GST Essay in English

GST Essay in English, GST is abbreviated as Goods and Services Tax. In India, there is a GST system, which has been introduced as a measure of the reforms in the taxation system to make the process streamlined and more transparent. In this post, we are going to talk about GST. So, start reading to know more about the GST:

gst essay in english
gst essay in english

GST Essay in English

Essay On GST in English 250 Words

GST stands for Goods and Services Tax. This tax is applicable on the sale, manufacture, or consumption of goods and services at a countrywide level. With the invention of GST, the indirect taxes have been replaced, which are currently being charged in the country, like service tax, central excise duty, value-added tax, and many others.

The GST is being charged on every transaction, which occurs within the territory of the country. A buyer must pay the applicable taxes for any goods or services bought. This tax focuses on doing away with all indirect taxes such as VAT, service tax, etc. this is how this tax has been proven successful to make India a single market.

It was introduced in 1999 by the Indian government when Atal Bihari Vajpayee was the PM of India. In addition, a board was organized by the prime minister of India under Asim Dasgupta, the Finance Minister of Assam to show a GST model. Since then, this tax could not be executed, until recently by the National Democratic Alliance government on 1st July 2017 controlled by the Bhartiya Janta Party.

This tax has been imposed as a necessary indirect tax improvement in the country. In our country, there were many indirect taxes imposed by both state and central governments. It has led to an increase in the volume of taxes and amount of supplies for their stock, as well as managing records.

A mixture of both central and state taxes into one will waive lots of difficulties of the former taxation system in India like falling of taxes, recurring taxations, loss of sources and time, etc. Through GST, India is taken as one combined market, which encourages foreign investment.

GST in India Essay in English

What are the objectives of GST?

You should realize the objectives of GST, which are mentioned below:

  • Achieving the ideology of ‘One Nation, One Tax:’ It has replaced many indirect taxes, which were existing under the former tax routine. With one single tax, it means that every state follows the same price for a specific service or product. Tax administration is simpler with the Central Government, which decides the policies and rates. E-way bills and e-invoicing like common laws can be introduced for goods transport and transaction reporting. GST is a unified scheme of indirect tax compliance.
  • Removing the cascading effect of taxes: Another primary objective of GST was to eliminate the spilling effect of taxes. In previous times, taxpayers were not able to set off the tax credits of one tax against the other because of the presence of many indirect tax laws. It also supported the easy flow of input tax credits across both services and goods.
  • Considering most of the indirect taxes in India: In our country, many one-time indirect taxes were used for levying at many supply chain stages. Several taxes were controlled by the states and others by the center. Before, there was no centralized and unified tax on both goods and services. When the GST was introduced, it subsumed all taxes into one. It has immensely decreased the compliance burden on taxpayers and simplified the tax administration for the government.
  • Boosting the taxpayer base: With the introduction of GST in India, it has assisted in widening the tax base. Formerly, all tax laws had a different threshold limit used for registration according to the turnover. With GST, it has boosted tax-registered businesses. The firmer laws that surround input tax credits have assisted to carry out some unorganized sectors under the tax net.
  • Reducing tax evasion: In our country, the laws of GST are far more stringent than any other erstwhile indirect tax law. Using GST, a taxpayer can claim an input tax credit only on invoices, which are uploaded by their respective suppliers. It reduces the chances of claiming input tax credits by fake invoices. The launch of e-invoicing has further supported this objective. As GST is a nationwide tax with a centralized surveillance system, the crackdown on defaulters is faster and far more effective. This is how GST has reduced tax evasion with the minimization of tax fraud from occurring to a great extent.
  • Web-based procedures for ease of business: In past times, taxpayers suffered from many difficulties with different tax authorities under each tax law. Most of the processes related to GST took place offline when file returning was online. But now, GST procedures are done on the web entirely.
  • With the internet, everything is done within a few seconds, whether it is registration, return filing, refunds, or e-way bill generation. This is how GST has contributed to making things easier and faster in India when it comes to businesses. It has eased out taxpayer compliance to a great extent. The government is also planning to launch a centralized portal soon to assist all indirect tax compliance like e-way bills, e-invoicing, and GST return filing.

Elements of GST

Under the GST system, there are 3 taxes applicable, which are CGST, IGST, and SGST.

  • CGST is the tax that is collected by the central government when the sale is done in an intra-state.
  • IGST is the tax to be collected by the central government on a sale done in an inter-state.
  • SGST is the tax to be taken by the state government on an intra-state sale.

Conclusion

GST has decreased the needless tax burdens of different central and state taxes. This is why it is known to be a more transparent system. by carrying out medium and small enterprises, and other forms of organized sectors, Goods and Service Tax leads to a more transparent and steady Indian industrial sector. GST has assisted to enhance the economy effectively. We all should use the benefits of GST.  

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