It was abig. It was a gala event. And, it was a historic moment. as the Goods and Services Tax (GST) was launched at the historic Central Hall of Parliament on Friday midnight. Factually, it is Goods and Services Tax but PM Narendra Modi termed the GST as ‘good and simple tax’. Launching the big tax reform of GST, Prime Minister Narendra Modi during the midnight event said that it will put an end to harassment of honest traders and small businesses while integrating the country into one market with one tax. The Prime Minister said that the new tax is simple and transparent that would end corruption and check black money. PM Narendra Modi added there will be one tax from Ganganagar to Itanagar and Leh to Lakshadweep. “GST is a catalyst which will remove trade imbalance and promote exports,” PM Modi said. Here are 5 points which explain GST in possibly the simplest way as it was explained by PM Narendra Modi
1- “GST is good because it will eliminate tax on tax and simple because there will be just one rate and one system for the entire country,” says PM Modi.
2- “GST is a simple, transparent system which prevents generation of blackmoney and curbs corruption. The system gives the opportunity to honesty and people who do honest business,” according to PM Modi.
3- “GST is as an economic integrator just like the integration of the nation that Sardar Vallabhai Patel had done after the independence,” says PM Modi.
4- “GST is just not a tax reform but an important economic reform. “The law says that GST stands for Goods and Services Tax but according to me it stands for good and simple tax,” PM said.
5 – PM Narendra Modi says that the GST will eliminate 500 types of taxes.
Under GST, most of the goods and services have been listed under the four slabs – 5 per cent, 12 per cent, 18 per cent and 28 per cent. Noteworthy, some items have been exempted from taxation.
PM Modi said GST is an effort of successive political parties and an example of cooperative federalism where centre and states have worked as equals in deciding on the new system and the tax rate. The GST is a reflection of team India and the Central Hall is the most appropriate place for launch of the new tax regime as Constituent assembly met here and also Jawaharlal Nehru delivered the Independence Day speech, he said.
GST showcases the power of Team India, It shows how the Centre and states come together to do good for the poor. pic.twitter.com/LayRxP3nP6
— Narendra Modi (@narendramodi) July 1, 2017
Addressing the historic moment, PM Modi said, the new tax regime will benefit poor by reducing cost and saving money by removing barriers like checkposts between states, he said, asking traders to pass on the benefit of reduced taxes to consumers. Observing the GST Council met for 18 times today, he said that interestingly there are 18 chapters in Gita, the holy book of Hindus.