'GST helps to create a unified common national market'

Goods and Services Tax (GST) commissioner Rajesh Prasad said that as many as 160 countries have adopted GST. France initially introduced GST, which changed the dimensions of the country.

Delivering a talk and interacting with the students on GST here at Mahatma Gandhi Memorial (MGM) College, he said India has adopted GST after 70 years of independence.

GST is applied to supply of goods or services as against the earlier concept of taxes on the manufacture of goods or on the sale of goods or on the provision of services. The GST is based on the principle of destination-based consumption taxation as against the present principle of origin-based taxation, he said.

Interstate supply

He noted that an Integrated GST (IGST) is levied on inter-state supply (including stock transfers) of goods or services. This will be collected by the Centre so that the credit chain is not disrupted.

Elaborating on the benefits of GST, Prasad said that the GST helps to create a unified common national market for India, giving a boost to Foreign investment and will prevent cascading effects of taxes as input tax credit will be available across goods and services at every stage of supply, he added.

He maintained that GST will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth. Ultimately, it will help eradicate poverty by generating more employment opportunities and more financial resources, he noted.

He said the GST will improve the overall investment climate in the country which will naturally benefit the development in the states as it introduces uniform rates all over the country. This will lead to the reduction in the incentive for evasion by eliminating rate differences between neighbouring states and that between intrastate and interstate sales, he said.

Reduction

Prasad said that the GST helps in the reductions in the multiplicity of taxes that were governing the indirect tax system leading to simplification and uniformity. He called upon the students to work hard in the process of achieving the goals. He stressed on optimistic future plans.

Prasad is an alumnus of MGM College, originally hails from Bommarabettu in Hiriyadka. He is 1995 IAS-cadre officer. He graduated in BCom in 1986-89. He studied MBA in Delhi University and went on to study LLB. He cleared his civil service and opted IAS.

He served as deputy commissioner in South and West Delhi, South Goa and Arunachal Pradesh. He also rendered service in Lakshadweep. Currently, he is working as the GST commissioner and was part of the GST team during the crucial implementation process.