Essay on GST | Goods and Service Tax Essay

Essay on GST

You can also find more Essay Writing articles about events, people, sports, technology, and many other things.

Essay on GST | Goods and Service Tax Essay

GST, which stands for “Goods and Services Tax,” is a tax in India that is based on how goods or services are used. GST is a new indirect tax that takes the place of the old indirect taxes on goods and services. The GST has no effect on direct taxes like income tax, corporate tax, etc. Everything you need to know about writing an essay on GST, an essay on GST in English, and an essay on GST.

500+ Words Essay on GST

Goods and Services Tax (GST) is an indirect tax. This tax is used in India. This tax is paid at the point of consumption. In the past, taxes were collected from the place where they were made. Also, this tax is added at every step in the production process. The refund is for all the people involved in the different stages of production. Also, the GST includes almost all indirect taxes.

Explanation of GST

Goods and Services Tax (GST) is a single tax system. This tax is collected by the state and the centre at the same time. Also, the imposition happens when a federal council says it should.

In the GST system, goods and services are put into five different tax brackets. This is so that taxes can be collected. Above all, the tax levels are 0%, 5%, 12%, 18%, and 28%. Also, the GST does not apply to gasoline, alcoholic drinks, or electricity. A special rate of 0.25% applies to rough precious and semi-precious stones. The special rate for gold is 3%.

GST included many different taxes and fees. Among these are central excise duty, services tax, and additional customs duty. GST also includes state-level taxes like VAT, surcharges, and Octroi. Charges no longer exist under the GST system. Also, these fees applied to the transport of goods between states. Most importantly, GST is applied to all transactions. There’s a sale, a purchase, a transfer, a lease, and an import.

Benefits of GST

First and foremost, the cascading tax effect is a tax on tax. Most importantly, GST reduces the tax cascading consequences. This is due to the fact that GST is a broad-based indirect tax. It undoubtedly unifies practically all indirect taxation.

Another major benefit of GST is the increase in the registration threshold. Previously, if the turnover was higher than Rs 5 lakh, a VAT was levied. This VAT was levied on a firm. Furthermore, when turnover was less than Rs 10 lakh, there was no service tax. This barrier is Rs 20 lakh under GST. As a result, many small retailers and service providers will be exempt.

GST has the potential to considerably help small enterprises. Furthermore, the turnover of these tiny firms ranges between Rs 20 and Rs 75 lakh. These small enterprises profit from the composition plan. Small enterprises can reduce their taxes under GST. They can accomplish this by employing the composition approach.

The complete GST process is accessible online. Most importantly, it is a simple online process. As a result, it is extremely advantageous for new enterprises. This is due to the fact that they do not have to battle to obtain several registrations.

To summarise, GST has been a game changer for India’s tax structure. Most importantly, many experts regard it as one of the most significant tax reforms. GST is undoubtedly advantageous to the entire Indian population.

Essay on GST

GST was first used in France in 1954. At the moment, 160 countries around the world have GST. India chose the Canadian model of dual GST because it is based on a federal system. GST stands for “goods and services tax.” India has had GST since July 1, 2017, so July 1 is called “GST day.” In particular, Asam was the first state where GST was used. The “GST Bill” was passed by the parliament with 336 votes in favour and 11 votes against. The previous structure of indirect taxes in India was very complex, and quantitative taxes were levied by the central government and state government on goods and services. Streamlining indirect taxes and putting in place a “single taxation” system has been on the table for a long time.

Businesses that make more than the set threshold value must register for GST and keep track of all their inputs and outputs. Some products, like alcohols, natural gas, motor spirits, and crude petroleum products, are not included. To figure out GST, you just multiply the amount that is taxable by the GST rate. GST rates are covered under 5 tax slabs as 0%, 5%, 12%, 18% and 28%. Most goods are taxed at 5%, 12%, or 18%, while some services are taxed at 5% or 12%. Cement and tobacco are taxed at 28%, which is the most.

