Monday, June 25, 2018

PM Modi states 5 reasons for GST’s “success”


1st of July 2018 will mark the one-year of GST’s existence. It will be the one-year anniversary of one of Modi’s most controversial steps after demonetization and also one of the biggest tax reforms over the globe. In our PM’s monthly radio “Mann ki baat” this Sunday, he addressed the nation and stated 5 reasons why he thinks the Goods and Services Tax rollout was successful.
1)     Cooperation from the states
Mr. Narendra Modi believes that the successful implementation of GST exemplifies cooperative federalism. True to his views, it isn’t possible to include people from different political ideologies and instrument an altogether new system without the unanimity of the states in a decentralized system. A consensus of opinions from individual state governments to serve the interest of the public is a major reason why the GST structure could function without hassles.

2)     Honesty as a valued moral
Prior to the existence of GST, there were 17 forms of taxes that an individual had to pay. Not only is it now convenient because there is a single applicable tax but is also uproots the domination of tax inspectors. The high number of complaints filed by the public in the past, that has been looked at as evidence for the prevalence of corruption, has now decreased. GST thus marks the celebration of honesty.

3)     The integration of IT into the field
It has been introduced as an integral part of the Finance and Banking sector in India. Computers have replaced the human police in the field of taxes. Income tax returns, refunds, etc. are all filed online now, so the chances of human error in evaluation or illegal maneuvers is lowered. 

4)     Decreased checkpoints, faster movement of goods
Commercial tax check posts in a large number of states were abolished after the introduction of GST. Vigilance has become easier. Not only does this benefit the government but it also facilitates the quick movement of goods. The area of logistics is reaping great benefits from this.

5)     The power of the masses
If the GST system received a revolt from the public, it wouldn’t have been possible for the nation, as a whole, to reap any of the aforementioned benefits. PM Modi thanked the citizens of the country for willingly adopting the system and making it a success. In such a vast country, with a great diversity in population, market research claims that it might take 5-7 years for proper implementations of tax reforms.

The common man’s take on the success of GST

The party is over for those who don’t pay taxes. And the citizens of India are definitely happy paying just one kind of tax for everything from shopping bills to their household items. But if there is one thing that the country still lacks, it is a robust development in the IT sector to support this drastic reform. Mapping dealer’s data with PAN and integrating banks in this process continues to be a challenge. The economic scenario of the country amidst all these developments remains hard to judge. There is no harmony in public opinion and the success of GST among them remains subjective. 

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