Introductory presentation on Goods and Service Tax (GST)

1. GST
GOODS AND SERVICE TAX
“One nation, One Tax”
Presented by Srikar

2. 
 Introduction to Goods and Service Tax.
 Prior to the GST Regime.
 Loopholes in Indirect Tax System prior to GST.
 Comparison between GST and erstwhile tax
system.
 Impact of GST on nation’s trade since its
enactment.
Contents

3. 
Introduction to Goods and Service Tax
 GST is an indirect tax
imposed in India on
supply of goods and
services.
 It is a comprehensive,
multistage, destination
based tax.

4.  It is –
 Comprehensive because it has subsumed
almost all indirect taxes except few.
 Multistage as it is imposed at every step in
production process which can be set off from
the tax imposed on subsequent suppliers.
 Destination based as it is collected from point
of consumption not point of origin.

5. 
Prior to the GST Regime
Covered under GST
 Value Added Tax (VAT)
 Central Sales Tax (CST)
 Excise Duty
 Entertainment Tax
 Entry Tax
 Luxury Tax
 Taxes on Advertisements
Not Covered under GST
 Customs Duty
 Stamp Duty
 Taxes on Petroleum
 Electricity tax
 Taxes on Alcohol
 In earlier indirect tax regime, there were many
indirect taxes levied by both state and centre -

6. 
Loopholes in Indirect Tax System prior to GST
 Varied laws, as there were separate laws for separate levy.
For e.g. Central Excise Act, 1944, respective State VAT laws.
 Varied Tax Rates, as there were separate rates. For e.g.
Excise 12.36 % and Service Tax 14%.
 Tax burden, in earlier scenario, tax burden on tax payer is
high.
 Compliance, Tax compliance is complex because of
multiplicity of laws and their provisions to be followed.

7.  Cascading effect, Present Regime-This Problem arises
because credit of CST and many other taxes not allowed.
 Cost burden on consumers, Due to presence of cascading
effect, certain taxes become part of cost.

8. Comparison between GST and erstwhile tax
system.

9. 
Impact of GST on nation’s trade since its
enactment

10. THANK YOU