A Comparative Study of GST Implementation Across Countries

A Comparative Study of GST Implementation Across Countries-Analysis different GST models, their effectiveness economic impacts

Dr. AjuSaigal

Senior Data Analyst

Tax Research & Policy Cell, GST Department, Government of Kerala, India

Abstract

The implementation of the Goods and Services Tax (GST) has significantly transformed taxation systems worldwide, replacing complex indirect tax structures with a unified consumption-based model. This thesis presents a comparative study of GST implementation across various countries, analysing different GST models, their effectiveness, and their impact on economic growth, inflation, and business compliance. The study examines GST frameworks in India, Australia, Canada, the European Union, and other major economies, highlighting differences in tax rates, exemptions, revenue-sharing mechanisms, and compliance structures. It explores how GST has influenced economic efficiency, tax evasion, revenue collection, and market integration. Special attention is given to the multi-tier GST model in India, the dual GST structure in Canada, and the VAT-based system in the European Union, identifying their respective strengths and challenges. Through a mix of quantitative and qualitative analysis, this research assesses the short-term and long-term impacts of GST, including its effect on GDP growth, price stability, and ease of doing business. The study also explores challenges such as high compliance costs, tax rate complexities, and technological infrastructure requirements for successful GST administration. Findings suggest that while GST has simplified tax systems, reduced tax evasion, and improved transparency, its implementation challenges vary based on economic structure, governance efficiency, and digital readiness. The research concludes with policy recommendations to optimize GST frameworks for enhanced economic benefits.

Keywords: GST, tax reform, economic impact, comparative analysis, fiscal policy, revenue collection.