After-Effects Of The Goods & Services Tax (GST) Bill On NRIs

Being implemented on July 1, 2017 the Goods and Services Tax (GST) bill is the biggest tax reform India has seen in over 20 years. This new bill will bring the multitude of central and state taxes under one umbrella and implement a single taxation system on both goods and services. It is levied on value-added goods and services and collected at point of sale and therefore, the end-consumer will bear only the GST charged by the last dealer in the supply chain.

While it has numerous advantages for the consumer in India, it will have major impact on the 16 million Non-Resident Indians (NRI) who continue to invest and transact monies to India, most of it putting him at an advantageous position. With the implementation of GST impacting positively on sectors like logistics, warehousing, automobiles, film production, DTH, multiplexes, cement etc., it will make India an attractive destination for investment into these sectors by the NRIs.

While all indicators suggesting the benefits of GST bill are promising towards the NRI, and its successful implementation would give a strong signal to NRI investors about India’s strong ability to support businesses, there is also the downside of levying taxes on goods and services that target the NRI specifically.

As many financial institutions are adjusting their service rates to the newly implemented norms of the GST bill, keep an eye out on CompareRemit to see the latest updates and services taxes, if applicable to your remittance to India.

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