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Essay about Sri Lanka Economic Crisis

  Essay about Sri Lanka Economic Crisis On March 31st hundreds of protesters gathered outside Sri Lankan president Gotabaya Rajpaksha's residence in Colombo.  Many in the crowd were holding posters with anti-government slogans and were chanting gotta go home in sinhala  The protesters demanded that the government stepped down immediately for mishandling the country's economy  a day after president raja paksha declared a state of emergency  Sri Lanka is witnessing its worst economic crisis since independence, the island nation had announced a nationwide 13-hour daily powercut from March 31st  there is an acute shortage of food, fuel, and cooking gas.  Several hospitals have had to suspend routine surgeries as they have run out of life-saving medicines authorities had to cancel examinations for millions of students due to a shortage of paper  During the first wave of the pandemic, thousands of Sri Lankan laborers working in several West Asian countries were forced to return home 

essay on GST in 300, 500, 700, 800, 1000 word essay

essay on GST

Essay on GST in 300 words


 Introduction

GST is a revolutionary step taken by the Government of India to make the Indian economy stronger than before. on 1st July 2017 Government of India announced a new way of tax payment which is GST which will make the process of tax collection simple as compared to the previous Tex system. 

The full form of GST is Goods and Services Tax GST is a good and simple tax that the government of India will collect 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 the previous tax system, there were multiple confusion taxes like VAT, service tax, entertainment tax, sale tax, and many others so now people and businesses have to pay only one type of tax which is GST
GST is a consumption-based tax which means that the tax would be received by the state in which the goods or services are consumed not by the state in which such goods are manufactured.

Though it has been said that there will only be one tax under the GST bill, in reality, there are different slap taxes which ranges from 0% to 5% 12% 18%, and 28%
 Conclusion

The conclusion is- we can say GST is an indirect surely help to boost up our economy in a long-run process. only time will tell us whether the GST was beneficial for India or not but this tax reform shows that the

Indian government and its citizens are ready to take bigger steps for the betterment of the nation. people are coming together to discuss and debating on national growth that is big enough to take away from this. 

Essay on GST in 500 words

What is GST? 

GST means goods and services tax which means attacks that apply uniformly to goods and services and also it's a uniform tax across India, Gst was first introduced by the President of India and the Government of India at midnight on 1 July 2017.

The launch was marked as a historic midnight session of both houses of parliament convened in the Central Hall of Parliament. to understand GST better we need to understand our present taxation system tax structure in India is basically divided into two broad categories direct taxes indirect taxes 
so direct taxes are basically the taxes that are taken directly from the individuals call a direct tax, for example.

  • Income tax 
  • Corporate tax 
Indirect taxes are paid by the intermediaries on behalf of the final consumer indirect taxes are collected by both central and state governments

the central government collects majorly three types of indirect taxes, excise tax, service tax, and customs excise tax is the tax on production and manufacturing of goods obviously applied by the central government similarly service tax is the tax which is on services provided or is to be provided by the vendor.
  1.  Custom is the tax on international trade.
State-level taxes VAT or sales tax is applied on goods distributed within the state but is a value-added tax central sales tax is applied on goods movement from one state to another similar entertainment acts of trial luxury or all other taxes which state levies
Now GST rationalizes this whole bucket of indirect taxes idly GST is a one tax regime but India is going for a dual GST which means there will be two separate taxes one will be the central GST the second will be the state GST and all other heads like excise service tax central sales fat entertainment all these taxes will be replaced by the GST
There are still few heads that are not in the GST purview like customs petroleum products tax on liquor stamp duty or tax on electricity 
to understand this better let's take an example we already know the central excise is applied to the manufacture of the product and what our sales tax is applied to the distribution of the product.
So here the good is supposed at 100 ruPeeS and the central excise is at 10% which makes it at 110 now what is applied on that 110 at 14 % which comes out at 15 point 4 which basically takes tax to twenty-five point four and our product becomes from 100 to 125 point four zero 
Now with GST, both central and state GST is applied on the supply chain of the product not on the manufacturing so if we take Central GST at 10% which is the same as Central Excise we have taken in the above example:
it comes out to be 10 and state GST at 14 which is at the same percentage as VAT above it comes out at 14 so it comes at 24 rupees so your product now becomes 124 rupees. so basically you can see the benefit there is no tax on tax in GST

Essay on GST in 700 words


India is notorious for its complex tax system it is almost impossible for new businesses and startups to understand the direct and indirect tax systems, this problem gets even more aggravated when constant changes are made to taxes with each financial year but things change with the new goods and services tax commonly known as GST
 let's take an example Aditya would like to start a business in Delhi for which he needs raw materials from Beijing in China while importing it would first land at a port and then from there it would travel to the manufacturing center at Delhi via road passing through various states 
now when the auditor starts analyzing the various taxes he needs to pay in the process of just transporting the material to his center he will lose his mind, in fact, this happens with many budding entrepreneurs who want to give shape to their dreams but fail to because the complex tax structure in India is the biggest hindrance 
first, he needs to pay a customs duty along with the shipping charges it's fine up till this point but to comprehend the complexity in the tax structure after this stage would drive anyone crazy

