Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
3. What is the Goods and Services Tax (GST)? What are the benefits of the GST? Analyse the shortcomings and issues within the GST regime. (250 words)
Difficulty level: Easy
Reference: Indian Express , Insights on India
Why the question:
Five years ago, a new indirect tax system was launched by the Narendra Modi government. The Goods and Services Tax was introduced to replace the complex order of entry levies and sales tax in India. It also aimed to modify tax compliance and administration within the country. Half a decade later this move has become a lot more than just being about “one nation, one tax”.
Key Demand of the question:
To write about GST, 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 in the past 5 years. Substantiate with examples, facts or statistics.
Next, write about the shortcomings of GST in the past 5 years. Substantiate with examples, facts or statistics.
Next, suggest reforms in GST.
Conclusion:
Conclude with a way forward.
