On 1st July 2017, India has witnessed a great change in the economy that is the implementation of Goods and Service Tax(GST), to accomplish the goal of 'One Nation - One Tax - One Market'. To mark the first anniversary of the implementation Finance Minister of India Arun Jaitley addressed the audience at Ambedkar International Centre. While addressing the gathering through video conference Jaitley said: “Despite challenges to the global economy, we had a direct tax increase of 18%. The first quarter of this year shows that the personal income tax collection, the gross figure has increased by 44% and corporate tax by 17%,”
While terming the decision to bring GST in economy a “monumental economic reform”, the minister further elaborated his opinion that need for its imposition was very obvious because prior to the first of July last year, India questionably had one of the most complicated and clumsy indirect taxes regime in the country. Further, while thanking PM Modi for his support in the implementation of the act he added: “Indian had fragmented market and it was necessary to switch it over to a more efficient system. A system which does not involves these complications,”
Amidst suggestion of critics and many politicians about eliminating slabs from the GST, he elaborated that the same is not possible because a huge part of India’s population comes below the poverty line.
Many politicians from United Progressive Alliance (UPA) has claimed in past that they have taken the initiative for GST during their rule in the country. Jaitley has indirectly answered them as: “It was important to respect the concerns of the state. We analysed the genuine concerns of the state. Having brought them to the negotiating table on the strength of the CST payment we agreed to pay to the States, after discussing in the GST Council, a 14% increase of revenue for the first five years for any loss of revenue. The States jumped for this proposal and we succeeded in winning the trust of the States back for the GST enactment,”