GST rollout as it happened: President Pranab Mukherjee, Narendra Modi launch the biggest tax reform

MS Mani, senior director, Deloitte Haskins & Sells LLP, hailed the decision and said that this is a defining moment for the country. 

“The launch of GST will truly unite the country as far as taxation of goods and services is concerned; we now hope that that the government moves to a considerate and empathetic implementation regime with a focus on making the reform acceptable to all sectors of the economy. 

“The introduction of GST signifies the completion of all processes necessary to launch the most eagerly awaited tax reform in the  country and will significantly improve the ease of doing business in India; this is a defining moment in the country’s economic landscape whose benefits will accrue over the next few years. 

“This is a defining moment for the country as the introduction of GST is a business reform intended to harmonize the indirect tax structure across the country with significant benefits for all sections of society – the focus now shifts to smooth implementation of GST,” Mani said.

#GST formally launched in Parliament by PM Modi and President Mukherjee. pic.twitter.com/BcGOG7gflS

— ANI (@ANI) June 30, 2017

Pranab Mukherjee, who could not push for the reform, presides over the launch

Dinesh Unnikrishnan says:

It is an interesting coincidence that Pranab Mukherjee is presiding the GST launch ceremony, eight years after he, in the capacity of union finance minister in the UPA government, announced the basic structure of GST as designed by Dasgupta committee and six years after he introduced the constitutional amendment in 2011. But, Mukherjee could not push the big reform then because of lack of political consensus and agreement on the broader structure. UPA carried the GST dream for long, but without success. The luck turned out to be on NDA’s side.

Presdient Pranab Mukherjee congratules GST Council for the unanimity

“I remain confident that GST was a matter of time and that it can be easily passed,” the president says.

“It is remarkable that in the 18 meetings of GST Council so far the decisions have been taken through consensus. I congratulate them,” says the president.

The Council has pleasantly surprised everyone of us by completing its task on time.

He also hailed the maturity of the Indian polity.

“I remain confident that GST was a matter of time and that it can be easily passed,” the president says. “It is remarkable that in the 18 meetings of GST Council so far the decisions have been taken through consensus. I congratulate them,” says the president. The Council has pleasantly surprised everyone of us by completing its task on time.

This historic moment is the culmination of 14 year long journey which began in December, 2002: President Pranab Mukherjee. #GST pic.twitter.com/zfyR5cPJtQ

— ANI (@ANI) June 30, 2017

President Pranab Mukherjee says  the launch a momentous moment for the nation

As Prime Minister Narendra Modi ends his speech, president Pranab Mukherjee starts.

The proposal for GST was first mooted in 2007. The responsbilitiy of preparing a line of action for implemetation of GST was given to state finance ministers whose help was taken for Value Added Tax too. The introduction of GST is a momentous moment for the nation," says the president.

‘GST is a big political win for both Narendra Modi and Arun Jaitley’

Firstpost’s Dinesh Unnikrishnan on why the political consensus is a big win for both Narendra Modi and Arun Jaitley:

“Credit goes to Narendra Modi and finance minister Arun Jaitley for getting the critical political consensus, mainly from the Congress party, that was needed to go ahead with Project GST. Lack of political consensus has been the biggest hurdle for GST eversince the idea was first debated in India some one and half decade back.

“GST was delayed, caught badly in the political bargaining during the UPA-regime. Interestingly Modi, too, had opposed GST when he was the Gujarat Chief Minister.

“This has been one of the key arguments of the Congress party to take on Modi in Parliament when the NDA government pushed for GST this time. From that point, convincing the Congress party to agree for the crucial constitutional amendment leading to the GST rollout, has been a big political victory for the Modi camp.”

Narendra Modi says from Leh to Lakshadweep, it is one nation one tax

Narendra Modi wonders what would Albert Einsteen have said seeing many taxes in India.

“Albert Einstein said, if there is any thing in the world that is most difficult to understand that is income tax. With different kinds of 500 taxes in India, I am thinking if Einstein was here, what would he say if he were to see so many taxes,” he says.

But now from Leh to Lakshadweep, it is one nation one tax.

Narendra Modi says both Bhagwad Gita and GST have 18 chapters

From Gita to Chankya, Modi invokes everything ‘Bharatiya’ to drive home the importance of GST.

