write an essay on GST
Answers
Indirect Tax system is highly complicated in India because there are various types of taxes that are charged by the Central and State Governments on Goods and Services. These taxes include Entertainment Tax for watching film, Value Added Tax (VAT) for purchasing goods & services by consumer. Other taxes are excise duties, Import Duties, Luxury Tax, Central Sales Tax, Entry tax, and Service Tax.
Businessmen have to maintain accounts which need to obey with all the applicable laws.
Many experts have suggested that to resolve the issues of different types of taxes, there is a need issue to streamline all indirect taxes and implement a "single taxation" system. This system is entitled as Goods and Services Tax, abbreviated as GST. The GST will be levied both on Goods and Services.
Your browser does not support the video tag.Earlier, GST was introduced during 2007-08 budget session. On 17th December 2014, the current Union Cabinet ministry permitted the proposal for introduction GST Constitutional Amendment Bill. On 19th of December 2014, the bill was offered on GST in Loksabha. The Bill is presented in Budget session.
In simple term, GST is a tax that people need to pay on supply of goods & services. Any person, who is providing or supplying goods and services is responsible to charge GST. GST is the huge reform in indirect tax structure in Indian financial scenario since the economy originated to be opened up 25 years ago, at last looks set to become reality. The Constitution (122nd) Amendment Bill introduced in Rajya Sabha recently, on the back of a broad political agreement and heightened by the good aspirations of the Congress. Goods and Services Tax Reform was passed in Rajya Sabha and it will be set to bring in lok Sabha.
The proposed model of GST and the rate:
A dual GST system is scheduled to be implemented in India as proposed by
the Empowered Committee under which the GST will be divided into two
parts:
GST is a consumption based tax. It is based on the "Destination principle." Goods and Services Tax is imposed on goods and services at the place where final/actual consumption occurs. GST is accumulated on value-added goods and services at each stage of sale or buying in the supply chain. GST paid on the obtaining goods and services can be set off against that payable on the supply of goods or services. The producer or wholesaler or retailer will pay the applicable GST rate but will claim back through tax credit mechanism.
Answer:
Goods and Services Tax was introduced in 1999, by the government of India when Atal Bihar Vajpayee was the Prime Minister of India. Moreover, a board was set up by Prime Minister under the Finance Minister of West Bengal, Asim Dasgupta to express a GST model. Since then, the GST could not be executed, until lately by the NDA (National Democratic Alliance) government on 1st July 2017 led by the Bhartiya Janata Party or in short BJP.
Goods and Services Tax is a necessary indirect tax improvement in India. Ere GST, India possessed many indirect taxes imposed respectively by both central and state governments. It resulted in a high volume of taxes, also requiring a high amount of supplies for their stock and managing records.
A combination of both state and central taxes into one will forego many difficulties of the former tax system such as recurring taxations, cascading of taxes, loss of time and sources, etc. Furthermore, GST counts the whole of India as one combined market, consequently encouraging foreign investment. Read an essay about GST.
Small companies can undoubtedly profit significantly beneath GST. Moreover, these small industries have a turnover of Rs. 25 to 70 lakh. The advantage of these small trading takes place because of the planning scheme. Below GST, there is a choice for such business to lower taxes. It can be done by using the planning scheme.
The whole process of GST is accessible online. The unique thing is- it is an easy and straightforward online method. Hence, it is advantageous for start-ups, as they don’t have to strive to get multiple registrations.
In the end, GST has been an innovative tax system for India. Many specialists praise it as one of the most significant tax reforms. GST surely is profitable for the complete population of India.