GST Day 2024: Date, History, Significance, Quotes and Interesting Facts

GST, a comprehensive indirect tax, transformed India’s tax system by eliminating multiple complex taxes levied by the central and state governments. Goods and Services Tax (GST) simplified the tax structure by focusing on destinations, improving transparency and efficiency.

The day was first observed on July 1, 2018, marking the first anniversary of the tax system’s adoption. On the intervening night of June 30and July 1, 2017, the GST was launched in a grand event at Parliament’s central hall.

GST Day In India 2024: History

The Goods and Services Tax (GST) concept was first presented in India in the early 2000s to simplify the convoluted tax structure. The Kelkar Task Force, a dedicated team, proposed a comprehensive indirect tax system to replace the previous framework that caused a slowdown in the country’s economic growth.

In August 2016, Parliament enacted the Constitution (101st Amendment) Act, authorising the central government to charge and collect GST.

The government established the GST Council, comprising finance ministers from the central and state governments, to supervise the implementation. The council convened multiple meetings to decide on GST rates, exemptions, and concerns. Ultimately, GST came into effect on July 1, 2017, establishing a single market for easy interstate trade.

GST Day In India 2024: Significance

GST Day is important to India’s taxation system since it commemorates the effective introduction of the GST regime. GST has significantly impacted the Indian economy by streamlining the tax system and establishing a unified market for frictionless trade between states.

GST replaced many indirect taxes levied by both the central and state governments, including excise duty, service tax, and value-added tax (VAT). As a result, the tax system has become more simple and clear.

GST Day In India 2024: Quotes

1. The consensus we arrived at with states for amending the constitution to implement GST is a breakthrough. This alone has the potential to make India competitive and attractive for investment. – Narendra Modi.
2. GST is the biggest indirect tax reform India has ever seen. – Arun Jaitley.
3. GST is a historic tax reform that will take India to new heights of growth and development. – Nitin Gadkari.
4. GST is a much-needed reset button for India’s economy. –Nandan Nilekani.

GST Day In India 2024: Interesting Facts

• Actor Amitabh Bachchan is GST’s brand ambassador.
• France was the first country to implement GST.
• In India, GST revenue is split between the central and state governments.
• GST exempts some commodities from taxation, such as fresh fruits and vegetables and unbranded flour.
• Former Prime Minister Atal Bihari Vajpayee is widely regarded as the father of GST.
• The GST system in India was built on the foundation of the Canadian GST system.
• GST was first introduced in India in 2000, but it took over 17 years to implement.
• GST eliminates the need for separate state-level tax registrations, making business operations simpler.
• In India, the GST system has five tax slabs: 0%, 5%, 12%, 18%, and 28%.