02 July, 2017
Those who want to invest in India will understand one type of tax regime easily, he asserted.
About 1,000 people packed the hall when Modi began to speak from where India declared itself a free nation and first Prime Minister Jawaharlal Nehru made his famous "tryst with destiny" midnight speech nearly seventy years ago.
To West Bengal Chief Minister Mamata Banerjee's jibe that GST would bring back "inspector raj", PM Modi said references of "tax terrorism" and "inspector raj" weren't new in India. the message was that rather than increasing, GST's online interface would end these sources of harassment.
Modi said that GST was an example of team work and cooperative federalism.
"The GST will turn various Indian states into a common market". "It signals to investors the government's ability to deliver on its reform agenda".
The central government is encouraging all business to migrate to the new GST system but its complexity - four rates and several exemptions - has still kept many at bay.More news: Sports Minister: Seoul Mulls Co-Hosting 2018 Pyeongchang Olympics With N Korea
While small traders shut shops half an hour early on Friday night ahead of the GST launch in the Parliament, high-end businesses ran as per regular timing.
Poor implementation had dealt a big blow to Modi's decision on demonetisation late past year to render 86 percent of the currency in circulation illegal leading to huge losses of traders and business and the economy shrank in the last quarter with poor consumption. "Prices may go up for a few items but prices of maximum items will either go down or remain unchanged", said Jaitley, adding that every businessman will have to file only one return by 10th of every month after which the computer software will automatically generate the rest of the reports.
Showroom owners and restaurateurs in New Delhi's Connaught Place found themselves juggling with manual bill books as companies are yet to upgrade to the new Goods and Services Tax (GST) system that kicked in from July 1. UP and Madhya Pradesh witnessed bandhs in some areas while some demonstrations and protests also broke out in parts of West Bengal, Andhra Pradesh and Telangana. He also maintained, "As we transition to a unified tax system, there will be some teething troubles as with anything which is a novel concept (Read demonetization)".
But there bright spots.
HSBC estimates the reform could add 0.4 percentage points to economic growth.
The Prime Minister further said, "GST would unify the country's economy".
It will benefit all the stakeholders namely industry, government and consumer as it will lower the cost of goods and services give a boost to the economy and make the products and services globally competitive, giving a major boost to "Make in India" initiative. This should widen the tax net, shoring up public finances.