Page 20 - NIS English 01-15 July,2023

government's revenue. In such circumstances,
then-Prime Minister Atal Bihari Vajpayee laid the
foundation for linking the country's markets in the
year 2000. He formed a high-level panel to design
a GST model that is fully suited to India's diversity
and complexity.
Then, in 2006, the then-Union Finance Minister
proposed in his budget speech that GST would
go into effect on April 1, 2010, but this was not
feasible. The first discussion paper, outlining the
features of GST, was released in November 2009.
Its bill was introduced in March 2011, but due to a
lack of political consensus, the bill lapsed with the
dissolution of the 15th Lok Sabha. When the new The GST has had a far-reach-
government took power at the Centre in 2014, this ing impact on reducing
process was accelerated. The bill was introduced tax-related trade barriers,
in the Lok Sabha in December 2014 and passed
in May 2015. The Rajya Sabha decided to refer which was one of the primary
this bill to a select committee. On July 22, 2015, goals of its implementation.
this committee issued its report. Following that, According to logistics com-
on August 1, 2016, the constitutional amendment panies, trucks now travel an
was introduced with political consent. The Rajya
Sabha approved it on August 3, and the Lok Sabha additional 100-150 km per day
approved it on August 8. On September 8, 2016, after GST, a 30 percent in-
the President notified it after a formal process of crease. Now that the GST has
consent from more than half of the states, paving removed state-imposed bar-
the way for GST in India. Indeed, Prime Minister
Narendra Modi outlined a vision for an India that riers, logistics companies are
collaborates to achieve the country's economic consolidating their existing
objectives. The GST Council has proven to be a fragmented set of small ware-
very effective federal decision-making body, which houses in each state, increas-
is the biggest success of GST today. State finance
ministers made federal governance history. ing their efficiency."
Previously, there was a lack of consensus on World Bank, March 2018
it due to its flawed model. This was due to two
major factors. States were then asked to eliminate

18 New India Samachar July 1-15, 2023