GST Is Officially Launched Pan-India; Will India’s Midnight Tryst With Economic Destiny Bear Fruits?
At the stroke of midnight, Goods and Services Tax (GST) was officially launched at the Parliament’s historic Central Hall, by President Pranab Mukherjee and Prime Minister Narendra Modi. This is the 4th time that a special session was held inside Parliament’s Central Hall at midnight – the rest three were held for celebrating India’s independence.
This way, July 1st has become a historical day in the annals of history, because from today, there would be one tax, across one nation.
Main opposition party, Congress, decided to boycott the launch ceremony, even as the event was attended by almost every other national and regional political party.
PM Modi compared Bhagwat Gita’s 18 chapters with 18 chapters of GST, as he said, “At midnight, we will together decide the course of the future of this country”
Besides, PM Modi said that the implementation of GST is not one party’s achievement, but a collective effort from every political party.
GST has been hailed as India’s biggest tax reform since Independence, and is expected to push India’s GDP by 4%, which is Rs 6 lakh crore.
Mixed Reaction From the Shoppers, Consumers
The roll out of GST invoked mixed reactions from the industry, traders and consumers.
While shoppers, who had enjoyed special GST sales since last few days (retailers were pushing out existing stocks), they are now concerned that GST will jack up prices of several commodities.
Overall, the general consensus is that, monthly budget of households will increase, albeit for next 6 months at a minimum.
An architect from Mumbai said, “Overall there will be some escalations in costs. Everything will become more expensive. There will be very few basic things that will become cheaper,”
Whereas some are still confused as to what exactly will happen.
Another shopper from Mumbai said, “I am not really sure what will happen… There are so many different news reports on social media about the prices of various goods—some will increase, some will decrease. but we will know the reality only on 1 July,”
Traders Protest Continues, Industry Is Divided?
Although the stock exchange closed 64 points up before the end of day on Friday, the industry was clearly divided on this issue.
‘Bharat Bandh’ strike announced by some trade unions across India is still continuing,
In a statement, Chamber of Trade and Industry (a trade body from Delhi) said. “On Friday, representatives of prominent trade unions from across the city will hold a protest at the Kashmere Gate market,”
This trade body, allegedly backed by Congress, has claimed support from 40 trade unions present in Delhi alone, which includes traders from Chandni Chowk cloth market association, the Tank Road association from Karol Bagh, the Commuter Traders’ Association from Nehru Place, the Delhi Marble Association, and the Footwear Association of Ballimaran.
Although companies like Raymond Limited, Aditya Birla Group and Arvind Limited from Gujarat has supported GST, it is small traders and businesses across India, which are concerned about the new tax regime.
The main effects of GST will be visible from Monday, when the markets open up, encounter GST heads-on.
Do you support GST? Do let us know by commenting right here!
GST News We Covered Since Last Few Months:
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- GST Expected To Add 1 Lakh Jobs; But Why Retailers Are Refusing To Buy Fresh Stock From Companies?
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- Service Tax Will Increase To 18% Under GST; But Exempted For Those Earning Below Rs 20 Lakh/Yr
- IT Dept Release Draft Rules Under GST Tax Filings; Now, Tax Payers May Need To File Monthly Returns
- Anti-Profiteering Laws of GST Proving To Be A Nightmare For Businesses; Will It Lead To Witch Hunting & Tax Terrorism?
- GST Tax Rate Slabs Demystified – From 0% to 28% in 4 Tax Slabs
- GST Slab For 66 Items Reduced, Insulin, Printers To Get Cheaper: But GST Concerns Persist!
- Online Vendors Get Respite From GST, For Now; 1% TDS, TCS Will Not Apply For Them
- 290% Cess On Tobacco Products Planned Under GST; Govt. Will Soon Impose ‘Fat Tax’ On Junk Foods
- Ecommerce Sellers Are Selling Rs 20,000 Crore Worth of Products At Dirt Cheap Price; GST Is The Reason!
- Assocham Wants Govt To Clarify GST For Ecommerce; Says Current Definition Too Wide & Vague
- GST Bill Fate To Be Sealed Today – 9 Positive & Negative Changes Which GST Can Trigger
- GST Regime: 4 Crucial Bills Passed in Lok Sabha; FM Says Some Commodities May Become Cheaper!