Australia · Canada · India — add or remove GST/HST
Australia introduced GST on 1 July 2000 at a flat rate of 10%. It applies to most goods and services sold in Australia. GST-free items include most basic foods (fresh fruit, vegetables, meat, fish, bread, milk), some medical and healthcare services, some educational courses, and exports. The Australian Taxation Office (ATO) requires businesses with a turnover over AUD $75,000 to register for GST.
Canada charges a federal Goods and Services Tax (GST) of 5%. Some provinces have harmonised their provincial sales tax with the federal GST into a single Harmonised Sales Tax (HST). Ontario and PEI charge 13% HST. New Brunswick, Nova Scotia, and Newfoundland charge 15% HST. Quebec has its own Quebec Sales Tax (QST) of 9.975%, giving a combined rate of approximately 14.975%. Alberta has no provincial sales tax, so only 5% GST applies.
India introduced GST on 1 July 2017, replacing a complex patchwork of central and state taxes. GST in India has four main rate slabs. The 5% slab covers essential items like packaged food, fuel, household necessities, and transport services. The 12% slab covers processed foods, mobile phones, and business-class air travel. The 18% slab covers most goods and services including most restaurants, electronics, and financial services. The 28% slab covers luxury goods such as cars, tobacco, aerated drinks, and casino services. Many essential goods including fresh food, milk, eggs, and healthcare are exempt at 0%.
Divide the total (GST-inclusive) price by 11. For example, a $110 total contains $10 GST (110 ÷ 11 = 10) and $100 of pre-GST price. This works because 10% of $100 = $10, and $100 + $10 = $110 — so 10/110 = 1/11.
GST (Goods and Services Tax) is the 5% federal tax. HST (Harmonised Sales Tax) is a combined federal + provincial tax used in provinces that have merged their systems. Where HST applies, you pay one combined rate rather than separate federal and provincial amounts.
Under Indian GST, transactions within a state split the tax between Central GST (CGST, collected by the central government) and State GST (SGST, collected by the state). For example, on an 18% GST transaction, 9% goes to the centre as CGST and 9% to the state as SGST. For interstate transactions, Integrated GST (IGST) applies at the full rate.
They are economically equivalent — both are consumption taxes collected at each stage of the supply chain with credit for tax paid on inputs. Different countries use different names: the UK and EU call it VAT, while Australia, Canada, India, New Zealand, and Singapore call it GST.