Goods and Services Tax (GST) has brought significant benefits to the Indian economy. However, it also faces several limitations. Analyse.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

5. Goods and Services Tax (GST) has brought significant benefits to the Indian economy. However, it also faces several limitations. Analyse. (250 words)

Difficulty level: Moderate

Reference: The Hindu , Insights on India

Why the question: Revenues from the Goods and Services Tax (GST), which completes seven years at the end of this month, hit a record high of ₹2.1 lakh crore in April that typically sees higher inflows due to a year-end compliance rush. Key Demand of the question: To write about various successes and limitations of GST and reforms that are needed in it. Directive word: Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. Structure of the answer: Introduction: Begin by aims and objectives behind the launch of GST. Body: First, write about the achievements of GST – simplified tax structure, an increase in the tax base, and a reduction in tax evasion. Substantiate with examples, facts or statistics. Next, write about the shortcomings of GST – high tax rates, compliance burden, and complexities in the filing process have been faced. Substantiate with examples, facts or statistics. Next, suggest reforms in GST. Conclusion: Conclude with a way forward.

Why the question:

Revenues from the Goods and Services Tax (GST), which completes seven years at the end of this month, hit a record high of ₹2.1 lakh crore in April that typically sees higher inflows due to a year-end compliance rush.

Key Demand of the question:

To write about various successes and limitations of GST and reforms that are needed in it.

Directive word:

Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.

Structure of the answer:

Introduction:

Begin by aims and objectives behind the launch of GST.

First, write about the achievements of GST – simplified tax structure, an increase in the tax base, and a reduction in tax evasion. Substantiate with examples, facts or statistics.

Next, write about the shortcomings of GST – high tax rates, compliance burden, and complexities in the filing process have been faced. Substantiate with examples, facts or statistics.

Next, suggest reforms in GST.

Conclusion:

Conclude with a way forward.