GST is a Tax Reform; But No Reform is Without Challenges

Essay ( World limit – 200)

These are few essays submitted by various students on subjected topic.  Essay of only those students are published where either some points  can be extracted  or where through feedback we can learn a lot.

As the biggest challenge is here to put your idea in just 200 words which has not been met by any student. Refer sample essay for that. Different essay has different positive and negative as well. So here the feedback of essay is also provided. So that you can learn what all goes in good essay.

GST is a Tax Reform; But No Reform is Without Challenges

Essay 1 (Sample Essay)

Good and Service Tax is a tax reform with an aim of having “One Nation and One Tax”. It has subsumed most of the Indirect taxes and expected to have positive impact on economy like streamlining the logistics, decreasing tax envision etc.

Starting from GST enactment, it has been facing various challenges. It was a constitutional challenge to scrap the states taxes and brought under one centralized tax. Through 101st constitutional amendment this challenge was overcome. Now GST council is working toward removing the friction among states and center.

Filing of lots of tax return under GST regime is a hercules task for small firm. However, through Composition Scheme small business can get rid of tedious GST formalities. But, it makes it difficult to have business with GST paying companies because of absence of input tax credit in composition scheme.

IT infrastructure, which is maintained by GSTN need to be strengthen further to handle the increasing burden under GST framework.

Apart from above discussed challenges there are others like compensation to the losing state, implementing E-way bill, bringing left out item (like Petroleum, Power etc.) in GST regime, having less number of tax slabs etc. which need to be overcome to successfully bear the fruit of GST reform.

Essay 2

The GST-Goods And Services Tax is a landmark tax reform in our country after independence. Almost all of the indirect taxes of central & state government barring a few exceptions have been subsumed in the GST. GST is an indirect,comprehensive, destination based tax levied on manufacturing,sales & consumption of goods & services. Although alcohol for human consumption , tobacco products & petroleum products have been kept out of the purview of GST.

The GST is imposed on different items at different rates. Currently there are four tax slabs in GST-5%,12%,18%,28%. Transaction made within a single state are levied with Central GST(CGST)  by central government & State GST(SGST) by state government. For interstate transactions & imported goods & services  an Integrated GST(IGST) is levied by the central government.

The GST was introduced with tagline ‘One Nation One Tax’ but to make it come true is an uphill & challenging task. The traders,manufacturers especially those belonging to SME industries are finding it difficult to come to the terms of GST. The new norms of filing the returns have impacted several businesses. Moreover some industries like textile,footwear,real estate are unhappy over the allocation of items in tax slabs of GST thus impacting their businesses. The government also have to maintain large data base ; make portals user friendly & digital infrastructure sound & foolproof for smooth running of GST machinery which in itself a tedious task.   But government has been on a war footing to solve all challenges imposed to it . Like they extended the date for filing returns, creating awareness among people by launching various programmes through various platforms.

Though there are short term challenges but GST will help in expanding the tax base of indirect taxes thus helping in formalising of economy. It has also reduced the transition & logistics cost which will ultimately benefit the businesses in the long term. GST council is relentlessly working to remove the bottlenecks in its implementation & functioning showing flexibility & positive outlook. Though there are short term challenges but there are long term benefits which bear fruits for our economy.


  1. Last para is good
  2. Crossed the world limit by large  amount
  3. Too much emphasis on definition
    1. Not required too much explanation on GST structure (1st two paragraph), as the essay is about the Challenges, at least 75% of  it should be about it  >>It is giving the impression that you have not understand the topic of essay,
  4. Very few challenges are discuses

Essay 3

The word GST has been in news for the past one year. It came into effect on 1st July 2017. GST (Goods and Service Tax)  is a tax which will set aside a lot of taxes such as service tax,VAT, gift tax, entertainment tax etc. It’s aim is to bring the nation under one tax.

It has been a great success for our country for successfully completing 7.5 months but we have faced a number of challenges ranging from technical issues on GST portal for taxpayers, collection of invoice- wise details  to delaying of E-Way bills, reverse charge mechanism and a lot more. GST is in improving stage and become better in the coming years.


  1. Too small, no elaboration.
  2. Introduction has taken too much space. Should be cut short to one line for giving more attention toward problem statement
  3. Starting is not good. -à GST has been in news for the past one year
  4. You have listed the challenges but have not elaborate on them. You should elaborate at least on few of them.  
  5. Essay is given the impression you don’t have enough knowledge about the topic which will not going to give good impression to checker.

Essay 4

The 101st Amendment Act, GST 2016 is indeed a major tax reform post-independence. The Act by subsuming many of indirect taxes levied by center and states  and thereby creating India as a single market  with unified tax slab is welcome move to promote ease of doing business. The passage and implementation of this Act is not just a cakewalk.

It required Constitutional amendment with special majority followed by states ratification as it changes the financial taxation powers of both center and state.

As it proposed to bring 1 state 1 market, still there exists a 4 tax slab rates thus defeating the purpose and an additional burden on wholesalers who would deal with variety of goods and separate invoices to be raised as per the product making the process a complex one.

Though it intends to improve tax compliance, remove evasion, input tax credit, it costs the unorganized and SMES an additional operating costs from the traditional paper pen mode to invoice creation and return filing all of which is time consuming  and laborious.

The deferred rollout of E way bill in feb 1 2018 and introduction of the same in phased manner in april 1 2018 still questions the robustness of the IT framework of GST infrastructure.

