At midnight, India’s biggest tax reform ‘GST’ is rolled Out from Parliament’s Central Hall - (01 Jul 2017)

Indirect Taxation

The long awaited Goods and Services Tax has finally seen light of day with its roll out at midnight of 30th June 2017. Ending a slew of indirect taxes being imposed by Centre as well as respective States and Union Territories till now, GST being a single tax regime, takes it over across the nation w.e.f. 1st July 2017. President Shri Pranab Mukherjee and Prime Minister Shri Narendra Modi pressed the button from historic Central Hall of Parliament at stroke of midnight, witnessed by large gathering of members of parliament. Among present, were Chief Justice of India Shri J.S. Khehar, the Vice-President of India Shri Hamid Ansari, Speaker Smt. Sumitra Mahajan, Finance Minister Shri Arun Jaitley, Mr. Ratan Tata and other top shots of politics, business and law.

President Shri Pranab Mukherjee termed it as a ‘tribute to maturity and wisdom of India’s democracy’. Infact, it was Mr. Mukherjee who as a finance Minister in previous Government had originally moved Constitution Amendment bill for bringing GST in year 2011. Prime Minister emphasised brighter aspects of implementation of GST and has termed it as ‘Good and Simple Tax’.

The Goods & Services Tax is a single tax on supply of goods and services, right from manufacturer to consumer and is a most powerful tax reform since independence and is aimed to do away with multiple-tax regime on goods and services and bring them under uniform rate. What makes GST unique in its own way is that, it would confer simultaneous power upon Parliament and State Legislatures to make laws governing goods and services tax. Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside purview of GST. All this has been possible after marathon meetings between centre and state representatives in council meetings striking a balance between sharing of earnings and possible implications.

The rolling out of GST is second most powerful act of Central Government after demonization drive which saw lot of implications effecting a common man to big business houses. With roll out of GST, it is again expected to cause certain turbulences in entire financial system of India. However, Central Government is ready to face challenge and is looking hopeful to handle and solve hurdles which might come in coming months.

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