It was a humongous occasion. After almost seven decades of independence we have finally reached out from independence from economic affairs and this should integrate and unite each and every Indian citizen with equal might and wonderful chance to comprehend to power itself out of the deep poverty.
On the 30th of June during midnight time, honorable President of India and Prime Minister of India jointly through application started the process of beginning of this new era of goods and service tax which aims to unify state and central federal system and turn it into cooperating federalism.
The same hall witnessed debates over construction of holy constitution of India and the same hall saw the implementation of GST and this should do away with all of these other tax forms that has been there in and around each and every state of India. For the first time in terms of financial powers to the states and the center are on the same line and this should be a great concept for the nation to hold its unity to begin towards more affirmative possession of nationhood.
The process of converting the entire tax system into a unified structure has not been easy. As it requires a complete and thorough implementation of all such tax reforms and considering the revenue share aspects to states as suppose of these tax reforms the forms of revenues goes down then it would have been disastrous for states to comply with economic matters.
Unlike other nations world wide where there was implementation of GST the tax rate system is on a single mode but considering the complexity and the economic gap between person to person in India it has been a tremendous idea to find out the most favorable five points levels for businesses.
It all started with the era of former prime minister of India A.B. Vajpayee and the process continues and during the era of UPA and while the current Honorable President of India was finance minister has constituted a software creative team and the process continues. During all these development processes were almost most of the minds of different parties have garnered and provided so much of additions and internalization of these tax systems which surprises many of the world figures.
We have now five tax slots and the commodities that fall into these tax slots such as zero percentage, five, 12, 18 and 28 and most of these are calculated on the basis of current tax systems as we have seen presence of almost of 17 tax on each and every commodities and now these are converted into simple tax system and a single tax system.
Prime Minister Modi while addressing the parliament as well as people of India emphasized the importance of unity as a whole and when all of these parties and the minds got united in a single direction the ultimate, process of a wonderful GST completed and now it comes to absolute reality.
Excellent brains of India such as former finance ministers and eminent economist have utilized their brains to construct such single and unison tax policies to provide some awesome platform for honest business persons to perform their business at the correct platforms.
Single tax systems for everything that comes to stock now to be scrutinized in well directive manner and this should stop the black marketers in every field to utilize the benefits through other means. In this way, the prices should go down considerably and that should help lay man and middle income group to a larger extent. With this comes complete transparency of business.
Once Albert Einstein said that it is very difficult to understand income tax and the present tax system of India also very difficult to understand with over multiple tax implementations and now with the implementation of GST we come forward and understand that only one single taxation system is there.
With this comes the most prominent implementation of a scheme where the black marketers and hoarders would have a very difficult to time manage their business and increases the price like pre-GST era.
There have been almost 50 business houses who have been defaulters to the nation and they continue to prolong the case and that incurs heavy financial losses to Indian exchequers. With this implementation the so called backward states would be heavily benefited.
The so called back ward states have huge potential for mineral resources, and other natural resources but due to high cost of taxes the industries never looked towards these states and as the result the products sold here are on higher side of prices due to crossing of boundaries of so many states from the manufacturing states.
Now, with the same tax everywhere, the industries would find the land cost on lower sides in so called not so developed state of India and the cheaper electricity prices and labors and that makes the cost of production on lower sides and the output price also stays lower and the product send for selling of anywhere in the country does not have put the taxes in it at all.
One single tax system and for this there could not be any such earlier location advantages for this and this means now the investors would see the present taxation system and continue to find that only one single taxation system they had to deal with it and with comes the total comprehension of ideas where more and more investors should come and create their products while joining with make-in-India campaigns.
What it makes is that it should lower the prices of products and this would empower customers to buy for more and now both the state and the center are on the same page of economic development and they would become self-sustained and powerful to rule their respective territories and perform development programs and other welfare measures without depending upon financial assistance or loans from other locations.
On the other side of the more and more business house would be under transparent tax regimes and it does create more and more revenues and lead India from developing nation to develop one.
It also unites India in terms of financial similarities and the transparency and other performances and the waiting time and inspector raj and other practices would end soon. Everything soon to be done with complete transparency and use of plastic money or electronic transaction for each and every form of businesses should be introduced as this would help the business owners to know about their production and other expenditures.
We are entering into new phase of independence where everywhere we now go in India would have the similar pricing system all over and this would mean we are now entering into era of economic independence and this should empower India to its greatest form of might in terms of economic performances.