GST a tribute to maturity, wisdom of India's democracy: President

New Delhi, July 1 : President Pranab Mukherjee on Friday said that introduction of GST was a "momentous event" for the nation and "a tribute to the maturity and wisdom of India's democracy" while pointing out that the success of major changes always depends on their effective implementation.

"Introduction of Goods and Services Tax (GST) is a momentous event for the nation. This historic moment is the culmination of a 14-year-long journey which began in December 2002," said Mukherjee while delivering his speech in the Central Hall of Parliament at the GST launch ceremony.

"I was closely involved in the design and implementation of GST as the then Finance Minister. I also had the privilege of giving assent to the Constitution (One Hundred and First Amendment) Act, 2016 (the GST Act)," he added.

Mukherjee also said the new era in indirect taxation was the result of a broad consensus arrived at between the Centre and the states.

"It (GST) is a tribute to the maturity and wisdom of India's democracy. The GST will make exports more competitive and also provide a level playing field to domestic industry to compete with imports," said Mukherjee.

"Under the GST, the tax incidence will be transparent, enabling full removal of tax burden on exports. The GST will be administered through a modern world-class information technology (IT) system," he added.

"It (GST) will create a strong incentive for buyers to deal with honest and compliant sellers who pay their dues promptly. Success of major changes always depends on their effective implementation," he pointed out.