Essay on GST in English (GST Par Nibandh) – GST means Goods and Services Tax (Goods and Services Tax) which is an indirect tax imposed on the supply of goods and services. GST came into force from 1 July 2017.
It is imposed on each stage of the production process i.e. on the raw materials purchased by the manufacturer, on the products sold by the manufacturer to the wholesaler, on the products sold by the entire vendor to the retailers and finally on the sale of the product to the consumer . Goods and services tax means refund to all parties except the end consumer.
Essay on GST: Goods and Services Tax, India is a uniform tax levied on goods and services, which considers the whole of India as a market. The tax came into effect from 1 July 2017 and replaced the existing multi-level central and state taxes. The GST divides goods and services into five tax slabs 0%, 5%, 12%, 18% and 28%. GST considers India a big market after a uniform tax regime across the country. Direct taxes such as income tax, corporate tax etc. are not affected by GST.
Essay on GST in English
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The GST Council is a governing body that prepares tax rates with rules and regulations. It includes the Union Finance Minister as well as the Finance Minister of the states. The GST replaces many indirect taxes levied by both the Center and the State at various stages, resulting in reduced tax burden, eliminating cascading of taxes. Before GST, most goods were in the tax range of 26.5%, but after GST, they mostly fall under the tax limit of 18%.
How GST works:
The basic mechanism of taxation under the GST is that it is levied at each stage of the supply process. It is subsequently paid by the manufacturer, wholesaler, retailer and consumer. Although registered dealers (manufacturers, wholesalers and retailers) charge GST, they do not keep this amount, instead pay it back to the government with a tax invoice and claim credit for the tax thus collected. We do.
This leaves the end user ie the customer who bears the ultimate burden of tax. The end customer has to pay the prescribed GST on the services purchased or on the services purchased without any provision for claiming returns or credits.
Types of GST:
There are basically four types of Goods and Services Tax, as described below-
1) Central Goods and Services Tax (CGST):
CGST is a GST levied by the Central Government on the transaction of goods and services with a state or union territory. CGST replaces other central taxes such as Central Excise, Central Sales Tax, Custom Duty and SAD (Special Additional Duty) Tax.
2) State Goods and Services Tax (SGST):
SGST is a GST levied by the state on transactions of goods and services within the state. It is one of two taxes levied within a state, the other being CGST. The state GST replaces the taxes levied by the state – value added tax, luxury tax, entry tax, entertainment tax etc. Thus the revenue collected under SGST is claimed only by the State Government concerned.
3) Integrated Goods and Services Tax (IGST):
Whereas CGST and SGST are GSTs imposed on inter-state (within state) transactions of goods and services; IGST means GST levied on interstate (between two states) transactions of goods and services . However, IGST is collected by the central government and later reimbursed to the respective state.
4) Goods and Services Tax (UTGST) of Union Territories:
UTGST is the GST imposed on goods and services transactions in these five union territories of India – Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Chandigarh and Lakshadweep. The total GST in the union territory is the sum of CGST and UTGST. The state GST does not apply to union territories, as it requires a legislature. The Union Territory of Delhi and Pondicherry have SGST, as they have their own legislature.
Brief history of GST:
The Goods and Services Tax (GST) was proposed in 1999 under the government of the then Prime Minister of India, Atal Bihar Vajpayee. In addition, a committee was set up by Prime Minister Vajpayee to prepare the GST model by the then Finance Minister of West Bengal Aseem Dasgupta. Since then, the GDA could not be implemented, most recently on 1 July 2017, the NDA (National Democratic Alliance) government formed the government led by the BJP (Bharatiya Janata Party).
Importance of GST in India:
The Goods and Services Tax is an essential indirect tax reform in India. Prior to GST, several indirect taxes were levied by both the central and state governments respectively in India, resulting in high amounts of taxes also requiring high amounts of resources for their collection and maintaining records.
The GST is designed in such a way that it benefits both businesses and consumers. Goods and services tax replaces other central and state indirect taxes such as VAT (Value Added Tax), CENVAT (Central Value Added Tax), Excise Tax, Customs Tax, State Excise etc. In a way, GST has integrated the central and state tax system into a common tax regime.