GST rollout from July 1 will be turning point for economy, greatly benefit common man: PM Modi

Prime Minister Narendra Modi on Monday reviewed the preparedness for the Goods and Services Tax (GST) and said that the roll-out of the new indirect tax regime from July 1 will be a turning point for the economy.

This was the first review by the PM after the GST Council finalised the rates, and the second since May 2.

The Prime Minister also said that the creation of one nation, one market, one tax would greatly benefit the common man.

All goods and services have been put in slabs of 5, 12, 18 and 28 per cent, with the exception of gold and precious metals, which will attract 3 per cent GST, and rough diamond at 0.25 per cent GST.

The GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, has already finalised tax rates on almost all goods and services. It will meet again on June 11 to review some of the rates and discuss other pending issues.

The single-biggest taxation reform since independence, the Goods and Services Tax (GST) will subsume 16 different taxes, including excise, service tax and VAT, and make India a single market for seamless movement of goods and services.

GST is estimated to boost GDP by 1-2 per cent and bring down inflation by 2 per cent over the long term.

The meeting was attended by Finance Minister Arun Jaitley, Revenue Secretary Hasmukh Adhia and senior officers from the Central Board of Excise and Customs (CBEC).