PPT ON THE GOODS AND SERVICES TAX THE GREATEST TAX REFORM SINCE INDEPENDENCE

1. GST
GOODS AND SERVICE
TAX

4. INTRODUCTION
GST
ONE COUNTRY-INDIA
ONE RELIGION-CRICKET
ONE NATIONALITY-INDIAN
ONE TAX-GST
• FIRST INTRODUCED BY FRANCE
• ABOUT 160 COUNTRIES IN THE WORLD HAVE THE SIMILAR SAME S
YSTEM OF TAX AS GST
• THIS TAX REFORM CAN LITERALLY TRANSFORM A COUNTRY INTO
MANUFACTURING HUB FROM SERVICE SECTOR HUB
• IT WILL CAUSE AN INCREASE OF 1%-2% INCREASE IN GDP CREATIN
G MORE JOBS,MORE OPPURTUNITIES, MORE DEVELOP
MENT FOR THE COUNTRY AS A WHOLE

6. GST

7. • THE GST BILL WAS INTRODUCED BY MR ARUN JAITELY
THE FINANCE MINISTER IN LOK SABHA AND PASSED THE
HOUSE ON MAY 6 2015
• IN RAJYA SABHA THE BILL WAS REFERRED TO SELECT
COMMITTEE ON MAY 14 2015 THE SELECT
COMMITTEE SUBMITTED ITS REPORT ON THE BILL ON
JULY 22 2015
• THE BILL WAS PASSED ON RAJYA SABHA ON AUG 3
2016 AND THE AMENDED BILL WAS PASEED BY
LOKSABHA ON AUGUST 8 2016

13. GST

14. GST EFFECTS

15. GST
EFFECT ON COMMON PEOPLE
• PRICES OF GOODS WILL BE REDUCED
• PRICES OF SERVICES WILL INCREASE
• WILL HELP IN CONTROLLING CORRUPTION
• EXAMPLES ON EFFECT OF COMMON PEOPLE
• THE PRICES OF CARS WILL BE REDUCES AS GST RATE WILL BE LESS THAN VAT AN
D EXCISE DUTY
• MOBILE PHONES AND MOBILE NETWORK WORKS WILL CHARGE MORE AS SERVI
CE SECTOR AND THE TAX ON MFG OF MOBILES IS SET TO INCREASE AS PART OF
GST RATE
• LUXURY ITEMS LIKE LUXURY CARS,JEWELLERY WILL BECOME MORE COSTLY AS
THE GST RATE IS AROUND 28%-40%
• HELPFUL IN PAYING TAX RETURNS AS ONLY 3 INDIRECT TAXES ARE LEIVED

16. GST

17. GST
ADVANTAGES OF GST
• HELPFUL IN MAKE IN INDIA MFG HUB AS TAXES ON MANUFACTURING AND GO
ODS ARE REDUCED.
• EASY FOR TAXATION FROM GOVERNMENT(CENTRAL AND STATE)
• HELPFUL IN REDUCTION OF CORRUPTION AND BLACK MONEY
• CAUSES 1%-2% INCREASE IN GDP CREATING ABOUT 15 MILLIONS US DOLLARS
A YEAR FOR THE OVERALL DEVELOPMENT OF ECONOMY
• HELPFUL FOR EXPORTS AS TAXES ARE ALMOST ABOLISHED ON EXPORTS
• HELPFUL IN TELLING THE CONSUMER ABOUT WHAT THE TAXES HE IS PAYING FR
THE GOODS AND SERVICE RECEIVED
• ENTIRE INDIA WILL BECOME INTO A UNIFIED MARKET
• HELPFUL IN THE OVERALL DEVELPEMENT OF THE ECONOMY RATHER THAN JUST
DEVELOPMENT OF SOME STATES

18. GST
DISADVANTAGES
• SERVICES WILL BECOME MORE EXPENSIVE WHICH ARE GOING TO EFFECT
 BANKING
 MEDICAL
 IT AND ITES
• CENTRAL GOVERNMENT HAS TOO MUCH CONTROL OVER STATES.IF DIFFERENCE
S OCCUR,IT CAN BE CRITICAL FOR STATE
• LOSS OF REVENUE TO STATE GOVERNEMENTS AS ALL INDIRECT TAXESA ARE ABO
LISHED AND STILL NOT CLEAR HOW REVENUE DEFICIT WILL BE GIVEN BY THE C
ENTRAL GOVERNMENT

19. GST
DISADVANTAGES
• IMPORTERS HAVE TO SPEND MORE TO INCREASE TAXES THROUGH CGST AND S
GST
• IF HANDLED IMPROPERLY THE WEALTH WOULD GROW BUT THE DEVELPEMENT
WILL BE SAME
• PETROLEUM PRODUCTS ARE LEFT OUT AS OF NOW AND IT IS NOT CLEAR ABOUT
THEIR FATE IF GST IS TO BECOME SUCCEFUL THEN PETROLEUM PRODUCTS HAVE
TO INCLUDED IN THE UPCOMING YEARS

21. GST

22. GST
CONCLUSIONS
• THE CENTRAL GOVERNMENTS AND STAE GOVERNEMENTS HAVE TO LEAVE POLITICS ASIDE AN
D WORK TOGETHER TO MAKE GST SUCCEFUL AS POSSIBLE
• THOUGH THE SHORT TERM EFFECTS CAN CASUE A RISE IN INFLATION LONG TERM EFFECTS AR
E VERY MUCH BENEFICIAL FOR THE COUNTRY
• TAX RATES OF DIFFERENT STATES HAVE TO BE MONITORED FOR THE IMPLEMENTATION OF GS
T WHICH REQUIRES THE CO OPERATION OF INTER STATE GOVERNMENTS
• IT INFRASTRUCTURE OF GST HAS TO BE EXAMINED AND IMPLEMENTED WITH HIGH PRECISIO
N AND SECURITY SO AS TO MAKE THE CITIZENS BELIEVE THAT THE TAX SYSTEM IS VERY SECU
RE AND EASY FOR PAYMENT OF TAXES
• PETROLEUM PRODUCTS ALSO HAVE TO BE INCLUDED FOR THE OVERALL IMPLEMENTATION O
F GST AND REVENUE SHARING HAS TO BE HANDLED VERY CAREFULLY
• MANUFACTURING HAS TO BE THE AGENDA OF THE GOVERNMENT AS WITH THE MAKE IN IND
IA PROGRAM WHICH WILL BE A TURNING POINT DECIDING WHETHER INDIA REMAINS A DEV
ELOPING OR DEVELOPED COUNTRY

23. GST

24. GST

25. GST END
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