Abstract

Drawing lessons from Canada and Brazil, two federal nations with distinct GST models, this article explores how their experiences can inform India’s ongoing GST journey. Canada’s dual GST structure, characterized by cooperative federalism and a harmonized revenue-sharing system, offers valuable insights for India in terms of enhancing tax efficiency and promoting intergovernmental cooperation. On the other hand, Brazil’s fragmented tax system, marred by decentralized tax powers and competitive "fiscal wars," serves as a cautionary tale for India, emphasizing the need for simplification and centralized coordination to avoid inefficiencies and regional disparities. This article advocates for incorporating these lessons into India’s GST framework, suggesting that a more streamlined, predictable, and business-friendly tax regime will promote sustained economic growth and equity across states. By examining both successes and failures in Canada and Brazil, this study proposes strategies for refining India’s GST system to ensure its long-term success.

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