At midnight, Parliament launches GST: India now One Nation, One Market
On the stroke of Saturday midnight, with the sounding of a gong in Parliament and fireworks in different parts of the country, India stepped into a new era of “economic freedom” marked by the mega launch of the Goods and Services Tax (GST).
President Pranab Mukherjee and Prime Minister Narendra Modi launched the historic tax reform measure in the Central Hall of Parliament in the presence of Finance Minister Arun Jaitley, MPs, Chief Ministers, and dignitaries from different walks of life. However, the Congress and several other Opposition parties skipped the function.
Former Prime Minister Manmohan Singh, who had unsuccessfully tried to implement the GST, was not present on the high table.
This was the fourth time such a Joint Session of Parliament was convened. The first will be remembered for “Tryst with Destiny” speech of first Prime Minister Jawaharlal Nehru on the occasion of India’s Independence in 1947. The second such Session took place in 1992 to mark the 50th anniversary of Quit India Movement in 1942. The third midnight Joint Session was called in 1997 to mark the 50th anniversary of India’s Independence.
In his speech, the President said that GST was the culmination of 17-year-long journey. “It had many issues of contentions. But I was confident that the GST was a matter of time and that gradually it will be implemented,” he said.
Pranab said the GST rollout was a moment of personal satisfaction for him. “As a Finance Minister, I had moved the Constitutional Amendment Bill,” he said.
Speaking on the occasion, Modi said the GST was a fine example of cooperative federalism. “From Sri Ganganagar to Itanagar, from leh to lakshadweep, there will be one nation and one tax...GST will eliminate the compounding effects of multi-layered tax system,” Modi said.
Underlining the significance of the Central Hall assembly, which was dubbed as “tamasha” by Congress vice-president Rahul Gandhi, Modi said, “This place is witness to August 14 midnight. And today, after so many years, we assemble here for economic reform. There couldn’t have been a better place for this occasion.”
The PM said the GST has united country the way Sardar Patel had done after Independence. He tried to negate the impression that the GST could lead to price hike and cause hardship to the poor.
“This mechanism will help us reach out to the poor. There will be no ‘kachcha bill’ and ‘pakka bill’ from tomorrow”, said Modi, adding, “after 70 years of Independence, there is a lot that is yet to reach the poor of the country. The GST will help us in that direction.”
Describing the GST as “Good and Simple Tax”, Modi said the GST was not a mere ‘tax reform’, but it is an economic reform that will soon become a social reform as well.
“GST will play an important role in realising the dream of a ‘New India’,” Modi said.
In his inaugural speech, Jaitley said, “The old India was economically fragmented, the GST will help the New India in creating regime of one tax, one market and for one nation.”
Asserting that the GST reform showed that India can rise above narrow politics and embrace inclusivity, Jaitley said while implementing the GST, neither the Centre nor any State will give up their sovereignty.
“This (the launch of GST) displays a high point of Indian politics….The New India will create one tax, one nation and one market…both the Centre and States will work towards one goal — shared prosperity,” he said.
The Central Hall was fitted with new carpets and sound systems for the big night. The event started at 11 pm and extended till midnight to usher in the GST. Nearly 1,000 important personalities including Industrialist Ratan Tata as will RBI Governor Urjit Patel, former Governors Bimal Jalan and YV Reddy were present.
Opposition parties like the Congress, the left, the TMC, the DMK and the RJD boycotted the event. Members of the the Samajwadi Party, the NCP and the BJD attended the function. Bihar Chief Minister Nitish Kumar skipped the launch but a senior Minister from his Government was present. Senior JD(U) leaders Sharad Yadav and KC Tyagi also skipped the launch.