GST Day 2024: Do You Know Who Is Known As The Father Of GST? Explore Its History, Significance, And Fascinating Facts
India celebrates Goods and Services Tax (GST) Day on July 1 to honor the successful implementation of the GST regime. This comprehensive indirect tax revolutionized India's taxation system by replacing numerous complex levies imposed by both central and state governments. With its destination-based approach, GST has simplified the tax structure, ensuring greater transparency and efficiency.
History of GST Implementation Day
The idea of Goods and Services Tax (GST) in India emerged in the early 2000s to streamline the complex tax system. The Kelkar Task Force, a dedicated team, proposed a comprehensive indirect tax system to replace the existing structure that was hindering the country's economic growth. After extensive discussions and negotiations, the Parliament passed the Constitution (101st Amendment) Act in August 2016, empowering the central government to levy and collect GST.
To oversee the implementation, the government formed the GST Council, comprising Finance Ministers from both the central and state governments. The council held meetings to determine GST rates, exemptions, and address concerns. Finally, on July 1, 2017, GST was implemented across India, creating a unified market for seamless trade between states.
Significance of GST Day
GST Day holds immense significance in India’s taxation system as it marks the successful implementation of the GST regime. GST has brought about crucial changes in the Indian economy by simplifying the tax structure and creating a unified market for seamless trade between states.
The introduction of GST replaced multiple indirect taxes, such as excise duty, service tax, and value-added tax (VAT), which were previously levied by both the central and state governments. This transition has made the tax system simpler and more transparent.
Another notable impact of GST is the removal of barriers to inter-state trade. GST has leveled the playing field for businesses, irrespective of their location within India, fostering a more cohesive economic environment.
Interesting facts about the introduction of GST law
1. Atal Bihari Vajpayee is known as the father of GST .
2. France was the first nation to implement the GST system.
3. The Canadian GST system serves as the foundation for the GST system in India.
4. Amitabh Bachchan is the brand ambassador for GST.
5. The idea for the new indirect tax system was proposed and given the go-ahead in 1999.
6. Under the GST law, there is CGST (central tax) and SGST/UTGST (state tax/Union Territory tax) levied on intra-state supplies. and IGST (integrated GST) levied on inter-state supplies.
7. The tax rates under the Indian GST system are 5%, 12%, 18%, and 28%. However, there are also nil-rated goods and services, as well as special rates levied for high-value items like gold and diamonds, amongst others.
Quotes on GST
1. The consensus we arrived with states for amending the constitution to implement GST is a major breakthrough. This alone has the potential to make India competitive and attractive for investment. –
Narendra Modi
2. GST is the biggest indirect tax reform India has ever seen. –
Arun Jaitley
3. GST will simplify the tax regime for businesses, making it easier for them to comply with the rules. –
Piyush Goyal
4. GST is a historic tax reform that will take India to new heights of growth and development. –
Nitin Gadkari
5. GST will enable the move from fragmented economy to one market… it will boost investment, growth. –
Arvind Subramanian
6. GST is a giant leap forward for our country. –
Amitabh Kant
7. GST is a much needed reset button for India’s economy. –
Nandan Nilekani
8. GST will bring transparency and accountability in the tax system. –
Suresh Prabhu