New Delhi: Prime Minister Narendra Modi on Sunday addressed the nation and explained the reasons behind the implementation of the Goods and Services Tax (GST). He recalled the situation before GST, when companies had to face multiple check posts, countless forms, and different tax rules in every state while transporting goods.
The Prime Minister shared an example cited in a foreign newspaper in 2014, which described the struggles of a company. According to the report, the company found it easier to send goods from Bengaluru to Europe and then bring them back to Hyderabad, 570 km away, rather than transporting them directly within India.
PM Modi said these were the conditions under the complex web of taxes and tolls at the time. He noted that millions of businesses and citizens faced daily hurdles due to multiple tax systems, and the additional costs incurred during transportation ultimately burdened the poor and customers. “It was necessary to bring the country out of this,” he added.
Highlighting the impact of GST reforms, the Prime Minister said that these changes would increase the prosperity of every family and strengthen India’s growth story. He congratulated citizens on the next generation of GST reforms, emphasizing that the system would make business easier and more transparent. Modi further said that with the introduction of GST in 2017, India began writing a new chapter in economic history by simplifying the tax structure.