“There are 18 chapters of Bhagwad Gita. And GST has 18 chapters too,“he said.

Quoting Chankaya, Modi said that no matter how difficult the way, efforts have to be put to make it successful.

Ye jo disha hum sabne nirdhaarit ki hai, kisi ek dal/sarkar ki siddhi nahi hai, ye hum sabki saanjhi viraasat hai: PM Narendra Modi #GST pic.twitter.com/cgOQq67XTB

— ANI (@ANI) June 30, 2017

Narendra Modi says there cannot be a holier place than Parliament for the launch

Modi says the CEntral Hall is the fitting choice for the GST launch.

“Pandit Jawaharlal Nehru, Maulana Kalam Azad, Babasaheb Ambedkar, Sarojini Naidu, Sardar Vallabhbhai Patel were all seated in this holy place. On 14 August 1947, when India got its Indpendence, this holy place was a witness to it.” 

“Here, after many years, this place is witness to GST. There cannot be a holier place than Parliament for talking about GST. It took 2 years, 11 months and 17 days to talk about this reform.”

Arun Jaitley says while fixing rates revenue neutrality and the poor were in mind

Arun Jaitley says a 15-year journey bears fruit today. 

Citing cooperative federalism, Jaitley points out says there was no need to have a vote on any decision at the 18 GST Council meetings.

“There were 24 regulations made. Without any dissent, each commodity tax was decided. There were two principles behind it. Revenue should be neutral and that the poor should not be burdened,” he says.

#GST is an important achievement for the whole country: FM Arun Jaitley pic.twitter.com/2ShJ8Ayh2a

— ANI (@ANI) June 30, 2017

Arun Jailtey says consensus at Council showed India can rise above petty politics

Jaitley praises the efforts to reach consensus in the GST Council.

“The consensus-based work on GST Council that India can rise above petty politics,” he says.

“India can colectively think and act with maturity for a broader purpose. By enacting the GST, neither the Union or the Centre give up their sovereignty. With the Centre, 29 states and 2 union territories, we have instituted a tax reform. With GST, India has showcased that these forces – divisive – can be overcome,” he says.

Arun Jailtley starts speech, says in he process of creating history

At the midnight hour we will be launching India’s most ambitious and reforms, Jaitley says.

“From India it will begin a new journey of limitless possibilities. The new India will create one tax one market for one nation. It will be the India where centre and states will work together for common goal. It will be an India that will write a new destiny,” he says.

The ceremonial walk begins…

Flanked by Prime Minister Narendra Modi and Vice-President Hamid Ansari flank President Pranab Mukherjee to the Central Hall of Parliament.

#Parliament House illuminated for #GST launch ceremony.#gstrollout #OneNationOneTaxOneMarket #GST pic.twitter.com/Xa1ctA6z6k

— Doordarshan National दूरदर्शन नेशनल (@DDNational) June 30, 2017

LIVE: संसद के सेंट्रल हॉल पहुंचे पीएम @narendramodi , थोड़ी देर में शुरु होगा #GST लॉन्च कार्यक्रम.https://t.co/RixFWBElNl pic.twitter.com/RjtsfVk3NG

— ABP LIVE (@abplive) June 30, 2017

Cheaper fertilisers post GST would help farmers, says Union minister Ananth Kumar 

“Fertiliser prices will come down marginally with GST rate being slashed to 5 percent from 12 percent proposed earlier, a decision taken in the interest of farmers, Union minister Ananth Kumar said today. The reduced GST rate will bring down burden on farmers by Rs 1,261 crore, Chemicals and Fertilisers Minister Ananth Kumar told reporters.
   
“Prices of urea, DAP, MoP, and mixed fertilisers will come down marginally with reduction in GST rate from 12 percent to 5 percent,” he said. Kumar claimed that the reduced GST rate on fertilisers will help in bringing prosperity in rural areas.
    
“I feel the GST, which is going to be unfolded is focused on gaon_,_ garib and kisan. A new history been created again with GST rollout,” he said.

PTI

Maharashtra Chief Minister Devendra Fadnavis says GST will bring revolutionary change 

​

Mumbai: Rollout of the Goods and Services Tax is “historical” as it will bring about a revolutionary change in the country, Maharashtra Chief Minister Devendra

Fadnavis said on Friday, hours ahead of the high-profile event in Delhi to mark the transition to the new tax reform.

