Essay on GST

Tax is such an instrument which gives shape to the government and law of any country because taxation is the main source of income of the government. All the countries collect tax from the citizens according to their respective laws and use it for the progress of the nation. Taxes are generally of two types-

  1. Direct Taxes
  2. Indirect taxes

Essay on Indian Economy

GST (Goods and Service Tax) is an indirect tax, which has to be paid on the purchase of any goods or on availing any service. It has been more than 4 years since the implementation of GST in India, yet people do not know much about it.

Keeping these problems of all of you in mind, we are presenting the essay on GST here, we hope you will like this essay and will develop your understanding on GST.

Short and Long Essay on GST in English

400 Words Essay-

Introduction (Meaning of GST – Meaning of GST):-

GST (Goods and Service Tax – Goods and Services Tax) is an integrated tax system i.e. in India, only one tax, GST has been levied in place of many taxes already levied. GST was implemented in India on 1st July 2017, since then many changes have been made in it.

GST requirement (GST Requirement):-

The Indian Constitution had given the right to levy taxes on production and services to the central government and the state to levy taxes on the sale of goods, on the basis of which everyone had made their own taxes. In this system many types of taxes were levied on a single commodity, sometimes creating a situation of tax on top of tax. GST has been implemented to deal with these problems.

Benefits of GST (Benefits of GST):-

People from almost all sectors have benefited from GST, some of which are as follows-

Benefit to common people (Bbenefits to Ordinary People):-

  • Many taxes levied on one commodity got rid of.
  • Reduction in tax rate for everyday use items.
  • With the increase in the income of the government, there is a possibility of improvement in services like education, health, transport etc. And so on

benefits to businessmen (Benefits to Businessmen):-

  • Exemption from separate taxes and octroi for each state.
  • Increase in business and profits.
  • The Central and State Governments together are giving concession in business to encourage small scale industries and entrepreneurs. And so on

Salient Features of GST

To overcome the shortcomings in the old tax system, the Government of India on 1 July 2017 implemented a new tax system in the form of GST, some of the main features of which are as follows-

  • In this tax system, consumption is taxed instead of production.
  • There is no tax on the tax.
  • Being a completely online system, there is less chance of rigging in it.
  • State governments cannot impose arbitrary taxes. And so on

Losses from GST (Losses from GST):-

Along with the advantages of any system, there are also some disadvantages. GST also has some disadvantages, which are as follows-

  • Buying GST software for smooth running of business
  • The prices of the following items have increased due to GST:-
  1. school fee.
  2. Courier services.
  3. mobile bill.
  4. Investment and banking management services.
  5. Rent of houses.
  6. Tobacco and Cigarette Products
  7. Health related services.
  8. Traveling by rail or metro. And so on

Conclusion (Conclusion:-

GST has its advantages as well as its disadvantages but if its disadvantages are ignored then it is known that the GST has been drafted in such a way that it benefits the businessmen as well as the consumers. It replaces many indirect taxes of the Central and State Governments such as Value Added Tax, Central Value Added Tax, Excise Duty, Customs, State Excise Duty, etc.

1000 Words – Long Essay on GST and Its Impact on Economy and Development of India-

Introduction (Definition of GST- Definition of GST:-

The Goods and Services Tax (GST) is a comprehensive, destination-based, multi-level tax. Which is levied indirectly on the use of goods and services. The Goods and Services Tax Act was passed in the Indian Parliament on 29 March 2017 and was implemented in India on 1 July 2017. It is a unified tax system which has replaced many indirect taxes in India.

Types of GST :-

Although GST is a unified tax system, but in India it is known by 4 different names-

  • Central Goods and Services Tax (Central Goods and Service Tax- CGST):-

When a business is carried on between two or more businessmen of the same state, the amount paid by them to the Center as tax is called CGST.

  • State Goods and Services Tax (State Goods and Service Tax- SGST):-

When a business is carried on between two or more businessmen of the same statehandjob So the tax paid by them to the state government is called SGST.

  • Union Territory Goods and Services Tax (Union Territory Goods and Service Tax- UTGST/ UGST):-

When any business is done between two traders of a Union Territory, the tax paid by the traders to the Union Territory is called UTGST/UGST.

  • Integrated Goods and Services Tax (Integrated Goods and Service Tax IGST):-

If any business is done between businessmen of two different states, then both the center and the state have the right on the tax received from them, this type of tax is called GST.

