Essay on Positive and Negative Impact of GST (Goods and Services Tax)

Free 516 words Essay on Positive and Negative Impact of GST (Goods and Services Tax) for school and college students.

GST stands for Goods and Services Tax levied by the Government in a move to replace all of the indirect taxes. The main idea behind introducing GST is to improve the economy of the nation. A single undivided Indian market would strengthen the economy and make a nation, powerful as well.

The Introduction of GST in the country has both the positive and the negative impact.

Essay on Positive and Negative Impact of GST

Read Also: Impact Of GST- What Goes Up And What Goes Down

Let us first focus on the positive Impact of Goods & Services Tax: 

  • GST is a single taxation system that will reduce the number of indirect taxes. Earlier, indirect taxes were charged as central excise, VAT, service tax, etc. From now, a single taxation term would cover all of those indirect taxes.
  • The Prices of products and services would reduce so this system would prove to be beneficial for the people who are fed up of paying huge prices.
  • This would reduce the burden from the state and the central government. Presently separate taxes are levied on goods and services that you produce. With the introduction of GST, all of these indirect taxes would come under a single roof.
  • Market development. GST would not be charged at every point of sale like other indirect taxes so this way, market would be developed.
  • Corruption-free taxation system. GST would introduce corruption-free taxation system. In the present scenario, the tax is levied at the time of product release from the manufacturing site, and after that retailers also pay it.
  • Positive impact on the Central and the State level
    According to the latest reports, the introduction of GST would help India to gain $15 billion every year. Let us see how:
  • Improved exports
  • More opportunities for employment
  • Enhanced economy growth
  • Reduced burden on central and state government.

Read Also : Essay on India after GST and Demonetization – Effects on GDP and Economy

Moving on to negative Impact of Goods & Services Tax:                                     

  • According to many economists, the introduction of GST in the country would impact real estate market. This would increase new home buying price by 8% and reduce buyers’ market by 12%.
  • GST levied by the government as CGST for central, SGST for state government are nothing but fantasy terms representing older terms Service Tax, CST, and VAT in a new way.
  • GST is a confusing term where double tax is charged in the name of a single taxation system.
  • Most of the indirect taxes would now start coming under GST. The Central excise tax is levied at the time of Manufacturing but GST is levied till the selling stage.
  • Most of the dealers don’t pay central excise tax and cheat the government by simply paying the VAT. But all of those dealers would be forced to pay GST.

 Read Also : Essay on E-Way Bill – Positive Negative Effects

Wrapping up

There are approx. 140 countries where GST has already been implemented. Some of the popular countries being Australia, Canada,Germany, Japan, and Pakistan, to name a few. Implementation of GST impacts a nation both ways, positively and negatively. Ignoring negative aspects, positive aspects can be taken into consideration, in order to improve the economy of the country.


Tags: essay on gst, gst essay, essay on gst in 300 words, Essay on GST Bill, essay on gst in english

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40 Responses

  1. ram says:

    First of all, govt should insist either to change the model of these trucks or not overloaded as shown below. Driver of this truck will not get any view of the vehicles on the both sides, absolutely stupid.

    • Sethuraman says:

      The illustration is probably to depict the current scenario at the inter-state and/or local government check-posts. It is as yet unclear whether the depicted scene would become a thing of the past after the reform envisaged in pursuance of the 122nd Amendment Bill

    • lahari sunkara says:

      exactly mr.ram

  2. Rohit says:

    This bill is really needed in India. As it will make trade easy. On the other hand government has taken prior steps by increasing the total revenue share with states this will make it clear that there will be no objection from them as well. But as we all know opposition will be there even it is good thing.

    • Sethuraman says:

      Trade will be easy if potential GST-payers are required to report compliance periodically to a unique primary CGST/IGST/SGST authority having territorial jurisdiction over the place or principal place of business of the GST-payer. Ease of doing business would also pre-suppose a unique hierarchy of post-primary GST authorities to correct errors of judgment at lower levels. It is as yet unclear if such unique authorities are implied in the 122nd Amendment Bill

  3. Akhilesh Yadav says:

    GST will help the Indian people in long term . The opposition should not make any hindrance in GST’s road to Parliament. It will benefit higher revenue than anticipated.

  4. Sethuraman says:

    If higher revenue is foreseeable it is unclear why States should demand compensation. Also higher revenue implies higher expenditure incurred by consumers, rich and non-rich, to whom goods and services would be supplied for a price. The word “price” does not find mention in the Bill or the Statement of Objects and Reasons in its support. The only word of importance is “harmony” in the structure of GST and in the structure of the Market.

  5. Sriram says:

    seriously, Modi has proven to be an utterly incompetent executive. From land bill to NJAC to GST to demonetisation… The list of fiascos is endless.

  6. Parth Garg says:

    GST will bring tears to the taxpayers as well as the common man. Please rest assured.

  7. Gopal says:

    Good progress by Govt..from a point of no start to getting the primary bill cleared in Parliament and many states , to resolving most of the tricky issues and concerns raised by various state govt, the GST regime more or less looks a reality with the exception of the start date. Despite a hostile opposition and regressive leader like WB CM, the efforts to implement GST has made good progress. Once implemented, along with the after effects of demonetization, things would finally look up for the Indian Economy

  8. Anamika Mishra says:

    I think it has become necessary to spread awareness among businessmen and citizen about GST bill like cashless transaction. After looking at the intention of BJP government, we can say that there will come such rules which we shall never think earlier. That means, In new year we shall have to face many new problems due to unawareness of new technics. So, we shall have to be prepare for all such problems.