he would have to pay central and state governments ten different taxes like central excise duty service tax VAT central sales tax, etc and not only this he also would have to pay tax or taxes already collected by the government 
To understand this let's take a very simple example under the present tax system a seller in Mumbai sells a product to a buyer in Nagpur on top of the price of the product what is being judged now the same product is to be sold from Nagpur to Chennai
the seller in Nagpur increases the price to gain profit now on top of the new price including his profit central sales tax that is CST is added the price of the product for the buyer in Chennai will comprise of cost of the product plus VAT plus profit plus central sales tax 
Did you understand the cascading effect of taxes here so implementation of GST effective taxation system the goods and services tax promises to alleviate this problem among many others GST is a consumption-based tax which is levied on sale manufacture and consumption of goods and services at a national level? 
Only one in debt tax has to be paid by the trade and industry and all other index taxes like sales tax purchase tax service tax of Troy effect on will be absorbed in GST exports and direct tax like income tax corporate tax capital gain will not be affected by GST law.
GST would apply to all words other than crude petroleum motor spirit diesel aviation turbine fuel and natural gas it would also apply to all services barring a few to be specified in future the proposed tax system will take the form of dual GST 
which is concurrently levied by central and state government this will comprise of central GST that is CGST which will be levied by center state GST that is SGST which will be levied by state-integrated GST that is IGST which will be levied by the central government on interstate supply of goods and services 
So who is going to pocket the taxes in case of intrastate transactions seller collects both see GST and as GST from the buyer see GST goes to the central government and GST goes to the state government and in case of interstate transactions IGS T will be levied on interstate transactions of goods and services and the task gets transferred to the importing state 
what would be the cost of the same product under GST system products sold from a seller in Mumbai to a buyer in Nagpur see GST and as GST is to be added now again the same product is being sold from Nagpur to Chennai this is an interstate transaction 
So I GST will be applicable now but wait a minute isn't this tax on tax again so here is the twist a tax has already been paid on the product in the form of CGS D & S GST so the buyer in Chennai gets a tax credit the IGST gets reduced with the amount of CGST and s GST this prevents a buyer from paying tax on tax so under the GST system 
The drawbar faced by the manufacturers and business class due to the cascading effect of taxation and also complexity in comprehending indict taxes have been removed to some extent.

Essay on GST in 800 words

What is the tax?
Tax is the money which is paid to the government It is imposed on your income, business profit Cost of Goods and Services and the Transactions so that the government can use this money in the public interest and pay off the National depths 
There are actually two types of Taxes one is 
  • Direct Tax 
  •  Indirect tax
The direct tax is whose liable can not be shifted to someone else like corporate tax income tax wealth tax etc, 
The index is the tax whose liability can be shifted to someone else it is central exercise tax takes, sales tax, service tax etc,
Here the point of interest is indirect taxes because GST will replace all indirect taxes which includes exercise duty, service tax, additional duty of custom, VAT, sales tax central sales tax, entertainment tax, luxury tax, etc. 
So the question is how GST is different from the current taxation system in India?
Consider a simplified tax rate of 10% at each level there are generally four levels Manufacturer, Distributor, Wholesaler and Retailer 
manufacturing buys raw material of rupees 50 and manufactures the product which expertise value it so the product becomes of hundred rupees and for selling this product he needs to pay 10 % Tax which is 10 rupees so the cost of the product for the distributor is 110 rupees the distributor add the value of release 20 which is nothing but his profit 
so the price will become 130 distributors also sells it by adding 10% tax of rupees 13 so the product is of 143 rupees now 
wholesaler follows the same pattern and the price will become 143 + 20 that is 163 and 10% tax which is of rupees 16.3 and sells it for 179 rupees to the retailer, then the retailer adds 20 rupees profit and the price will become 199.3 the consumer buys this product from the retailer by paying 10 % tax on 199.3 that is 19.93 rupees so the final consumer price is 219.23 

This is how the current taxation system works in India. 

Now take the same example in GST system raw material of 50 Rupees and the manufacturing value of rupees 50 make the product of 100 rupees but this time the manufacturer has to pay taxes on the value added by him which is rupees 50 
So he pays 10% of 50 which is 5 as tax from his profit but the selling price will not increase and the cost of the product for the distributor is 100 rupees only then the distributor add 20 rupees profit and the product becomes of 100 + 20 which is 120 rupees
He pays the tax of rupees two on his profit of 20 rupees the wholesaler buys the product for 120 rupees and follows the same pattern adding 20 rupees his profit and price will become 140 and pay the tax of rupees 2 on his profit of twenty rupees retailer buys the product for 140 rupees add profit of twenty rupees pay the taxes of 2 rupees on this profit of twenty rupees and raise the final consumer price to 160 rupees 
So if the prices are compared the product is 59.23 rupees cheaper in the GST system than the current system
 let's take GST into details GST is a combination of CGST and SGST or IGST CGST is Central GST
which is paid to the central government SGCT is the state GST which is paid to the state government and IGST is the integral GST which comes in the situation when goods and services move interstate for example product A is manufactured and MP and sold in UP 
so I GST is distributed between both the states, in this case, SGST will not be collected. We'll also have five categories in GST in India 0% category which will apply on food grains etc 5% category, which will apply mostly and widely used items 12 and 18 % category which will apply in the items which are normally used 28 % category, which will apply on luxuries items. 
After applying GST the cost of items will increase or decrease so here are some items whose cost will increase packaged food, jewelry, ready-made garments, mobile services, credit card services, etc.
there are some items whose cost will decrease after applying GST home, restaurant, AC, washing machine, microwave Oven, small cars, and fewer taxes on industries
 there are some items which are exempted from the GST alcohol for human consumption, petroleum product like crude, petrol, high-speed diesel, natural gases, and aviation turbine fuel there are some taxes also which are exempted stamp duty, property tax, toll tax, electricity duty, etc.

