Goods and service tax came into force on 1st July 2017 amid historic midnight session in the Central Hall of parliament in New Delhi. GST replaced more than a dozen state and Central levies and integrated India into one market with one tax rate.
On this occasion the Prime Minister Narendra Modi said that GST is as good and as tax that it will and harassment of traders and small business while integrating India into one market with one tax rate.
He said that it will save time cost fuel and environment.
The Prime Minister said GST would lead to s modern tax administration which is simpler more transparent and helps to control corruption.
He said that GST as an example of Cooperative federalism.
The president Pranab Mukherjee mentioned in his speech the 14 year long journey of GST which began in December 2002 When The Kelkar task force on indirect taxation suggested a comprehensive goods and service tax based on value added tax principle. He said the proposal to introduce GST was first put it in the budget speech for the financial year 2006-07.
The responsibility of preparing a design and a plan of action for the implementation of GST was assigned to the empowered committee of state finance ministers which had been formed earlier for implementation of the value added tax. The empowered committee released its first discussion paper on goods and service tax in November 2009. He said the launch of GST was a moment of satisfaction for him personally because as finance minister he had introduced the Constitutional Amendment Bill for enabling the tax Regime in 2011 later on 8 September 2016 as the President of India Mr Mukherjee had given assent to the constitution one hundred and first Amendment Act after the bill was passed by both houses of Parliament and more than 50% of state legislatures.
The union Finance Minister Mr Jaitley said the GST will create one tax one market and for one Nation.