  9. Divaker Kumar says:

    It seems nothing would be implement on time whether it is demonetization dead line or GST let’s hope for the best

  10. Karthik says:

    Political gimmicks galore. Around 50% of every hard-earning Indian’s money is being taken away as tax. And yet, we are not able to enjoy the fruits of paying such exorbitant amounts of tax to the govt. Alas, we’re not even able to access the hard earned money in our bank accounts. And i’m still forced to dream about the long-term benefits.

  11. N.R.NAGARAJAN says:

    The GST’s implementation seems hard thanks to the dissonance of States on revenue and power sharing on GST.The GST council meetings are not fruitful to bring a fool proof system in which State -Central involvement ought to be streamlined to have resonance.The finance Minister is keen on role out the new law on the prescribed date.It was already dragged on in the Rajya Sabha and any further delay will push off the preparation of GST for budjetory dealing and to cope up with the effect on demonetisation.Government has to sort out issue on revenue sharing and to bring this essential law to implementation without further delay beyond political ego leading to state central tussle.

    • Sethuraman says:

      The differences between the collective views of the States and the collective view of the Union cannot be characterized as borne out of personal ego as in earlier controversies in the journey to transit to GST regimes. If harmony cannot be realized in the centralization vs decentralization debate, there is no harm in continuing the levy of central and state indirect taxes as it is even beyond September 2017 and forget about GST as conceived at present. For avoiding cascading of CENVAT in levying state VAT, all that would be needed is to enact a definition of turnover in state statutes modeled on section 8A of the Central Sales Tax Act,1956.

  12. Sangya Baalya says:

    GST & Direct Tax Code were initiated in 2000 by Vajpayee’s NDA Administration.
    Aseem Dasgupta, West Bengal Fin Min was tasked to get it passed & he did nothing much.
    Ironically, It took another NDA administration to get it passed.
    STill this GST is a watered down version, that’ll hike prices till 2020….

    More important is the Direct Tax Code (Income Tax Slabs to be 0-5 Lakh: Nil, 5-10 Lakh: 10%, 10-25 Lakh: 20%, 25+ Lakh: 30%…. no exemptions for Insurance & etc,…..)

    Wonder, who must become PM to get it passed.

  13. V. Ramaswami says:

    A sensible plan would have been to collect GST nationally and apportion it by a formula based on population and economics to states for a more even development. Right now, the dispensation favors richer states and will make the rich get richer at the expense of the poor.

  14. Vishal Gowda says:

    We voted for Modi govt to stand against all these kind of scums. It is a matter of time before the GST is going to be passed. We don’t want the govt to bow down to such people even if it might take a few more months to achieve good results. NDA will soon gain good numbers in Rajya Sabha with 75 members retiring this year. it means around 32% of the totally Rajya Sabha seats are vacant. Out of the 78 seats only 15 are from BJP and 63 from various other parties. Currently the NDA Government has 64 seats in Rajya Sabha. Adding the tallies at the end of 2016 the NDA Government should have around 95-100 seatsBut the new situation of 100+ seats is much better than what it has now, NDA Government can still manage to gain outside support from Independents, NCP, AIADMK and BJD.

  15. Mango Bite says:

    GST,VAT,CESS,CUSTOMS,Excise,incomtax,Toll …. After than what public received rape of sisters,pathankot,eng.murders,maleria,dangue,aarakshan etc…and leaders 400% jump in salery…what a joke?

  16. Sharad Phapale says:

    GST Bill: Good News!!
    Congress playing the role of a responsible opposition…. after getting the suggested legitimate corrections in GST Bill through…. Congress poised to help pass the GST bill in upper house… good for Indian Economy… on the contrary BJP showed their irresponsible behaviour through out last Manmohan Singh tenure by blocking the Bill..

    • Mihir Karandikar says:

      Lol. If you’re crediting the passage of the bill in Congress’ account, why did it not allow the bill to pass in the first 2 years of Modi government?

      If you argue that Congress has right to block the bill because BJP did the same to MMS government, how is Congress different from BJP?

      Congress stooges are defending the indefensible. Passage of GST and other crucial bills should not be a matter of playing politics and blame games.

  17. Sajad Giri says:

    The implementation of GST , indeed will make the indian taxation system as uniform one by subsuming the number of indirect taxes ,but at the same time ,its components of CGST and SGST with varied rates at both level (depending upon thr economic status of the state) and varied levels of exemptions and exceptions may again complicate the indian tax structure.

  18. Jyoti Suresh says:

    I think things are not always as it seems…. there might be some drawbacks which will come to know after implementation…

  19. Varoon Raam Heelt says:

    Question is if the companies will pass the cost benefits to consumers. World wide it has been proved that whenever taxes r reduced, the extra money goes into pockets of the capitalistic greedy companies.

  20. Poulomi Kanrar says:

    Am a student of class 12th ,am supported this taxation policy… But if it’s charging rate is changed then it is apt for common people

  21. Pranjal yadav says:

    iam student of class 8th
    i support tax policy

  22. Syed Usman Haniel says:

    Looking at both, Advantages and Disadvantages, I think it’s better to have GST. Better start getting used to it.

  23. krrishu says:

    Nice very nice very

  24. Vivek says:

    Explain this

  25. Akash Rajput says:

    ye gst aam admi ka khana pina band karwa diya ha

  26. Babita says:

    It is like that if u cut an apple , it is in your hand that u will cut the apple or your finger….

  27. MANTISHA ERAM says:


  28. Prity says:

    GSt is not good because many shopkeepers take much money than the price of the object and tell us that it is called GST…

  29. Gadde Vamsi Krishna says:

    Paying one ruppee at each level in five leveled process is far better than paying ten ruppee at a time. That’s what the govt done, creating peoples an intellectual fools.

  30. Prity says:

    Can you tell me how it is helpful for poor people

  31. Thank you for sharing your thoughts. I truly appreciate
    your efforts and I am waiting for your next write ups thanks once again.

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