Essay on GST in 1000 words



Have you ever thought about who pays the electricity bill for the street light who maintains these roads gardens schools from where do the cops and soldiers who work for our safety get paid and who is taking the responsibility of the hospitals where treatments are free or are done at a very low cost? 
Those scientific labs and scientists who are making new discoveries and research for our country just think that if these things were not there just imagine a month without all of these for the proper functioning of these things a huge amount is needed 
But from where does the government get this money how do they manage things so here tax comes into the picture 
now what exactly is this term tax it is a small amount of contribution towards all the above set things which directly or indirectly come back to us, taxes are collected by the government from two modes a tax that is directly paid by an individual or an organization on their income is called direct taxes
This tax collection is based on the ability to pay principal which means higher income groups will pay more taxes in the second case every individual pay tax on the goods and services that they use for example buying any food item electronics vehicles etc 
The amounts paid by us is the sum of the price of the product and tax applied on it the same is applicable while using any services like staying in a hotel or traveling via planes these taxes are not directly paid by the consumer to the government but are paid through the person who provides us with these goods and services hence it is called indirect taxes 
Earlier there were many taxes in this category excise duty custom duty or try entertainment tax luxury tax VAT etc and rates of all those taxes in different states were different so to make the entire tax ratio equal in all these states to make it one nation one market one tax 
A historic step after 69 years of independence of India was taken and now onwards there is only one tax in the category of indirect taxes in India called GST goods and service tax with effect from 1st to July 2017 
India is not the only country having this system but in many other developed countries system of one tax already exists 
So let's talk about the mechanism of GST and how it works, first of all, there are different GST slabs for different types of goods and services and if we go to see in deep things which are the basic necessities of a person comes under this slab of 0% GST means one does not have to pay any tax on those products or services 
Raw foods and some other stuff which are consumed by each and everyone comes under the slab of 5% and gradually from basics to luxurious goods and services slab percentage increases and maximum GST paid is 28% also note one thing that the percentage of GST collected is equally distributed amongst the state and central government 

which is termed as GST and CGST now let's take an example and see how GST is collected by the government on a product

A product before reaching the consumer undergoes different stages of distribution suppose a manufacturer is selling a wristwatch for rupees 200 to the wholesaler where the cost of the wristwatch is 150 and 50 rupees is manufacturer's profit

now wholesaler sells the same wristwatch to the retailer or you can say it to the shopkeeper for piece 250 taking his profit of rupees 50 and a consumer purchase is the same wristwatch from the retailer at rupees 300 
so the profit to the retailer would be, fifty rupees every mediator is making a profit of fifty rupees in this case but it need not be the same this is the flow chart before GST is applied

now we'll add GST to all these transactions the process is very simple just remember GST is paid by a buyer to a seller and indirectly reaches the government via sellers.
To understand it step by step with the same example the GST on a wristwatch is 12% now manufacturer will collect 12% of 200 from the wholesaler and give it to the government which is 24 rupees the whole seller will collect GST of 12% of 250 from the retailer which is rupees 30 now he has already paid 24 piece to the manufacturer so he will be paying the remaining 6 rupees to the government
similarly, the retailer will collect GST from the consumer that is 12% of 300 which is 36 rupees, and again as he has already paid 30 rupees to the wholesaler remaining 6 rupees will be paid to the government this process or series of people involved in trading of a product is called GST in trading chain an interesting thing that can be seen over here is the total GST received by the government is the GST paid by the consumer 
so here we understood how GST is applied on a product that we purchase using a simple example of a wristwatch a single logic can be applied to in case of services
Practice a simple question and check the understanding of the concept Mr. Rahul purchased a product of the peace 2000 and sold it to Mr. chair for peace 3000 GST is 5% find the GST payable by Mr. Rahul
so here GST payable refers to the amount payable to the government okay now Rahul may be any of the mediators, for example, he may be a wholesaler or retailer and he purchased it for peace 2000 by paying 5% GST which is 100 rupees 
Now he sold it to chair for peace 3000 so he will be collecting a GST of 5% on 3000 which is 150 rupees so the GST payable by Mr Rahul will be rupees 50.




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Comments

  1. Thanks for sharing such an informative.
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