India's biggest tax reforms, GST now a reality after 17 years

Diginitaries are now leaving the Central Hall. India has just ushered in a historic tax regime. What rings is President's mild warning about how GST can have some shortcomings in the near future and it is upto the Centre and GST Council to ensure that those problems are erased and GST truly become a gamechanger. 

A short film on GST is now being played. 

President and Prime Minister usher in the GST regime. History made at midnight!!!!! 

President explains how all major taxes will be subsumed by GST and even for him, who has been dealing with taxation for through-out his life, it is truly an enormous change. President lists out how GST will be truly a game changer. 

President says GST will be harboured by a modern IT structure. President recalls how he way back in 2010, laid the path for GST network to be formed. President says GSTN has inherent structures to encourage honest  transaction. President predicts as GST is a disruptive change, there is bound to be some teething problems. He warns that such problems shouldn't deter India's economic growth and says in the next few months GST Council and other stake holders have to ensure that all the problems are smoothened out. 

President says GST council is a joint forum of both centre and states. Pranab Mukherjee says that is remarkable that no voting has been ever done in the GST council and they have arrived in so many decisions. President says that GST Council has pleasantly surprised all with showing unanimous decision making. President says all stake holders set aside narrow partisan believes and it is truly a testament of great maturity of Indian democracy. 

 

President Mukherjee is now speaking. He says this historic moment is culmination of 14 years of journey which begin in 2002 when the Kelkar task force suggested GST. 

President Mukherjee briefly describes the timeline of GST, and how it became a reality. He says it is a moment of great satisfaction for him personally. As a finance minister, he introduced constitutional amendment in Parliament, recalls Pranab Mukherjee. President says how he met several Chief Ministers and Finance Ministers and other officers during his tenure. He says although there were great points of divergence and several contentious issues, most people were sincere in getting GST implemented. Hence he was always confident that GST will be a reality. 

GST is not only ease of business, it is a way of doing business. He says it is not only a tax reform but is an economic reform and also is a social reform. 

In law, it is Goods and Service tax but it is Goods and Simple tax. 

PM mentions Pranab Mukherjee's role in the entire GST process and says his guidance is a big boost for all. PM says President's words will be very important as a guiding force in the future. 

PM explains in great details how the poor will be benefited from GST and urges businessmen to pass on the benefits to the deprived section of the society. 

PM says that it's true that not all will know technology and may be wary initially. But he says that young generation can help them to adopt new technology. PM gives several lucid examples to say adoption of GST will not be a problem. 

PM says rumour mongering should stop and people should try to ensure GST regime is successful and helpful for all the common people. Modi says GST is a catalyst, which will end the asymmetric nature of business in India. It will help in getting states which are lagging forward to join the development bandwagon, says PM. In this context PM mentions Bihar, West Bengal and Eastern UP. 

PM says like railways is a great example of joint cooperation of states and Centre, GST can be like that. He says GST can help in ensuring Ek Bharat, Sresth Bharat. 

 

 

 

PM says that country is taking step towards a modern tax system. He says it will give impetus to honest practices, crackdown on tax evaders and black money hoarders. 

PM says tax terrorism has been a big peeve so now. Modi claims that grey area in tax collection will end as everything will have digital trail. Hence it will be a great boon for small businessman. 

PM tries to allay fear that GST will be bad for small businessmen. 

PM now recalls how Sardar Patel played a great role in unification of India. He says GST has played a major role in economic unification of India. He says nearly 500 taxes have been now rolled into one, and from Ganganagar to Etanagar, Leh to Lakshwadeep, it is one nation and one tax. PM says 20 states and 7 union territories came together to make the dream a reality. 

Modi says according to Einstein, the most difficult thing to comprehend in the world is Income Tax. PM quips what would Einstein say if he had seen so many taxes. 

 

PM says like constitution was written after much discussion and deliberations, GST has been constituted after massive discussion among all stakeholders in states and centre. 

PM says best brains of the country came together to form GST. PM repeatedly draws parallel between GST and constitution. 

