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

1. SGST: GST imposed within the state is called SGST (State-GST). It is intrastate trading. In this case, revenue is earned by the state government because goods are manufactured and consumed within the state.
2. UGST: GST imposed where Union Territory comes into the scene is referred to as UGST (Union-GST). Here the GST is collected by the Central Government. 
3. CGST: For intrastate transactions of goods and services, CGST (Central-GST) is levied by the Central Government. It is collected in addition to the SGST or UGST. The revenue is distributed between the state and the central government. 
4. IGST: IGST stands for Integrated GST. It is collected on goods and services transactions between different states. The SGST portion of the tax collected is given to the state as it is the consumer of goods and services. IGST earned is then divided between the state and the central government. 

1. The government aimed at bringing 17 different indirect taxes at the central and state level under one heading i.e. GST.
2. GST focused on the ‘one country one tax-rate system implemented across the country. 
3. These are taxes imposed on the ‘supply of goods or services. There is no difference whatsoever between the goods and services. It is a comprehensive tax levied on all goods and services.
4. GST was intended to free the flow of credits in the economic circle.
5. GST is added at every step of the supply chain as a value addition; however, input tax credit mitigates the imposition of extra taxes. 
6. GST depends on the destination of consumption of goods. For example: if a mineral water bottle is manufactured in State X and consumed in State Y, the collected GST is accredited to State Y and loss of revenue to State X is compensated by levying GST Compensation Cess.

1. Elimination of cascading tax: One of the major benefits of GST is it let go of the previously different set of tax rules adopted by respective state governments and brings it all under one roof. This simplified the tax structure by bringing in uniformity and transparency. 
2. Revised threshold limit: The implementation of GST has come as a great boon to the small and medium businesses houses by increasing the threshold limit from time to time with the revised limit being Rs. 40 lakh for normal category states.
3. Reduced compliances: Separate compliance for each tax had to be done earlier. With the introduction of GST, taxpayers need to file returns only once. This has reduced a lot of workloads and simplified the return filing procedures.
4. Fixed rates of GST under Composition Scheme: GST has a provision for lowering taxes for business units. They can opt for Composition Scheme if their annual turnover is up to Rs.1.5 crore for normal category states and Rs.75 Lakhs for northeastern states. If the business enterprise falls under this bracket, the Composition Scheme allows payment of a fixed amount of GST irrespective of the income. Though there are few conditions to it.
5. Online GST portal: With the basic knowledge of computers it is now very easy to file a tax return. An account needs to be created in the GST Portal and you can start filing returns. All the details regarding GST are mentioned in the portal. This is very beneficial for new startups as it reduces a lot of paperwork load and saves time. It becomes easy to establish transparency among tax jurisdictions between the State and Central Government.

1. The increased cost of operations: With everything going online it’s difficult for not so tech-savvy small business houses to keep pace with the changes. They have to outsource help ultimately increasing the operational cost. They have to update their books and accounts with the latest GST-compliant software or Enterprise Resource Planning (ERP) which is costly. 
2. The burden of compliance: Every company must register on the GST portal in the state of their operation. It is a long process of registering, maintaining documents, invoices and filing returns. It enhances the difficulties for companies.
3. Penalties for non-GST compliant firms: Every company must register themselves under the GST portal, and if they fail to do so they will be penalised. It’s difficult for small businesses to keep pace with online portals. They have to hire people to do it for them, thereby increasing their cost.

*GST on footwear increased from 5% to 12% on a certain category of items.

* Online transport aggregators such as Ola/Uber auto-rickshaw would become taxable @5%.

* Food delivery platforms like Swiggy and Zomato will come under GST. They will be made liable to collect and deposit GST on restaurant services supplied through them. The end consumer will not be affected as only the compliance of deposit has been shifted from restaurants to delivery platforms

* Aadhar authentication will be mandatory for claiming GST refund.

* The new law allows GST officers to visit premises to recover dues without any show-cause notice.