(34) gst overview ah authors

1. GST
OVERVIEW

2. N. HARIHARAN DDTP.,DOA ,
BCOM CS -SECOND YEAR
A.AMUTHA
3RD CHEMESTRY
ARULMIGUPALANIANDAVARARTSCOLLEGEFORWOMEN

3. Central Excise
(On
Manufacturing)
Service Tax
(On provision of
Service)
VAT
( On sale of
Goods)
Different Points of Taxation Different Points of Taxation

4. No Entry Tax
Entry
Tax
Value Added
Tax
e.g. on Sugar
@
4%
@ NIL
%
Lack of Uniformity

5. Existing Indirect Tax Structure in India
Constitution amended to provide concurrent powers to both Centre &
States to levy GST (Centre to tax sale of goods and
States to tax provision of services)
 Central Excise duty
 Additional duties
 Service Tax
 Surcharges & Cesses
• State VAT / Sales Tax
• Central Sales Tax
• Purchase Tax
• Entertainment Tax (other than
those levied by local bodies)
• Luxury Tax
• Entry Tax (All forms)
• Taxes on lottery, betting &
gambling
• Surcharges & Cesses
Central Taxes State Taxes
GST
5

6. Central
Excise
Multiple Registrations

7. The Journey to GST
Announcement by
Union Finance Minister,
during budget of 2006-
07 that GST would
introduced from 1 April
2010
2006
First Discussion
Paper was released
by the Empowered
Committee
2009 Constitution (115th
Amendment) Bill
introduced and
subsequently lapsed
2011
The Constitution
(122nd
Amendment) Bill was
introduced in the Lok
Sabha
2014
Aug
2016
The
Constitution
Hundred
and
(One
First
wasAmendment)
Act enacted
March
2017
GST Council
Recommends the
CGST, SGST,
IGST,
UTGST and
Compensation
Cess Act
April
2017
CGST, IGST,
UTGST and
Compensation
Cess Acts passedAll
exce
pt
pass
ed
Stat
es
J&K
theirSGST
ACT
May
2017
GST
Launched
1st July
2017
1st GST
Council
Meeting
Sep 2016
30th June
2017
GST Council
recommends all
the rules
SGST Act passed by J&K; CGST
and IGST Ordinances
promulgated to extend GST to J&K
8th July
2017
Journey
Continues…
• Notifying and
amending rules
• Dealing with IT
related issues
• Revision of
Rates
• Clarification and
communication
with taxpayers
01st February,
2019
Amendments to CGST,
IGST, UTGST and
Compensation to State
Acts enacted
2000
7
In the year 2000, the
then Prime Minister
introduced the
concept of GST and
set up a committee
to design a GST
model for the country

8. GST Council – Constitution (Article 279A of the
Constitution)
 Chairperson – Union FM
 Vice Chairperson - to be chosen amongst the Ministers of
State Government
 Members - MOS (Finance) and all Ministers of Finance /
Taxation of each State
 Quorum is 50% of total members
 Decision by 75% majority
 States - 2/3 weightage and Centre - 1/3 weightage
 Council to make recommendations on everything related to
GST including laws, rules and rates etc.

9. 9
 GSTN - Section 8 Company Registered under Companies Act, 2013 (Non-Profit, Non-
Government Organization).
 Incorporated on 28th March, 2013, with a view to provide IT infrastructure and services
to Centre and States Governments, tax payers and other stakeholders for
implementation of Goods and Services Tax (GST) in India.
 Shareholding pattern of GSTN :-
Central Government 24.5%
State Governments 24.5%
HDFC 10%
HDFC Bank 10%
ICICI Bank 10%
NSE Strategic Investment Co 10%
LIC Housing Finance Ltd 11%
GSTN (Goods and Services Tax Network)

10. One Tax
For
Manufacturing
Trading
Services
ONE NATION: ONE TAX
What is GST?

12. Goods - Sec 2(52) Services - Sec 2(102)
“Goods” means “Services” means
Every kind of movable property Anything
Other than money and securities Other than goods, money and
securities
but includes actionable claim,
growing crops, grass and things
attached to or forming part of the
land which are agreed to be served
before supply or under a contract of
supply
but includes activities relating to
•the use of money; or
•its conversion by cash or any other
mode, from one form, currency or
denomination, to another form,
currency or denomination
for which a separate consideration
is Charged
Goods & Services under CGST Act

13. All About GST
13
GST is charged
only on the
component of
“Value
Addition”
No (Reduce)
Cascading
Effect
i.e ‘tax on tax’

