Recently, Congress President Rahul Gandhi tweeted that the Congress Party has awakened the Modi Government from its deep sleep on the implementation of GST and Prime Minister Narendra Modi is now trying to copy what his party had initially recommended.
But Congress President has not yet realised the fact that the Congress Party was not able to bring in such a big-bang reform because the then government kept looking for a one-time final solution to GST in a country like India with wide income disparities, regional disparities and a web of indirect taxes from both the centre and the states. Resultantly, the news headlines in those days used to be like the one below:
The discussions around GST started back in the year 2001 and since then, they have been going on incessantly. But as explained above, that the previous UPA Government were not able to even launch GST in the country. This happened as the previous governments were not able to reach to a one-time final solution of GST that is perfect from all the angles. Therefore, Modi government adopted a different strategy.
So, What is Minimum Viable Product (MVP)?
Minimum Viable Product is a product or service which has basic features to satisfy the users when it is launched. It is then subsequently improved upon based on the feedback received from the users. The story of GST is similar to the minimum viable product.
Modi Government Launched GST as MVP
Modi Government adopted the MVP approach for launching GST in the country, which is with nation-wide basic features of an indirect tax in the initial version along with the scope of further improvements at later stages based on the user feedback.
The incumbent government has made some changes to GST based on the feedback of traders, customers and others after the launch. Recent notification announcing further rate cuts by the government has simplified the GST process. This process is a part of that feedback mechanism on the basis of which a product is being improved upon.
Congress President Rahul Gandhi may claim any idea to be of his own party. But the fact remains that his party was not able to launch this landmark reform during the full 10 years of their term. However, the Modi Government launched GST within just 2 years of coming to power, because it adopted a smarter and a flexible approach of continuous improvements to GST.