GST MANY A TIMES UPSC , MPSC & OTHRES STATE PUBLIC SERVICE COMMISSIONS ASKED QUESTION ON BASIS OF COMPLETION OF 5 YEARS, 1O YEARS , 25 YEARS, 50 YEARS, OR 100 YEARS.
History of National Doctors’ Day
Understanding GST in India
In India, National Doctors’ Day was first observed on the 01st of July 1991 in honour of Dr Bidhan Chandra Roy, to pay tribute to his contributions to the health domain. Dr B.C. Roy was a birthday-perisher, born on the 01st of July 1882 and died on the 01st of July 1962, a strange coincidence.
Dr Bidhan Chandra Roy (01 July 1882 – 01 July 1962) was a well-known doctor, educator, freedom fighter, social worker, and politician. He was also the chief minister of West Bengal for 14 years, from 1948 to 1962. On the 04th of February 1961, he received the highest Indian civilian award, “THE BHARAT RATNA“. He gave his life to the people, treated many individuals, and inspired millions. He was also the personal physician of Mahatma Gandhi.
- National Doctor’s Day theme 2024: Healing Hands, Caring Hearts
- National Doctor’s Day theme 2023: Celebrating Resilience and Healing Hands
GST Implementation: In 2017, the tax was implemented in India as a major economic reform
🌐 Goods and Services Tax in India –
🧾 Introduction
Goods and Services Tax is one of the most significant tax reforms in India since independence. It was implemented on 1st July 2017 with the aim of unifying the country’s complex tax structure into a single, streamlined process. For UPSC aspirants, understanding the tax system is crucial not only for the Economy section but also for Current Affairs, Polity, and Governance.
🔍 What is GST?
The tax is an indirect tax levied on the supply of goods and services. It replaced many indirect taxes and created a single tax system across the country.
It is based on the principle of “One Nation, One Tax” and is a destination-based tax, meaning it is collected at the place where goods or services are consumed.
🧩 Tax Structure in India
India follows a dual GST model, where both the Centre and States have powers to levy and collect taxes.
- CGST (Central GST) – Collected by the Central Government on intra-state sales.
- SGST (State GST) – Collected by the State Government on intra-state sales.
- IGST (Integrated GST) – Collected by the Central Government on inter-state sales and imports.
📚 Tax Council
The Council is the decision-making body that recommends rates and policies related to the tax. It includes:
- Union Finance Minister (Chairperson)
- State Finance Ministers
- Minister of State for Finance
The council ensures that the tax system is implemented uniformly across India.
📈 Advantages of the Tax
✅ Elimination of Tax Cascading: It removes the “tax on tax” effect.
✅ Ease of Doing Business: Simplified tax structure benefits small and medium businesses.
✅ Uniform Tax Rates: Helps in creating a common national market.
✅ Increased Tax Compliance: Through digital filing and invoice matching.
✅ Boost to Indian Economy: Transparency and formalization of the unorganized sector.
❌ Challenges of the Tax
❗ Complex Filing: Multiple returns and compliance requirements.
❗ Technical Glitches: Issues with the GST portal and software.
❗ Revenue Concerns: Some states faced revenue shortfalls post-GST.
❗ Frequent Rate Changes: Confuses both consumers and businesses.
💼 Impact of the Tax on Indian Economy
Since its rollout, the tax has had mixed outcomes:
- It helped in formalizing the economy.
- Increased tax base and improved transparency.
- Boosted logistics and interstate trade.
- However, implementation issues and rate revisions caused some disruptions.
🎯 Relevance for UPSC
For UPSC aspirants, the tax system is important for:
- Prelims: Facts about the GST Council, tax types, and rollout date.
- Mains GS Paper III: Economic reforms, impact on the economy.
- Essay & Interview: Topics on economic reforms and cooperative federalism.
🧠 Conclusion
The tax reform is a landmark in India’s indirect system. Despite initial hiccups, it has the potential to make India’s economy more transparent, efficient, and integrated. For UPSC aspirants, understanding the tax means understanding the essence of cooperative federalism and fiscal policy in India.
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Table of Contents
Understanding the Goods and Services Tax is essential for analyzing its impact on the economy.
GST