This document provides an overview of Goods and Services Tax (GST) in India. It defines GST as an indirect tax on the supply of goods and services in India. It discusses the journey to implementing GST, key features like the input tax credit system and four-tier tax structure, types of GST (CGST, SGST, IGST), benefits like a transparent and uniform tax system, and why India needed GST reform to simplify its indirect tax structure. In conclusion, it states that GST is generally good as it eliminates cascading tax effects and allows for easier input tax credits for businesses.
2. CONTENT :-
๏ What is GST ?
๏ Journey of GST
๏ Features of GST
๏ Types of GST
๏ Benefits of GST
๏ Why does India need GST ?
๏ Is GST good or bad
3. WHAT IS GST ?
๏ Goods and Services Tax (GST) is an indirect
tax (or consumption tax) used in India on
the supply of goods and services. It is a
comprehensive, multistage, destination-
based tax: comprehensive because it has
subsumed almost all the indirect taxes
except a few state taxes.
4. Goods and services are divided into five
different tax slabs for collection of tax - 0%, 5%,
12%, 18% and 28%. However, petroleum
products, alcoholic drinks, and electricity are
not taxed under GST and instead are taxed
separately by the individual state governments,
as per the previous tax system.[cit
6. FEATURES OF GST :-
SINGLE INDIRECT TAX :-
GST has been introduced as a single,
unified tax reform. It has eliminated many
existing indirect centre and state taxes like
Central Value Added Tax, Special Additional
Duty of Customs, Service Tax, and VAT and
converted them into a single tax .
7. INPUT TAX CREDIT SYSTEM :-
One of the most prominent GST features in
India is the input tax credit. If a manufacturer or
service provider has already paid input tax on a
purchase, the same can be deducted from their
total output tax liability.
8. GST COMPOSITION SCHEME :-
SMEs with an annual turnover of up to Rs. 1
crore or Rs. 75 lakhs in specified states can also
voluntarily opt for the composition scheme. With
this scheme, the businesses can pay a fixed
GST rate of 1% on their turnover.
9. FOUR โ TIER TAX STRUCTURE :-
GST has a 4-tier tax structure of 5%, 12%,
18%, and 28%.
All the goods and services can only be taxed as
per this tax structure. Many of the essential
commodities such as food items do not have any
GST. Improved transparency and cheaper goods
and services are two of the biggest advantages of
this 4-tier structure.
10. TYPES OF GST :-
๏ CGST is Central Goods and Service Tax
๏ SGST is State Goods and Service Tax
๏ IGST is Integrated Goods and Services Tax
๏ These three types of GST are levied based on the aspect
of inter-state and intra-state transactions.
๏ While CGST and SGST are levied on Intra-state
transactions, IGST is levied on Inter-state transactions.
11. WHY DOES INDIA NEED GST ?
๏ Get is being introduced majorly due to 2
reason
The current indirect tax structure is full
of uncertainties due to multiple rates
Due to multiple rates there are multiple
forms , GST the tax complexity in the
prevailing tax regime .
12. BENEFITS OF GST :-
๏ Transparent Tax System
๏ Uniform Tax System Across
India
๏ Reduce Tax Evasion
๏ Export will be more
13. IS GST Good or Bad :-
GST is actually good for common people
. Most importantly through implication of GST
, cascading affect on tax has been vanished .
Only one tax people have to pay . Even for
business man, traders , manufactures GST
is good as they easily get their input credit
and which does not lead to increase in a
price of a product .
