The historical move, the biggest tax reform finally i.e. GST now a reality. Goods and Services Tax (GST) finally, after crossing all the hurdles, launched by Prime Minister Narendra Modi at Parliament’s historic Central Hall, together with President Pranab Mukherjee. Meeting started with FM Arun Jaitley’s speech by thanking GST Council.

‘GST is an Important achievement’

‘India will write new destiny’, said FM Arun Jaitley

GST aimed at replacing dozens of indirect taxes with a unified tax and will help modernise Asia’s third largest economy. Initially in short run, people may face problems in aligning themselves with unified tax structure, but in long term, it is expected to have GDP growth by 2%. GST aims at unifying the country’s USD 2 trillion economy with 1.3 billion people into a common market. The underlying principle of fixing GST rates was to ensure tax neutrality and to avoid unnecessary burden on the common man, FM said.

For the general public GST is Goods & Services Taxes, but for me GST is Good & Simple Tax, PM said. Also added, GST is not only ease of doing business, but a way of doing business & GST is a catalyst that will reduce the imbalance that prevails in our economy.

GST in a layman language:

  • It gives the country one uniform tax, and not frequent rate changes
  • A lower tax burden.
  • GDP could rise by 2%
  • Lesser scope of tax evasion

GST to make India’s exports more competitive and provide level-playing field to domestic industry to compete with imports, said President. 

Following are the Rates revised right before the launch of GST:

Name Earlier Rates Revised Rates
Tractor parts 28% 18%
Fertilizer 12% 5%

The midnight launch was concluded with playing National Anthem.

Conclusion:

Implementation of GST is a remarkable move and indeed a game changer for Indian Economy. It will be a mechanism that would check the corrupt and give opportunities to the honest. It will also give us an opportunity to us for better governance: PM Modi said. Since, it’s a biggest tax reform after independence, people may find it difficult to cope up with in initial stage, but gradually, the entire process would be in a smooth flow.

Next three GST Council meeting will be on first Saturday of the month starting from August, 2017. 

 NEW ERA OF TAXATION BEGINS IN INDIA. ONE NATION, ONE TAX

Hope this information will help you in your Professional endeavors. For further assistance/query, feel free to write to us. 

Author: C S Ekta Maheshwari is the Author of this article and is Company Secretary by profession. The Author can be reached at csektamaheshwari14@gmail.com 

Disclaimer: The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.

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2 responses to “One Nation, One Tax, Here It Comes- GST (Good & Simple Tax)”

  1. Md.Nizamuddin says:

    Madem/ Sir,

    My question is diagnostic centre (lab) income above 20 lakhs turnover GST registration applicable or not.

  2. K K SARAWAGI says:

    Govt. should make 3 rate system in GST – 6%, 14% and 26% only. Petrol and Diesel should also be brought under the GST net and maximum GST rate should not be more than 26%.
    Further, IGST should be removed and CGST only should be there as two-tier tax system in order to reduce tax compliance system.
    Govt. should sincerely re-visit the GST system of taxation.

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