GST QUICK OVERVIEW.

India is marching towards the progress with the lightning speed. After the demonetization, the GST bill is one the biggest tax reforms in India since the 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. We have written this article in simple English language to make you aware of whatever you wanted to know about the GST and its various aspects like its meaning, definition, impacts, benefits, advantages, flaws, disadvantages etc.

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 can also you can expect essays on this topic. I think you should expect Impact, Risk, Effect History, Evolution of Demonetization and GST topic in the exam too. I hope following information will help you in that.

In this article, we have given you an essay and speech which will help you to write a perfect essay and speech for your competition or to write a paragraph in your exams. You can prepare a decent essay or speech for your speech and essay competition or even for the Group Discussion GD on GST. This content can even be used as reference material for your SSC, UPSC, SBI PO, IAS essay exam preparation too.

Essay / Speech on GST (Goods and Services Tax)

Good morning everyone, honorable chief guest Mr. ABC, respected Principal Mr. XYZ, all the professors, and my dear friends. India is transforming rapidly. Many initiatives were taken by our government to make our country better and one of such initiative is GST bill. Yes, to today I am going to deliver my thoughts about the biggest tax reform in India after independence, which is GST. 

GST is a revolutionary step taken by The Government of India to make Indian economy stronger than before. On 1st July government of India announced a new way of tax payment which is GST which will make the process of tax collection very 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 common man? 

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 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 business. 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, IGST and UTGST which are determined by the movement of the goods and service i.e. IntraState movement or Interstate movement.

Many economists and experts have predicted that the GST bill will boost up the economy in long run. 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. 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 which is very important. So let’s see why GST Act is good for India, the businesses in India and the common man of India.

GST has its own pros and cons. GST is a simple tax system. Now, the taxpayer won’t be confused about the what 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 the 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 with 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 astandard for the global business and India being 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 Effectis another advantage of GST. In simple words “cascading tax effect” means a tax on tax. In 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 cascade 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, hence in  GST, there will be no cascading tax.

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 which is GST. Under GST some services will become costlier such as TeleCom, Airlines, Banking, Insurance will be costlier under GST bill. 

Conclusion

Though GST has its own flaws and controversies, 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 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.