“One nation, one tax, one market will come into effect with the rollout of GST. The taxation system will make trading easier. While Maharashtra will benefit from GST, other states too will benefit a lot and our economy will get a boost,” Fadnavis said in a statement.

He said a complex taxation system hindered trade and GST will ensure a uniform taxation in the country thereby boosting trade.

“Along with the trade sector, the country’s development speed will get a major boost,” he said. 

The chief minister thanked Prime Minister Narendra Modi and Finance Minister Arun Jaitley for bringing all parties together through a dialogue and thereby paving the way for the rollout of the indirect tax measure. 

“Maharashtra will be at the forefront in ensuring that GST is implemented here with vigour,” Fadnavis said.

PTI

Finance Minister @arunjaitley chairs the 18th #GST Council meeting, in New Delhi #GSTForNewIndia pic.twitter.com/kB41EIsGrA

— PIB India (@PIB_India) June 30, 2017

Ratan Tata reaches Parliament

Meanwhile, invitees have started arriving at Parliament.

According to ANI, industrialist Rata Tata has arrived at Parliament.

Delhi: Ratan Tata reaches Parliament to attend #GST launch. #gstrollout pic.twitter.com/IMTGzpwgX6

— ANI (@ANI) June 30, 2017

RBI’s Viral Acharya says it is a very important structural reform

Reserve Bank of India Deputy Governor Viral Acharya has said switch over to GST is a key structural reform which will turn the country into a single market and make transactions easier across states.

“It is a very important structural reform for the economy to make us a nationalised market with ease of transactions across states…I think it is the kind of structural reform we should welcome,” he said.

“There will be some glitches and ups and downs….as long as the system and network is responsive to that (it is fine),” he added.

Angel Broking terms the reform a khatta-meetha blend to drive long term growth

According to Mayuresh Joshi, fund manager, Angel Broking, the GST is a khatta-meetha (bitter-sweet) blend. 

“At midnight on June 30 the entire ecosystem including manufacturers, distributors, retailers as well as end consumers are grappling with the ramification the new system shall bring about.

“For manufacturers of goods along with providers of service across different categories the implications of getting their interconnected supply chain right down to the end consumer starting with the process of getting registrations, having the requisite software and back-end in place, ensuring their suppliers, dealers, retailers have the same in place in order to avail the input tax credit on the same to be claimed are the first initial steps in the entire process.

“Secondly, the government has gone all out in its efforts to impress upon industry with the entire process flow chart to allay nerves of the industry and is burning the midnight oil to ensure that the same gets implemented with the minimal of glitches and hassles.

“There would obviously be minor teething issues for the first few weeks with implementation at the user end but with strong assurances from the government in terms of support and assistance the same shall be ironed out,” he said.

Dabur fears adverse impact on sales, profit but sees medium- to long-term benefits

Another company has raised concerns about hit on the sales.

FMCG major Dabur has said the reform will leave a short-term adverse impact on its sales and profit due to destocking at trade channels. However, it will be beneficial in the ‘medium-to-long run’, the company said.

However, the home-grown FMCG firm said it was difficult for the company to quantify the impact at this point.

“Although the positives of GST is likely to be felt in medium and long run, the company is likely to experience near term adverse impact on its sales and profits, due to destocking at trade channels and other related transition costs,” Dabur said in a regulatory filing.

PTI

Textile cos welcome tax reform; Congress MP protests against destroying handloom

Meanwhile, protests against the GST rollout reached the door of the Parliament House.

According to ANI, Congress Rajya Sabha MP from Telangana Ananda Bhaskar Rapolu has is sitting in protest against the tax reform in front of the Gandhi statue in the Parliament complex.

He is seen sitting with a placard saying ‘GST destroys handlooms’ and ‘Treat handlooms on par with raw salt’.

This is in stark contrast with the biggies in the textile sector who have welcomed the tax reform.

According to a PTI report, Gautam Singhania, CMD, Raymond Group said, I would like to congratulate our honourable prime minister and entire Government of India for introducing the biggest transformational tax reform in India, the GST.

Sanjay Lalbhai, Chairman of Arvind Ltd, the Ahmedabad-based textiles major, too praised the reform. “Implementation of the GST is a historical and bold decision of the present government. It will bring transparency in the industry,” he said.

