GST LIVE: The midnight launch of the Goods and Services Tax (GST), the country’s biggest tax reform since independence, has catapulted India into a select league of nations with a national sales tax.
Amid boycott of the launch ceremony by principal Opposition parties like the Congress, which termed it “tamasha” (gimmick), the new tax regime overnight replaces the messy mix of more than a dozen state and central levies built up over seven decades.
The one national GST unifies the country's $2-trillion economy and 1.3 billion people into a common market, an exercise that took many long years.
The GST will eliminate the compounding effect of the current multi-layered tax system as well as the cross-state tax heterogeneity by fixing the final tax rate. It is expected to lower the average tax rate on manufactured goods and make them uniform across states by fixing the final tax rate.
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GST is like a satellite to be placed in orbit. The Rocket launch has been successful. But now the electronics will have guide the satellite.
— Subramanian Swamy (@Swamy39) &7
12:18 PM IST
It is not the original GST that experts had drafted earlier, this will seriously impact inflation :P Chidambaram
12:18 PM IST
GST panel has failed to deliver our PM @narendramodi 's One Nation One Tax message. GST has been made into a multiple n complex tax regime
— Kiran Mazumdar Shaw (@kiranshaw) &7
11:03 AM IST Download the Business Standard e-book – GST: One Nation, One Tax – for our exhaustive coverage and insights on the new indirect tax regime.
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10:11 AM IST Trust the Internet to find the laughable even in the most serious, sincere and legit situations. The social media was an ocean of hilarious tweets and videos even as Finance Minister Arun Jaitley, Prime Minister Narendra Modi and President Pranab Mukherjee pressed the "button" to officially roll out the much-awaited Goods and Services Tax (GST) "at the stroke of the midnight hour."
Trust the Internet to find the laughable even in the most serious, sincere and legit situations. The social media was an ocean of hilarious tweets and videos even as Finance Minister Arun Jaitley, Prime Minister Narendra Modi and President Pranab Mukherjee pressed the "button" to officially roll out the much-awaited Goods and Services Tax (GST) "at the stroke of the midnight hour."
Tearing into Congress vice-president Rahul Gandhi for claiming that the Good and Services Tax (GST) "is being executed by an incompetent and insensitive government", the Bharatiya Janata Party (BJP) on Saturday said that the grand old party needs to rise above politics and avoid making such irresponsible statements.
As we usher in the creation of one nation, one tax, one market, let me conclude by calling upon every Indian to extend cooperation in the successful implementation of the new system: Pranab Mukherjee
GST will also make our exports more competitive and also provide a level playing field to domestic industry to compete with imports. Currently due to cascading, our exports still carry some embedded taxes, making them less competitive: Pranab Mukherjee
Success of such major changes always depends on their effective implementation. In the months to come, based on the experience of actual implementation, the GST Council and the Central and state governments should continuously review the design and make improvements, in the same constructive spirit as has been displayed till now: Pranab Mukherjee
In his speech, FM Jaitley recalled the initiatives taken by his predecessors, including President Pranab Mukherjee's when he was the Finance Minister
FM Jaitley appreciated the efforts of all MPs, state finance ministers and officials in making GST a reality when many had expressed doubts over its implemention from July 1
With GST, India has showed that these forces can be overcome through display of inclusion, openness and boldness: GST
We have done this at a time when world is facing a slow growth, isolationism and lack of structural reforms: Jaitley
In a large and complex federal system of multi-party democracy with Centre and 29 states and 2 UTs, India has implemented a constitutional amendment and brought in a large tax reform: Jaitley
While enacting the GST, neither the states nor Centre gave up their sovereignty. They have pooled their sovereignty to make joint decisions in indirect taxation: Jaitley
The Constitution says India is a union of states. The union is strong if both Centre and states are strong: Jaitley
Not only will India write a new destiny, the new tax regime would also strengthen federalism: Jaitley
It will be in India where Centre and states work together towards the common goal of shared prosperity: Jaitley
The old India was economically fragmented. New India will create one tax, one market, one nation: Jaitley
Will see in coming days tax compliance, tax collection will improve, common man's problem in paying tax will be gone completely: Railway Minister Suresh Prabhu
Everything has been taken care of. GST council will come together again whenever it will be required: Santosh Gangwar, MoS Finance
President Pranab Mukherjee said GST a disruptive change and tribute to India's democracy
June 29: Congress, Left too decide to skip launch.
June 28: Mamata Banerjee announces her party's decision to skip midnight launch of GST.
