SHORT ESSAY ON GST IN INDIA – ESSAY 1 (150 WORDS)
Goods and Services Tax, India is a uniform tax levied on goods and services, treating whole of India as one market. The tax came into effect from 1st July 2017 and replaced the existing multi level central and state taxes. GST divides goods and services into five tax slabs – 0%, 5%, 12%, 18% and 28%. Though, products like petroleum products, alcohol and electricity, still follow the old tax regime.
The GST Council is the governing body which formulates the tax rates, along with the rules and regulations. It consists of the central finance minister as well as the finance minister of the states. GST replaces many indirect taxes levied by both central and state at various stages, resulting in a reduced tax burden, elimination of cascading of taxes and lower time loss. Before the GST, most of the goods were in the tax range of 26.5 %, but after GST, they have mostly fallen under the tax range of 18%.
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