GST Essay in English

GST essay in English, GST is abbreviated as Goods and Services Tax. In India, there is the GST system, which was introduced as a reform measure in the taxation system to make the process streamlined and more transparent. In this entry, we will talk about GST. So, start reading to know more about GST:

gst essay in english

GST Essay in English

Essay on GST in English 250 Words

GST stands for Goods and Services Tax. This tax applies to the sale, manufacture or consumption of goods and services nationwide. With the creation of GST, indirect taxes have been replaced, which are currently being levied in the country, such as service tax, central excise duty, value added tax and others.

GST is charged on every transaction, which takes place within the territory of the country. Buyers must pay applicable taxes for any goods or services purchased. This tax focuses on eliminating all indirect taxes like VAT, service tax, etc. This is how this tax has proven successful in making India a single market.

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

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

The blending of both central and state taxes into one will side-step many of the difficulties of the earlier taxation system in India such as falling taxes, recurring taxes, wastage of resources and time, etc. Through GST, India is taken as one integrated market, which encourages foreign investment.

GST in India Essay in English

What is the objective of GST?

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

• Achieving the ideology of ‘One Nation, One Tax:’ It has replaced many indirect taxes, which existed under earlier tax routine. With a single tax, this means that every state follows the same price for a given service or product. Tax administration is easier with the Central Government, which decides the policy and rates. E-way bills and e-invoices like common law can be introduced for goods transport and transaction reporting. GST is a unified scheme of indirect tax compliance.
• Eliminate tax cascading effect: Another major objective of GST is to eliminate tax spillover effect. Earlier, taxpayers could not deduct tax credit of one tax against another because there were many indirect tax laws. It also supports easy flow of input tax credit across both services and goods.
• Considering most of the indirect taxes in India: In our country, many indirect taxes are used to levy at many stages of the supply chain. Some taxes are controlled by the states and others by the center. Previously, there was no centralized and unified tax on both goods and services. When GST was introduced, it rolled all taxes into one. It has greatly reduced the compliance burden on taxpayers and simplified tax administration for the government.
• Increasing tax payer base: With the introduction of GST in India, it has helped in broadening the tax base. Previously, all tax laws had different threshold limits that applied to registration according to turnover. With GST, it has increased tax registered businesses. Stricter laws surrounding input tax credit have helped bring some unorganized sectors under the tax net.
• Reducing tax evasion: In our country, the GST law is much stricter than any other indirect tax law. Using GST, taxpayers can claim input tax credit only on invoices, which are uploaded by their respective suppliers. It reduces the chances of claiming input tax credit with fake invoices. The launch of e-invoicing has further supported this objective. Since GST is a nationwide tax with a centralized surveillance system, crackdown on borrowers is faster and more effective. This is how GST has reduced tax evasion by minimizing tax fraud from occurring to a large extent.
• Web-based procedures for ease of business: In the past, taxpayers faced many difficulties with different tax authorities under each tax law. Most of the processes related to GST happen offline when the return files online. But now, the GST procedure is done entirely on the web.
• With the internet, everything is done within seconds, be it registration, return filing, refund, or e-way bill generation. This is how GST has contributed to making things easier and faster in India when it comes to doing business. It has reduced taxpayer compliance to a great extent. The government is also planning to launch a centralized portal soon to help with all indirect tax compliance such as e-way bills, e-invoicing and GST return filing.

Elements of GST

Under the GST system, there are 3 taxes charged, namely CGST, IGST and SGST.

• CGST is a tax collected by the central government when sales are made within the state.
• IGST is a tax that will be collected by the central government on sales made between states.
• SGST is a tax levied by the state government on domestic sales.

Conclusion

GST has reduced the unnecessary tax burden of different central and state taxes. This is why it is known as a more transparent system. by running medium and small enterprises, and other forms of organized sector, the Goods and Services Tax leads to a more transparent and robust Indian industrial sector. GST has helped boost the economy effectively. We all should use the benefits of GST.

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