Taxing Loan Intermediary Services: A Comparative Study of India, Argentina & China

India witnessed a paradigm shift in the form of “Goods and Services Tax (GST)” in 2017. This GST regime has converted earlier unorganized commercial market in India into a unified market. Financial services constitute an important and large economic sector and the application of GST to financial services is particularly complex and has given rise to a multitude of problems and selective solutions.The difficulties of taxing financial services are well known among specialist academics and policy-makers; absent is an overview of the problems and possible solutions in a single, comparative study. It involves study of GST/VAT applicable in various countries including India, Australia and New Zealand and it aims at identifying the similarities as well as differences amongst themselves in terms of legal, compliance as well as administrative framework.Also Out of all the aims, to overcome the cascading effects of taxes and a seamless flow of credit of tax paid were crucial.After analysis it has been observed that the unique taxation system of zero-rating is suitable method amongst all other alternative method of taxation of banking and financial services. But out of all, even zero-rating method has its limitations. So, the strong anti-avoidance policy along with zero-rating method is needed to be implemented.