Congress Rajya Sabha MP from Telangana Ananda Bhaskar Rapolu protesting against #GST in front of the Gandhi statue in the Parliament complex pic.twitter.com/1J5Hqo42vP

— ANI (@ANI) June 30, 2017

GST Council’s next 3 meetings on 1st Saturday of month from August

The GST Council’s next three meetings will on the 1st Saturday of the month starting from August, according to news agency ANI.

Earlier on Friday, the council had met for the 18th time and decided to reduce rates for agriculture inputs such as fertilisers and exclusive parts for tractors.

Next three #GST Council meeting will be on 1st Saturday of the month starting from August, 2017.

— ANI (@ANI) June 30, 2017

SpiceJet’s Ajay Singh sees teething trouble for aviation sector for 4-6 months

Another business man, also a BJP supporter, has come out raising a few concerns for the sector his company operates in.

Ajay Singh, SpiceJet CMD said the sector is set to face “teething problems” for four to six months due to the implementation of the GST, according to the PTI.

He, however, said his airline was “fully prepared” to usher in the indirect tax regime from 1 July, and that airlines were working along with the government to resolve any concern.

The aviation ministry had earlier sought postponement of the GST implementation by two months on the ground that airlines needed more time to revamp their systems to comply with the new tax regime.

In a U-turn, the ministry later said it was prepared for the GST roll-out from the stipulated date.

Artist  Sudarsan Pattnaik welcomes the reform rollout with sand sculpture

India’s famous sand artist Sudarsan Pattnaik welcomes launch.

My sand art with message #WelcomeGST at #Puri beach in Odisha .#GST pic.twitter.com/mp0E0wCDa1

— Sudarsan Pattnaik (@sudarsansand) June 30, 2017

Piyush Goyal claims the reform will widen tax base, lower rates eventually

Power Minister Piyush Goyal has said that Goods and Services Tax (GST) rollout is a transformational move aimed at increasing revenues that will bring down the taxes in future.

“Under the GST regime, tax base will expand. More people will pay tax honestly. The GST experience may lead to lower tax rates in the future while tax revenue will go up,” PTI quoted Goyal as saying at a GST conclave.

The minister also said, “It is undoubtedly a historical occasion. Never ever before this (moment), the nation thought of having one single tax after abolishing 17 taxes. No one thought that 29 states and the Centre would take a unanimous decision.”

“The Goods and Services Tax Network (GSTN) – the technological backbone – has come up with a simple system for filing tax returns. This is the way for honest filing of taxes. There is no other way than honesty under the new regime,” he added.

PTI

Parliament all decked up for the mega event; check out the photos here

Meanwhile, Parliament is all decked up for the mega event.

The BJP is leaving no stone unturned to make this a historical event, despite the criticism and concerns raised by many experts.

If post rollout, the reform does not live up to the expectations, the party may have to answer a few questions.

Parliament right now! Get ready #India for a revolutionary economic reform. #GST #MidnightGSTLaunch #GSTForNewIndia #gstrollout pic.twitter.com/40doREkx7Q

— Vijay Goel (@VijayGoelBJP) June 30, 2017

Parliament is decked for the midnight #gstrollout #IndiaForGST pic.twitter.com/OJzQ0jdJb5

— CNBC-TV18 (@CNBCTV18News) June 30, 2017

Rajiv Pratap Rudy sees 11% boost in hiring; is his optimism misplaced?

In the time of job losses and grim outlook for many sectors, can GST be a relief?

Union minister Rajiv Pratap Rudy seems to think so.

According to PTI, he expects the GST rollout to boost hiring across sectors by 11 percent by creating an integrated national market which will promote domestic demand and drive job creation.

He said India was on the cusp of an economic revolution with the rollout of the GST, to be effective from midnight.

The Ministry of Skill Development and Entrepreneurship announced a training programme to certify Goods and Services Tax practitioners under its flagship scheme Pradhan Mantri Kaushal Vikas Yojana to make the country’s passage to the new tax regime smooth and glitch free.
    

However, it remains to be seen whether this will indeed make good for the job losses due to demonetisation. Many have expressed concern that the GST, much like the demonetisation, will impact the informal sector negatively and result in job losses.

