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Essay on GST

Essay on GST! Find high quality essays on ‘GST’ especially written for school, college and university students. These essays will also guide you to learn about the meaning, objectives, challenges, progress, drawbacks, problems, advantages and disadvantages of GST.

GST or Goods and Services Tax is a form of taxation introduced by our government with the promise that every product sold in the market will be imposed with only one type of tax. The imposing of multiple taxes with varied amount has been stopped through the introduction of this tax form.

In recent years India has undergone many changes and new schemes were initiated and actively implemented in different areas. GST is one of such changes which almost shook every sector in India. It was initiated and the bill was passed to improve the economic condition of our country.

Audience: The below given essays are exclusively written for school students (For Class 8, 9, 10, 11 and 12  Standard) and college students. Furthermore, those students preparing for competitive exams like IAS, IPS and UPSC can also increase their knowledge by studying these essays.


List of Essays on GST

Essay on GST – Short Essay on GST (Essay 1 – 200 Words)

What is GST?

GST stands for Goods and Service Tax. GST has replaced many other indirect taxes in India. As GST came into effect on 1st July 2017, India is seeing a vast change in all financial matters. Previously there were many taxes levied on goods and services separately and at different stages. The current GST system has taken over this and also it is payable only at the final point of consumption.

GST is a progressive tax which means different tax rates are applied to different commodities. There is a separate GST council which consists of the finance ministers of the state and center who govern the tax rates and other rules and regulations.

Advantages of GST:

GST is shaping up the country’s economy in a progressive way. Although there were many hiccups initially, the main advantage of GST is that levying of taxes and paying taxes has become more systematic and transparent now. So, there is less possibility of manipulation on tax charges by authorities. Implementation of GST has increased the tax revenue collection and the consumers are also benefited since the price of goods has reduced.

Conclusion:

GST bill is considered to be one of the biggest tax reforms in India which is expected to boost up India’s economy. As any new initiative will have both its positives and negatives, GST also is receiving its share of criticism. The coming years will prove the real benefits of GST for a country like India.


Essay on GST – In India (Essay 2 – 250 Words)

Introduction:

The GST (Goods and Service Tax) is the historic tax reform of independent India introduced on 1st July, 2017. It emerges as the single taxation system to make the country a single market. It is seen as the definite step to revolutionize Tax Department and bring in transparency of business transactions. It is slated to boost the economy of the country progressively.

Objectives of GST:

An easier tax system attracts more domestic and foreign investments that eventually boosts the economy of the country. GST is viewed as such a step taken in this direction. In the World Bank’s “Ease of Doing Business Index” India has moved from 130th to 100th position in 2018 and from 100th to 77th in 2019.

GST has integrated 36 States / Union Territories & Union Governments. It helps smooth flow of goods across these territories and reduce the complications involved in the process. The “one nation, one tax” matra is all set to knit the Indian market together.

GST aims to check tax evasion and raise the revenue for the betterment of the country. It is also seen as a measure, which shifts the tax burden from manufacturers to consumers.

Challenges in GST:

The GST Portal is the platform for the taxpayers to register, file returns and make payments. Small businesses without IT know-how are not ready to get involved in this process immediately. So, help desks have been setup to train and build the capacity of the taxpayers to use the platform effectively.

Progress in GST:

More than a year into the GST regime, further steps are being taken to reduce the complexities in the GST portal. The taxpayer database is getting expanded, generating more revenue to the Government. Since cascading tax effect has been removed in GST, prices of goods and services are likely to go down in time and improve the country’s economy.

Conclusion:

Though the GST laws have minor flaws, it is expected to revamp along the way. Nevertheless, GST is the bold step towards building a corruption-free and flourishing country that requires an unusual journey for the people of India.


Essay on GST – Written in English (Essay 3 – 300 Words)

Introduction:

GST is the Goods and Services tax which is executed in India to swap the former complex systems of indirect taxes. It involves a uniform and simple system of taxation.

Earlier, there were numerous puzzling taxes in India like Service tax, VAT (Value Added Tax), Central Excise tax, Entertainment tax, Cess tax, Sales tax, etc., that used to make everybody (including the businessman, common man, and the consumer) confusing. But with the introduction of GST, now people need to pay merely one kind of tax. GST is a tax that is collected by a state that consumes the goods or services and not by the goods manufacturing state.

