India Launches "New Economic Era" With Sales Tax Reform (IF IT CAN KEEP IT!)

In contrast to simpler sales taxes in other countries, India's GST has four rates and numerous exemptions.

The official schedule of rates runs to 213 pages and has undergone repeated changes, some taking place as late as on Friday evening.

Many businesses are nervous about how the changes will unfold, with smaller ones saying they will get hit by higher tax rates.

Adding to the complexity, businesses with pan-India operations face filing over 1,000 digital returns a year.

While higher tax rates for services and non-food items are expected to fuel price pressures, compliance is feared to be a major challenge in a country where many entrepreneurs are not computer literate and rely on handwritten ledgers.

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Poor implementation would deal a blow to an economy that is still recovering from Modi's decision late last year to outlaw 86 percent of the currency in circulation.