India is marching towards the progress with the lightning speed. After the demonetization, the GST bill is one of the biggest tax reforms in India since independence. The GST bill is supposed to boost up the Indian economy is coming years. According to the GST bill, all the complex and multiple indirect taxes were replaced by one ultimate tax which is GST. Hence we are writing this essay on GST in India in English to give you more information about GST (Goods and Services Tax).
GST created a buzz in the Indian economic market for sure and news media covering it to the fullest, we can see that GST going to be one of the top topics for speech, essay competitions for commerce stream students, UPSC, SBI PO type of higher exams. I think you should expect Impact, Risk, Effects, History, Evolution of Demonetization and GST topic in the exam and competitions too.
In this article, we have tried to give you the information on different aspects of GST such as What is GST?, advantages of GST, disadvantages of GST, etc. We have written this essay on GST India mainly for school and junior college level students. You can use this information or overall idea from the content to write your own essay or speech or even for the Group Discussion (GD) on GST. This content can even be used for your SSC, UPSC, SBI PO, IAS essay exam preparation too if the quality of content serves the purpose. (Check out GST essay in Hindi जीएसटी निबंध हिन्दी)
Essay on GST in India Speech, Article for Class 5 to 12
GST is a revolutionary step taken by The Government of India to make the Indian economy stronger than before. On 1st July the government of India announced a new way of tax payment which is GST which will make the process of tax collection simple as compared to the previous tax system. As GST is a newly introduced tax system in India, many people still are unaware of What is GST? Why is it good for Businesses? Why is it good for the common man? There are a lot of speculations about its implementation, tax rate brackets, etc, we will cover that too.
The full form of GST is Goods and Services Tax. GST is a simple, sophisticated and consumer-friendly way how the Government of India will collect the tax from the businesses and individual citizens. GST is implemented in India to replace the previous indirect tax systems which were very complex with a simpler, uniform tax system. In the previous tax system, there were multiple confusing taxes like VAT(Value Added Tax), service tax, cess tax, entertainment tax, sales tax, etc making it a very confusing tax system for consumer/ common man and even for the businesses.
So now people and businesses have to pay only one type of Tax which is GST. GST is a consumption-based tax which means the tax should be received by the state in which the goods or services are consumed and not by the state in which such goods are manufactured. The GST tax system will take the form of “dual GST” which is concurrently levied by central and state government.
GST is composed of three types of taxes and those are CGST, SGST/UTGST, and IGST and which are determined by the movement of the goods or service i.e. IntraState movement or Interstate movement.
Many economists and experts have predicted that the GST bill will boost up the economy in the long run but we see some short-term impact on the economy too. India is a collective economy where each state has its own set of rules for them. This makes the growth of the country slow, causes difficulties for the businesses and higher possibilities of tax evasion and corruption.
In addition to that previous tax system was complex so small businesses used to ignore it. To make the tax payment process simpler and create a win-win environment for both, government as well as businesses, and to reduce the corruption, GST bill is introduced in India. So let’s see why GST is good for India and for businesses and common people of India.
Advantages of GST
GST has its own advantages and disadvantages. GST is a simple tax system. Now, the taxpayer won’t be confused about the type of taxes he/she should pay. There will be only one tax, which is GST. The agenda of the government behind introducing GST itself is “One Nation, One Tax”. GST Act is going to ease the stress of taxes from Indian businesses and manufacturers. They now have to pay lower taxes, and it will surely increase the scope of a better business environment and flexibility.
India is economically growing at a lightning speed. The developed countries like Sweden, Denmark, Germany, Switzerland, Japan – have moved to a common GST (Goods and Service Tax) to provide one common window for tax collection. So now GST has become a standard for the global business and India is progressing towards the development had to embrace a uniform, sophisticated tax system which is GST. GST will surely increase the number of taxpayers, which will in turn help to reduce the tax rates as more people are paying taxes.
Removal of the Cascading Tax Effect is another advantage of GST. In simple words “cascading tax effect” means a tax on tax. In the previous tax system, the tax was levied on goods at each stage of the production process up to the point of being sold to the final consumer. A cascaded tax is a type of turnover tax with each successive transfer being taxed inclusive of any previous cascade taxes being levied this creates a burden of taxes on the end-user. It is easy to create tax challan and pay it online on GST portal, tax file can be signed digitally.
Disadvantages of GST
As every coin has two sides, even The GST has its own set of drawbacks and disadvantages. GST is a newly introduced tax system in India. A common man is unaware of how the GST works moreover citizens are used to the previous direct taxes, so it would take the time to digest the whole big change and also to get familiar with the GST. Also, all the business software, processes like accounting and ERP software need to be updated with the latest tax system.
