Analysis on GST by NIT Jalandhar, Punjab, India

1. GST
( GOODS AND SERVICETAX )
… Biggest tax reform since independence
By – ARPIT SHARMA
ADITYA PRATAP SINGH
ROHIT KUMAR

2. GST
 GST • Goods and service tax (GST) is a
comprehensive tax levy on manufacture,
sale and consumption of goods and
service at a national level.
 • GST is a tax on goods and services with
value addition at each stage.
 • GST will include many state and central
level indirect taxes.
 • It overcomes drawback present tax
system

3. TAX STRUCTURE IN INDIA •
 DirectTax :
IncomeTax, CorporateTax, WealthTax
 IndirectTax :
Excise duty, custom duty, ServiceTax, VAT,
etc.

4. METHOD OFTAXATION
 ProgressiveTax : Increasing rate of tax
for IncreasingValue orVolume.
 RegressiveTax : Decreasing rate tax for
IncreasingValue
 Volume ProportionalTax : Fixed rate
of tax for every level of income or
production

5. Short comings in currentTax
System
 Tax Cascading (Tax on Tax)
 Complexity
 Taxation at Manufacturing Level
 Exclusion of Services
 Tax Evasion
 Corruption

6. WHAT IS GST
 GST is a comprehensive value added tax on goods and
services
 It is collected on value added at each stage of sale or
purchase in the supply chain
 No differentiation between goods and services as GST
is levied at each stage in the supply chain
 Seamless input tax credit throughout the supply chain
 At all stages of production and distribution, taxes are a
 Pass through and tax is borne by the final consumer
 All sectors are taxed with very few exceptions /
exemptions

7. HISTORY OF GST
IMPLEMENTATION IN INDIA
 Feb, 2006 : First time introduced concept of
GST and announced the date of its
implementation in 2010
 Jan. 2007: First GST study by ASSOCHAM
released by Dr. Shome
 Feb. 2007: F.M.Announced introduction of GST
from 1 April 2010 in Budget
 The Government came out with a First
Discussion Paper on GST in November, 2009
 Introduced the 115th Constitution
Amendment (GST) Bill in the year 2011.

8. MODEL OF GST

10. An Important Fact andThe
Reason

11. 80 Items listed under 0% GST

12. Benefits of GST
 TransparentTax System
 UniformTax system Across India
 Reduce Tax Evasion
 Export will more competitive

13. Hurdles in Implementation
 Dispute between centre and Tax over Tax
Sharing
 Highly sophisticated IT infrastructure
required .
 Issue of taxing financial services and e-
commerce is to be appropriately
addressed and integrated.
 Political Imbalace

14. High Court questions 12%
GST on sanitary napkins

15. GST Global Scenario
 More than 140 countries have already
introduced GST/NationalVAT.
 France was the first country to introduce
GST system in 1954.
 Typically it is a single rate system but
two/three rate systems are also prevalent.
Canada and Brazil alone have a dualVAT.
 Standard GST rate in most countries
ranges between 15-20%

16. References :
 https://gstindiaguide.com/gst-zero-rate-item-list/
 http://www.zeebiz.com/india/news-high-court-
questions-12-gst-on-sanitary-napkins-31510
 http://www.business-
standard.com/article/economy-policy/why-12-gst-
on-sanitary-pads-asks-pil-delhi-hc-issues-notice-
to-centre-117071801313_1.html
 https://www.moneycontrol.com/news/business/ec
onomy/india-joins-global-league-heres-the-list-of-
gst-rates-across-the-world-2283941.html

17. THANK YOU…
Presented by NIT Jalandhar Students.