Cabinet passes resolution, thanks CMs for GST cooperation

New Delhi, June 22 (IANS) The Union Cabinet, at a meeting here chaired by Prime Minister Narendra Modi, on Thursday passed a resolution to express gratitude to Chief Ministers and others for cooperation on the Goods and Services Tax (GST) issue.

"The GST is a shining example of national integration and of fiscal federalism at its best. It is a testimony to the working of India's federal democracy. It has been made possible because of close cooperation between the Centre, state governments, and political parties," a Finance Ministry statement said.

"The Cabinet acknowledged the contribution made by all state governments, by all Chief Ministers and state Finance Ministers, and by all political parties, which made it possible for the GST to be implemented from July 1," the statement said.

The GST is the biggest tax reform in independent India. It is one of the most sweeping indirect tax reforms in any federal polity in the world, in which complexities such as multiplicity of taxes and cesses, multiplicity of rates, multiple compliances, and cascading of taxation will be removed, it noted.

"This game-changing reform will result in significant ease of doing business as well as reduction in the overall tax burden on consumers," the statement said.

The Cabinet also expressed its gratitude to the GST Council, heads of all national and state recognised political parties, members of parliament and state legislatures, and all sections of society, including trade and industry associations, it said.