The euphoria of implementation of the New System of Indirect Taxation was phenomenal. The whole nation and perhaps different parts of the globe too, together with the Parliamentarians, witnessed the historic moment when, at the stroke of 12 on the night of 30th June, 2017, then President of our country, Shri. Pranab Mukherjee and, the Prime Minister of our Country, Shri. Narendra Modi, ushered in GST.
The mood was sort of freedom, like the one that the nation had on 15th August, 1947: Freedom to do business with ease, Freedom from several challenges of the earlier indirect tax regime, Central Excise Duty, Service Tax, VAT; be it interpretation, classification, tax rate or compliances, disputes and litigation. One ought to have witnessed this moment, to feel the excitement of that moment.
The new system of indirect tax (GST), modelled on classic VAT/GST systems prevailing globally though modified to suit requirements of our country, had several welcome features. This was the approach we had adopted back in 1986 when we introduced modified value added tax system in Central Excise Law (tax on manufacture) described as “Modified Value Added Tax” (MODVAT).Post successful implementation of this system for Central Excise Law, it was expanded to encompass Service Tax in 1994 making it more comprehensive and description was changed to Central Value Tax System (CENVAT) since it covered both goods (manufacturing activity) and services. Simi
