Thursday, 30 March 2017

GST- India's Growing Steps Towards The Safe Economy, How Realistic is The Dream

After all the hardships, the GST bill was finally passed in the Lok Sabha, although the oppositions are not showing any particular satisfaction with the bill.

The Congress has accused the government of ignoring some amendments suggested by the oppositions and said that even before 7-8 years, the Congress wanted to bring this bill into the force, but it was the BJP, who had imposed hurdles in the procedure and accordingly the country had to lose millions of crore.


One thing for sure, the BJP would be taking the sigh of relief and even feeling cheerful as if they have won a battle and why not! They have earned success in passing the much-anticipated bill of the country. And now the Government has been started making an effort to apply this bill with effect from 1st July 2017.

Prime Minister Narendra Modi congratulated the countrymen and said “GST bill pass hone par sabhi deshwashiyon ko badhayi. Naya Saal, Naya Kanoon, Naya Bharat!” (*Congratulations to all the nationals on passing the GST bill. New Year, new law, new India!"). The good effect of passing the GST is also shown on the share market, BSE Sensex trades higher by 129 points and the Nifty 50 rises 29 points on 30th March 2017 (the figure was recorded at 3:26 PM IST, Indian Standard Time)

The most important thing that the indirect tax (i.e. Excise duty and service tax, etc.) and state VAT will be all one from 1st July 2017 onwards after the implementation of GST. The bill consists fix tax slabs for all and these slabs are between Zero, five, twelve, eighteen and twenty eighty percent.

We also hope that all processes related to GST will be completed in one to two months and then the dream of the government “New law, New India” will also be fulfilled.

Let's us state you that the four bills linked to that GST that have been passed in the Lok Sabha, are;

Central Goods and Services Tax Bill (CGST): It elaborates the tax recovery procedure of the Central Government after implementation of the GST.

Integrated Goods and Services Tax Bill (IGST): This bill discusses the taxes levied on the import and export of goods and services between the two states.

Union Territory Goods and Services Tax Bill (UT GST): In this section, taxes to be implemented in the Union Territories have been discussed.

Goods and Services Tax Bill: This bill assures the state that if the income of the state is reduced due to the implementation of the GST, then the total amount of the loss will be compensated by the Central Government. And according to the bill, the contract will be applicable for five years.

The biggest thing is that the GST would simplify the tax structure of India and there will be a unique price for every individual product across the nation. Finance Minister Arun Jaitley has said that GST would eliminate "tax terrorism" in the country and prevent tax evasion because there would be no chance of smuggling of various products from one state to another. While Congress has said that this bill is not completely safe and there are immense prospects of corruption in it.