Companies used to save such tax before GST, sending goods to Europe and used to get back India

Prime Minister Narendra Modi addressed the country

Prime Minister Narendra Modi while addressing the country at 5 pm on Sunday, told about the reforms in GST. He greeted everyone on Navratri and said that soon the GST savings festival is going to start, which will benefit everyone a big benefit. PM Modi advised people to become self -sufficient and also appealed to buy indigenous goods. He told that now 99% of the daily needs have come under the scope of only 5% tax, which will increase the savings of the common man. The Prime Minister said that this will make everyone’s mouth sweet and the speed of the country’s progress will be faster. Apart from this, PM Modi said that earlier companies had to send their goods to Europe before tax.

The tax system was very entangled before 2014

PM Modi said that before the implementation of GST, the tax condition in India was quite complicated. Different states had different tax rules. Several types of taxes were levied on traders including sales tax, entry tax, excise duty, service tax, VAT. Also, countless forms had to be filled to send goods from one state to another and there was also a restriction without any reason.

The PM said, “When I took over the post of Prime Minister in 2014, I had read a report in a foreign newspaper. It wrote that it was so difficult for a company to send goods from Bengaluru to Hyderabad that he used to send goods to Europe first and then asked for Hyderabad from Europe.

How was this method cheap?

The newspaper that PM Modi was referring to is Les Echos. It is a French newspaper. According to the news published in it, a French technology company used to spend so much in sending items from Bangalore to Hyderabad (just 570 km) from Bangalore that it seemed to be cost-effective for him to send the goods first to Europe and then he should be called back from Europe. The biggest reason for this was the tax and logistics structure complications in India.

It was also said in the report that the cost of freight for the manufacturers of India used to be more than the entire salary bill. Especially in the textile industry, this expenditure used to reach double. That is, the salary given to the employees used to only carry out more money than the salary.

GST is a big step to improve tax system

The Prime Minister said that the main objective of implementing GST was to get out of this confusion. India had to make a strong economic unit by creating a similar tax system across the country. Prior to GST, traders were trapped in many different tax cycles, which made it expensive and difficult to do business. GST not only made the tax system easier, but also reduced the obstacles in sending goods between the states. This reduced the problems of traders and strengthened the country’s economy.

https://www.youtube.com/watch?v=e-yjf85L6ks

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