New Delhi: India gets its biggest tax reform as Goods and Services Tax (GST) has been officially launched at the midnight stroke of July 1, 2017, by Prime Minister Narendra Modi at Parliament’s historic Central Hall, in the presence of President Pranab Mukherjee.
GST, which replaces a slew of indirect taxes with a unified tax, is set to dramatically reshape the country’s 2 trillion dollar economy.
Here are the LIVE updates:
23:57 I was closely involved in the design & implementation ofas the then Finance Minister: President Mukherjee
23:53 It is a tribute to the maturity and wisdom of India’s democracy: President Mukherjee
23:51 Introduction ofis a momentous event for the nation: President Pranab Mukherjee
23:49 President Pranab Mukherjee addresses GST gathering
23:45 GST stands for Good and Simple Tax: PM Modi
23:42 Long wait at toll plazas will end withintegrating 31 states and UTs as one: PM Modi
23:33 PM Modi quotes Albert Einstein as saying,”one the of the most difficult thing to grasp was the the concept of Income Tax”
23:30 GST is a result of a long thinking; all states along with Centre discussed for years: PM Modi
23:27 ‘India is a shining example of cooperative federalism,’ says PM Modi
23:25 GST launch sets path for India’s future journey: PM
23:23 ‘It is not a success of any party or any government. It is the result of everyone’s effort,’ says PM Modi
23:21 Aaj iss madhya raatri ke samay hum sab mil karke desh ka aage ka marg sunishchit karne ja rahe hain: PM Modi
23:19 Prime Minister Narendra Modi addresses gathering ahead of GST launch
23:17 Tax avoidance will become difficult, rates will be lesser, GDP will improve: FM Jaitley
23:15 The old India was economically fragmented, the new India will create one tax, one market and for one nation: FM Jaitley
23:11 GST shows India can rise above narrow politics: FM Jaitley
23:10 ‘All MPs, State govts, State FMs, political parties deserve to be appreciated for
23:08 While enacting the GST, neither the State nor the Centre loses its sovereignty: FM Arun Jaitley
23:06 Journey started 15 years ago. Vijay Kelkar committee was formed in 2003 to recommend tax Reforms
23:05: Finance Minister Arun Jaitley addresses the gathering in Parliament ahead of GST launch.
22:58: President Pranab Mukherjee arrives at the Parliament.
22:35: Narendra Modi arrives in the Central Hall of Parliament. Sushma Swaraj, Amit Shah, Arun Jaitley among those present.
— Republic (@republic) June 30, 2017
Here’s all you need to know about GST
What is GST?
One Nation One Tax- GST or Goods and Services Tax is applicable on supply of goods and service which will replace the current taxes of excise, VAT and service tax.
Why is GST needed?
Currently with different states there are different laws which give rise to various problems, especially when businesses sell to different states. Also, most businesses have to pay and comply with 3 different taxes – excise, VAT, and service tax.
With implementation of GST, uniformity in taxation across the country will be ensured. This reform gives equal footing to the big enterprises as well as SMEs. The aim of GST is thus to simplify tax hurdles for the entire economy.
Who will have to pay GST?
GST being an indirect tax, it will be ultimately borne by the end consumers, just like in the current process, GST will be paid by all manufacturers, sellers and service providers such as telecom providers, consultants, chartered accountants etc.
What kind of GST will be implemented in India?
India will implement the Canadian model of Dual GST, i.e., both the Centre and State will collect GST.
There will be 3 types of GST:
CGST- Collected by Centre
SGST- Collected by State
IGST- Applicable on inter-state sales. It will help in smooth transfer between states and the Centre.
What are GST proposed rates?
Though GST rates are yet to been passed by the Lok Sabha.
The proposed rates are:
How GST will affect your pocket?
Expect reduction in prices of :
- FMCG goods such as shampoos, chocolates
- Eating out
- Small cars
Increase in prices of:
- Luxury cars
- Aerated beverages