GST Day

 

 

                                              (In the photo, I am at five from right in the third row from front)                                                                                 

 I propose to name my memoir; if I ever publish, A Reluctant Finance Officer. I have come from a humble background, from a lower middle class family, rather a family just above poverty line. I could not do anything after my studies except joining a government service. But the organisation I worked for soon disenchanted me, rather it proved repulsive. I could not quit the job also. I could not pull on well with many of my immediate seniors, some of my colleagues behaving with me well and at my back conspiring with the seniors against me, the boss threatening to put me in trouble, until I was transferred to Head Office in 2000.

Chief Ministers met in a conference on 16 November, 1999 under chairmanship of Jaswant Sinha, Union Finance Minister and decided to replace sales tax with VAT. Empowered Committee of state finance ministers was constituted in 2000 in pursuance of the decision of the CMs’ conference to coordinate among the states for smooth transition to VAT. The first chairman of the Empowered Committee (EC) was Dr Asim Dasgupta, finance minister, West Bengal. The commissioner, commercial taxes assigned me with VAT related work. I continued to work on VAT and also every aspect of reforms on indirect taxes, administrative restructuring, computerisation, etc in Head Office till I retired from government service in 2019. The original plan was to introduce VAT in all states in 2003. But except Haryana, no other state introduced VAT in 2003. Odisha along with twenty other states introduced VAT on 1^st April, 2005. The remaining states introduced by 2008.

In the budget speech for the FY 2006-07, Union Finance Minister, P. Chidambaram announced GST would be implemented from April 2010 replacing a plethora of central and state taxes. It was also decided to phase out Central Sales Tax from 4% to 3% in 2007, 3%to 2% in 2008 and be zero in 2010 coinciding with introduction of GST. Empowered Committee constituted for VAT implementation continued to coordinate among the states for smooth transition to GST. The Centre promised to compensate the states for loss of revenue on account of CST reduction. I continued to work in the Head Office to look after GST preparation in the state.

 The Centre and the states could not agree on many points and delayed its implementation. The delay was more political than anything else. The NDA government led by BJP had prepared almost everything for VAT implementation. NDA lost power to UPA in 2004. When UPA government led by Congress implemented VAT in 2005, the BJP ruled states opposed, and did not go with other states for it in 2005. The UPA took steps to implement GST, but BJP ruled states opposed it. Again NDA came to power in 2014 and wanted to go for GST, but Congress ruled states opposed and put obstacles for implementation. The NDA, though had majority in Loksabha, lacked required strength in Rajyasabha to pass the constitution amendment bill for GST.

In the mean time, the Empowered Committee continued to work for GST. The EC met regularly, it published the first discussion paper on GST in 2009, constituted committees to draft GST law. Though I was not enthusiastic as many other officers of our cadre, I got involved in preparation for GST implementation, attended the meetings of GST law drafting committee, wrote articles in newspapers explaining nuances of law, and participated in seminars, panel discussion in different TV channels.

 Uncertainty continued, sometimes I felt I could not see GST implemented before I retired. This was the feeling of many officers involved in drafting the law and GST related works in their states. After eleven years since P.Chidambaram announced in parliament, the government reached a consensus to go for GST on 1^st July, 2017. Some of us still could not believe. Sensing the mood of the officers, Hasmukh Adhia, Secretary, Revenue, GoI and member secretary, GST Council called a meeting of the officers on 18^th June, 2017 in the afternoon, after the 17^th GST Council meeting ended before lunch, and assured the officers, this time GST would be there on 1^st July and urged not to have any misgivings, and work sincerely in their respective states.

18^th GST Council met on 30^th June, 2017. It was a formal meeting without agenda of any importance. In a midnight joint session of parliament, in presence of President and Prime Minister, GST was to be launched. The meeting was at 3 PM. All the officers involved in the process were happy. The Prime Minister joined the dinner with members of GST Council and had group photographs with those involved in GST. 

We were taking dinner. An office assistant of GST Council met me and handed me a packet and said, “This is not given to all officers, but to a very few. So it is not handed over in the meeting. Revenue secretary told us to hand over personally if we know, or send by registered post.” I kept it and after dinner returned to Odisha Nivas.

I returned to Odisha Nivas and was relaxing. I remembered about the packet. I opened it and found it was the letter of appreciation issued by Revenue Secretary, GoI for my contribution to drafting the GST Law and leadership for implementation of GST in the state. I was happy, perhaps for the first time being an Odisha Finance Officer. I wanted to share my happiness, but I was alone in Delhi in that room of Odisha Nivas. The editor, Prameya telephoned, congratulated me on implementation of GST and said, “Come back, we shall have your interview for the newspaper.”

              1^st July is observed as GST Day

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