At the stroke of the midnight hour, India has awakened as a common market for the first time. The 17 year-journey of historic Goods and Services Tax (GST) has finally come to an end, as President Pranab Mukherjee and Prime Minister Narendra Modi rung the bell of new India and rolled-out ‘One Nation, One Tax’ dream into a reality in a special joint Parliamentary Session at 00:00 of July 1.
“We are ushering in a new change today. This reform is not merely financial. This historic reform is not a particular party or government’s achievement, but a collective heritage of all. It is an example of cooperative federalism. GST will do away with Inspector Raj and tax terrorism. GST is not only ease of doing business, but a way of doing business,” said Prime Minister Narendra Modi in his speech at Central Hall of Parliament.
GST will make exports more competitive & also provide a level playing field to domestic industry to compete with imports #PresidentMukherjee
— President of India (@RashtrapatiBhvn) June 30, 2017
“Today we have gathered for an important and historic moment of our country. The GST maybe a destination tax, but for India it will begin altogether a new journey. It’s a journey where India will awake to limitless possibilities, to expand its economic horizons and loftier political vision,” said Finance Minister Arun Jaitley.
#GSTForNewIndia: #PresidentMukherjee and PM @narendramodi pressing the button to officially launch the #GST pic.twitter.com/gfy3cPBwgl
— PIB India (@PIB_India) June 30, 2017
The new tax reform rolled-out in the august presence of various Cabinet Ministers, Chief Ministers, and senior government officials.
GST for New India: An Overview
The Goods & Services Tax is an indirect tax throughout India to replace taxes levied by central and state governments. The new regime has swept out more than a dozen Central and State taxes and ushers in a new “good and simple tax” (in the words of PM Modi) in market for $2 trillion Indian economy.
The government has bracketed all the goods and services in the country in five categories – 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent.
GST council meetings were held 18 times before having finally arrived the historic day, with consensus.
To know all about GST, visit SMEpost.com’s GST Paathshala!