14. GST Model - India
14
Dual GST
CGST & SGST
or UTGST IGST

15. 15
Goods & Service Tax
CGST
•Central Excise
Duty.
•Countervailing
Duty on Imports.
•Special Additional
Duty of Customs.
•Service Tax.
•Surcharge,
Education Cess &
SHE Cess.
•Additional Excise
Duty.
SGST
•VAT
•Entry Tax
•Surcharges &
Cesses.
•Tax on Lottery,
Betting.
•Luxury
/Amusements/
Entertainment Tax
levied by Local
Bodies
•Purchase Tax
IGST
• CST /Excise /
Service Tax...
Out of GST
• Basic Custom
Duty.
• Safeguard Duties.
• Taxes on
Petroleum
(temporary
period)

16. 16
ST- Single Tax Structure
CGST SGST IGST
Sales withinState
• Inter-State Sales
• Import in India
outside•Export
India

17. OBJECTIVES OF GST
17
Ensuring availability of input credit across the value chain
Simplification of tax administration and compliance.
Harmonization of tax base, laws, and administration procedures across the
country.
Minimizing tax rate slabs to avoid classification issues.
Prevention of unhealthy competition among states.
Increasing the tax base and raising compliance

18. 18
Alcohol for
human
consumption
Power to tax remains
with the State
Five petroleum
products – crude
oil, diesel, petrol,
natural gas and
ATF
GST Council to decide the
date from which GST will
be applicable
Tobacco
Part of GST but power to
levy additional excise duty
with Central Government
Entertainment
tax levied by
local bodies
Power to tax remains with
local bodies
Outside GST !

19. 19
Benefits of GST - To Whom????
• ReduceCompliance Costs
• Broadening Tax Base.
• ReduceTax Distortions.
• Increase in Employment.
• Increase in GDP by 2%
• Industry
• Public / Society
• Professionals
• Retailers
• All ServiceProviders

20. Benefits of GST
• Reduction in Cascading of Taxes
• Overall Reduction in Prices
• Common National Market
• Benefits to Small Taxpayers
• Self-Regulating Tax System
• Non-Intrusive Electronic Tax System
20
Decrease in
Inflation
Ease of Doing
Business
Decrease in “Black”
Transactions

21. Benefits of GST
• Simplified Tax Regime
• Reduction in Multiplicity of Taxes
• Consumption Based Tax
• Abolition of CST
• Exports to be Zero Rated
• Protection of Domestic Industry - IGST
21
More informed
consumer
Poorer States
to Gain
Make in India

22. Main Features of the GST Act
22
 Set of auto-populated Monthly returns and Annual
Return
 Composition taxpayers to file Quarterly returns
 Automatic generation of returns
 GST Practitioners for assisting filing of returns
 GSTN and GST Suvidha Providers
(GSPs) to provide technology
based assistance

23. GST IT Strategy
• Core Services
– Registration
– Returns
– Payments
• Helpdesk support
• Information on Inter-State supply and
cross-credit utilization
• Analytics
• IGST Settlement
Common & Shared
IT Infrastructure
Harmonization of Business
Processes and Formats
Centre/States
Tax IT Systems
Autonomy of back-end systems of
States and Centre
• Approval of Registration
• Assessment
• Refunds
• Audit and Enforcement
• Adjudication
• Internal workflows to support
above functions
• Recovery
• Analytics and BI
StatutoryFunctions
Non-StatutoryFunctions
IT
Interfaces

24. GST IT Strategy
24
Tax Authority GSTN IT Systems Taxpayer
State/Centre Portal
Common
Portal
Database
State / Centre Tax
IT Systems
State /
Centre
Database
Interface
API
Interface
GST
Application
State/ Centre
Application
Accounting Agencies
& Treasuries
Network of
Banks & RBI
GST Common Portal
API
Interface
API
Interface

25. 4
Goods and Service Tax Network (4/4)

26. GST SUVIDHA PROVIDER (GSP)
26

27. GSP Ecosystem
27

28. Registration Tax Invoice
Audit
Input tax
credit
Levy of , and
exemption
from tax
Time,pla
ce and
value of
supply
Returns
Tax Payment
Refunds
Job work
E-commerce
Assessment
IGST
Transitional
Provisions

29. GST- Single Tax Structure
CGST SGST IGST
Sales withinState
• Inter-State Sales
• Import in India
outside•Export
India

30. ThankYou.
N. Harihran , A. Amutha
ahslideshare@gmail.com
www.slideshare.net/Hariharanamutha1/
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