The GST system is categorised into Central GST, also known as CGST, State GST known as SGST and Integrated GST known as IGST. On supplies between states, the central government charges CGST, the state government charges SGST, and the central government charges IGST. In short, CGST and SGST must be paid when selling in the same state, and IGST must be paid when selling between states.

Since GST was put into place, there have been fewer cases of tax evasion in the country. This means that the government is getting more tax money. Article 279 of the Indian Constitution says that the GST has been put into place. Sales tax, service tax, customs duty, excise duty, VAT, Octroi tax, etc., all stopped being a thing. Also, there is a standard way for taxpayers to sign up, get their taxes back, and file their tax returns in a uniform way. With a low tax rate or even none at all, exporters are more likely to export high-quality goods, which is good for the economy.

GST was good because it made things clearer and made it easier for central and state manufacturers to follow the rules. The Gross Domestic Product (GDP) grows with the help of GST (GDP). A 2% rise in GDP is expected. Before GST was put into place, the price of the good varied from state to state. But once the GST was put into place, prices were the same all over the country. GST has turned out to be a great choice for the people of the country. GST has helped the everyday person move forward in life. Life is really lived when a few things change. Also, GST makes it easier for Indian companies to work with foreign companies. It also makes the Indian market more stable than it was before.

GST is a tax that applies to the whole country. It was put in place by the Constitution (One Hundred and First Amendment) Act of 2017. Before GST, indirect taxes were levied in different ways by states and centres. Now, they are all the same. GST brings together different taxes, like central excise duty, state VAT, etc., under one single tax. No longer do businesses have to pay taxes based on which state they are in. It has also made it easier to figure out taxes and file tax returns. Under GST, businesses that make more than a certain amount must register, keep track of their inputs and outputs, and file regular GST returns.

“One country, one tax” is the idea behind GST. It requires businesses that make more than a certain amount to sign up and keep track of all their inputs and outputs. Under GST, there are five tax rates: 0%, 5%, 12%, 18%, and 28%. Most goods are taxed at 5%, 12%, or 18%, but some services are taxed at 18%. Cement and tobacco are taxed at 28%, which is the most.

The Central Goods and Services Tax Act of 2017, the Integrated Goods and Services Tax Act of 2017, and the Union Territory Goods and Services Tax Act of 2017 all control GST. It includes central excise duty, which is part of the Constitution of India’s One Hundred and First Amendments.

Laws of GST

GST includes a total of 5 laws which are:

1. Central GST Law
2. State GST Law
3. Union Territory GST Law
4. Integrated GST Law
5. The Goods and Services (Compensation To State) Law

Here, the Central GST Law is in charge of putting together and organising all of the taxes on goods and services. In the same way, State GST Law is what applies at the state level (29 states and 2 Union Territory: Delhi and Puducherry which have their legislative assembly ). Union Territory GST brings together the rules of CGST and applies them to the rest of the Union territories and Indian territories that aren’t near the regional waters.

With integrated GST, imports and business between two states or union territories are handled. Any disagreements about IGST will be settled by the Centre or by a state that the Centre has given permission to. Lastly, the Goods and Services Law manages a way to pay the states, which caused a loss during the first five years that GST was in place.

GST is a progressive tax, which means that different goods will have different tax rates. This is because it is not possible to have the same tax rate on all goods, like a toothbrush and a Mercedes car, because the customers for each product are different.

Benefits of GST

• The main benefit of GST is that it will make it harder for officials to cheat on taxes, since customers will only have to pay one tax instead of the multiple taxes they had to pay before.
• This tax method is easier to understand. It will keep stopping growth, and different requirements, like the tax return, will also help the state.
• Since customers are the King, they will get the most out of the changes.

Disadvantages of GST

• There have been many ideas that GST is just an old tax law with a new name and some new requirements. GST is made up of two parts: CGST and SGST. It could lead to a fight between the state and the centre.
• Also, the prices of many things will go up because taxes will be put on some things that didn’t have taxes before. Some of the tax percentages on the products would go up to 12%, 18%, or 28% if they were previously taxed at 10%, 16%, or 26%.
• GST is a long and complicated process that takes time and a lot of work.
• GST is made up of 29 states 2 Union Territories and The Center. So, there could be a lot of different points of view, which could unnecessarily slow down the decisions. If this happens, the main reason for the GST will be gone.

