PM Modi Justifies GST News Reforms as a Common Economic Change

GST News

Prime minister Narendra Modi gave a national address to reiterate the necessity of the Goods and Services Tax (GST) , which was earlier criticized by other opponents who dubbed it as the Gabbar Singh Tax . Modi emphasized that his government did not introduce a new charge known as GST but a major overhaul of an already disjointed system of levies including sales tax, VAT, excise duty and octroi.

Getting a Complex System Riotously Simple.

The Prime Minister in his remarks pointed out the inefficiencies of the previous tax system that resulted in the multiplicity of layers of taxation , increased costs incurred by the consumers and just delays in transporting goods between states . He emphasized that such a system was not encouraging business competitiveness and investment was stifled. In order to show the ridiculousness of the old structure, Modi used a report by the French-based daily Les Cahiers, which indicated that it was cheaper to transport the spare parts between Bangalore and Hyderabad through Europe because of bottlenecks generated by tax.

GST as a Collective Reform

Modi underlined that GST is not a one-sided endeavor of the Union Government but a collective initiative of the Centre and the states which will be equal partners in the way the system is made and implemented. He argued that this federal method of cooperation is very fair and inclusive in controlling the reform.

Citizen and Business Advantages.

GST reforms were also associated by the Prime Minister with the recent reduction of the rates which he indicated , was well timed to take place during the festive season of Navratri , hence making sure that people would directly benefit whenever they are shopping at their peak. According to Modi, these actions represented a benefit given to the middle classes and those who were out of poverty and gave GST a means to empower citizens on the ground.

He also promised that the government has been determined to ensure that traders spread tax benefits to consumers . As part of the ease of doing business, Modi declared future consultation such as a meeting with the business representatives in Tripura by positioning traders as an ally in development.

Turning a Political Baggage into an Advantage.

GST is no longer being viewed as a politically sensitive matter but the government is instead portraying GST as capital of reform , the transition of India into a single, efficient and transparent economy. Modi ended by making GST something more than a tax, but a transformational measure towards national development and equality .

Central Taxes Which are under GST.

• Central Excise Duty (excluding some products such as petroleum, liquor etc.)
• Additional Excise Duty
• Service Tax
• Countervailing Duty (CVD)
• Special Additional Duty of customs (SAD).
• Supply of goods and services Central Surcharges and Cesses.

GST subsumption of State Taxes.

• Value added tax (VAT) / Sales Tax (except on