New Delhi: The Goods and Services Tax (GST), India’s biggest tax reform since Independence, rolled out past midnight on Friday in the precincts of the hallowed Central Hall of Parliament to usher in a new indirect tax regime in an event that sought to evoke memories of the famous ‘Tryst with Destiny’ night the country got freedom in 1947.
A minute after the stroke of midnight, President Pranab Mukherjee and Prime Minister Narendra Modi pressed the button to launch the new indirect tax regime on a digital screen with “GST” emblazoned on it in a golden hue.
Conceived on the principle of ‘one nation, one tax, one market’, the tax that subsumes 17 central and state levies was launched in the presence of Vice President Hamid Ansari, former Prime Minister H.D. Deve Gowda, Lok Sabha Speaker Sumitra Mahajan, Finance Minister Arun Jaitley, MPs, chief ministers, state finance ministers, officials of the Centre and states.
Notwithstanding the fact that the GST Law was a consensus product evolved over 14 years, the function in colorfully-decked Parliament House was boycotted by major opposition parties like Congress, Trinamool Congress, RJD, DMK and Left parties, saying the government was making a spectacle of a legislation for self-promotion, a charge Jaitley rejected. In keeping with his party’s decision, former Primer Minister Manmohan Singh kept away from the event. However, MPs and leaders of Congress allies NCP and Samajwadi Party attended the function.
Addressing the gathering, President Pranab Mukherjee said the introduction of GST is a moment of precedent for the country and a matter of personal satisfaction for him because of his role as Finance Minister earlier. “I had always believed that GST was a matter of time and was happy when it was enacted and I gave assent to the Constitution amendment last year,” he said.
In his speech, Modi said the roll out of GST is the best example of cooperative federalism and success of Indian democracy. “The credit for the new law does not go to one party or one government but was a shared legacy of all,” he said.
In a veiled rejoinder to opposition criticism of the midnight function in Parliament, the Prime Minister said there cannot be a “better and sacred” venue than the Central Hall for the historic roll out.
Referring to the eminent personalities like Jawaharlal Nehru, Sardar Patel, Maulana Abul Kalam Azad and Babu Rajendra Prasad who had adorned the Central Hall, Modi said like Patel had integrated the country, the GST would integrate the country economically.
Ahead of the launch, the GST Council slashed the rate of fertilisers from 12 per cent to 5 per cent and of exclusive parts of tractors from 28 per cent to 18 per cent to reduce the burden on farmers.
The launch of GST, which the government claimed would result in reduction of prices of articles of common consumption, also came amidst fears from various business sections that prices would go up under the new regime.
Welcoming the gathering, Jaitley described GST as the biggest and most ambitious tax reform which is an achievement of the country through consensus. It highlights the fact that India can rise above narrow politics and work for country’s benefit. In making the GST, neither the Centre nor the states gave up their sovereignty.
Parliament’s Central Hall has witnessed such a function only on three occasions earlier. First was on the occasion of Independence when first Prime Minister Jawaharlal Nehru made the famous ‘Tryst with Destiny’ speech. The second was on the occasion of silver jubilee of Independence in 1972 and golden jubilee in 1997. (IANS)
GST final structureGST final structureu The threshold limit for exemption from levy of GST is Rs 20 lakh for the states except for the special category, where it is Rs 10 lakh.
u A four slab tax rate structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent has been adopted for GST.
u A cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the GST rate of 28 per cent for payment of compensation to the states.
u The threshold for availing the Composition scheme is Rs 75 lakh except for special category states where it is Rs 50 lakh and they are required to file quarterly returns only. Certain categories of manufacturers, service providers (except restaurants) are out of the Composition Scheme.