Father of GST: Discovering the architect behind India's GST

Do you know that due to GST, there has been a growth of 11% in the tax revenues of India since the implementation of GST? The goods and services tax (GST) is without a doubt one of India's greatest financial changes, turning the tax system into a unified tax framework for the nation. It was executed on 1 July 2017. GST has transformed India’s tax system by consolidating several indirect taxes into a single tax.

Who is the father of GST?

The title "Father of GST in India" is often given to Dr. Vijay Kelkar, whose work laid the foundation for GST. However, it was the former Prime Minister Atal Bihari Vajpayee who originally presented the thought in 2000. The enthusiasm for the implementation of GST reflected the support of a couple of policymakers, but Prime Minister Vajpayee is largely credited with initiating the process.

India's GST journey

History of GST in India

• 2000: Atal Bihari Vajpayee heads a committee led by Dr. Vijay Kelkar to lay out a Goods and Services Tax (GST) model.
• 2004: The Kelkar Task Force recommends a comprehensive GST tool.
• 2006: GST idea was included in various budget speeches by then-Finance Minister P. Chidambaram.
• 2009: The Empowered Committee of State Finance Ministers releases the first dialogue paper on GST.
• 2011: To make GST more conceivable, a Constitution Amendment Bill was brought in the Lok Sabha.
• 2014: The Constitution (122nd Amendment) Bill, 2014, was once again delivered in Parliament.
• 2016: The bill is passed through both houses of parliament, after which it is enacted after receiving the assent of the president.
• 2017: The GST was implemented on the 1st of July.

The architects of India’s GST

Dr. Vijay Kelkar

India’s leading economist on the GST concept, Dr. Vijay Kelkar, as the Chairman of the Finance Commission and Kelkar Corporation, played a key role in the improvement of the GST regime.

Atal Bihari Vajpayee

Former prime minister Atal Bihari Vajpayee is credited with founding GST in India and is often referred to as the ‘Father of GST in India’. During his period, the primary steps in the direction of GST were taken, consequently disposing of the signs of destiny.

Arun Jaitley

The GST was passed through Parliament and implemented efficiently when Arun Jaitley was the finance minister. He made a major contribution to coping with the political and economic elements of GST.

Interesting facts about GST

1. Global incentives: GST in India has borrowed some elements from different countries’ GST models, just like the ones in Canada and Australia.

2. Dual structure: India has applied the dual GST structure just like the United States of America authorities structure, which includes the Central GST (CGST) and the State GST (SGST).

3. GST Council: The GST Council is a critical forum in GST route and cost management, which is headed by the Union Finance Minister, including State Finance Ministers.

4. Technical Background: The GST Network (GSTN) provides the technical framework and foundation for implementing GST. It helps in registration, participation, and compliance, and the entire process is made easy and convenient for the taxpayers.

Conclusion

The information about the father of GST and the history of GST in India is helpful to know the story of the development of this tax reform. Several players played a significant role in shaping the Indian GST model, including Prime Minister Vajpayee and Vijay Kelkar. The tax collection of the Centre has recorded an average monthly collection of Rs 1.55 lakh crore after the implementation of the GST system. The introduction of GST in India is a significant event in the progress of the country with promises of effectiveness, clarity, and expansion.