Dear Pranesh, Pl. go through the below given brief explanation on GST to have an idea. As it is to be introduced for its implementation in our Parliament shortly for constitutional amendment, no studies are available on GST. However, there are some Positive and negative opinions on GST. 

“Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level under which no distinction is made between goods and services for levying of tax. It will mostly substitute all indirect taxes levied on goods and services by the Central and State governments in India. GST is a tax on goods and services under which every person is liable to pay tax on his output and is entitled to get input tax credit (ITC) on the tax paid on its inputs (therefore a tax on value addition only) and ultimately the final consumer shall bear the tax”.

Objectives of GST: One of the main objective of Goods & Service Tax (GST) would be to eliminate the doubly taxation i.e. cascading effects of taxes on production and distribution cost of goods and services. The exclusion of cascading effects i.e. tax on tax till the level of final consumers will significantly improve the competitiveness of original goods and services in market which leads to beneficial impact to the GDP growth of the country. Introduction of a GST to replace the existing multiple tax structures of Centre and State taxes are not only desirable but imperative. Integration of various taxes into a GST system would make it possible to give full credit for inputs taxes collected. GST, being a destination-based consumption tax based on VAT principle.

Worldwide GST: France was the first country to introduce GST in 1954. Worldwide, Almost 150 countries have introduced GST in one or the other form since now. Most of the countries have a unified GST system. Brazil and Canada follow a dual system vis-à-vis India is going to introduce. In China, GST applies only to goods and the provision of repairs, replacement and processing services.

Constitutional Amendment is Must: While the Centre is empowered to tax services and goods upto the production stage, the States have the power to tax sale of goods. The States do not have the powers to levy a tax on supply of services while the Centre does not have power to levy tax on the sale of goods. Thus, the Constitution does not vest express power either in the Central or State Government to levy a tax on the ‘supply of goods and services’. Moreover, the Constitution also does not empower the States to impose tax on imports. Therefore, it is essential to have Constitutional Amendments for empowering the Centre to levy tax on sale of goods and States for levy of service tax and tax on imports and other consequential issue. 

Malaysia has recently started GST policy. you may look at few Malaysian papers.

Pakistan has recently started sales tax on services by province wise. But the sales tax on goods already levied in 1990.  Your can check their website.

I am addressing Vijay Kumar Sarabu

Sir,

I know that the India is going to implement GST resently. But sir I wanted to know about the other country status who have recently been implemented GST and their progress.

Dear Pranesh, Pl. go through this:

GST was already adopted in more than 140 countries, it has been tested and proven to work well with the public and the government. For example, in Australia GST was introduced in 2000. When GST was implemented, there was corresponding reductions in personal income taxes, state banking taxes, federal wholesales tax and some fuel taxes, leading State Treasurer Peter Costello to claim that people were effectively paying no extra tax.

Likewise, Curtin University of Technology, Perth in 2000 made statements that the real estate market would be impacted with an eight per cent increase in the cost of homes with the introduction of the GST. This proved to be false as the real estate market boomed between 2002 and 2004 and demand saw a dramatic increase. This is an example of negative perception of GST which in reality is merely assumptions that are far from the truth.

In Canada, the GST replaced the Manufacturer’s Sales Tax and came into force in 1991. The tax did not apply to products such as groceries, residential rent, and medical services, and services such as financial services. New Zealand introduced GST in 1986 and unlike most countries, there are few exemptions: for example, all types of food are taxed at the same rate. However, there are a few exceptions including rents collected on residential rental properties, donations, precious metals and financial services. The laws in New Zealand ensured that prices on headlines must be GST inclusive, except when businesses claim to be mainly wholesale client-based.

In the European Union, the GST, better known as the Value Added Tax, are known as ‘output VAT’ (VAT on its output supplies) and ‘input VAT’ (VAT that is paid by a business to another business on the supplies it receives). A business is usually able to recover the tax it paid either by setting it against the output VAT of if in excess by claiming a repayment from the government.

Malaysia introduced GST from 1st April, 2015 as a better and more effective tax to replace the Sales Tax and Service Tax, since it is already well received and implemented in more than 140 countries.

Just to make corrections here, we in Malaysia implemented the GST since 1 April 2015. Like Mohammad Ashraful above stated, you could possibly find many writings on effects since the implementation. Few research houses are Khazanah Nasional Berhad, CIMB Research House, MIER.

A few thoughts on GST which you may wish to consider:

It's rate.  UK rate was 17.5% then reduced temporarily during GFC to 15% then increased under 'austerity' to 20%.  Australian rate is 10% currently being considered for increase to 15%.  

The range of goods and services it impacts upon.  Australian GST is levied on a wider range of goods and services than UK (eg groceries and postage stamps are subject to Australian GST).  

How GST interacts with other taxes, as each tax operates differently.  For instance increasing GST to reduce income tax will generally benefit the wealthy (who pay greater income tax) and harm the poor (who need to buy goods and tend not to benefit from income tax reductions).  Also related to that, while GST was introduced to Australia on the promise of reduced income tax rates, those rates have since increased, new debt funding tax was introduced on higher incomes, retirement age was extended from 65 to 70 PLUS as mentioned above GST is now also being considered for increase.  

Cynically, it would seem GST has a narrative story which seems justifiable, but in the Australian experience particularly it seems to be merely just another tool for raising government revenues at the expense of taxpayers.  

Thank you all active researcher for sharing your valuable experience and spending your busy time for me.