All systems in place for smooth rollout of GST regime: Jaitley
MIDNIGHT LAUNCH Independent India’s biggestever taxation reform kicks in
The government on Friday said it expected a smooth roll of the Goods and Services Tax but admitted chances of minor problems in execution of the biggest tax reform in Independent India.
“I think the roll-out will be very smooth, as smooth as possible,” Jaitley said at an event of a private TV channel, hours before the midnight launch of the new tax. “All systems are in place. When massive change takes place there is an element of uncertainty of the unknown and when there is unknown there is fear. The whole process will change. There will be some minor problems...I think that will be a matter of days.”
The GST aims at replacing a complicated mix of state and central taxes with one cess that will be charged at four different rates – between 5% and 28% — and will alter the prices of almost everything that you use. Certain essential goods are expected from GST.
The GST replaces 17 taxes and 22 other cess, union minister Nitin Gadkari said. “The GST will benefit the economy and stifle flow of black money,” he said on a TV programme, describing the new taxation system as ‘transparent’ that will also end ‘inspector raj’.
The GST was scheduled for a midnight launch at a function in Parliament’s central hall in presence of President Pranab Mukherjee, Prime Minister Narendra Modi, his cabinet colleagues and others. But, the Congress, DMK, Trinamool Congress and Left parties decided to boycott the event.
“A reform that holds great potential is being rushed through in a half-baked way with a selfpromotional spectacle,” Congress vice president Rahul Gandhi, who is travelling abroad, wrote on Twitter with “#GSTTamasha” hashtag.
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Congress vice president Rahul Gandhi led the barrage of criticism against the implementation of the GST on Friday, hours before the country embraced the new tax regime.
“India deserves a #GST rollout that does not put crores of its ordinary citizens, small businesses & traders through tremendous pain &anxiety,” Gandhi tweeted.
With key Opposition parties like the Congress, Left, Trinamool planning to boycott the GST rollout, senior government managers appealed to Opposition leaders to rethink their position and join the event. ››P10