Advantages of GST:

1. GST is based on single taxation system that covers all kinds of indirect taxes.

2. The rates of goods and services also get decreased due to GST along with the reduction of the burden on people’s pocket.

3. GST is not levied at each sale-point in comparison to the other indirect taxes which helps in market development.

4. GST benefit in a corruption-free system of taxation in which there is no need to pay the tax at the time of production, manufacturing, and selling.

Disadvantages of GST:

1. The GST influences the market of real estate by increasing the buying prices of new home and reducing the number of buyers.

2. GST imposed by the government, for example, SGST for state government and CGST for central government are the new terms signifying older taxes like CST, Service Tax, and VAT in an innovative manner.

3. The double tax is charged in GST on behalf of a solitary taxation system.

Conclusion:

There are so many nations around the world in which the taxation system of GST has already been implemented and executed. The execution of GST affects the country in dual ways i.e., positively as well as adversely. So, we should overlook the negative aspects of GST and take into consideration its positive impacts more for improving the economy of the nation.


Essay on GST (Essay 4 – 400 Words)

GST or Goods and Services Tax is a form of taxation introduced by our government with the promise that every product sold in the market will be imposed with only one type of tax. The imposing of multiple taxes with varied amount has been stopped through the introduction of this tax form.

In recent years India has undergone many changes and new schemes were initiated and actively implemented in different areas. GST is one of such changes which almost shook every sector in India. It was initiated and the bill was passed to improve the economic condition of our country.

What is the difference between GST and the old taxation version?

The older version of tax payment and implementation was different and complex. There were different types of taxes imposed on different products, while in GST scheme, a particular percentage of tax is fixed for products so that the complexity can be reduced and also the calculation can be easier and simpler.

GST is just a simple way of understanding how our government is collecting tax from common men and business people. The old tax form included service taxes, VAT or Value Added Tax, entertainment tax, etc., which were not only really confusing for citizens but also for business people and others to calculate and keep track on them.

Combining and avoiding all these differences and varieties, the government decided to introduce this tax form called GST, which eventually replaced the complex version of the tax form. There are three parts in GST taxation process. They are: SGST, UTGST and IGST.

GST is a consumption level taxation process. The travel of product in and around the country is being charged by this tax form. In the early days, different states in India used to have different types of rules of their own. This has considerably affected the growth of India. GST was introduced to rectify these problems.

The complexity of the older version has also contributed to GST’s introduction. Due to its complexity and difficulty in understanding the form, many small and medium business owners choose not to pay them or maintain records.

GST was initiated with the slogan “One Nation, One Tax” and literally, has justified it. But there are disadvantages too. This bigger change to year’s old culture of tax payment has not even be understood and accepted by a major part of the citizen. Even though the promise of less price was mostly satisfied, there are many products that just took the price to peak due to this taxation.

Keeping track and proper account for taxing will help you and your country remarkably in development and growth.


Essay on GST – For School Students (Class 8, 9, 10, 11 and 12 Standard) (Essay 5 – 500 Words)

It wasn’t long before when GST was formally introduced in the Indian economy. Of course, it had created quite a furore because there were tons and tons of businessmen and other service related people who seemed clueless about it. To break age old tradition of several different indirect taxes and to have one single indirect tax for the whole nation was a concept alien to many.

However, ever since its official introduction from July 1st, 2017; a lot of people have started to appreciate the simplicity which it has brought into picture.

What is GST?

GST stands for goods and service tax and it is primarily an indirect tax which is levied on every stage wherein a value is added. This tax is mainly charged on the supply of both goods and services.

The Salient Points:

In order to have a better picture of GST, let us see the salient points of this tax form.

Multi-Staged:

It is multi-staged tax because the tax is levied at every stage which is present from the procurement of raw materials to the final sales.

Destination Based:

The tax is levied on the basis of the place the goods or services will be finally consumed. Suppose; the goods are being manufactured in West Bengal and finally sold in the state of Rajasthan. The tax revenue will go to the state of Rajasthan because the tax is ultimately being levied at the actual point of consumption. This fact makes the nature of tax destination based.

Value Addition:

At every stage wherein the value of the good and/or service are added, there is a GST added to it.