PM Modi says GST is example of cooperative federalism and is starting of mission for Clean India. 

PM congratulates GST council for doing stellar work. 

Aaj iss madhya raatri ke samay hum sab mil karke desh ka aage ka marg sunishchit karne ja rahe hain: PM Modi #GST pic.twitter.com/DgtxOIqfaZ

— ANI (@ANI_news) June 30, 2017

Geeta has 18 chapters, and GST council has 18 meetings so far, says PM Modi.

PM quotes Chanakya to explain the signifance of GST and how it finally became a reality.  

PM Modi explains the significance of central hall in context of India's history. He says that first meeting of the constitution committee in 1946 was held in the Central Hall. 

PM recalls how Central Hall was also witness to India's tryst with destiny on 14th August midnight 1947. He says the constitution was adopted in the Central Hall of Parliament. Hence there can't be any apt place than Central Hall of Parliament for ushering in the GST regime, says PM Modi. 

PM Modi is now speaking. PM says there are some moments, when for development of the nation, we go to a new phase to reach a new destination. PM  says today, everyone is looking to ensure the future of this nation. After some time, country will go to a new destination. PM like Jaitley says that this has been a collective process harboured by different teams at separate times of history. It is a great testament to India's democracy and cooperative federalism. 

Narendra Miodi says this is joint asset of all, not a property of one government or party. 

Arun Jaitley describes how easy and transparent will be tax-filing in the GST era. Everything will be computerised and there will be no tax on tax. Jaitley says that there will be single flow of goods and services from now. According to FM. GST will help to curb inflation, reduce tax, boost GDP and decrease tax avoidance. 

Jaitley says state FMs and officials really did extraordinary job to ensure that the target of GST rollout could be achieved. 

Jaitley says GST has been done despite all the hurdles faced, and global uncertainities. He thanks all the stakeholders for making it possible. 

Jaitley now reminisces how GST became possible. He says starting from Kelkar Commission, GST proposal has gone through many iterations and changes. Jaitley mentions how Pranab Mukherjee was instrumental in getting the ball rolling during his tenure as FM. Jaitley says how the GST Council's formation and rules were important in ultimately shaping the rules. 

Jaitley mentions former WB Finance Minister Ashim Dasgupta's contribution in etching the framework of GST. FM says GST was passed unanimously in both Rajya Sabha and Lok Sabha. 

Jaitley says GST Council has so far met for 18 times but at no point of time, there was voting. 

Jaitley says the rates were decided on the basis of principle of equivalence, revenue neutrality and no unnecessary burden of common people. 

Arun Jaitley is now addressing the ceremony. 

FM begins by thanking all the dignitaries present in the podium and others in the Central Hall. 

Jaitley says GST may be a destination tax, but it will be a new journey for India. Old India was economically fragment, but new India will be of one country, one tax. It will be a India where centre and states will work with common goal of shared prosperity. The consensus in getting to GST shows that India can collectively think, and act maturely, says FM. Arun Jaitley says while enacting GST neither the centre or state gave away their sovereignty. They used it to make GST possible. GST reforms is high point of Indian politics, says FM. 

The ceremony commences with the playing of the national anthem. 

 

The dignitaries are now entering the Central Hall of the Parliament. President Mukherjee, PM Modi and all other important diginitaries have arrived for the gala function. 

 

Delhi: PM Narendra Modi, FM Arun Jaitley, VP Hamid Ansari, LS Speaker Sumitra Mahajan and others at Parliament. #gstrollout #GST pic.twitter.com/8nJFgEb2wS

— ANI (@ANI_news) June 30, 2017

President Pranab Mukherjee has arrived in the Parliament.

 

PM Modi has arrived in the Parliament. He is exchanging pleasantries with his colleagues. It's truly a historic day for India and this will be one of the big ticket reforms which he will be known for in future. 

