GOODS AND SERVICES TAX (GST)

Beginning Of A New Era

At the stroke of midnight when calendar turned the leaf to bring in July 1, 2017, India adopted the biggest tax reform in its 70 year history after Independence and moved towards One Nation One Tax with the Goods and Services Tax (GST) coming into effect. In consonance with the huge significance of the move, the Union Government organized a midnight event in the same Central Hall of Parliament where India was proclaimed to be independent at midnight on August 15, 1947. As soon as the midnight gong sounded, Hon’ble President Mr.Pranab Mukherjee and Prime Minister Narendra Modi jointly pressed the button and “right from Ganganagar to Itanagar and Leh to Lakshdweep,’ as Prime Minister put it, a new era of GST began, replacing 17 Central and State taxes and 23 cesses. The epoch-making change is bound to transform the $2000 billion Indian economy in the years to come.

Here are some of the points he raised in his speech:

·         The GST has been the result of a long-drawn premeditated efforts of several years equally supported by State Governments.

·         This process of the GST is not restricted to the scope of economy only. It is the testimony to the concept of Cooperative Federalism in Indian Democracy.

·         The GST intends to bring in economic reforms. It is a notable example of Co-operative Federalism which shall facilitate inclusive growth of the nation. With the launch of the GST, Team India has proved its potential and diligence.

·         This GST Council has developed such systems wherein the underprivileged gets all the promised facilities.

·         All states are slated to gain immensely as they shall now get equal opportunities of development.

·         The country is moving a step forward towards a modern taxation system. This is a system that is simpler, more transparent. It will help to curb black money and corruption and reward honesty.