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

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.