An economic revolution: GST

Appreciating the Goods and Services Tax (GST), implemented since July 1, as a unique accomplishment in India's economic history, Prime Minister Narendra Modi, in his 34th Mann ki Baat, said that the execution of the new indirect tax system has brought positive changes in the economy of the country. Acclaiming the citizens, government officials and state governments for the smooth transition to GST, the Prime Minister extended his thanks to all the ministries, departments, and employees. While elaborating the benefits of GST, he said that it is more than just a tax reform as it also ushers in a new culture. "GST rollout is an example of cooperative federalism as states are partners in the decision-making process. GST is a fine example of the collective strength of the people of India. This is a historic achievement as it will not usher in economic prosperity but also effect change in India's social fabric," he said, adding, "And some day, the Pundits of Economics, Pundits of Management, and Pundits of Technology, will certainly undertake research and write about India's GST experiment as a model for the world. It will become a case-study for universities across the world." He said that the implementation and furtherance of such a phenomenal change on such a monumental scale, with the involvement of so many tens of millions of people in such a vast country, is in itself the pinnacle of success. "The world will definitely make a study of it. And this implementation has had all the states participating in it to share the responsibility. All decisions have been taken unanimously by the states and the Centre together. And as a result, one overriding priority for every government has been to ensure that there is no burden on the plate of the poor on account of GST," he further added.

The Prime Minister also informed that he had received several letters from the countrymen, who expressed their happiness over the successful implementation of GST. "I have been observing how GST has impacted the transport and logistics sector; how the movement of trucks has increased. The time required to cover distances has come down drastically. Highways have become clutter-free. Pollution levels have come down with the increased speed of trucks. Goods are also being transported much faster," he said adding that the GST is indeed a convenience, but at the same time it is also bolstering economic progress. "Earlier, because of the multiple tax structures, maximum resources of the transport and logistics sector were expended in maintaining paperwork and that also led to the need for construction of new warehouses in each state. I call GST, Good and Simple Tax," he further said.