Meanwhile, it is quite curious that GST should be given a star-studded midnight welcome reminiscent of the ushering in of Independence with Parliament all lit up. Since then, more than 140 countries have implemented GST with some countries having Dual-GST, for example Brazil and Canada.
A Google search gives a figure in excess of 150 countries, which have adopted Goods and Services Tax or simply the GST, what India introduced at the stroke of midnight today.
The President, Shri Pranab Mukherjee and the Prime Minister, Shri Narendra Modi pressing the buzzer to launch the Goods & Service Tax (GST), in Central Hall of Parliament, in New Delhi on June 30, 2017. "Best brains in the country debated over it continuously, that is why we could see the GST roll-out today".
Overall, the GST aims to simplify India's labyrinth of almost a dozen state and federal taxes that often led to long queues at state borders for truck drivers who had to pay different taxes for the goods they were shipping.
"While GST (Goods and Services Tax) is an important step towards reforming the tax system in the country, the hyped midnight celebration was uncalled for and not in good taste", he said in a Facebook post. "If India has to move from developing economy to developed economy then the attitude, mindset of people.it is about time that the mindset also became a mindset of a developed economy", Jaitley said at an event here.
Modi will mark the switch to the new tax regime with a speech in the central hall of parliament where India declared itself a free nation and first prime minister Jawaharlal Nehru made his famous "tryst with destiny" speech on August 15, 1947.
The finance minister also said that he was hopeful that Jammu and Kashmir will clear GST soon. But he also warned, "GST is a disruptive change no doubt. there will be teething troubles but we will have to solve them with understanding and speed". "Keeping that in mind, there was a consensus in the GST Council to bring the rate to 5 per cent", Jaitley, who heads the GST Council, told reporters after the 18th meeting of the Council. For instance, the 12 percent rate and 18 percent rate may get merged in future, he indicated.
However, GST will make India a common market with common tax rates and procedures and remove economic barriers.
Most economists agree the reform-first proposed in 2006 - is long overdue, but warn of an initial shock to the economy as businesses adjust.