The Benefits of GST:

While the initial reaction wasn’t positive because people were unable to understand the dynamics of this new form of tax, reactions have turned to positive now. Let us see some of the possible benefits which GST laws seem to have to offer.

1. It has cut down the cascading tax effect which is likely to bring down the net cost of goods as well

2. The online process of GST tax filing is a whole lot simpler

3. It has definitely improved efficiency as far as logistics is concerned

4. Small businesses have some of the most lucrative composition schemes which can benefit them tremendously

5. Even the unorganized sectors can be regulated.

So, the introduction of GST seems to be a monumental event and it is likely to have a positive impact on the Indian economy in the long run. Rather than having several other direct taxes which were cumbersome to handle, having a single tax for the whole nation seems to have drastically reduced the complication of tax collection and subsequent filing as well.

There are a lot of different online portals which are loaded with ample information to educate you about the details of GST. If you are not familiar with it, it is important to familiarize yourself with the details.

There is no doubt about the fact that GST is sure to simplify the taxes a great deal.


Essay on GST – Features, Benefits, Drawbacks and Problems (Essay 6 – 600 Words)

GST or Goods and Services Tax is an indirect tax implemented in India from 2016 to replace the prevailing taxation system of various indirect taxes.

What is GST?

The full form of GST is Goods and Services Tax. GST is a single tax on goods and services throughout India. Before GST, there were multiple taxes like excise on manufacture, sales tax and Value Added Tax (VAT) on sales, service tax, entry tax, entertainment tax etc., which was a very confusing tax system for both the consumers (common man) and the businesses. These taxes also had cascading effect of tax i.e., tax on tax resulting in hiking the prices of goods or services. GST has replaced these multiple and cascading taxes by one tax.

Why GST?

The developed countries like Japan, Germany, Switzerland, Sweden and Denmark – have a common GST (Goods and Service Tax) to provide one common window for tax collection and it is considered as a standard for the global business. As India is progressing towards the developed state, it has also embraced the uniform and simple tax system which is GST.

GST is implemented in India to replace the prevailing very complex and confusing multiple indirect tax systems. The previous multiple tax system had higher possibilities of tax evasion and corruption. India is marching towards the progress with the lightning speed and after the independence, the GST is the biggest tax reforms in India.

Key Features:

The GST is a single tax system with the objective of one nation one tax. In the previous tax system, different taxes were imposed by the Centre and state governments. The GST has subsumed Central Excise Duty, Service Tax, State Value Added Tax, Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax, Luxury tax, Taxes on lottery, betting and gambling etc. Removal of the cascading tax effect (tax on tax) is another key feature of GST.

Benefits of GST:

The GST is a simple tax system and has many advantages over the previous tax system. The system is much more transparent and simple. The possibility of tax manipulation and corruption by the sellers and authorities is reduced as only single tax is to be paid. GST has benefited the consumers as the prices of many goods and services have reduced. The filing of GST return is very simple and is now an online process. GST will provide major benefits to the Indian economy as a whole in long run.

Drawbacks of GST:

The GST also has some drawbacks. GST calculations are considered to be lengthy and cumbersome by some people as GST rates are different for different goods and services and it gets divided between CGST and SGST. For some commodities GST rate is higher than the previous taxes and for some products on which there were no taxes earlier, GST is charged.

Problems with GST:

In implementing GST some problems are still there. There are some areas where GST is not implemented, for instance, alcohol, crude oil, Petrol, diesel, electricity, natural gas etc. States continue to charge tax at their own rates on these items.

Under GST rules, tax returns needs to be filed at regular intervals and compliances are made more stringent and there are hefty fines for defaulting. Many times while filing GST Return people get an error and fail to complete the procedure. There are different tax slabs in GST which ranges from 0% (for exempted goods) to 28%. The government keeps revising the tax brackets and this confuses the businesses and consumers.

GST is introduced to make the tax payment process simpler and create a win-win environment for all, the government, businesses and consumers.


Essay on GST – Long Essay for College and University Students (Essay 7 – 750 Words)

GST, or the Goods and Services Tax is a relative entrant in the tax regime of India. It is in fact considered as a historical step in the economic advancement of India, although a lot has been debated about its success or the failure of it. Whatever, be the way forward, either way, it is important to know and understand what GST is all about and what led to its inception.

