The Comparative Study on GST in India & Canad...

The Comparative Study on GST in India & Canada

Author Name : Kaliselvi K, Venkatesh G

INTRODUCTION

The Canada is a developed Country. Taxation is a mechanism used by all levels of government in Canada to collect revenue in order to finance government programs and services. Taxation is a compulsory payment imposed on individuals, businesses, organizations, and property. The Canadian sales taxes include the Provincial Sales Tax (PST), the Quebec Sales Tax (QST), the Goods and Services Tax (GST), and the Harmonized Sales Tax (HST) which is a combination of the PST and the GST in some provinces. When it comes to sales taxes, however, Canada has turned out to be not simply a bold innovator. But at the forefront of what may turn out to be a tax revolution in some respects. For decades prior to (and even after) the introduction of the federal Goods and Services Tax (GST)) in 1991, tax experts at the OECD, the IMF, and elsewhere had argued almost unanimously that the invoice-credit, destination-based value-added tax (VAT) pioneered in the European Union was inherently a central government tax that simply could not work properly at the subnational level of government. However, Canada’s experience over the last two decades demonstrates conclusively that this view is incorrect; not only can it be done, but it has been done, and done well. India, Brazil and even the European Union can arguably learn from Canadian experience.[1]

Since the most distinct feature of the VAT in Canada is clearly the extent to which it has become a provincial as well as federal tax. It is also contains evolution of theQuebec Sales Tax (QST) as well as the development and expansion over time of the Harmonized Sales Tax (HST) in a number of other provinces[2].

 France was the first country to implement GST to reduce tax-evasion. Since then, more than 140 countries have implemented GST.

Key Words: Quebec Sales Tax (QST), Harmonized Sales Tax (HST), value-added tax (VAT), Provincial Sales Tax (PST), OECD