Essay - Goods and Services Tax – An Opinion | SBI PO, BOB Manipal, NICL AO 2017 Descriptive


Hello and welcome to exampundit. The 2nd Essay of SBI PO, BOB Manipal & NICL AO Descriptive Contest has been aced by Aarushi Mathur on the topic "Your Opinion on Goods & Services Tax".



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Goods & Services Tax - An Opinion - Aarushi Mathur


India got independence back in 1947 but the citizens were still trapped up in the web of various indirect taxes that one had to pay at every step. One has to pay taxes levied by central and state governments for almost every service they use. The range of taxes varies from food and entertainment to road, luxury, and excise and services that we enjoy.

To reduce this burden of taxation on common man, the government of India came up with an idea of Goods and Services Tax in the budget session of 2007-08. But the permission for proposal of the bill in the constitution assemble was granted in 2014. After various discussions and debates about the provisions of the proposed law in the Lok Sabha, the final amendment (122nd) bill was passed in the Rajya Sabha recently. The proposed GST is broadly classified into two blocks, Central GST and State GST. The goods and services will be taxed under four different slabs ranging from 5% to 28%.

The main motive behind introduction of this law was to make the taxation system of the country lean and simple. The alteration phase might be a little difficult with respect to understanding the tax structure but the benefits are surely long-term. It would benefit the service class as well as the business class by reducing the transportation costs. It would also make the export and import simpler by eliminating all the middle transaction costs. The unorganised sectors will become organised and will curb any chances of corruption. It will bring more transparency in the economy and people will be able to trust the government and its intentions.


Although, the concept is really fruitful but there is a long way to go. Numerous changes are to be made on the administration level. Cooperation of the state governments will play a crucial role in the success of GST. Also, as it is a consumption-based tax system, states with higher consumption level will have more benefits. It is huge change in the economy of India and its working. Utmost care should be taken at every level to make it a success.



Descriptive Contest 2017
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