ONE TAX IS NOT POSSIBLE: MODI ON GST

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An extraordinary speech!

modi

In an interview to SWARAJYA MAGAZINE, India’s Prime Minister said, “Can we have milk and Mercedes at
the same rate? So, when our friends in Congress say that they will have just one GST rate, they are effectively
saying they will tax food items and commodities at 18% instead of 5%, which is valid now.”

Mr. Modi said that a total of 48 lakh new enterprises have been registered since the launch of the GST last
year, against 66 lakh indirect taxpayers registered since Independence. Adding up to his words, he said that
around 350 crore invoices were processed and 11 crore returns were filed.

Mr. Narendra Modi’s words confidently addressed the conference as he said, “GST was a massive and a major
change, requiring a huge reform and a complete reset of one of the world’s largest economic systems.”

He also stated, “My countrymen had faced a lot of problems after GST was issued. There are often huge
troubles seen when a reform of this magnitude is carried out, but these issues were not only identified but also
addressed in real time.”
Modi’s words were able to show that he was very confident of his decision as well as proud of his countrymen.

GST

“what you see is what you pay”

PM also stated that GST, since its launch, has led to an over 70 per cent jump in the indirect taxpayer base,
demolished checkposts and most important of all merged 17 taxes and 23 cesses into one single tax.

Checkposts across the country have been abolished and there are no more queues at state borders. Not only are
truck drivers saving precious time but also the logistics sector is getting a boost and thereby increasing the
productivity of our country. Would this be happening if
the GST was complex?”

To a query on crensure of GST’s implementation he said that he has seen Indian cooperative federalism at its
best. “We consolidated the states and developed proactively a consensus, where earlier governments had
failed", the Prime Minister said.

The government has reduced taxes on nearly 400 groups of items. Around 150 groups of items have zero per cent
tax rate. If you look at the rates, for most of the day-to-day commodities, the rate has actually come down. Be it
rice, wheat, sugar, spices, etc, the total tax levied has been reduced in most cases.

A large number of items of daily use are either exempted or in the 5 per cent slab. Some 95 per cent items fall in below the 18 per cent   slab,” Modi added.

 

THE SOCIAL VIEW:

In a Facebook poston Sunday, Union Finance Minister Arun Jaitley too said that the idea of a single tax under
the name of GST was a flawed idea.

“A single slab GST can function only in those countries where the entire
population has a similar and a higher level of paying capacity,” Jaitley wrote. “Since GST is a regressive tax,
the poor have to be given a substantial relief.

Thus most food items – agricultural products and the Aam Aadmi used products have to be tax exempt. Some others have to be taxed at a nominal rate. The others could be taxed higher.”

THE FINAL STATEMENT: Hence, Mr. Modi is firm about his decision and it is clearly visible from his words that no
one whether his opposition or anyone else can change his decision.

By – Vaibhav Srivastava

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