India introduces biggest tax reform since independence

India introduces biggest tax reform since independence

India introduces biggest tax reform since independence

PM Narendra Modi termed the rollout a symbol of India's cooperative federalism. More importantly, the passage of GST will show the world that India has finally broken out of the reforms jinx and is ready for its next round of big reforms.

In a dramatic gesture reminiscent of free India's first parliamentary midnight session on August 15th, 1947, prime minister Narendra Modi will usher in the goods and services tax (GST) from July 1st.

Underlining the significance of the Central Hall assembly, which was dubbed as "tamasha" by Congress vice-president Rahul Gandhi, Modi said, "This place is witness to August 14 midnight. State Government and Political parties must have one position on GST", Jaitley said. The Congress, Left, TMC and RJD boycotted the ceremony. "It will make tax incidence transparent and will be administered through a modern IT system".

He also recalled Sardar Vallabhbhai Patel's contributions in unifying the country in this context. "From Gandhinagar to Itanagar, from Leh to Lakshadweep, India will have one nation, one tax".

Besides the President and the Prime Minister, Vice President Hamid Ansari, Lok Sabha Speaker Sumitra Mahajan, and former Prime Minister HD Deve Gowda, were present on the dais, the event whose preparations were personally overseen by finance minister Arun Jaitley and Parliamentary affairs minister Ananth Kumar. "Similarly, GST is the economic integration of India". GST- "One Nation, One Tax" is being touted as the biggest game changer for the Indian tax system. It also warns that GST will apply tax to inter-state activity, and will introduce multiple rates and new concepts.

"There are different rates for a mobile set, charger and headphones - all of which come in one box", said Praveen Khandelwal, secretary general of Confederation of All India Traders, pointing to one such example.

# GST will make India's exports more competitive and provide level-playing field to domestic industry to compete with imports.

"We were not happy with the VAT tax regime since having much human inter-face coupled with anomalies and disparities, it became a complicated taxation system which promoted migration of businesses of one State to another due to varied tax rates and often proved a tool of harassment & corruption".

"This (the launch of GST) displays a high point of Indian politics...." Reduction of indirect taxes from smartphones will ease the overall tax process. From the trade and industry side, the meeting was attended by representatives from CII, FICCI, ASSOCHAM, NARED etc along with trade and industry representatives of specific sectors.

An India-based ship-operator said that they had booked some vessels last month based on the older port charges for arrival in India by mid-July, but the tax would go up in July.

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