GST Law came into effect in India from:

Question

Accepted Answer

The correct option is 3:
The Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that was introduced to replace multiple cascading taxes levied by the central and state governments. The historical date for the rollout of this landmark indirect tax regime in India is 1 July, 2017. The implementation followed the passing of the Constitutional (One Hundred and First Amendment) Act, 2016, and subsequent enabling acts (CGST, SGST, IGST, UTGST Acts). This move was critical for transforming India into a unified common market, simplifying the tax structure, and improving the ease of doing business by ensuring a seamless flow of input tax credit across the value chain.

The incorrect option is 1 (1 June, 2017): This date is incorrect because the GST Law was not implemented until the following month. Although the GST Council and central government were finalizing rules throughout May and June 2017, the official commencement date was set for the start of the next quarter.

The incorrect option is 2 (1 July, 2016): This date is incorrect. While the constitutional amendment paving the way for GST was passed in August 2016, the legislative framework and systems required for the actual implementation were not ready until the following year. This date precedes the actual rollout by a full year.

The incorrect option is 4 (1 June, 2016): This date is incorrect. This period was too early for the GST implementation. At this time, the process was still in the political and legislative phase, long before the laws were drafted and the IT infrastructure (GSTN) was fully prepared for the nationwide launch.