Short and simple Goods and Service Tax (GST Essay 2018)

GST Essay Introduction:-

hey, fellas, we come with a new post about GST essay with updated 2018 content. GST is very delicious because it is a cocktail of Goods and Service Tax. As we can say this from the name. So ingredients are Goods Tax and Service Tax. It is regressive in nature(discussed later). It is applicable to the whole of India including the State of Jammu And Kashmir.

GST Essay 2018: GENESIS OF GST:-

Since a decade before the idea of national Goods and Service Tax (GST) sprout by Kelkar Task Force in 2004. While presenting Central Budget of 2007-2008, Shri Palaniappan Chidambaram announced GST will be in effect from April 1, 2010. But due to some uncertainty Look Sabha passed the bill on 29th March 2017. Telangana, Rajasthan, Bihar, Punjab, Chattisgarh, and Goa were among the first states to pass State GST laws.
However, France was the first country to implement GST in 1954. Within 60 years of its arrival, approximately, 160 countries across the world adopted the GST. In India, there is dual GST imposed simultaneously by the Centre and State. It means Centre and State both tax goods and services.

GST essay
GST states for 2018,

Here some brief points on GST Essay are stated below:

  • GST Rem a value-added tax on manufacture, sale, and consumption of goods and service.
  • GST offers the continuous chain of the tax credit.
  • GST charged by the last supplier in the supply chain, with set off benefits at all previous stage, so burden borne by the final consumer.
  • GST eliminate the cascading effect of taxes.
  • GST cure of existing tax regime.

Pros and Cons of GST:

Pros Of gst:
  • Subsumed multiple tax rates.
  • Remove double taxation.
  • Simple tax calculation and exemptions.
  • The integrated economy with common tax rates.
  • Remove economic barriers.
  • Widening the tax revenue base.
Cons of GST:
  • In some cases, tax rates post GST have altered MRP.
  • Daily price changes in more than two dozen essential commodities which fall in GST.
  •  Amid pressure from the states to reduce the rates of the product of production companies.
  •  There is no major reduction in the number of tax layers, as per some experts.
  •  The aviation industry would be affected due to the double effective tax rate.
  •  Teething troubles and learning for the entire ecosystem( as the saying goes
    Some retail products currently have only four percent tax on them but after GST become more expensive (e.g., garments).


GST Less Taxing, GST ESSEY

Enough of radical knowledge and ideas. Now we are ready to dive in GST and submit ourselves fully.
As aforesaid India has adopted dual GST, it means both Centre has the power to tax state(within the state) sales & States is empowered to tax services. Power to levy Goods and Services Tax (GST) has been defined by Article 246A of the Constitution which was introduced by the Constitution (101th Amendment) Act, 2016.


In Duly given name Goods and Service Tax. Goods and Services Tax, State and Service have been defined in Article 366 as follows:
GOODS AND SERVICES TAX (12A): GST means any tax on, the supply of goods, or services or both except taxes on the supply of alcoholic liquor for human consumption. Consequently, GST can be levied on a supply of all goods and services except alcoholic liquor for human consumption.
GOODS (12): Goods has already been defined under Clause 12 of Article 366 in an inclusive manner to provide that, “goods includes all materials, commodities, and articles.
SERVICE (26A): Service means anything other than goods.
STATE: With reference to articles 246A, 268, 269, 269A and article 279A, includes a Union territory with the legislature.


Harmonized System Of Nomenclature (HSN) code is used for classifying goods under GST.
So under GST classification of Goods and Services has been devised, a new Scheme of Classification of Services under various sections, headings, and groups.


Every supplier of goods and/or services is required to obtain REGISTRATION from respective state/union territory he is doing business and making the taxable supply were his aggregate turnover exceeds Rs.20Lakh during a financial year.
However, the limit of 20Lakhs can be reduced to 10Lakh if the person is carrying out business activities in the Special Category States – [11 Special Category Sta{es are specified in Article 279A(4)(g) of the constitution] – States of Arunachal Pardes, Himachal Pradesh, Assam, Sikkim, Mizoram, Manipur, Meghalaya, Nagaland, Uttrakhand, Tripura, Jammu and Kashmir.


Under GST various relief provided to suppliers.
For small businesses suppliers, a simpler method of accounting and tax payment is also thereon, known as Composition Levy.
Apart from that, there are also certain provisions for granting exemptions from payment of tax on essential goods and services.


GST has its own network. Common GST economic portal – – a website which is managed by Goods and Services Network (GSTN) has been established by the government to ensure uniform interface for taxpayers and a common and shared IT infrastructure between the Centre and States.
The GST portal is accessible over the internet (by taxpayers, CAs/Tax Advocates, etc.) and intranet by Tax officials etc.
The portal is one Single common portal for all GST related services.
GSTN provides three front-end services to the taxpayers namely registration, payment, and return through GST Common Portal.

Functions of GST:

  • Facilitating registration.
  • Forwarding return to centre and state authorities.
  • Computation and settlement of credits.
  • Matching tax payment details with banking network.
  • Providing a various report to Centre and State Government based upon taxpayer details.


Goods and Service Network(GSTN) has selected certain IT, ITeS and financial technology companies, to be called GST Suvidha Providers (GSPs). GSPs develop application has been used by taxpayers for interacting with GSTN. They ease for the taxpayer, from uploading an invoice to filling return and it acts as a single stop shop for GST related services. GSPs may take help of Application Service Providers (ASPs) who act as the link between taxpayers and GSPs.

Conclusion Goods and Service Tax (GST Essay)

we can say that somewhere GST help in bringing down the price of the product and somewhere inflate the price. Let see How far we can with GST? Till then wait and watch.

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