Finally, the day is here in India’s landmark reform to enrolled new tax system GST the Goods and Services tax from today. The GST embodies several taxes like Central, State, local taxes and cess levied on goods and services in single tax. It ensures to implied one tax to one nation in India and making it easier to do business. This uniform tax attracts investors and efficiently revenues for the exchequer. This implemented by the central government in the midnight at the Parliament’s central hall under the eye of India’s President Pranab Mukherjee and Prime Minister Narendra Modi along with several Ministers and leaders. The GST reform has taken many years in the process of making and to implementing one nation one tax. It finally came into existence after 11 years of effortful conversation between the Centre and the State while spearheaded by several Union and state finance ministers. Currently, it has multiple tax rates ranging from 0% to 28% along with a cess on some goods for lobbying and rent seeking.
The GST reform is India’s most resourceful indirect tax. It aims to combine a common market by dismantling fiscal barriers between states. The main objective of GST is to levied uniform tax on goods across the nation and subsumed all the local, state and central indirect taxes. All goods and services taxes are slated into four slab rates i.e., 5, 12, 18 and 28 percent along with a cess on luxurious products. If the 18% of the GST rate on the goods across the country then the state and centre will get 9% which is known as CGST (Central Goods and Services tax) and SGST (State Goods and Services Tax). As this is the first radical step taken by India to clutter tax system. So, this reform is not only changing India’s tax system but also ushering economic change.
GST – it is good, it is simple and it benefits 125 crore Indians. pic.twitter.com/9guReCaEWL
— Narendra Modi (@narendramodi) July 1, 2017
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
