India ushers in GST at historic midnight session of Parliament

India ushers in GST at historic midnight session of Parliament

Though experts agree on the long-term benefits, including the ease of doing business in India and bringing swathes of the country's informal economy inside the tax net, they say in the near term there could be significant disruptions.

If the 18% of the GST rate on the goods across the country then the state and centre will get 9% which is known as CGST (Central Goods and Services tax) and SGST (State Goods and Services Tax). These people were opposed to such economic integration.

Businesses, however, are not yet ready with their pricing policies post GST implementation and there could be lapses on the profiteering issue.

When asked if they had complete knowledge of the GST regime, a shopkeeper of CS Electric Company here said that the information available online was helping him make bills. The new goods and services tax (GST) replaces more than a dozen levies imposed nationally and by the 29 states. After the President ended his speech, he and Modi pressed the button that symbolically launched GST.

Businesses are nervous about GST, which sets out four different rates of between five and 28 per cent instead of the one originally envisioned.

The finance minister also said that he was hopeful that Jammu and Kashmir will clear GST soon.

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Giving due credit to his allies, opponents and detractors, he maintained, "GST could be crystallized not due to one person or party but due to the collective efforts of all the statesmen". President Pranab Mukherjee, in his address, stated that the roll out of GST marks "a moment of satisfaction for me personally" as he had been involved in the process during his tenure as Union Finance Minister.

PM Modi also thanked all the Parliamentarians for their crucial presence. He also congratulated all chief ministers and governments along with Modi and Jaitley. This was justified when on 8 November 2016, I had the opportunity to give assent to the GST legislation.

"We have alternative arrangements if our systems fail", Kumar said, adding that "we underestimate the talent of common people.they have the capacity to learn". "It has pleasantly surprised everybody by completing its task on time", the President said.

In a few minutes from now, we will witness the launch of GST.

While higher tax rates for services and non-food items are expected to fuel price pressures, compliance is feared to be a major challenge in a country where many entrepreneurs are not computer literate and rely on hand-written ledgers.

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