The Goods and Services Tax demonstrates the collective strength of the country, said Prime Minister Narendra Modi in his monthly radio broadcast Mann Ki Baat. It is not just a tax reform but a social reform to drive the economy ahead with honesty and sincerity, he said. The benefit is evident within the first month.
GST came into effect from July 1. Businesses have been given time till July 30 to register under the GST. During the course of the year, if a business becomes liable to register under GST, it needs to apply for registration within 30 days from becoming liable for it. Although businesses with turnover of up to Rs 20 lakh are exempt from GST and hence registration is not mandatory, traders and manufacturers are getting themselves registered so that the input tax credit can be passed on in the supply chain.
Its positive impact on our economy and in a short time span can be a case study for economists worldwide, said Modi. Speedy and smooth transition took place, along with rapid migration, new registrations, instilled new sense of confidence, said Modi.
Over 12 lakh businesses have applied for fresh registration under the Goods and Services Tax regime. While 10 lakh applications for registration have been approved, 2 lakh are still pending approval.
Modi said GST has led to faster delivery of goods and highways have become clutter-free.
Earlier, because of multiple tax structures, max. resources of transport and logistics sector were expended in maintaining paperwork. Pollution levels have come down with the increased speeds of the trucks. Goods are also being transported much faster. The time required to cover distances has come down drastically. Highways have become clutter-free.Narendra Modi, Prime Minister on Mann Ki Baat.