Goods & Services Tax (G.S.T.)

GOODS & SERVICES TAX
(G.S.T.)
Subtopics:
Introduction to GST & its need

Old tax structure vs. New tax structure of India
Different rates under GST
Procedure of filing under GST
Challenges for GST
Response of Rollout
Future prospects and conclusion.
INTRODUCTION
Goods & Services Tax in India is a

Comprehensive
Multi-stage
Destination-based tax
that will be levied on every value addition.
Tax will be levied at every point of sale.
One indirect tax for the whole nation.
Passed by Lok Sabha on 6th May 2015 and Rajya Sabha on 3rd Aug 2016.
Launched on 30 June 2017 midnight by the former President of India Mr.
Pranab Mukherjee and Prime Minister of India, Mr. Narendra Modi.
Events that led to introduction of GST
GST is being introduced in the country after 13 years
2003 - Kelkar Task Force suggested a comprehensive GST based on VAT
principle.
2006-07 - Proposal to introduce a National level GST by April 1, 2010
2009 - EC released its First Discussion Paper on GST in India
2011 - The Constitution (115th Amendment) Bill was introduced in the
Lok Sabha.
2012 - A Committee on GST Design was constituted.
2013 - Detailed discussion on GST design and submitted its report in
January. EC recommended certain changes in the Constitution Amendment
Bill at Bhubaneswar.
BASES OLD TAX GST TAX
There is no separate tax imposed for goods and

Tax was levied by Central Govt. and State Govt.
services. GST is a common tax applicable to both of
TAX STRUCTURE on goods and services, Under separate laws.
these.
Custom duties were imposed on imports.
Excise duty
CGST
Service Tax
TYPES OF TAX SGST
State VAT
IGST
Central sales Tax
CASCADING There was a problem of cascading tax effect due In the introduction of IGST this situation will not
EFFECT to CST. arise.
There will be one CGST rate and a uniform SGST

TAX RATES Different tax rates for different taxes.
Rate across all states.
Tax burden is high for the individual to pay so

TAX BURDEN Tax burden is low because of single tax.
many taxes.
Tax compliance is complex due to multiplicity of

COMPLAINCE Tax compliance is easier because of one law.
tax.
https://www.youtube.com/watch?v=YBXC7PyvChc
Rates under GST:
No tax on necessities.
5% GST on agricultural, medicines and daily needs products.
12% GST on utility items like salt, biscuits, computer parts etc.
18% GST on manufacturing and services like air travelling, hotel
stay, cars etc.
28% GST on luxury items like expensive cars, expensive perfumes,
stay at 5 star hotels etc.
Rough industrial diamonds including unsorted rough diamonds to face
0.25% instead of 3% GST
Procedure of filing under GST:
Challenges of GST for the businesses:
Change in Business Software
GST Compliance
Increase in Operating Costs
Policy change during the middle of year
Online procedure
Higher tax burden for Manufacturing SMEs
Challenges for enforcement agencies:
Training needs
Robust GSTN and online compliances
Coordination between state and central departments
Taxation of services by States
Role of customs authorities
Managing risk of GST fraud
Rollout and Reaction:
GST will boost GDP -N R Narayana Murthy, Infosys Founder
Common market for the first time -Anand Mahindra, Chairman
and Managing Director of Mahindra Group
GST is a structural move in the right direction. -Kumar
Mangalam Birla
Liberation of Indian economy. -Anil Ambani
Complex tax structure. -Kiran Mazumdar-Shaw
Get Set GST:
POSITIVES
GST would simplify trade, boost the economy and generate jobs.
The new tax regime will remove the hassles to trade.
GST will enable ease of doing business and would provide a boost
to Indian manufacturing.
NEGATIVES
India is unprepared at the moment for a change like this.
Multiple rates still exist.
Future Prospects and Conclusion:
Implementation of GST is one of the best decision taken by the Indian
government.
For the same reason, July 1 was celebrated as Financial Independence
day in India.
Transition to the GST regime which is already accepted by 159
countries, would not be easy.
Confusions and complexities were expected and will happen. India, at
some point, had to comply with such regime.
Though the structure might not be a perfect one but once in place, such
a tax structure will make India a better economy favourable for FDI.
King must collect taxes like honey bee, it should be enough to
sustain but not too much to destroy.
-Chanakya
THANK YOU

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GOODS & SERVICES TAX

Introduction to GST & its need

Goods & Services Tax in India is a

There is no separate tax imposed for goods and

There will be one CGST rate and a uniform SGST

Tax burden is high for the individual to pay so

Tax compliance is complex due to multiplicity of

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