Goods and Service Tax (GST) - Dr.K.Karthikeyan

1. Lecture on
“Goods and Service Tax”
@ C.P.A. College, Bodinayakanur
September 14, 2017
1
Dr.K.Karthikeyan
Associate Professor of Commerce
Dean and Controller of Examinations
Vivekananda College
Tiruvedakam West – 625 234
Mobile: +91-9865074994
Email: karthikeyan.madurai@gmail.com

3. Present Taxation System in India

4. Limitations of Present Tax System in India

5. Proposed Taxation System in India

6. Goods and Service Tax (GST)

7. • 2000 – PM AB Vajpayee introduces the concept, sets up a
committee headed by then West Bengal FM Asim Das
Gupta to design a GST Model
• 2003 – Vajpayee Govt forms a task force under Vijay
Kelkar (Advisor to FM) to recommend tax reforms
• 2004 – Vijay Kelkar recommends the GST to replace the
existing tax regime
• Feb 28, 2006 – FM P.Chidambaram sets an ambitious April
1, 2010 as deadline for the GST implementation
• 2008 - Empowered Committee of State Finance Ministers
constituted to prepare a road map for GST
• April 30, 2008 – The Committee submits a report titled “A
Model and Roadmap Goods and Services Tax (GST) in
India to the Government
GST’s 17 Years Timeline (2000-2017)

8. • Nov 10, 2009 – The committee submits a discussion
paper in the public domain on the GST welcoming a
debate
• 2009 – FM Pranab Mukherjee announces the basic
structure of GST as designed by Das Gupta
Committee – BJP opposes GST basic structure
• Feb 2010 – Finance Ministry starts mission-mode
computerisation of commercial taxes in the States to lay
the foundation for the GST rollout – Pranab Mukherjee
defers the GST to April 1, 2011
• Mar 22, 2011 – UPA tables 115th Constitution
Amendment Bill in the Lok Sabha for bringing the GST
GST’s 17 Years Timeline (2000-2017)

9. • Mar 29, 2011-GST Bill referred to the Parliamentary
Standing Committee on Finance led by Yashwant Sinha
• Nov 2012 – FM P.Chidambaram holds meeting with State
Finance Ministers, decides to resolve all issues by Dec 31,
2012 for the GST roll out
• Feb 2013 – UPA Govt resolve to introduce GST – makes
provision for Rs.9000 crore to compensate the States for the
losses incurred because of GST
• August 2013 – GST Bill gets ready for introduction in
Parliament –
• October 2013 – Gujarat Chief Minister Narendra Modi
opposes the GST Bill, saying State will incur a losses of Rs.
14,000 crore every year due to GST
GST’s 17 Years Timeline (2000-2017)

10. • Dec 18, 2014 – Cabinet approves the Constitution
Amendment Bill (122) for GST
• Dec 19, 2014 – FM Arun Jetley introduces
Constitution Amendment Bill for GST
• May 6, 2015 - Lok Sabha passes Constitution
Amendment Bill for GST
• May 12, 2015 – Constitution Amendment Bill is
introduced in Rajya Sabha
• August 3, 2015 – Rajya Sabha passes the
Constitution Amendment Bill by 2/3rd Majority
• September 8, 2016 – President signs the bill and it
becomes a law
The Road to GST

11. • September 12, 2016 – GST Council is constituted
• September 22-23, 2016 – First GST Council meeting
was held
• Nov 3, 2016 – Council agrees on four rates slab – 5%,
12%, 18% and 28%
• Dec 12, 2016 – FM reiterates April 1, 2017 rollout date
• Dec 23, 2016 – Council decides States will get
compensated for 100% loss for 5 years
• Jan 16, 2017 – New rollout date was set July 1, 2017
• Feb 18, 2017 – GST Council finalises Draft
Compensation Bill
• Mar 4, 2017 – Council approves CGST and IGST bills
The Road to GST

12. • Mar 16, 2017 – Council approves and UT GST Bills
• Mar 20, 2017 – Cabinet approves CGST, IGST and
UTGST and Compensation Bills, SGST bill to be
passed by State Cabinets and Assemblies
• Mar 27, 2017 – FM tables CGST, IGST, UT GST
and Compensation bills in Lok Sabha
• Mar 29, 2017 – Lok Sabha passes all four GST bills
• Mar 19, 2017 – Council sets rates on almost all
services
• June 21, 2017 – All States except J & K pass State
GST legislation
• July 1, 2017 – GST rolls out across the country
The Road to GST

13. GST - The Journey so far
Announcement
to introduce GST
by 2010
2006
2009
2014
2013
2011
First Discussion Paper (FDP) released by EC
Constitution (115th
Amendment) Bill introduced
Three committees constituted by EC and GSTN set up
Constitution (122nd Amendment) Bill (CAB)
introduced in Lok Sabha
Mar 2017
12 GST Council
Meetings
CGST, SGST,
UTGST,
IGST,
Compensation
Cess Bills
recommended
Aug
2016
2
Constitution Amendment
Bill passed

14. • To get rid of problems with the direct taxes
• Replacing multiple taxes by GST
• To improve tax compliances
• Complexity in determining the nature of
transactions
• Lack of uniformity in provision and rates
• Liability of States to levy tax on services
• To raise revenue with more transparency and
neutrality
• More than 150 countries have adopted GST
Need for GST

15. