GST Rollout: 22 States Remove Border Check Posts, 8 Others Follow
The government is reportedly keeping tabs on the implementation of the tax across all the states.
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22 States Abolish Check Posts After GST Rollout, 8 in process
As many as 22 states, including Delhi, West Bengal and Maharashtra, have abolished check posts within three days of the implementation of the Goods and Services Tax (GST).
Eight states, including Assam, Punjab, Himachal Pradesh, and some north-eastern states, are also in the process of abolishing check posts, a finance ministry statement said.
One of the key objectives of the GST, which came into effect from July 1, was to make India a single market where goods and services can flow seamlessly.
The other important states which have abolished the check post include Uttar Pradesh, Bihar, Haryana, Gujarat, Madhya Pradesh, Andhra Pradesh, Karnataka, Kerala and Tamil Nadu.
With the abolition of check posts, the long queues often witnessed at state borders will not be seen.
Sensex Closes on 300-point High
Equity benchmark indices ended the session on Monday on an extremely strong note, with the Nifty closing above the crucial 9600-mark.
The Sensex closed 300 points higher at 31221.62, while the Nifty closed 94.1 points higher at 9615.
ITC, Hero MotoCorp and Bharti Infratel were the top gainers on both indices, while NTPC, Kotak Mahindra Bank and Jaypee Infra lost the most.
Twitter Records Over 1 Million Conversations on GST Launch
GST implementation has created both excitement as well as apprehension among people in the country.
The discussion started at midnight when the new tax regime was rolled out. Twitter saw over one million GST-related Tweets between 30 June - 2 July. Top hashtags around the conversation show all sides to the story, including: #GSTCouncil, #GSTIndia, #GST@GoI, #GSTRate, GST, #GST, #GSTsimplified, #IndiaforGST, askGST, #GSTForCommonMan, #HalfCookedGST, #HalfBakedGST.
Market Takes Weeknd Gains Further
The GST impacted the share market positively, hitting a bright sport starightaway as the Sensex moved beyond 31,000 at the start, extending its weekend gains amid mixed Asian cues.
The 30-share index, after soaring 337 points to touch a high of 31,258.33 at the outset, let go of some gains and traded at 31,069.20, up 147.59 points, or 0.48 percent. FMCG, metal, consumer durables, realty and auto stocks went higher by up to 3.42 percent.
The NSE index Nifty recaptured the 9,600 level by surging 91.85 points, or 0.96 percent, to 9,612.75.
ITC climbed 5.79 percent, Tata Steel 1.16 percent and M&M 1.10 percent.
Hong Kong's Hang Seng was up 0.08 percent and Japan's Nikkei rose 0.13 percent in early trade today. Shanghai Composite, however, came down 0.17 percent.
The US Dow Jones Industrial Average ended 0.29 percent higher on Friday.
Moody's Gives GST a Thumbs-Up
Implementation of the GST will be positive for India's rating as it will lead to higher GDP growth and increased tax revenues, Moody's Investors Service said on Sunday.
The GST will also support higher government revenue generation through improved tax compliance and administration.
"Both will be positive for India's credit profile, which is constrained by a relatively low revenue base," Foster said.
Moody's has a 'Baa3' rating on India with a positive outlook.
‘Hassle-Free’ Weekend
Government officials – closely scrutinising the implementation of the Goods and Services Tax (GST) – have good news as the weekend after the rollout has been ‘hassle-free and smooth’ so far.
Speaking to Economic Times, Revenue Secretary Hasmukh Adhia said,
Having fared well over the weekend, the focus now shifts to on the impact the GST is expected to have as the country opens up to work on Monday.
"Day 2 of Goods and Services Tax has passed without major problems being reported," read a statement released by the Finance Ministry on Sunday.
The government is reportedly keeping tabs on the implementation of the tax across the states. It is even educating consumers about the differences in the rates now and prior to the GST launch on the midnight of 30 June.
The tax check-posts at the entrance of the states have been removed too as entry taxes have been subsumed under the GST. This has resulted in decongestion on the highways, where earlier trucks would halt to pay octroi and other such taxes.
Further, no shortages in commodities were reported, said government officials as the tax came into effect across all states, except Jammu and Kashmir. The Finance Ministry reported that a total of 2.23 lakh dealers have entered the GST network.
The GST combines 17 state and Central taxes and 23 cesses under its ambit.
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