History of GST

Change is never easy. Especially when it comes to introducing a new tax reform, and altering the whole economy of a country. The process is long and slow. The Goods and Services Tax is a perfect example of that, despite being a relatively new concept.
It all began in 1954 in France, which introduced GST first. Since then 159 other countries have adopted the tax structure, even though for some — it is in the form of VAT. The important thing to understand here is that this type of VAT is simply a substitute for GST, unlike the Indian VAT system. So when did it all begin for India?
Changes to the tax system do not happen overnight, and GST can attest to that. The first discussion started 17 years prior to the GST implementation — in the year 2000. Back then the Prime Minister at the time — Atal Bihari Vajpayee, set up a committee that would draft the GST law, and would think about the logistical aspects of it. It was four years later when it was agreed that GST would improve the Indian tax structure, and another two years for the government to set a deadline for implementation — 1st April 2010.
Needless to say, the GST law took longer to implement. 2010 came and went, and even though minor changes were introduced, the complete law was far from being adopted. It was in 2015 that the GST Bill finally passed in Lok Sabha (House of the People). However, it did not venture the same success in Raiya Sabha (House of the States). An amendment was necessary.
In 2016, an Amended GST Law was passed in both Houses of Parliament, and the GST network went live. In early 2017, both Lok Sabha and Raiya Sabha passed four supplementary GST Bills, and on 1st July of the same year, the final version of the historic GST was implemented.