A fine summary of how the tax reform is going to benifit India

Firstpost’s Dinesh Unnikrishnan sums up the benifits of the GST: 

“With GST finally turning into a reality, India will join the club of several developed economies in the world with a uniform tax structure.

“Some 159 countries in the world are GST-compliant. More importantly, the passage of GST will show the world that India has finally broken out of the reforms jinx and is ready for the next round of big reforms.

“Incidentally, the GST launch is coinciding with a slew of other key reform steps such as the government’s recent decision to privatize national air carrier Air India, introduction of insolvency and bankruptcy code and major subsidy rationalisation exercise using the direct benefit transfer model.

“The introduction of GST and the simpler tax regime it promises will appeal to foreign investors and rating agencies looking at India—an idea Prime Minister Narendra Modi has been hard-selling to foreigners for long.”

Maharashtra CM Devendra Fadnavis says India will grow faster, better 

Meanwhile, BJP leaders continued to hail the rollout of the reform. 

Maharashtra Chief Minister Devendra Fadnavis told ANI: I think India will grow faster, better, economy will be benefited, all the states will be benefited: Devendra Fadnavis, Maharashtra CM.

I think India will grow faster, better, economy will be benefited, all the states will be benefited: Devendra Fadnavis, Maharashtra CM #GST pic.twitter.com/2egIhV2WKx

— ANI (@ANI) June 30, 2017

Council cuts rates on fertlisers to 5%, tractor parts to 18%; relief for farmers

Meanwhile, GST Council continued to change the tax rates. At the 18th meeting today, ahead of the launch ceremony, the panel cut the rates on fertilisers and tractor parts.

The council reduced rate on fertilisers to 5% from 12% and on exclusive parts of tractors to 18% from 28%.

The decision is likely to come as a relief for the agriculture sector which is seeing unprecedented protests from farmers due to rise in input costs.

GST Council today decided to reduce GST rate on fertilizers from 12% to 5% & on exclusive parts of tractors from 28% to 18%

— Ministry of Finance (@FinMinIndia) June 30, 2017

Anand Mahindra cheers launch, ‘At midnight, India will awake as a common market’

Meanwhile, India Inc seems to be cheering the mega launch event despite the worries and concerns over the hiccups.

Anand Mahindra, Executive Chairman, Mahindra Group, tweeted out: “At the stroke of the midnight hour…India will awake” as a common market for the 1st time. To do the obvious is often the most difficult..

Earlier, Biocon CMD Kiran Mazumdar Shaw had tweeted that GST Council has failed in delivering the ‘one nation one tax’ promise of Prime Minister Narendra Modi.

"At the stroke of the midnight hour...India will awake" as a common market for the 1st time. To do the obvious is often the most difficult..

— anand mahindra (@anandmahindra) June 30, 2017

Minister Jayant Sinha defends multiple rates, says it will ensure price stability

As many as one crore traders and businessmen are expected to come under the ambit of the Goods and Services Tax (GST), a tax reform that will also help in economic integration, said Union Minister for Civil Aviation Jayant Sinha.

He also defended the the multiple rates saying the structure was needed under the GST to ensure price stability and revenue neutrality.

PTI

Arun Jaitley responds to Rahul’s charge, says ‘karvan toh chalta rahega’

Finance Minister Arun Jaitley rejected Opposition charge of GST launch being a ‘self-promotion’. He said the Opposition parties should focus on mainstream rather than latching on to “fringe” issues.

He appealed to the Congress, Left, TMC and RJD, who are boycotting the gala launch function, to rise above partisan politics.

“Karvan toh chalta rahega (Caravan will keep moving). Those who won’t take part, would not stop it,” he said.

Earlier, Congress vice-president Rahul Gandhi had in a tweet termed the GST launch a ’tamasha’ and a ‘self-promotional spectacle’.

PTI

GST Council meeting on ahead of the launch ceremony

Meanwhile, the GST Council’s meeting is on and finance minister Arun Jaitley is chairing the meeting.

GST Council members are finance ministers from all state governments. The members will attend the launch ceremony after the meeting, according to the media reports.

FM @arunjaitley chairing the 18th Meeting of the GST Council in the national capital here today pic.twitter.com/2nGg9lOUuZ

— Ministry of Finance (@FinMinIndia) June 30, 2017