar Mangla
The Tribune
June 19, 2017

Prevent overcharging and ensure benefits are passed on to customers

A few days remain for the adoption of the first-ever competition reform — since Independence — to create a seamless national market without any distortions. As India awaits the introduction of its historic GST regime with bated breath, it will be prudent to take a look at the experiences of other countries on the introduction of GST and tackling related challenges.

GST was introduced in Malaysia, a federal country, in April 2015. It has been reported that the government received more than 5,000 consumer complaints on overcharging of goods and services in just 23 days of GST’s launch. The Malaysian government was benchmarking itself against the experience in Australia, also a federal country, which had received over 60,000 complaints during the initial period of GST adoption in the year 2000. Having prepared for the worst, the Malaysian government was able to conduct over 1,50,000 inspections during the first three weeks and issued close to 700 notices to traders to justify their price increases.

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