India enters into ‘One nation-One tax’ regime

New Delhi: Ending as many as 14 long years of debate and frequent skirmishes along side allegations of derailing it, the "historic" and "breath-taking" Goods and Services Tax, biggest tax reform in India, was rolled out tonight in a grand ceremony at the Central Hall of Parliament. While both Prime Minister Narendra Modi and Finance Minister Arun Jaitley called the proposal to enforce 'one nation-one tax' norm as "historic", President Pranab Mukherjee said the "scope of the change is truly breath-taking". The biggest ever tax reform GST is also expected to reduce the burden on the common man and will integrate India into a common market, bigger than the European Union.

By doing away with the plethora of taxes, the GST is expected to accelerate economic growth even as opposition parties have accused government of bringing in an 'half-baked' system in hurry. President Mukherjee, who had pioneered the Constitution Amendment Bill on March 22, 2011 as the Finance Minister, said the GST is a "disruptive change". "It is similar to the introduction of VAT when there was initial resistance," he said adding there would be some "teething problems" but added that these problems ought to be solved with understanding and speed. The "growth momentum" should not be disturbed, he recommended strongly. Prime Minister floated a new definition for GST - calling it "Good and Simple Tax" and said it could take some time to adjust to new norms.

First proposed in 2003 when a Task Force headed by Vijay Kelkar had recommended for GST, the grand proposal has, however, undergone a long journey wherein the ruling BJP was in the past accused of derailing and delaying it. Even hours before GST was rolled out, the Opposition Congress and Left parties and regional outfits like RJD and Trinamool Congress announced boycott of the glittering GST function in the historic Central Hall. In fact, without naming anyone, President Mukherjee said as Finance Minister he had interacted with Chief Ministers of Gujarat, Bihar, Andhra Pradesh and Maharashtra a number of times. Before 2014 - it goes without saying - none other than PM Modi was the Chief Minister of Gujarat. (UNI)