Though there is a short term low growth in our economy due to gst, in the medium and long term the outlook predicted by world bank to be 7.3 and 7.5 in 2018 and 2019.Given the leap to 100th place in Ease of Doing Business with  gst rollout , we can still optimize to break into top 50 by bringing better tax compliance through a single tax rate.


<<Crossed the word limit>>

<< Readability score is poor You should break the lengthier line into smaller lines)>>

<<Don’t write “gst” in small>>

<< You should not be so affirmative about low growth, our low economic growth is also due to demonetization, Twin Balance sheet etc. Also this line doesn’t connect with our essay>>.

<<2nd last para is very good. In fact it is is the best line in all of the essays. As through this line you have mentioned both the challenge and prove of that challenge existence. >>

Essay 5

GST happens to be a historic reform in the Indian taxation system. Almost after 17 tumultuous years, GST was rolled out in July, 2017.  The ‘One nation, one tax’ even upgraded India’s credit rating from lower investment grade Baa3 to Baa2.


The major challenge faced after the rolling out of GST was lack of clarity about GST provisions among the people. Frequent change of items under different tax slabs prevented the common man to avail its benefits. Most businesses still don’t have the infrastructure to create GST invoices and extract required reports. Tax and accounting professionals together need to ensure that their accounting systems are compatible with GSTN. With GST rates and their complexities, the work load on industry employees has only increased, hence creating an urgent need for additional GST skilled resources to ensure its faster implementation. Rolling out of GST also saw companies facing losses upto a month’s sales.


However, in the long run GST will be beneficial not only to the government but for both businesses and individuals as well. More than 16 laws have been subsumed under GST under a single rate making our exports more competitive globally. Because of these efficiencies the inflation rate will go down and also generate more revenue for the government, and the tax evaders will no longer be able to evade their taxes now.


<<Introduction is good, but conclusion should be related to essay topics. This essay is about challenges, At least 75% of  it should be about it  >>

<<Only one challenge is being discussed, Look at other students essay on the  to get further idea>>

It may be that in limited space all challenges cannot be elaborated, but that should be mentioned at least.

Essay 6

The GST council is the apex body for implementation of the gst but the constitution has given it only a recommendatory status, it is upto  the  state  governments to implement  its  ideas and if it decides to levy its own gst then it distorts the entire gst structure of the country. In a diversified country like india  implementation of a unified tax system would be difficult due to difference in demands of various regions.

The gst  system is totally based on the online payment of taxes which overburdens the online system of ministry of corporate affairs as the current IT infrastructure is not very sound, the hanging and crashes of the website occurs repeatedly which makes the tax filling a tedious job. According to the previous tax system in india one had to fill the tax twice a year but now with gst tax has to be filed almost every month  and the procedure is extremely complicated for a common  shopkeeper or an entrepreneur. Several transactions take character of sales as well as services thus there is complexity in determining the nature of transaction.

Enterprises with a turnover of amount less than 20 lakh have been exempted from the gst this may lead to tax evasion as a businessman having a firm with turnover of more than 20 lakh may divide the ownership  in order to evade taxes.


Readability is poor. Break long sentences into short

Too much focus on definition part

Now much emphasis on problem statement

Too much elaboration on few points

<<Introduction should started with talking about GST rather than directly about GST council>>

Essay 7

Goods and Service Tax(GST) is an indirect tax levied on Goods and services. It is destination based tax levied on every value addition. Taxation policy plays very crucial role on economy of a country as it is the main source of revenue of the government. Before GST India had complicated indirected tax system with multiple taxes imposed by state and union separately.  With introduction of GST all indirect taxes will be under an umbrella ensuring smooth nation market with high economic growth. GST is a single point tax levied from manufacturer to consumer. Credits of input taxes paid at each level will be available in next stages on value addition thus ensuring no cascading effect. It will also reduce overall tax burden of customer which is currently estimated at 25-30% with more revenue for government yet lower tax burden for industry using Wider Tax base. It is also estimated GDP will get addition of 2-2.5% from industry sector and Export will be increased by 10-14%.

Although GST  has many advantages the implementation of GST is filled with challenges both politically, economically and Technically. Political challenge with GST is implementation of GST in Federal structure.GST is “one country one tax system” which is not sutiable for india as GST here includes IGST, CGST and 29 SGST which comes to 31 taxes which again complicates tax structure. According to Article 246A parliament and legislature assembly can impose tax on goods and service. So state can also have its own GST rate. Article 279A says GST council have only recommendatory powers and state has power to levy its own GST rate. Thus uniformity nature of GST is distorts.

Technical challenge with GST is government incorporated Goods and Service Tax Network(GSTN) which is responsible for GST portal where GST registration, filling ,IGST settlement etc take placewhich requires roburst IT network. India is in embryonic stage in IT network. The trained and skilled man power with updated knowledge of GST is hard to find. Small Traders find it confusing and increase in cost for GST tax application.

Economical challenge is that GST growth can be Muted. As this model might not rise growth and will push up consumer inflation and increase tax revenue may not be resulted.

Feedback :

Crossed the world limit by large  amount

English errors in passage

Not all indirect taxes will be subsumed in GST

Not required too much explanation on GST structure (1st paragraph), as the essay is about the Challenges, at least 75% of  it should be about it  >>It is giving the impression that you have not understand the topic of essay,

When you are using hard number you should be sure about that.

Don’t try to give too many information, need to condense it

It may be that in limited space all challenges cannot be elaborated, but that should be mentioned at least.

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