GST implementation won't affect Smartphones pricing in India

Laura Christensen
July 2, 2017

The law may say GST is Goods and Services Tax, but in reality it is Good and Simple Tax. The GST has been launched with an aim to unify India's $2 trillion economy and 1.3 billion people into a common market.

President Pranab Mukherjee, Vice President Hamid Ansari, Prime Minister Narendra Modi, former PM HD Devegowda, Lok Sabha Speaker Sumitra Mahajan and Finance Minister Arun Jaitley at the dais in the Central Hall of Parliament after the launch of 'Goods and Services Tax (GST)', in New Delhi. While all the bigwigs from the ruling party were in attendance - External Affairs Minister Sushma Swaraj, BJP President Amit Shah, Women and Child Development Minister Maneka Gandhi, Minister for Road Transport and Highways and Shipping Nitin Gadkari to name a few - Congress remained adamant about its opposition to GST's rules and boycotted the event.

The new tax regime, to be effective midnight tonight, will replaces the messy mix of more than a dozen state and central levies built up over seven decades, with a one national GST unifying the country's Dollars 2 trillion economy with 1.3 billion people into a common market.

Prime minister, his cabinet colleagues and major company executives will gather on Friday in parliament's central hall for the first midnight ceremony there in two decades to launch the most sweeping tax reform for almost 70 years.

In December, 2015 Chief Economic Advisor (CEA) Arvind Subramanian released a comparative study of GST implementations in the federal systems around the world.

In the making since 2000, the Goods and Services Tax (GST) finally kicked-in from July 1. Bhartiya Udyog Vyapar Mandal, a national traders association that claims 60 million members, called a one-day strike Friday to protest the GST. Today we are getting rid of them.

Amitabh Bachchan promotes GST ahead of rollout. Watch video
GST rollout: Excise & Customs, JNCH take steps to ensure smooth transition

Under GST, the revenues will go up as the compliance goes up and the GDP will also increase.

A short film on the GST played out on television screens as soon as Modi and Mukherjee pressed a button.

While most experts agree on the long-term benefits, including the ease of doing business in India and bringing majority of the country's informal economy inside the tax net, economists are nearly unanimous that in the near term there could be significant disruptions.

It will benefit all the stakeholders namely industry, government and consumer as it will lower the cost of goods and services give a boost to the economy and make the products and services globally competitive, giving a major boost to "Make in India" initiative.

The government published a 213-page list of rates last month showing nearly every item for sale in India.

NASA rocket launch sends colorful clouds above the Atlantic coast
The rocket took off at 4:25 a.m. and gave the region's residents an early taste of the fireworks in store for July 4. The artificial clouds were part of a NASA experiment created to test high-altitude winds and cloud movement.

Other reports by My Hot News

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