Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
6. The Goods and Services Tax (GST) that was introduced to simplify and streamline taxation, has been facing various challenges and complexities, hindering its effectiveness. Critically examine. (250 words)
Difficulty level: Tough
Reference: The Hindu , Insights on India
Why the question:
The editorial discusses the need for reforms in the Goods and Services Tax (GST) regime in India
Key Demand of the question:
To write about various successes and limitations of GST and reforms that are needed in it.
Directive word:
Critically examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
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.
