3. GST IS AN INDIRECT TAX
• IT was introduced in India on 1 July 2017
• The GST is governed by a GST Council and its
Chairman is Honourable Finance Minister. shri.
Arun Jaitley
• Under GST, goods and services are taxed at
0%, 5%, 12% ,18% and 28%.
4. • The taxes which can be shifted
to another person. The initial tax
is levied on the manufacturer or
service provider, who then shifts
this tax burden to the consumers
by charging higher prices for the
commodity by including taxes in
the final price.
• EXAMPLE: goods and services
tax
• The taxes that cannot be
transferred or shifted to another
person, for instance the income
tax an individual pays directly to
the government. In this case, the
burden of the tax falls flatly on
the individual who earns a
taxable income and cannot shift
the tax to others.
• EXAMPLE : Income Tax
DIFFERENCE BETWEEN DIRECT AND
INDIRECT TAXS
DIRECT TAXES INDIRECT TAXES
5. • GOODS AND SERVICE
TAX
• VAT
• CENTRAL SALES TAX
• SERVICE TAX
• EXCISE DUTY
• ETC
GST-INDIRECT TAX
BEFORE GST NOW
6. LEGISLATIVE MEASURES
The GST Council consisting of representatives from the
Central as well as state Government, met on eighteen
occasions in last ten months and cleared –
• GST laws,
• GST Rules,
• Tax rate structure including Compensation Cess,
• Classification of goods and services into different rate slabs,
• Exemptions,
• Thresholds,
• Tax administration
7. On 12 April 2017, the Central Government enacted four
GST Bills:
• Central GST (CGST)
• Integrated GST (IGST)
• Union Territory GST (UTGST)
• Bill to Compensate States
In a short span of time, all the states approved their State GST
(SGST) laws. Union territories with legislature, i.e., Delhi &
Puducherry, have adopted SGST Act and the balance 5 Union
territories without legislatures have adopted UTGST Act
14. There are 3 kinds of applicable Goods and
Service Taxes: CGST, SGST & IGST.
In most cases, the tax structure under the new
regime will be as follows:
Transaction New Regime Old Regime Comments
Sale within the state CGST + SGST VAT + Central
Excise/Service tax
Revenue will now be
shared between the
Centre and the State
Sale to another State
Imports
exports
IGST Central Sales Tax +
Excise/Service Tax
There will only be one
type of tax (central)
now in case of inter-
state sales.
15.
16.
17. INVOICE-INTRA STATE-UNDER GST LAW
particulars Amount
Value of supply of goods 1,00,000
Add: CGST @ 14% 14,000
Add: SGST@ 14% 14,000
Total 1,28,000
18. INVOICE- INTER STATE -UNDER GST LAW
particulars Amount
Value of supply of goods 1,00,000
Add: IGST @ 28% 28,000
Total 1,28,000
19. INVOICE- INTRA STATE –UNDER GST LAW
Particulars AMOUNT
Value of supply of services 1,00,000
Add: CGST @ 9% 9,000
Add: SGST @ 9% 9,000
Total 1,18,000
20. INVOICE- INTER STATE –UNDER GST LAW
Particulars AMOUNT
Value of supply of services 1,00,000
Add: IGST @18% 18,000
Total 1,18,00
21.
22.
23. PART 1# WHAT IS INPUT CREDIT?
Input credit means at the time of paying tax on output,
you can reduce the tax you have already paid on
inputs.
Say, you are a manufacturer –
• tax payable on output (FINAL PRODUCT) is Rs 450
• tax paid on input (PURCHASES) is Rs 300
• You can claim INPUT CREDIT of Rs 300 and you only
need to deposit Rs 150 in taxes.
25. PART # 2 TYPE OF TAXES UNDER GST
All existing taxes such as VAT, CST, Excise Duty,
Service Tax, Entertainment Tax shall go away and
GST will replace them.
There are 3 types of taxes under GST
• SGST – State GST
• CGST – Centre GST
• IGST – Integrated GST
31. IMPACT OF GST ON HOUSEHOLD EXPENSES
Before GST After GST
Category GST
Food 5.00%
Entertainment 28.00%
Transportation 18.00%
Household – Personal
Care
18.00%
Mobile Phone 18.00%
Insurance Premium 18.00%
Credit Card Bills 18.00%
Credit Card Bills 15.00% 18.00%
32. SOME GST RATES FOR SERVICES AS
APPROVED BY GST COUNCIL
Milk, cereals, fruits, vegetable, jaggery (gur), food
grains, rice and wheat, spices, tea, coffee, sugar,
vegetable/ mustard oil, newsprint, coal and Indian
sweets, Silk and jute fibre
Nil
Gold, Silver and Processed Diamonds 3%
Railway freight, Pharma (Life saving drugs), Footwear
up to Rs. 500, Cotton and natural fibre
5%
Packaged foods like pickles, tomato sauce, mustard
sauce and fruit preserves, Ayurvedic and homeopathy
medicines, Processed foods, Fruit juices, live animals,
meats, butter & cheese, Mobile phones, Ready-made
garments
12%
33. Footwear above Rs. 500, hair oil, soaps, toothpaste
and shampoos, chemical and industrial use
intermediaries, LPG stoves, military weapons,
electronic toys, Pastries, cakes, pasta, ice creams,
soups, Man made fibre and yarn
18%
White and brown goods like TV, refrigerator, AC,
washing machines, microwave ovens, soft drinks and
aerated beverages, Cement, Perfumes, revolver,
pistols, Chocolates, chewing gum, waffles containing
chocolate
28%
Luxury and de-merits goods and sin category items
e.g. tobacco, pan masala
28% + Cess
34. Small cars – petrol driven 28% + 1% cess
Small cars – diesel driven 28% + 5% cess
Cigarettes 28% + 5% cess
Luxury cars 28% + 15% cess
