6. FEATURES OF GST
Destination based Taxation .
Apply to all stages of the value chain .
Apply to all taxable supplies of goods or services made for a
consideration except –
o Exempted goods or services – common list for CGST & SGST .
o Goods or services outside the purview of GST .
o Transactions below threshold limits .
Dual GST having two concurrent components –
o Central GST levied and collected by the Centre
o State GST levied and collected by the States.
7. GST to be levied on supply of goods or services .
All transactions and processes only through electronic
mode – Non-intrusive administration.
PAN Based Registration
Registration only if turnover more than Rs. 20 lac .
Option of Voluntary Registration .
Deemed Registration in three days.
Input Tax Credit available on taxes paid on all procurements
FEATURES OF GST
8. BENEFITS OF GST
Remove hidden tax .
Prices reduction .
Maximum benefits to the poor and the common man .
Common procedures for industry .
One economic India .
10. BENEFITS OF GST
Cheaper things under GST . Costier things under GST .
Footwear Mobile Bill
Movie Tickets Health Care
Two wheelers School Fees
Suv & Luxury car Courier Service
Television Aerated Drinks
Washing Machine Life Insurance Policy
Stoves Residential Rent
Furniture Flights Tickets
13. IMPACT OF
GST
Pricing, Costing, Margins
Supply-chain management
Change in IT systems
Treatment of tax incentives
Treatment of excluded sectors
Transaction issues
Tax compliance
What Need to upgrade in the business system ?
14. EXPOSURE
There are expectations that GST will boost India’s GDP
growth by 150-200 basis points in the coming years.
Online shopping will get expensive .
ITC will play a critical role in determining the final cost
implications of the GST .
GST registeration process .
Websites like clear tax came to picture for GST Billing and
GST Return.
Various app has been develop for GST like CBEC GST ,
Deloitte GST india ,GST helpline .
GST is different from the current tax structure in many ways. Currently, taxes treat goods and services differently. As mentioned above, ‘goods’ attract Excise at manufacturing level and VAT at the time of sale. In contrast, services attract only one levy i.e. Services tax on provision of taxable services. This distinction, in GST regime, would loose its importance as both goods and services would be treated as par for taxing purposes. A transaction in goods and services for a consideration would attract CGST and SGST. Also, the State Government now gets the power to tax services and Central Government gets the power to levy tax at the distribution and retail level. GST may resolve, not all, but surely, most of the current issues such as the classification, valuation, double taxation disputes etc. On a positive note, most of the credit which is not available will be available in GST regime such as the service provider will be eligible to avail credit of VAT, Luxury tax, Entertainment Tax etc. The compliances are also expected to reduce drastically.
Transformational - Analysis with respect to Rate of Tax must be done when the rates are finalised by GST Council .
GST is a transparent tax so it will remove lots of hidden tax like vat , Sales tax central tax etc result to corruption free nation .
Prices reduction - Overall reduction in Prices for Consumers.
COMMON MAN FRIENDLY -Huge number of items are either tax exempt or in 5% tax bracket.
No Checkpoints - Free Flow of Goods and Services .
Common procedures for industry .
for registration, duty payment, return filing and refund of taxes2. Seamless flow of tax credit from manufacturer/supplier to user/retailer to eliminate cascading of taxes.3. More efficient neutralization of taxes to make our exports more competitive internationally.4. Benefit of exemption/composition scheme for a large segment of small scale suppliers to make their products cheaper.
One economic india – reedom of movement of goods and services ,Decrease in “Black” transactions .
Consumer will get benefits by increase competition .
To make India a manufacturing hub.
To boost investments and exports.
To generate more employment by increased economic activity.
Reduction in tax . Multiplicity of Taxes, Cascading and Double Taxation . There will be Uniform Rate of Tax and Common National Market .
Transformational - Analysis with respect to Rate of Tax must be done when the rates are finalised by GST Council .
Extensive training - All the employees of the organisation shall undergo extensive training in GST so that its implications as well as documentation can be well understood and taken care of .
Empowered employees- Training should encompass all the facets of the GST so that empowered employees can take appropriate and correct decisions with the help of professionals when they face any challenge .
Common market - decisions like setting up warehouses and supply chain management shall be revisited; even decision of setting up new units shall consider the impact of GST .
Transition Issues - Migration of existing tax payers to GST
Amount of CENVAT Credit carried forward in a return to be allowed as ITC & credit on stock .
Unavailed CENVAT credit on Capital Goods and ending Refund Claims .
e-commerce – tax collection at source , end of discount and forbies ,faster delivery ,return will get difficulty .
GST registeration process - Eligibility –
Any Business registered for paying any of the below Tax-
VAT/CST
Service Tax
Custom
Excise
