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GST Day was first celebrated on July 1, 2018, marking one year since the implementation of the tax system. (Image: Shutterstock)
The GST was launched at a grand ceremony held in the central hall of Parliament on the intervening night of 30 June and 1 July 2017.
GST, a comprehensive indirect tax, transformed India’s tax system by eliminating multiple complex taxes levied by the central and state governments. The Goods and Services Tax (GST) simplified the tax structure by focusing on destinations, improving transparency and efficiency.
The day was first celebrated on 1 July 2018, marking the first anniversary of the adoption of the tax system. On the intervening night of 30 June and 1 July 2017, the GST was launched at a grand event in the central hall of Parliament.
India GST Day 2024: History
The concept of Goods and Services Tax (GST) was first introduced in India in the early 2000s to simplify the complicated tax structure. The Kelkar Task Force, a dedicated team, proposed a comprehensive indirect tax system to replace the previous framework that led to a slowdown in the country's economic growth.
In August 2016, Parliament enacted the Constitution (101st Amendment) Act, which empowers the central government to levy and collect GST.
The government set up the GST Council, comprising finance ministers from the central and state governments, to oversee the implementation. The council convened several meetings to decide on GST rates, exemptions, and concerns. Finally, the GST came into effect on July 1, 2017, establishing a single market to facilitate interstate trade.
GST Day in India 2024: Significance
GST Day is important for the Indian tax system as it commemorates the effective introduction of the GST regime. The GST has had a significant impact on the Indian economy by streamlining the tax system and establishing a unified market for frictionless trade between states.
The GST replaced many indirect taxes levied by both the central government and state governments, including excise duty, service tax and value-added tax (VAT). As a result, the tax system has become simpler and clearer.
GST Day in India 2024: Quotes
- The consensus we have reached with the states to amend the constitution to implement GST is a major breakthrough. This alone has the potential to make India competitive and attractive for investment. – Narendra Modi.
- GST is the biggest indirect tax reform India has ever seen. –Arun Jaitley.
- The GST is a landmark tax reform that will take India to new heights of growth and development. – Nitin Gadkari.
- GST is a much-needed reset button for the Indian economy. –Nandan Nilekani.
GST Day in India 2024: Interesting Facts
- Actor Amitabh Bachchan is the brand ambassador of GST.
- France was the first country to implement GST.
- In India, GST revenue is divided between the central government and state governments.
- The GST exempts some essential commodities from taxes, such as fresh fruits and vegetables and unbranded flour.
- Former Prime Minister Atal Bihari Vajpayee is widely regarded as the father of GST.
- India's GST system was built on the basis of the Canadian GST system.
- The GST was first introduced in India in 2000, but it took more than 17 years to implement.
- GST eliminates the need for separate tax registrations at the state level, simplifying business operations.
- In India, the GST system has five tax brackets: 0%, 5%, 12%, 18% and 28%.
