July 1 of each year is commemorated as GST day, an important date in the Indian economy calendar. It marks the beginning of GST, a historic tax event that rolled out several Goods and Services Tax, combining multiple indirect taxes.
This blog introduces GST Day 2024 and the history, meaning and how it has become one of the world’s largest policy changes.
Date of GST Day 2024
GST Day is celebrated on July 1 of every financial year. In 2024, it will be the 7th anniversary of GST in India, but it will remain a working day.
History of GST
The Goods and Services Tax (GST) was first proposed in India several years ago in the 2000s. As we discuss the history of GST, the concept was initially introduced in 2000 by the then Vajpayee government, which formed a committee to chalk out a model for GST. The tax reform was in process for years and went through the efforts of several governments.
The Constitution Amendment Bill for GST was approved in 2016, and the Indian government rolled out GST on July 1, 2017. This reform replaced many indirect taxes collected by the central and state governments and endeavoured to unify one comprehensive tax to simplify taxes and advance a unified national market.
Pre-GST Taxation System
Prior to GST, the taxation process in India was complex, and various taxes were charged. The central government earlier prescribed taxes as Central Excise Duty, Service Tax, and Customs Duty, and the state prescribed taxes as Value Added Tax (VAT), Sales Tax, Octroi, and Entry Tax. This situation resulted in most commodities and services coming with added taxes, and the outcome was that costs went up.
When Was the GST Implemented in India?
Initially, the Indian Government proposed GST in 2006 through the then Finance Minister P. Chidambaram in his annual budget speech. The 122nd Constitutional Amendment Bill, necessary for implementing GST was approved by the Lok Sabha in May 2015 and by the Rajya Sabha in August 2016.
After receiving the presidential assent, the rates and structure of the GST were settled through the GST Council. After a long-heated debate on the issue, the GST was launched on June 30, 2017, at a midnight session of the parliament and implemented on GST Date in India- July 1, 2017.
Significance of GST Day
GST Day is significant because it marks a major turning point in India’s economy. The importance of GST includes:
- Economic Impact: GST has reduced the cost of products and services, which has boosted demand. The structure of observing uniform tax laws has facilitated interstate trading and thus enhanced the formation of a unified national market.
- Benefits to Businesses and Consumers: The input tax credit system allows businesses to claim tax credits paid on inputs, lowering overall tax liability. Consumers benefit from lower prices on many goods and services due to the elimination of cascading taxes.
Celebrations and Observances
Like any other festivity, GST Day is commemorated in India, and different activities are conducted by the government as well as other organisations.
- Government Initiatives: On GST Day, the government publishes press releases regarding GST collection and compliance data for the current and previous months, introduces new initiatives to further ease GST, and launches new online platforms to facilitate taxpayers’ GST returns and payment submissions.
- Public Engagement: Citizens are engaged through social media campaigns and other public platforms to voice their tax contributions. In line with the implemented GST system, businesses review compliance practices and participate in training sessions to achieve progressively enhanced implementation and cooperation.
Checkout: List of Important Days in July 2024
Quotes on GST Day 2024
Here are some GST quotes written by some famous personalities on this Day.
1. “GST is a catalyst for economic growth, fostering a fairer and more transparent tax regime.” – K. V. Kamath
2. “The implementation of GST is a landmark step towards simplifying the Indian taxation system.” – Manmohan Singh
3. “GST is not just a tax reform, but a path towards creating a unified national market.” – Narendra Modi
4. “GST is a win-win for the nation, transforming the tax landscape for the better.” – Nirmala Sitharaman
5. “GST is a giant leap towards economic integration and growth.” – Raghuram Rajan
6. “GST has simplified the tax structure, benefiting both businesses and consumers.” – Amitabh Kant
7. “The uniformity brought by GST has made doing business in India easier and more efficient.” – Deepak Parekh
Conclusion
GST Day celebrates the important change in India’s tax system that started on July 1, 2017. Celebrations include government events, public awareness campaigns, and seminars to discuss how GST has helped the economy and what can be improved. These activities show how GST has united India’s market and made business easier. As we mark GST Day, we remember the progress made and look forward to further improvements in the tax system, making it better for all.
FAQs on GST Day
Q1. Who is called the Father of GST?
Atal Bihari Vajpayee first proposed the introduction of GST in 2000. So, he is called the father of GST.
Q2. Who is the first GST chairman?
Late finance minister, Mr. Arun Jaitley, served as the first chairman of the GST Council, responsible for making recommendations on issues related to GST in India.
Q3. Who is the head of the GST council?
Nirmala Sitharaman is the head of GST council.
Q4. Which was the first state in India to pass the GST bill?
Assam was the first state in India to pass the GST bill.
5. What are some facts about GST?
Here are some key facts about GST:
1. GST is categorised into Central GST (CGST), State GST (SGST), and Integrated GST (IGST) for interstate transactions.
2. Small businesses with annual turnover below specified limits are exempt from GST registration.
3. GST has streamlined tax compliance through online portals and regular filing requirements.
4. GST continues to evolve with periodic rate revisions and amendments to improve efficiency and transparency in taxation.
