In a month's time we will be celebrating the 71st year of India's independence from the British. Let's go back towards midnight on 15th August 1947, to the famous speech of the first Prime Minister of India, Jawaharlal Nehru. Jawaharlal Nehru delivered an iconic speech "Tryst with Destiny" as India became one independent country.
Nearly 71 years later... Another great moment.... India launches the goods and services tax, popularly called GST on the midnight of June 30th 2017. From July 1st 2017, India becomes "One-Tax-One-Nation". Another iconic speech, this time by the Prime Minister of India, Narendra Modi.
On the midnight of June 30th 2017, the Prime Minister and the President of India, pressed a buzzer in the Central Hall of Parliament, ushering the arrival of GST in India.
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Prime Minister Narendra Modi calls the Central Parliament hall, "pious". He says, the Nation will collectively usher the GST in this Parliament Hall. The Prime Minister calls GST, "good and simple tax" which would put an end to tax terrorism and inspector Raj. GST would continue the fight against corruption and black money, contributing to the welfare of the people in India
GST will do away with 17 Central and State taxes along with 23 cesses, replacing them with a single indirect tax. This will help the free movement of goods across state borders. This is what the Prime Minister has to say, "From Ganganagar to Itanagar, from Leh to Lakshadweep, the dream of one nation, one tax will be fulfilled."
The Prime Minister says, "GST is not just a tax reform. It is co-operative federalism, which will help fight black money and corruption. GST will usher a new culture of Governance giving the honest a great opportunity. GST will help find resources to help the poor, without disproportionately burdening anybody."
Prime Minister says, “Today at midnight all of us together will determine the nation's next course." GST is not just a tax reform. It is also an economic and social reform. The PM says, “GST is a tax system of new India, of digital India."
The Prime Minister says, GST will help the poor as it is not just an economic reform. It's also a social reform. GST benefits the poor as it exempts traders who have a turnover of less than INR 20 Lakhs. GST also has low rates for traders with turnover of less than INR 75 Lakhs. The Prime Minister says, GST will put an end to Inspector Raj and Tax Terrorism. This will curb the spread of black money in the economy. The Prime Minister says, GST will help traders and businessmen.
The Prime Minister says, GST will help eliminate the concept of "kuchha bill" and "pucca bill." This will put a stop to the long queues of lorries at State Borders. This is what the Prime Minister has to say,
"Kuccha pucca bill ka khel khatam (the time is up for not billing a transaction or under-invoicing it)."
The Prime Minister also said, GST will make India's exports competitive as India emerges as a preferred business destination, Internationally. GST will make India's exports competitive. GST will give ample opportunities for the backward north-eastern states of India, to progress as they have abundant resources.
The Prime Minister invoked the likes of Chanakya, Albert Einstein, Sardar Vallabhai Patel, Jawaharlal Nehru, Lokmanya Tilak and even the Bhagwad Gita in his famous speech. The PM quotes Chanakya a famous Indian philosopher, economist and royal advisor between 371 BC and 283 BC who is famous for the works, Arthashastra and Chanakya Niti. The Prime Minister quoted Chanakya saying: “Whatever is very distant or difficult to get, hard work and perseverance can make it achievable.”
He also quoted Albert Einstein. Einstein had once said "income tax was most difficult to understand." Modi says, "One wonders what Albert Einstein would have said if he had seen the multiplicity of taxes in India."
The Prime Minister says," Imagine what India would have looked like today had Sardar Patel not united all the principalities of India." He also referred to the coincidence of the GST Council having its 18th meeting on Friday, just ahead of the GST launch, and the Bhagavad Gita having 18 chapters.
GST ushers in the art of doing business in the New India and Digital India. In the words of the Prime Minister himself, "GST is a good and simple tax." It will eliminate unnecessary tax layers making tax filing easier." Be Wise, Get Rich.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.