Essay on GST: Implementation of GST is a big step for making the Indian economy better, stronger, and more transparent. GST made it easier for companies to record tax payments and schedule tax payments. Below we have provided GST Essay in English, suitable for classes 6, 7, 8, 9 & 10. This detailed essay on GST of 200-250 words is greatly helpful for all school students to perform well in essay competitions.
Essay on GST
GST is the abbreviation of Goods and Services Tax. GST is a kind of tax that was implemented in India on 1 July 2017. This tax is considered a major reform of the Indian tax system after independence. Since its implementation, GST has been a controversial tax in the context of the Indian tax system. The government collects tax from the country’s citizens in two forms; Direct Tax and Indirect Tax. Direct taxes are based on citizens’ income, and indirect tax is levied based on purchasing a product or service.
Income tax is a direct tax, whereas GST is an indirect tax that brought many taxes under the same roof. To understand the features and concept of GST, we have to take a quick look at the previous tax system. In the earlier tax system, the taxes used to be charged on every stage of goods. From the manufacturing of a product to its sales, a tax has to be paid.
These taxes used to be in VAT, excise, CST, but GST has replaced all different types of taxes. Earlier, the rate of taxes can be varied in different states, and there were two types of taxes; central taxes and state taxes. Now with GST, the rate of taxes is the same in all the country’s states, and taxes have been imposed jointly by the state and central government.
Benefits of GST
The earlier tax system in India was not favorable for small business units. Different types of taxes were present at that time, and on a product, different taxes were imposed. The motive behind the implementation of GST was “One Nation One Tax.” GST has its benefits and disadvantages.
The Indian economy is developing at lightning speed, and it has to compete with other more developed economies. Countries like Sweden, Denmark, Germany, Switzerland, and Japan have already implemented the GST. This tax helped the economy of the countries to grow. GST works like a common window for tax collection. Here are the other benefits of GST that will help the Indian economy in the long run.
Ease of Business – One Country One Tax made it easier for the business to set up their project in any state of the country. Earlier, the taxes on any projects used to vary from one state to another. But now, tax slabs are the same for one item in all the states of the country.
Easy Tax Filling – Different types of taxes like sales tax, Vat, services tax, etc., have been covered under GST, so tax filing has become much easier. The entire process of GST, from registration to filing returns, is available online.
Elimination of Different Taxes – Before GST, different types of taxes were used to apply to one product. Taxes like excise, octroi, sales tax, CENVAT, Service tax, turnover tax, etc., have different rates, but GST has included all of them in it.
Regulated Under-organised sector – Before the implementation of GST, many big industries like construction and textile were unorganised. But after the implementation of GST, companies associated with these industries have to complete all the compliance online then have to stick to regulations.
Defined tax for E-commerce – Before the implementation of GST, the business for E-commerce sites was difficult. For Up, they will have to apply VAT, and for other states like Rajasthan, they will have to remove it. So it was confusing for them. But GST made it easy as it’s one tax for all the states.
We hope you like this GST Essay; IF you have any doubts regarding this article – Essay on GST, please leave a comment below; we will get back to you asap!