GST: Historic tax reform officially implemented

New Delhi: India ushered in a historical era of Goods and Services Tax (GST) at the stroke of July 1. President Pranab Mukherjee formally launched the GST by pressing the button in the historic session of Parliament.

Conceived on the principle of 'one nation, one tax, one market', the tax that subsumes 17 central and state levies was launched in the presence of Vice President Hamid Ansari, former Prime Minister H.D. Deve Gowda, Lok Sabha Speaker Sumitra Mahajan, Finance Minister Arun Jaitley, MPs, chief ministers, state finance ministers, officials of the Centre and states.

Addressing historic GST session of Parliament, Prime Minister Narendra Modi on Friday said GST is not an achievement of a single party but collective heritage of all.

If you want to know anything about the GST, kindly open the link below.

GST simplified | Let’s understand more about the new tax regime…!

"India will begin a new journey towards a new destination in a few minutes." said PM Modi addressing central hall of the parliament.

"Today GST Council had its 18th meeting, ahead of final GST launch. It is a coincidence that the Bhagavad Gita also has 18 chapters," PM Modi added, linking GST with Hindu's sacred book.

He said GST will benefit commoners by providing them freedom from disorganised tax structure. PM Modi said amid many debates on GST, the best brains of the country have worked on it.

Terming GST as simple and transparent, PM Modi said it will stop Black Money and corruption.

"Now there won’t be any kaccha and pakka bill, all this will end. Long wait at toll plazas will end with GST integrating 31 states and UTs as one," he said.

PM Modi, however, accepted that there will be minor hiccups in the start. He said government is setting new roadmap and every state will get equal opportunity to grow.

What else PM Modi said

• GST has potential to end harassment at hands of officers; hope traders will transfer its benefits to consumers
• GST is not just a tax reform, but a step towards economic reform
• GST is a catalyst that will reduce the imbalance that prevails in our economy.

Addressing the gathering, President Pranab Mukherjee said the introduction of GST is a moment of precedent for the country and a matter of personal satisfaction for him because of his role as Finance Minister earlier. "I had always believed that GST was a matter of time and was happy when it was enacted and I gave assent to the Constitution amendment last year," he said.

He said the new law is a tribute to the maturity and wisdom of Indian democracy. The GST Council was a unique experiment under the Indian Constitution because of the shared sovereignty.

Finance Minister Arun Jaitley said Goods and Services Tax (GST) is an important achievement for the whole country.

"At the midnight hour we will be launching one of India's strongest and most ambitious tax and economic reforms in history," he said.

He said that the GST may be 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 visions," he said.

"The old India was economically fragmented. The new India will create one tax, one market and for one nation. It will be an India where the Centre and the states work together cooperatively and harmoniously towards the common goal of shared prosperity," he said.

Jaitley also hailed the unanimity of all the political parties for supporting GST and said, "The unanimity and support for the constitution amendment and the consensus based work of the GST Council highlights that India can rise above narrow politics and speak in one voice for larger national interest."

He also highlighted that the quality and the maturity of the debate leading to the constitutional amendments in the GST Council underscores this point that "India can collectively think and act with maturity for a broader purpose".

Jaitley also emphasised that India is a union of states. "The union is strong if both the states and the Centre are strong. That is the real meaning of the cooperative federalism. While enacting the GST neither the Centre nor the states give up their sovereignty. They have pooled their sovereignty to make joint decisions on indirect taxes," the Fiance Minister said.

Jaitley said India has done this at a time when the world is facing slow growth, isolationism and the lack of structural reforms.

"With the GST India has showcased that these forces can be overcome through the display of inclusion, openness and boldness," the Finance Minister said.

Former Prime Minister Manmohan Singh gave the GST launch ceremony at Parliament a miss as the Congress boycotted the function, while some constituents of the informal opposition grouping, including the NCP, Samajwadi Party, JD(U) and JD(S), attended the function.

JD(S) supremo and former Prime Minister H.D. Deve Gowda, who was one of the special invitees along with Manmohan Singh, attended the function.

NCP chief Sharad Pawar also attended the event marking India's transition to a new indirect tax regime Goods and Services Tax (GST).

Among the other opposition parties which did not attend the function were the DMK, left parties, RJD and the Trinamool Congress.

The Congress had on Thursday decided not to attend the function.