Short and Long GST Essay in English

We’ve included both short and long GST essays here. This topic is beneficial to students in grades 4, 5, 6, 7, 8, 9, 10, 11, and 12. This topic is very beneficial to students who are preparing for competitive exams.

Short Essay on GST (200 – 250 Words)

GST, or Goods and Services Tax, is a new tax system that replaces all previous cumbersome indirect taxes such as VAT (value added tax), purchase tax, luxury tax, and so on. It is a single tax for all. France was the first country to implement GST in 1954. Later, numerous nations implemented GST, and approximately 160 countries now have GST. It was implemented in India under Prime Minister Narendra Modi’s reign.

GST is a more transparent and helpful technique for customers. Customers will now be charged the same price for the product throughout the country. Customers had to pay taxes on various levels under the previous tax-paying system, but the advent of GST eliminated multiple tax-paying systems. GST is overseen by the GST Council, which is made up of Union Ministers and state Finance Ministers.

GST is classified into four types:

. Central GST (CGST)

. State GST or SGST

IGST stands for Integrated GST.

The central government is in charge of collecting CGST, whereas the states are in charge of collecting SGST. The central government collects the IGST on interstate supplies. GST is levied in five brackets: 0%, 5%, 12%, 18%, and 28%. Goods such as cement and tobacco are subject to 28% GST, whilst bread and butter are subject to 0% GST. Alcohol, electricity, and petroleum taxes are still collected under the previous tax system.

Long Essay on GST (500 – 600 Words)

Introduction

Every citizen in the country is required to pay some type of tax to the government. Tax collection is critical to the country’s economy. The government uses these levies to fund the public interest and national debts. Income, transaction, business, or sales profit can all be taxed. GST, or Goods and Services Tax, is one of the replacements for all previous taxes.

What exactly is GST?

GST is an indirect tax that is levied on all goods and services. It is gathered on a national scale through product sales, manufacturing, consumption, transactions, and such on. The end consumer of goods and services is responsible for paying GST. GST is collected at all stages of the manufacturing and distribution of commodities. However, the rate is determined by the value added at each stage. GST indicates a unified tax system across the country, eliminating the need for customers to pay taxes numerous times. GST is levied on businesses and sales that exceed a certain threshold value. GST is divided into five slabs, and the tax on goods and services is levied accordingly. It was introduced to streamline India’s tax system.

GST in India: A Brief History

The notion of GST was not novel in India. Atal Bihari Vajpayee, the then-prime minister, proposed instituting GST in 1999. He also formed a committee for this reason. In 2006-07, the then-Union Finance Minister of India proposed GST in his budget speech. GST was supposed to go into effect on April 1, 2010. However, due to political disagreements, the date was pushed back.

On March 29, 2017, the Lok Sabha passed the GST bill. All states and union territories had enacted their individual GST laws by June 30th. As a result, the 1st of July, 2017 was designated as the day GST was implemented in India. The GST system in India is based on the Canadian model. The GST bill received 336 votes in the Indian parliament, with 11 votes against it. Assam, India, became the country’s first state to implement the GST.

GST Advantages

There are numerous advantages to applying GST. The main benefit is that GST eliminates various underlying indirect taxes in India. It is also advantageous to small business owners. Previously, they had to pay VAT if their turnover exceeded 500,000, but under GST, the tax will be levied if their turnover exceeds 200,000. The entire GST online technique simplified and eliminated the need for numerous rounds of tax payment. The GST tax structure plan also provides an opportunity for customers to lower the tax.

GST’s disadvantages

GST is useful to the country in some circumstances, but it also has significant drawbacks. The Centre benefits the most from GST, while the states may suffer losses. Because there is no separate state tax, their wages can be withheld. Many previously tax-free items are now subject to GST. Because GST is an entirely online process, it can be tough for small business owners. However, GST is also to blame for rising operating costs.

FAQs: Frequently Asked Questions on GST