New Delhi: Stating the GST a “disruptive change”, President Pranab Mukherjee conveyed that the central tax is a “tribute” to the prudence of India’s democracy, as he remembered measures taken throughout his own tenure as Finance Minister on this reform. President also further conveyed that, the GST committee should constantly review the execution and recommendation appropriate for enhancements to the new indirect taxation regime.
President conveyed minutes prior to the GST rollout in his words at a particular function in the central hall of Parliament that, the new span in taxation, which we are about to introduce in a few minutes, is the consequence of a broad accord arrived between the Centre and states. Mukherjee further added that, this accord took not only time but also attempt to build.
The attempt came from person’s crossways the political range that set sideways narrow follower thought and put the country’s interests earliest. The President called the Goods and Service Tax (GST) a ‘disruptive change’. It is also an instant of some contentment for me as on March 22, 2011 the Finance Minister, I had commenced the Constitution Amendment Bill.
He further conveyed that, Success of such main alteration always depends on their effectual execution. In the months to come, based on the experience of actual execution, the GST committee and the Central and state administrations should constantly review the design and make enhancements, in the similar positive spirit as has been displayed yet.
It is same as the like the commencement of VAT when there was first resistance. The GST will “also make our exports more spirited and also provide a level playing field to domestic trade to contend with imports. Presently due to cascading, our exports still carry some embedded taxes, making them less spirited. Under GST, President conveyed that the tax occurrence will be translucent, permitting full removal of tax burden on exports and full incidence of domestic taxes on imports.
He remembered the proposal to initiate GST was initially mooted in the Budget Speech for the financial year 2006-07. Viewing that the GST will be directed through a modern world-class information technology system, he remembered that in July 2010, he had set up an Empowered Group for expansion of IT systems needed for the GST regime under the chairmanship of Nandan Nilekani.
He further added that, I also met the Chief Ministers of Gujarat, Bihar, Andhra Pradesh and Maharashtra numerous times. I have a vivid recollection of those gatherings and the different issues that were lifted.
Mukherjee further conveyed that, his confidence stood defensible when on September 8, 2016, following the Bill was passed by both Houses of Parliament and more than 50 per cent of State Legislatures, he had the privilege of giving acquiesce to the Constitution (One Hundred and First Amendment) Act.