Within a month of its rollout, Prime Minister Narendra Modi has said that the Goods and Services Tax (GST) has transformed the economy while ushering in a new culture.
GST was rolled out exactly a month ago in the midnight of June 30. It came into effect from July 1.
“GST has transformed the economy … It has been one month since GST was implemented and its benefits can be seen already. GST is more than just a tax reform! It ushers in a new culture,” PM said in his address to the nation during the 34th edition of ‘Mann Ki Baath’ on Sunday.
Modi said he has received several ideas and suggestions from people on successful implementation of GST. He also said it has improved consumer-producer relations. He said doing business has become so much easier. And most important of all, the trust of customers for the traders is increasing.
“This time, I have got lot of calls and letters on GST. I feel very happy when a poor person writes to say how because of GST prices of various items essential for him have come down. All decisions have been taken unanimously by the States and the Centre together. And as a result, one overriding priority for every government has been to ensure that there is no burden on the plate of the poor on account of GST,” he said.
'Clutter free' highways
He said the maximum impact of the GST has been felt in the transport and logistics sector leading to “clutter free’ highways, therefore resulting in pollution reduction.
He said due to various forms of taxes earlier the transport and logistics sector had to waste a lot of time and energy and resources on completing the required paperwork. But with the arrival of GST, which Modi refers to as “Goods and Simple Tax’, the sector is seeing ease of business.
Case study
He said the successful rollout of GST has become a case study for several universities. He said it is also an example of cooperative federalism where all key decisions concerning this new tax regime will be taken both by the Centre as well as States.
“The speed at which the smooth transition has taken place, along with rapid migration and new registrations, has instilled a new sense of confidence in the entire country. And some day, the Pundits of Economics, Pundits of Management and Pundits of Technology, will certainly undertake researches and write about India’s GST experiment as a model for the world. It will become a case study for universities across the world,” he added.
GST App
Modi also highlighted that by using the GST App, which can be downloaded on any smart phone, people can obtain information on the price of each item and can also compare it with the previous price structure when GST was not there.
“The lofty dream of One Nation – One Tax has finally been fulfilled. In the matter of GST I have seen how everyone, right from the Government functionaries at the Tehsil level to the officers in the top echelons of Government of India have toiled tirelessly with great dedication,” he added.
Addressing the country on the upcoming festive season, Modi said these are not mere celebrations but they also bring in economic opportunities to the poor and marginal.
He also specifically mentioned the responsibility of citizens towards environment and urged people to use only environment-friendly products during the festive seasons.
“The poor will be able to earn a living and feed themselves. Come, let us link our festivities with the economic welfare of the poor, let the joys of our festivals connect with the households of the underprivileged, bringing monetary happiness to the have-nots. This should be the endeavor of all of us. I extend my best wishes to all my countrymen for the various upcoming festivals and celebrations,” he said.
Flood-hit people
He also expressed concern for the flood-hit people in several parts of the country from Gujarat to West Bengal to the North East. He said a 24x7 control room helpline number 1078 is functioning continuously to deal with the flood situation.
“We should also gradually make it our nature to set our work patterns according to the weather predictions, which could safeguard us against losses,” the PM said.
Specifically referring to the farmers’ plight due to the rains that have resulted in huge damage of crops and fields, Modi said the government has formulated a scheme for the insurance companies, especially crop insurance companies to ensure quick settlements of claims for farmers.