By Andalib Akhter / NEW DELHI
India’s biggest ever tax reforms, the Goods and Services Tax (GST) came into effect from midnight tonight. It was launched at the Central Hall of Parliament in the presence of President Pranab Mukherjee, Vice President Mohd. Hamid Ansari , Prime Minister Narendra Modi, Lok Sabha Speaker Sumitra Mahajan, Finance Minister Arun Jaitley and a host of political leaders cutting across party lines and senior ministers and bureaucrats from different states .
President Pranab Mukherjee and Prime Minister Narendra Modi launched the new indirect tax regime by pressing a button.
Speaking on the occasion, Mr Mukherjee said, launch of GST is a momementous occasion for all in the country and GST is a tribute to the maturity and wisdom of India’s democracy.
Mr Modi in his speech said, GST is a good and simple tax regime that will eliminate the compounding effects of multi-layered tax system. The Prime Minister said, GST is transparent and fair system that prevents black money and corruption and promotes new governance culture.
He said, GST is an example of cooperative federalism and it is a result of combined efforts of all political parties.
On the special occasion, the Parliament House was illuminated splendidly. A gong sounded at midnight to signify the birth of GST. The GST will pave the way for realization of the goal of One Nation. Its implementation will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive.
It will act as a catalyst to unify the country’s economy and 1.3 billion people into a common market. Despite various tax rates of 5, 12, 18 and 28 per cent, and many exceptions, the new tax regime is aimed at eliminating the cascading tax structure. It will ease compliances and lowering tax burden on consumers.
Petroleum products such as petrol, diesel and aviation turbine fuel have been kept out of GST as of now. The GST Council will take a decision on it at a later date.
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Earlier, Union Finance Minister Arun Jaitley has said that GST will work to curb black money and simplify the tax system.
The Finance Minister said, in the long term, tax rates will come down due to GST, and country and the public will benefit from it.
He further said that the GST network system and tax system of states are ready for GST and he expressed confidence that the general public and small businessmen need not fear the new tax regime.