Topic –Indian Economy – Issues
5) Assess the performance of GST regime so far and discuss challenges going forward?(250 words)
Why this question
GST on 1st July will complete a year which makes it the opportune time to discuss about the impact that this taxation system had on our economy and on revenue collections. It is also time to reflect on the challenges posed and how to address them.
Key demand of the question
The question expects us to discuss the impact of GST on economy and tax collections, the lessons that we should learn from our experience with GST so far and the ways in which we can address these challenges.
Assess – The meaning of this word is similar to evaluate. Here we have to analyze the impact of GST.
Discuss – Here we have to discuss the challenges and way forward.
Structure of the answer
Introduction – Mention that GST is about to complete a year and the time is ripe for assessing impact and addressing challenges.
Body – Bring out the impact GST has had on tax collection, tax buoyancy, business and commerce, economy in general. Mention the challenges that still remain in smooth implementation of GST regime like poor IT infrastructure – issues with GSTIN, many provisions of GST not yet implemented, delayed refunds etc. Mention ways in which we can address these challenges.
Conclusion – Mention that GST is still in its nascent stage. We have seen what happens when GST is not implemented properly such as in Malaysia where it had to be reversed. Mention your view on its performance and way forward.