UPDATE: RESULTS WILL BE ANNOUNCED ON APRIL 10.

We are organisation a Short Essay Writing Competition.

Submit a 1000-1500 word essay on the topic: Goods and Service Tax (India).

Use of footnotes is allowed, but the usage should be limited.

Submit your essay by April 2 (Sunday) via the ‘Submit a Post’ option on the top right of the website.

Use of simple language and sub-headings is encouraged.

You can write as a law student/law faculty/lawyer, but you are writing for an ‘intelligent lay person’. Hint: Avoid the use of legalese.

All well-written essays will be published on the website.

The essay competition is open for everyone.

The best 2 essays get Rs. 1000 cash award each.

Questions? Please leave a comment on this post and they’ll be answered promptly.

 

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10 COMMENTS

  1. I am unable to submit my essay via the ‘Submit a new post option’.
    Hence, I have pasted it in this comment plus I have also e-mailed it to you.
    GOODS AND SERVICE TAX IN INDIA

    The hardest thing to understand in the world is the income tax.
    INTRODUCTION:
    Where do you think funds for all the major and minor facilities like roads, street lights, railways, hospitals, army, navy, air force etc. etc. come from? The answer is taxes that the government imposes on the citizens.
    Taxes are basically of two types:
    – Direct taxes
    – Indirect taxes
    Direct taxes are levied on the income and profits of the person, who is paying it whereas indirect taxes are imposed on goods or services.
    An Example of a direct tax is income tax. An example of an indirect tax is GST i.e. the goods and services tax.
    WHAT IS GST?
    GST is a VAT (value added tax) and is more of a comprehensive indirect tax. In some countries VAT is the substitute for GST but conceptually it is a distribution based tax levied on consumption of goods and services.
    But there are many differences between a GST and a VAT, some of which are:
    1. Under GST law IGST will be levied in case of inter-state sale and purchases. While under VAT Law CST is levied on inter-state purchase and sales of goods.
    2. The introduction of GST law will ultimately result in cost reduction of goods as there will be a single tax levied that is goods and service tax. under VAT law a trader cannot utilize credit of other indirect taxes like service tax credit etc. for payment of VAT liability so it will result in an increase in the cost of goods.
    3. A value-added tax (VAT) is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. GST or the Goods and Services Tax is an indirect tax that brings together most of the taxes that are imposed on all goods and services (except a few) under a single banner.
    The GST system can be divided into two categories
    – Single unified GST system
    – Dual GST system
    COUNTRIES THAT HAVE IMPLEMENTED GST:
    The first country to introduce GST was France in the year 1954 where the VAT system was devised by a public servant. Today around 160 countries have implemented the GST/VAT model in some form or the other, India being one of them.
    GST IN INDIA:
    The 101st Amendment of the Constitution of India officially known as the Constitution (101st Amendment) Act, 2017 introduced a national goods and services tax in India from 1st July ’17.
    On 29th mar’17 the GST, UGST, IGST and CGST law has been passed in Lok Sabha.
    GST is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It is to replace all indirect taxes levied on goods and services by the Indian Central and State governments.
    Due to a non-consensus between the central and the state governments India is to adopt the dual GST regime whereby a Central goods and service tax (CGST) and a State goods and service tax (SGST) will be levied on the taxable value of every transaction of supply of goods and services.
    IS DUAL GST REGIME FIT FOR INDIA?
    1. A dual GST model would maintain simple and transparent tax.
    2. It can be perceived to result in:
    – Reduction in the number of taxes both at the Central and State level.
    – An eventual decrease in the effective tax rates for many goods.
    Reducing the tax burden is necessary to produce economic growth.
    – Drastic removal of the current cascading effects of taxes.
    – Increased tax collections due to wider tax base, lesser chances of evasion and better compliance.
    3. Also, India is a quasi-federal country, diversified with disparate states hence, only a dual GST model can ensure unity in diversity. A single GSTR model would not be that feasible or acceptable both economically and administratively because that would mean merging central excise duty, sales tax and service tax to be collected as a single tax.
    4. Adopting the dual GST model is constitutionally correct too.
    a. The Constitution of India does not permit the Centre to be in charge of sales tax and states similarly are not permitted to levy central excise duty and service tax. Amending the constitutional structure of levying taxes and combinig al the taxes under one single head would disturb the quasi-federal structure fundamentally.
    b. If dual GST model is not adopted a unified model would be adopted which would upset the notion of fiscal federalism which is the fundamental cornerstone of India polity. Moreover, the fundamental structure of the Constitution cannot be changed through an amendment and hence, unified GST would therefore go against the spirit of the Constitution.
    5. The dual GST will strike a good balance between need for harmonisation and fiscal autonomy of Centre and States. Both levels of Government will be able to apply taxes to goods and services at various points in the supply chain.
    6. Dual GST will provide a competitive atmosphere for companies to work on an international scale.
    Those likely to be effected:
    All businesses including those involved in sales and supply of goods or supply of services would be impacted by GST. The impact would also be on product pricing, supply chains, dealer margins etc.
    CONCLUSION:
    Like every coin has two sides, every road is not smooth, Every sun has to set and every day has an end similarly the planned and perceived adoption of the dual GST regime in India is not altogether free from flaws. As of today Canada is the only country that has successfully implemented the dual GST model and single unified model has many advantages over the dual GST model but nothing worthy comes easy. Be it love, money, fame or policies the more difficulties you face in achieving them, the more grilling of yours is done the more sustainable and reliable they become.

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