The Inception of GST:

The change of India’s indirect tax system began in 1985 by Vishwanath Pratap Singh, Finance Minister in Rajiv Gandhi’s government, with the presentation of the Modified Value Added Tax (MODVAT). In this way, Prime Minister P V Narasimha Rao and his Finance Minister Manmohan Singh started early exchanges on a Value Added Tax (VAT) at the state level. A solitary regular Goods and Services Tax (GST) was proposed in 1999 amid a meeting between the Prime Minister Atal Bihari Vajpayee and his economic advisory panel which included three previous RBI governors IG Patel, Bimal Jalan and C Rangarajan. Vajpayee set up a board headed by the Finance Minister of West Bengal, Asim Dasgupta to plan a GST model.

After a deliberation of many years, the GST was rolled out at midnight on 1 July 2017 by the President of India, Pranab Mukherjee, and the Government of India. The launch was set apart by a noteworthy midnight (30 June – 1 July) session of both the places of parliament assembled at the Central Hall of the Parliament. In spite of the fact that the session was attended by prominent visitors from the business and media outlets including Ratan Tata, it was boycotted by the opposition due to the expected problems for the lower and the middle class. After its rollout, GST rates have been adjusted on different occasions, one of the major ones being on 18 January 2018, where a board of government and state fund priests chose to amend GST rates on 29 merchandise and 53 services.

What worked for GST?

GST has been successful in addressing many issues. For instance, GST, as it was broadly dreaded, would lead to a rise in inflation as seen with other countries who when for a single tax system. However, that hasn’t occurred in India. What made a difference? The multi-slab structure which was actually criticised initially worked in its favour. It guaranteed the required rate was as close as conceivable to the current rate, which implied the occurrence of expense didn’t rise.

Secondly, with the inception of GST, long lines of trucks at state borders vanished as check posts were not required, making a consistent national market. These boundaries had limited development of merchandise the nation over, prompting colossal postponements and expanding exchange costs for the logistics sector, in the end converting into greater expenses for buyers.

GST also led to one nation, one tax is a possibility. Now all the citizens of a country pay the same tax on an item irrespective of the state they reside in. Moreover, companies have now been able to streamline their distribution system which was earlier planned differently for different states keeping their tax policies in mind. Over 17 taxes and many cesses were merged in one GST which made things simpler and it was a win-win situation for all. Although at initial stages, the government seemed to have sacrificed a part of its revenues for the rollout of GST, at the end a better compliance level by all is expected to fill in the gap for the government exchequers.

What went wrong?

Not everything has worked in favour of the GST. Compliance by all is a distant dream yet to become true. At the initial stages, there were multiple registration levels required for the business entities making it uncomfortable for them, given the literacy levels of the major business population of the country. Fear of multiple audits, as well as assessments in the GST system, is also which has served as a dampener for the smooth rollout of GST. Working capital saw a rise of the small time investors as the refund mechanism was not as swift as it was required to be. Although a lot many improvements have been made by the government in order to resolve this issue, more intervention is perhaps still required.

Conclusion:

GST has been an important step in the economy of the country. On one hand, GST has united the country in terms of the taxes paid by all, as there is no state wise discrimination on the taxes now, which a widely prevalent before. On the other hand, GST has been an easy transition or some while some others have found it extremely difficult to be accepted. However, the reality is that we should all be supportive of the measures taken by the government for the better of all of us and the economy of our country.


Essay on GST – For Competitive Exams like IAS, IPS and UPSC (Essay 8 – 1000 Words)

Goods and Services Tax, synonymously known as GST, has finally been put into effect on July 1, 2017, by the Government of India to replace the multiple taxes levied by the central and state governments. It was introduced as the 101st amendment of the constitution of India. The long-awaited taxation system envisages to eliminate all other indirect taxes and reduces the burden of paying various taxes. The purpose of this tax system is to abolish the menace of indirect taxes levied at a different level of transactions and implies only GST on all goods and services.

As the name suggests, GST is the tax, based on consumption. GST is paid at the final stage of consumption for any goods and services. In a supply chain, GST marks a levy on every stage of purchases and sale.

