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GST - IT has replaced Inspector Raj of earlier tax system, says PM

Published: Jun 24, 2018

By TIOL News Service

NEW DELHI, JUNE 24, 2018: IN his latest edition of 'Mann Ki Baat' the Prime Minister, Mr Narendra Modi, today said that it has been a year since GST was implemented and he gave credit to the States for its successful introduction. GST is a great example of Cooperative federalism, where all the states decided to take a unanimous decision in the interest of the nation, and then such a huge tax reform could be implemented in the country, he added.

Mr Modi said that so far, there have been 27 meetings of the GST Council and people from different political ideologies have been involved in these meetings. These meetings involved representatives of different states; states which have different priorities, but in spite of all this, all the decisions that have been taken in the GST Council so far have been taken with absolute consensus, he added.

The PM said that earlier, in the case of taxation and allied affairs in the country, there were rampant complaints of Inspector Raj. In the GST scheme, information technology has replaced the inspector. Everything from return to refund is done through online information technology. The check post has become extinct after the arrival of the GST scheme and the movement of goods has become faster, which not only saves time but is also accruing benefits in the area of logistics.

Mr Modi emphasised that "the GST is probably be the biggest tax reform in the world. The successful implementation of such a huge tax reform in India was successful only because the people of the country adopted it and through the power of the masses, fuelled the success of the GST scheme. It is generally believed that such a big tax reform, in a huge country like ours with such a large population takes 5 to 7 years for effective adoption. However within a year, the enthusiasm of the honest people of this nation, the celebration of integrity in the country and the participation of people resulted in this new tax system managing to create a space for itself, has achieved stability and according to the need, it will bring reform through its inbuilt arrangement. This is a huge success in itself which 125 crore Indians have earned for themselves."