Under GST some services will become costlier such as Telecom, Airlines, Banking, Insurance will be costlier under GST bill. Under new rules, tax needs to file each month and compliances are made more stringent, this might create a problem for small businesses. Same way Invoices needs to be GST complaint or else there are hefty fines, small businesses may not afford this transition. CA services and GST Complaint account software and related tools will add cost to Small businesses.
Filing tax also faces some technical problems (faced by myself), most of the time digital signature don’t work, and a lot of people don’t know the technical know-how to solve the issue. In this case, CA asks for handing over digital signature so that he/she can file returns on behalf of you. This is can be a serious identity theft issue, with DSC one can digitally sign any document. (If you know anyone who hands over their DSC to CA, make them aware of this.). Government is not spreading awareness about it.
Though it’s been said that there will be only ONE TAX under GST, in reality, there are different tax slab taxes which ranges from 0% (for exempted goods), 3%,5%,12%,18%, and 28%. On top of which there are different cess needs to be paid.
There are other smaller problems which arising not directly because of GST but due to its indirect effects. Small manufacturers who are dealing with high taxed material tend to buy it from unregistered vendors to evade high taxes. We have also seen some hotels and restaurants taking advantages of GST and charged customers higher taxes. Likewise, a lot of business spiked there prices by giving GST excuse.
Problems with GST
The government still revising the tax brackets, businesses still not able to understand the process which was claimed to be simpler than earlier system. After a year and more still, small businesses are not comfortable with tax filing. Still, GST is not a standardized process, the government keeps optimizing the process. Because of this Chartered Accountants are not able to fix their fee structure and that affects businesses to plan finances.
GST Tax filing is a complete online procedure and it requires Digital Signature (DSC) of the owner or an authorized personnel to complete the process. Big businesses are aware of this digital signature technology and security precautions around it. But small, medium or new business owners do not understand it. They give their DSC dongle to CAs or Accounts. It is a massive security lapse, their digital signature can be stolen and used for malicious purpose.
While filing GST Return people get an error while recognizing DSC without which they cannot complete the procedure. The only technical person with good knowledge can solve this error. The government made the procedure online to make it easy for businesses to file tax. But still, they wait till the 11th hour. 20th of each month is the last date of tax filing, businesses try to file it in the last few hours. As thousands of people doing it the same time, sometimes it fails. Business needs to plan tax filing schedule to avoid late filing penalties.
Though it looks like there are more negatives than positives, we need to consider that this is the transition phase. It is not going to be a knife in butter considering the complexity of our country. GST will surely help to boost up our economy but it’s a long-run process, which will take time. Only the time will tell us whether the GST was beneficial for India or not.
But this tax reform shows that the Indian government and its citizens are ready to take big steps for the betterment of the nation. People coming together, discussing, debating on national growth that is big enough takeaway from this. Thank you.
Recent News About GST
Note: These are some latest updates about GST, related issues, improvements, and news. You can add the latest news references in your essay or speech, it will make your copy up to date than others. Here are some examples:
- On November 10th Goods and services tax (GST) for some 200 items was lowered. 178 items of daily use shifted from 28% bracket to 18% tax bracket.
- For delayed NIL returns filing penalty reduced from Rs 200 per day to 20 / day
- GST rate cut to 5% for AC and non-AC restaurant but without the input tax credit.
Tips for Speech on GST in India 2019
- Never mug up the speech script as it is. That sounds like a robot, your audience will not connect with it.
- Rather than reciting the complete script, note down only important bullet points and speak from your heart. When you speak from the heart you might fumble once or twice but it connects with your audience. We are humans after all we all make mistakes.
- Rather than words focus more on the emotions behind the word.
- If you are confident enough try to be interactive with your listeners. Ask them questions.
- If you are a parent don’t force kids to mug it up. Help them to understand the topics and it’s important. In real life, you just can’t survive with mugged up answers, isn’t it? Today’s generation is 10 times smarter than our generation they can easily understand the topic.
Tips for Essay on GST in India 2019
These widely used tips will help in writing your essay on GST in your homework, exams, or essay writing competition.
- Essay generally have three main parts, Introduction, impact or more detailed info and then summary or conclusion. Don’t use headers in the essay. But you should divide the essay into these 3 logical sections.
- Try to maintain a flow between sections. Carry forward a point from the last paragraph and then take it forward.
- You can start a new paragraph with words or phrases like “on another hand, plus, at first, however”.
- It is important to have a conclusion or summary for an essay. You don’t need to be positive all the time for a conclusion, it can be a mix of both emotions. Try to have an inspiring, positive, euphoric conclusion.
You can cut out given essay, speech and prepare your assignment as per the required length of words like 250, 300, 500, 1000 and even 1500 words. To help others you guys can help us voluntarily to translate the speech and essay on GST regional Indian languages like Hindi, Telugu, Kannada, Bangla, Punjabi, Marathi, etc. We will make available the article on GST Bill India in PDF format so that you guys can download it.
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