Taxing times

13 June 2017 By Una Galani Follow @ugalani

The nation is ill-prepared for the July 1 rollout of a fiddly new goods and services tax. Yet Premier Modi’s recent money experiment shows India can handle significant disruption. And for all its flaws, the tax overhaul will smooth the way to more efficient, less corrupt economy.

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India's new Goods and Services Tax (GST) will come into effect from July 1. It is seen as the country's most significant tax reform since independence.

The GST will harmonise the variable tax rates currently in effect throughout India's 29 states and create a single customs union.

The destination-based tax will apply rates of 5, 12, 18, and 28 percent to different categories of goods and services. There will be an extra levy added to the top rate for specific luxury items.

Alcohol, electricity, real estate and petroleum are exempt.

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