Script:
Narrator: (Standing to the side or speaking from off-stage) Welcome to our role
play on Goods and Services Tax, or GST. Today, we’ll explore how GST affects
both consumers and businesses. Let’s begin with a visit to a local general store
where our characters will learn more about GST.
[The Customer enters the store and approaches the counter with groceries.]
Customer: (Smiling) Hi! How much for these groceries?
Shopkeeper: (Scanning items) That’ll be ₹500, including GST.
Customer: GST? I hear about it all the time but don’t really understand it. Can
you explain?
Shopkeeper: (Nodding) Of course! GST stands for Goods and Services Tax. It’s a
single tax that replaced various older taxes like VAT, service tax, and excise duty.
It simplifies the tax system by consolidating these into one.
Narrator: (Continuing) The Shopkeeper begins to explain GST, a tax system
designed to streamline and unify multiple indirect taxes into one. Now, let’s see
how GST impacts different people.
[Enter Tax Officer, who overhears the conversation.]
Tax Officer: (Joining the conversation) Hello! I overheard your question about
GST. Let me add to what the Shopkeeper said. GST is applied at each stage of
production and distribution. It’s a multi-stage tax.
Customer: (Curious) Multi-stage? How does that work?
Tax Officer: (Smiling) At each stage, GST is collected on the value added to the
product. For example, a manufacturer adds GST when selling to a wholesaler. The
wholesaler does the same when selling to a retailer. Each business can claim a
credit for the tax paid on their inputs, which helps avoid double taxation.
Narrator: (Describing) The Tax Officer explains the multi-stage nature of GST,
highlighting how businesses can claim credits for taxes paid on inputs, reducing
the tax burden on consumers.
[Business Owner enters the store with some documents and looks concerned.]
Business Owner: (Entering) Hi everyone! I overheard the conversation. As a
small business owner, GST has significantly impacted my operations. I now need
to maintain detailed records and file regular returns.
Customer: (Interested) That sounds challenging. Does GST affect how you price
your products?
Business Owner: (Nodding) It can. While GST simplifies the tax process, it also
requires businesses to update their billing systems and manage compliance. This
sometimes means adjusting prices to cover these new costs.
Narrator: (Explaining) The Business Owner shares the practical challenges of
GST, including maintaining records and adjusting prices. GST’s impact extends
beyond consumers to affect businesses' operational costs.
Tax Officer: (Addressing everyone) GST also involves different tax rates: 5%,
12%, 18%, and 28%. Essential items like food and medicine are taxed at lower
rates, while luxury items have higher rates.
Shopkeeper: (Adding) For example, everyday groceries might be taxed at 5% or
even be exempt, while items like high-end electronics are taxed at 28%.
Customer: (Puzzled) How does the tax credit work in this context?
Tax Officer: (Explaining) Good question! If a business buys raw materials for
₹1000 and pays 18% GST, they can claim a credit for this amount when they sell
their finished product. This reduces their overall tax liability.
Narrator: (Describing) The Tax Officer explains how businesses can use tax
credits to reduce their tax liabilities, ensuring that the final consumer pays tax only
on the value added.
Customer: (Curious) Does GST benefit businesses?
Tax Officer: (Explaining) Yes, GST can be beneficial. It simplifies the tax
structure, making it easier for businesses to manage. The input tax credit system
also helps reduce the overall tax burden on businesses.
Business Owner: (Agreeing) Exactly. Although the transition was tough, GST has
made the tax system more streamlined and transparent.
Customer: (Nodding) This has been really helpful. Thank you all for the detailed
explanations!
Shopkeeper: (Smiling) You’re welcome! If you have any more questions, feel free
to ask.
[Customer finishes paying and heads out, while the Business Owner continues
discussing GST with the Tax Officer.]
Customer: (Leaving) Thanks for all the information. I feel much more informed
about GST now.
Tax Officer: (Waving goodbye) Happy to help!
Narrator: (Concluding) And that concludes our role play on GST. We hope
you’ve gained valuable insights into how GST works and its impact on both
consumers and businesses. Thank you for joining us!
[End Scene]
