Essay on GST for Students | Goods and Service Tax Essay, Benefits and Laws of GST

Essay on GST: GST or Goods and Services Tax, India is a tax based on the usage of goods or services across India. GST is an indirect tax replacing the previous indirect taxes imposed on the goods and services. Direct taxes such as income tax, corporate tax, etc., are not influenced by the GST. Everything you need to know about GST essay writing, Essay on GST in English, Essay GST.

Essay on Goods and Services Tax (GST)

Goods and Services Tax was introduced in 1999, by the government of India when Atal Bihar Vajpayee was the Prime Minister of India. Moreover, a board was set up by Prime Minister under the Finance Minister of West Bengal, Asim Dasgupta to express a GST model. Since then, the GST could not be executed, until lately by the NDA (National Democratic Alliance) government on 1st July 2017 led by the Bhartiya Janata Party or in short BJP.

Goods and Services Tax is a necessary indirect tax improvement in India. Ere GST, India possessed many indirect taxes imposed respectively by both central and state governments. It resulted in a high volume of taxes, also requiring a high amount of supplies for their stock and managing records.

A combination of both state and central taxes into one will forego many difficulties of the former tax system such as recurring taxations, cascading of taxes, loss of time and sources, etc. Furthermore, GST counts the whole of India as one combined market, consequently encouraging foreign investment. Read an essay about GST.

Essay on GST With Headings

By reducing the cascading of tax at numerous levels, GST offers the goods more affordable for the listed dealers as well as the end customer and hence leading to the financial growth of the country. India is a developing country, still coping with the matter of unemployment. GST is demanded to create new job opportunities in the area of taxation and accountancy, along with openings in the industrial sector.

A centralized GST has emerged in the exclusion of different check posts through the interterritorial transport of goods. The travel time of regional goods vehicles has decreased considerably by 20% due to the lack of check posts. Also, the involvement of multiple parties in GST will increase the assent level.

GST is a big step to lead India into a more transparent and corruption-free taxation system. The GST rules are formed such that it is advantageous for both the sellers and the buyers. India required a better tax improvement on indirect tax like the Goods and Services Tax. GST puts India to a better place to accommodate in the international market. Also, by inducing Small and Medium Enterprises (SMEs) and another organized sector, under it, GST heads to a more enduring Indian industrial area and an enriched economy.

Laws of GST

GST includes a total of 5 laws which are:

Central GST Law
State GST Law
Union Territory GST Law
Integrated GST Law
The Goods and Services (Compensation To State) Law

Here, Central GST Law administers with the combination of all taxes on goods and services, their compilation and organizations. Similarly, State GST Law governs at the state level (29 states and 2 Union Territory: Delhi and Puducherry which have their legislative assembly ). Union Territory GST consolidates the stipulations of CGST and practices it to the outstanding Union territories and Indian territories which are away from the regional waters.

Integrated GST administers with import and business between 2 states or union territory. Any disagreement arising under IGST will be resolved by the Centre or by any state authorized by the Centre. Lastly, The Goods and Services Law administers with managing a payment process for paying the states which incited a loss for the first five years of implementation of GST.

GST is a progressive tax, it will have various tax rate for many goods because an alike tax rate on all goods, for example, a toothbrush and a Mercedes car is not possible and not supported as the relevant customer group is different for distinct products.

Benefits of GST

The primary benefit of GST is that it will decrease the likelihood of tax manipulation by the officials as the customer has to pay only one tax collectively rather than multiple taxes levied in the previous tax system.
This taxation method is more transparent. It will continuously abolish expansion and various requirements like the tax-return will serve the state also.
Customers will be benefitted the most since they are considered to be the King.

Disadvantages of GST

Many thoughts have come stating GST is an old taxation law fulfilled with a new name and some new requirements. GST is divided between CGST and SGST. It may direct to conflict between state and Centre.
Furthermore, many products will be imposed higher as the tax will be charged on some commodities on which there were no taxes before. Some of the product’s tax percentages would be raised to either 12% or 18% or 28% if they were previously charged with 10 %, 16% or 26% tax respectively.
GST is a very long and cumbersome method that takes time and manpower.
GST incorporates 29 states 2 Union Territories and The Centre. So there could be many views which could undesirably delay the judgments and thus the main cause behind the GST will disappear.

GST Essay Conclusion

Small companies can undoubtedly profit significantly beneath GST. Moreover, these small industries have a turnover of Rs 25 to 70 lakh. The advantage of these small trading takes place because of the planning scheme. Below GST, there is a choice for such business to lower taxes. It can be done by using the planning scheme.

The whole process of GST is accessible online. The unique thing is- it is an easy and straightforward online method. Hence, it is advantageous for start-ups, as they don’t have to strive to get multiple registrations.

In the end, GST has been an innovative tax system for India. Many specialists praise it as one of the most significant tax reforms. GST surely is profitable for the complete population of India.

FAQ’s on Essay on GST

Question 1.
What is GST?

Answer:
GST or Goods and Service Tax is an indirect or consumption-based tax imposed by the Indian Government on all the goods and services parties of a supply chain. GST is an Indirect Tax which has succeeded in many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a complete, multi-stage, destination-based tax that is levied on every value addition.

Question 2.
What are the types of GST?

Answer:
There are four types of GSTs:

Central Goods & Services Taxes (CGST)
State Goods & Services Taxes (SGST)
Integrated Goods & Services Taxes (IGST)
Union Territory Goods & Services Taxes (UTGST)

Question 3.
Why GST is Important?

Answer:
GST strives to replace all indirect taxes levied on goods and services by the Central and State governments of India. GST would subsume with a sole comprehensive tax, reducing the cascading impact of taxes on the production and circulation prices of goods and services.

Question 4.
What are the advantages of GST?

Answer:
GST has largely eliminated the Cascading impact on the sale of goods and services. Elimination of cascading of tax has impacted the cost of goods. Since the GST administration eliminates the tax on tax, the cost of goods reduces. GST is also more technologically inspired. All actions like registration, tax return, applying for refund and acknowledgment to notice requires to be done online on the GST Portal this stimulates the processes.

Question 5.
What was the list of Indirect Tax before the GST was launched?

Answer: