PM Modi Praises Implementation of GST: Reality Check

The 71^st Independence Day earmarked a special event in the Indian history.  As per his promise, PM Modi not only kept his speech short and sweet but also touched the sensitive topics with a great ease. His speech mainly focused on the implementation of GST, cooperative federalism and the developmental reforms.

When nation get hitched to GST

Rising above the criticism from the businessman and politicians, PM Narendra Modi implemented GST with a view to crack a whip on the red-tapism. Though in his speech, he clearly mentioned that roll out of GST or abolition of inter-state taxes have increased the business efficiency, but we believe that the initial hiccups are still not phasing out.  Yes, even the tri-colour national flag sales are badly hit amidst the confusion over GST. Even the air conditioned restaurant is opposing this tax considering it as a roadblock to its sales. The big conglomerates like Dabur, Marico, Emami, and Godrej have also reported a decline in their sales. It seems the confusion surrounding GST has hit the nation world- wide irrespective of cast and creed. Even the Ganesh Mandals are contemplating for smaller pandals in order to reduce the tax burden.

“Mandals are thinking twice before spending money as they are aware that a fair amount will be charged as a tax. In an effort to ensure that the budget is not overshot, they are reducing the size of pandals or searching for alternatives to the best quality materials that will go easy on the pocket. We now fall in the 18% tax slab as against the 12.5% that was earlier paid as service tax,” Balasaheb Kature, a prominent pandal maker, said.

Still, the positivity prevails

No doubt GST has proved to be a bitter pill for various industries including medicines, telecom, sweets, but it is believed that slowly and steadily the shock will be absorbed.  The new regime will add revenues to the state exchequer and boost GDP by 2 percent.  In his speech, PM Modi clearly reinstated that

“Trucks (carrying goods) are saving 30 per cent (travel) time post GST as check posts have been removed. This has helped save thousands of crores of rupees and more importantly time,” he said.

The introduction of new tax regime has unified India and subsumed other central and state levies. In one of his speech he even compared Gita chapters with GST council meetings.

 “It is coincidence that even Gita has 18 chapters and after 18 meetings of the GST Council, the tax reform is becoming a reality,”

PM Modi also expressed his gratitude towards crores of people who made its implementation possible. Further, he highlighted the role of technology in implementing this tax reform seamlessly.

In the end, we would like to conclude that soon the era of confusion will be over and the dawn of positivity will prevail.