June 21: All states except Jammu and Kashmir pass SGST law.
May 19: GST Council decides on 5, 12, 18 and 28% as service tax slabs.
May 18: GST Council fits over 1,200 goods in one of the four tax slabs of 5, 12, 18 and 28%. Over 80% of goods of mass consumption either exempted or taxed under 5% slab.
GST Council fixes cess on luxury and sin goods to create kitty for compensating states.
February 18: GST Council finalises draft compensation bill providing to make good any revenue loss to states in first five years of GST rollout.
January 16, 2017: Jaitley announces July 1 as GST rollout deadline. Centre, states agree on contentious issue of dual control and taxing rights on goods at high sea.
March 4: GST Council approves CGST and Integrated-GST bills.
March 20: Cabinet approved CGST, IGST and UT GST and Compensation bills.
March 27: Jaitley tables CGST, IGST, UT GST and Compensation bills in Parliament. Lok Sabha and Rajya Sabha pass all the four key GST Bills - Central GST (CGST), Integrated GST (IGST), State GST (SGST) and Union Territory GST (UTGST)
November 3: GST Council agrees on four slab tax structure of 5, 12, 18 and 28% along with an additional cess on luxury and sin goods.
February 2015: Jaitley sets April 1, 2016 as deadline for GST rollout.
May 6, 2015: Lok Sabha passes GST Constitutional Amendment Bill.
May 12, 2015: The Amendment Bill presented in the Rajya Sabha.
Congress demands the Bill be sent to Select Committee of Rajya Sabha; demands capping GST rate at 18 per cent.
May 14, 2015: The GST Bill forwarded to joint committee of Rajya Sabha and Lok Sabha.
August 2015: Government fails to win the support of Opposition to pass the bill in the Rajya Sabha where it lacks sufficient number.
2014: GST Bill cleared by Standing Committee lapses as Lok Sabha dissolves; BJP-led NDA government comes to power.
December 18, 2014: Cabinet approves 122nd Constitution Amendment Bill to GST.
December 19, 2014: Finance Minister Arun Jaitley introduces the Constitution (122nd) Amendment Bill in the Lok Sabha; Congress objects.
August 2013: Parliamentary standing committee submits report to Parliament suggesting improvements on GST. GST Bill gets ready for introduction in Parliament.
October 2013: Gujarat Chief Minister Modi opposes GST Bill saying would incur losses worth Rs 14,000 crore every year due to GST.
February 2013: Declaring UPA government's resolve to introducing GST, Chidambaram in his Budget speech makes provision for Rs 9,000 crore to compensate states for losses incurred because of GST.
November 2012: Finance Minister P Chidambaram holds meetings with state finance ministers; decides to resolve all issues by December 31, 2012 for GST rollout.
Asim Dasgupta resigns, replaced by the then Kerala Finance Minister KM Mani.
March 29, 2011: GST Bill referred to Parliamentary Standing Committee on Finance led by Yashwant Sinha.
March 22, 2011: UPA-II tables 115th Constitution Amendment Bill in the Lok Sabha for bringing GST.
Pranab Mukherjee defers GST to April 1, 2011.
February 2010: Finance Ministry starts mission-mode computerisation of commercial taxes in states, to lay the foundation for GST rollout.
BJP opposes GST basic structure.
2009: Finance Minister Pranab Mukherjee announces basic structure of GST as designed by Dasgupta committee; retains 2010 deadline
November 10, 2009: Empowered Committee submits a discussion paper in the public domain on GST welcoming debate.
April 30, 2008: The Empowered Committee submits a report titled 'A Model and Roadmap Goods and Services Tax (GST) in India' to the government
2008: Empowered Committee of State Finance Ministers constituted.
2004: Vijay Kelkar, then advisor to the Finance Ministry, recommends GST to replace the existing tax regime.
2003: The Vajpayee government forms a task force under Vijay Kelkar to recommend tax reforms.
February 28, 2006: GST appears in the Budget speech for the first time; Finance Minister P Chidambaram sets an ambitious April 1, 2010 as deadline for GST implementation. He says the Empowered Committee of finance ministers will prepare a road map for GST.
February 1986: Finance Minister Vishwanath Pratap Singh proposes a major overhaul of the excise taxation structure in the budget for 1986-87.
2000: Prime Minister Atal Bihari introduces the concept, sets up a committee headed by the then West Bengal Finance Minister Asim Dasgupta to design a GST model.