Moments away from the gala cermony to start  

Delhi: GST Bhavan lights up ahead of #GSTrollout pic.twitter.com/pZjOOPeCHC

— ANI (@ANI_news) June 30, 2017

Parliament all set for GST launch. LK Advani, Sumitra Mahajan and most of the dignitaries are present. They are waiting for President Pranab Mukherjee to arrive. 

Delhi: Ratan Tata reaches Parliament to attend #GST launch. #gstrollout pic.twitter.com/IMTGzpwgX6

— ANI (@ANI_news) June 30, 2017

Niti Aayog member Bibek Debroy has struck a discordant note about the possible impact of GST.

He said, any suggestion that the Goods and Services Tax will boost GDP growth by 1-1.5 per cent is "utter rubbish", terming it as an "imperfect GST" following changes from the originally proposed "ideal" structure.

Read More 

Wondering about the pocket pinch post GST? 

Some stories to get you updated:

Consumers will have to shell out more for banking services, insurance premium payments and credit card bills with the GST rollout from midnight.

Under the Goods and Services Tax, effective midnight tonight, most of the financial services would attract a higher tax of 18% as against 15% as of now. Read More 

The landmark Goods and Services Tax will not alter the prices of essentials and daily use items like salt and soaps as they have either been exempt or tax on them has been kept at the current level.​ Read More 

Read: ​GST Explainer: Know which item falls in which tax bracket

 

 

 

Parliament a divided house today:

Keeping up its attack on the government on the GST issue, the Congress today dubbed its midnight launch as a "tamasha" (gimmick) saying it was being rushed in a "half-baked" manner as a "self-promotional spectacle" while Mamata Banerjee feared it would bring back the dreaded "Inspector Raj".

Parties like the NCP, the JD-U and the JD-S have broken ranks with the opposition and would attend the event, which is being boycotted by the Congress, the TMC, the RJD, the DMK and the Left parties.

Read More: GST rollout: Cong dubs it 'tamasha'; NCP, JD-U, JD-S to attend

 

It is perhaps discerning that the entire political class will not be present in the Parliament for the GST rollout. By no means, GST would have been possible without the active support of most of the major political parties of the country. 

In 2000, then PM Atal Bihari Vajpayee introduced the concept, setting up a committee headed by the then West Bengal Finance Minister Asim Dasgupta to design a GST model. From then, the country has seen great changes in the political sphere. But GST was always a top priority of the policy makers. Congress paved the way looking to forge unity among the relevant stakeholders. But for an extended time, BJP was opposed to several clauses of GST. After coming to power in 2014, BJP though pushed aggressively to make GST a reality. And finally, with near bipartisan support, GST regime is getting started. 

Read More: GST rollout: Here's one nation, one tax system's 17-year roller coaster ride

 

Here's the schedule and list of dignitaries expected to grace the function:

Central Hall-June 30, 2017

22:55 hrs

President arrives at Parliament House, received by dignitaries

23:00 hrs

President arrives in Central Hall

23:01 hrs

Playing of National Anthem

23:02 hrs 

Felicitation and introductory remarks by Finance Minister

23:10 hrs

Film/Presentation on GST

23:15 hrs

Address by the Prime Minister 

23:45 hrs

Address by the President of India

00:00 hrs

Launch of GST (including film)

00:03 hrs

Announcement by Marshal

00:04  hrs

Playing of National Anthem

00:05  hrs

President leaves

List of guests who will attend at the Central Hall of Parliament: 

President Mukherjee 
Vice President Ansari

​Prime Minister Narendra Modi

Finance Minister Arun Jaitley

Former PM HD Deva Gowda

LS Speaker Sumitra Mahajan 

Former Punjab CM Parkash Singh Badal

NC leader Abdul Rahim

Former GST Council chairman Sushil Kumar Modi

Former FM of Bengal - Asim Dasgpta

Former FM of Kerala - KK Mani

Amitabh Bachchan

Business tycoon Ratan Singha

BJP president Amit Shah

Former FM Yashwant Sinha

Governor of RBI - Urjit Patel 

Former governors Bimal Jalan, YV Reddy and D Subbarao