To make the process of taxpaying easier, Government of India has planned for a dual GST system that has two components termed as Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST). Taxes like customs duty, excise duty, service tax, etc., shall be now calculated under CGST while entertainment tax, sales tax, VAT, etc., shall be applied under SGST, marking it a division of 18% tax (9% CGST & 9% SGST), which are subject to periodical revision during GST council meeting.

The GST has 5 slabs for the tax collection and they are 0%, 5%, 12%, 18% and 28%. Some items like alcoholic drinks, petroleum products, lottery, and electricity are falling under the GST and states shall have the authority to tax it.

GST in Other Countries:

Apart from India, around 160 countries in the world have implemented VAT/GST to make the tax system easier for their civilians. France was the first country to have introduced GST in the year of 1954, and the other countries followed after that. In every country the GST rates have been prefixed between 16 to 20 percent and India has taken a cue from this system and developed the new GST plan based on similar patterns. We expect that the Indian economy shall be expanding with great pace as the taxpayers will grow 5 to 6 times higher than the current figure.

Introduction of GST in India:

Ever since the conception of the idea and setting up of committees to strategize the planning and implementation since 2000, GST has finally crossed the hurdles on July 1, 2017, midnight session of the parliament. The cascading effect of taxes had become a nightmare of the past. Now, it is only after GST that India has seen a change in the taxation system that makes the calculation and expenditure very minimal and more comfortable for the people to control their expenses.

Likewise, it has also helped the retailers and manufacturers to invest wisely and claim the GST back eventually. Introduction of GST is a significant step in reforming the tax system. Amalgamating several taxes (central and state) under one system helps to mitigate the double taxation method and created a single national market for the people. GST introduces a uniform tax system across the states – one India one Tax!

Advantages of GST Implementation:

The various advantages of GST implementation are:

1. The Indian market has now become a unified market wherein every individual is paying a single form of tax rather than multiple taxes, thereby lowering the business cost.

2. The entire tax structure is now simple, making it easier for everyone to understand the system of taxation better.

3. GST is exceptionally beneficial for export-oriented companies as the GST is not applicable for goods or services exported out of India.

4. All transactions between the buyers and sellers have become transparent, and the tax structure is easy to calculate.

5. Suppliers, Manufacturers, Retailers, and Wholesalers can now claim the GST refund, thus making it easier for them to invest more into the business which eventually works well for the economy of the country as a whole.

6. The GST will help in an overall investment plan in the country and naturally benefit the development of the state as a whole.

7. For reaping the benefits, the returns must be filed online, and the input credits shall verify online.

8. It offers excellent relief for the consumers, as states won’t have the freedom to levy taxes on taxes and any kind of additional taxes.

9. GST will be payable only by the end consumer, and manufacturers, wholesalers, retailers will have the liberty to get the tax refund. Since consumers are paying the tax, over a while the tendency of evading tax will become zero.

10. Since GSTN backs GST, all tax transaction becomes transparent and corruption free.

Disadvantages of GST:

The disadvantages of GST are:

1. GST has majorly hit on the real estate market as it levies 8%, which is a reason for the slow demand and has pulled down the market by around 12%.

2. Some retail products were cheaper before the introduction of GST, as it had a tax of only 4%. After GST, these items became expensive because as per GST, it has a levied tax of 9%.

3. One of the industries majorly hit by the GST is the aviation industry. Previously airfares had a service tax of 6-9% on an average; with GST, the rate has surpassed 15% and has doubled up the tax rates.

4. Since there are two components of GST, the CGST and SGST, it won’t make much difference in the net value of the tax payable by a consumer. Most people expected a reduction in the payable tax, but in reality, ordinary people continue to pay the same tax amount. It looks like only the name changed.

Conclusion:

GST has brought a transparent and a corruption-free taxation system which has removed the shortcomings of the indirect tax structure. With the elimination of cascading tax, GST has become business and consumer friendly as it allows the people to pay a single tax for all the goods and services instead of going through several taxes on the same amount.

GST aims to increase the base of the taxpayers, unorganized sectors and SMEs have added to their compliance. This plan and execution have made the Indian market more stable than before, and Indian companies can now compete with foreign companies.

Being GST compliant helps the large and small businesses perform better. Lives of citizens have become more comfortable after the introduction of GST as they don’t go through double taxation anymore and that saves both manufacturers and consumers from additional payments.


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