Rates of GST:-

The rates of GST have been set differently for different types of goods-

  • 00% GST Rate- Basic services and goods for life, such as cereals, vegetables, salt, jaggery etc.
  • 05% GST Rate-on the services and goods necessary for lifehandjob like Coffee, Oil, Spice, Tea, Sugar etc.
  • 12% GST Rate- On goods and services used daily, such as umbrellas, toothpaste, snacks, medicines etc.
  • 18% GST rate- On goods and services that come in the middle-class lifestyle, such as shampoo, detergent, ice cream, refrigerator etc.
  • 28% GST Rate- On goods and services that come in a luxury lifestyle, such as automobiles, paan masala etc.

Types of GST Returns:-

The GST returns are of the following types-

  • Goods and Services Tax Return 1 (Goods and Services Tax ReturnGSTR-1):-

In this, the merchants have to file the details of the sales of the whole month, before the 11th of the next month. Businesses whose annual sales are less than 1.5 crores have to file this return every quarter.

  • Goods and Services Tax Return 2 (Goods and Services Tax Return- GSTR-2):-

This return was made to give details of own purchases but for the time being it has been kept in abeyance.

  • Goods and Services Tax Return 3 (Goods and Services Tax Return- GSTR-3):-

While filing this return, it had to give details of all sales and purchases as well as taxes paid. At present it has also been postponed for the present.

  • Goods and Services Tax Return 4 (Goods and Services Tax Return- GSTR-3B🙂

Initially there was some problem in implementing GSRT-3, so the Government of India has issued GSTR-3B in its alternative. In this, the details of the purchase, sale and tax paid for the whole month have to be given in brief.

Compulsory of GST (Goods and Service Tax Essentials:-

The extent of the requirement of GST varies for goods and services-

Businesses related to services, whose annual turnover is more than 20 lakhs, it is mandatory to register in GST and for goods related businesses this limit is more than 40 lakhs. In the states of Northeast India, this limit is Rs 20 lakh.

Impact of GST on Indian Economy (Impact of this tax on Indian Economy):-

Favorable impact-

  • Due to the imposition of tax on consumption, the tax burden on producers was reduced thereby stimulating them to produce more.
  • The transparency of the system makes the customers aware.
  • GST has increased the revenue sector of the government.

Adverse effect-

Before July 1, 2017, everything was going well in the market, but as soon as GST was implemented on July 1, 2017, there was a wave of challenges in the business world. In the initial phase, a lot of work was done on its shortcomings, but it seems that it still fails to achieve its purpose.

A report states that before the implementation of GST, the growth rate in the collection of indirect taxes was 21.33% but in 2017-18 it increased to 5.80%.

GST and Growth of India (GST and Growth of India):-

GST has affected many sectors of the Indian economy-

  • GST replaced many of India’s indirect taxes by changing the tax collection structure to a unified tax system.
  • There will be more competition in exports.
  • The GST has had a positive impact on the agriculture sector, contributing to about 16 per cent of the GDP.
  • GST has provided many new opportunities to Information Technology. E.g. removal of doubling tax effect of taxes, business restructuring, opportunities in making software for GST, etc.
  • GST also affected the Indian banking sector.
  • Income from hotels and tourism is a major part of the economy, it helps in increasing GDP. GST has affected them too.
  • The entertainment industry has also been affected by GST.
  • Both exports and imports have been affected due to GST. And so on

Conclusion (Conclusion:-

GST is the backbone of India’s indirect taxes, in this alone many of India’s taxes are contained. It has been brought to prevent double taxation and tax over tax. GST is an indirect tax paid by consumers, which is levied on consumption rather than on production. Initially there were some shortcomings in it, but due to the continuous efforts of the government, most of its shortcomings have been removed, presently people from all walks of life are taking advantage of it.

Frequently Asked Questions on GST:-

Q.1 When was GST established in India?

answer- On 1 July 2017 (1 July 2017).

Q.2 Where was GST first implemented in India?

answer- In the state of Assam, on 12 August 2016 .

Q.3 Where is the headquarter of GST Council in India?

answer- In New Delhi.

Q.4 Which is the last state to implement GST?

answer- Jammu and Kashmir.

Q.5 In how many countries GST is applicable?

answer- GST is implemented in about 164 countries of the world.

Q.6 In which country was GST first implemented?

answer– France, in 1954.

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