About 1,000 people packed the hall when Modi began to speak from where India declared itself a free nation and first Prime Minister Jawaharlal Nehru made his famous "tryst with destiny" midnight speech nearly seventy years ago. It will replace a complicated mix of 500 types of state and federal tax, Modi said.
Besides, Jammu and Kashmir would not get the benefit of the Government of India (GoI's) compensation to states on account of the loss in revenue incurred by implementing GST, he said. "It signals to investors the government's ability to deliver on its reform agenda".
Former district BJP president Chandra Shekhar Mishra said the taxation system in the country was much complicated earlier.
Seventy-year-old Deepak Kumar from Patna is into the ready-made garment business for the last 40 years. Albert Einstein used to say that one of the most hard things to understand is income tax.
"In the months to come, based on the experience of actual implementation, the GST Council and the Central and state governments should continuously review the design and make improvements, in the same constructive spirit as has been displayed till now", he said.
"GST panel has failed to deliver our PM @narendramodi's One Nation One Tax message".
Businesses were ordered in January to adopt or upgrade computer systems in order to comply with the new tax regime, which requires monthly tax returns to be filed online. UP and Madhya Pradesh witnessed bandhs in some areas while some demonstrations and protests also broke out in parts of West Bengal, Andhra Pradesh and Telangana. He said the GST should be seen as an economic reform that will also help social reform.
But there bright spots. It is an important step in economic reform.
"It is similar to the introduction of value added tax when there was initial resistance".
An end of tax arbitrage under the GST is estimated to save companies $14 billion in reduced logistics costs and efficiency gains.
The political stunts against the goods and services tax is all set to be more aggressive after July 1, as the impact and results will continue to cause concern to the stakeholders. Luxury items including motorcycles, perfume and shampoo, which account for about 19 per cent of all taxable items, will be taxed at 18 per cent or higher.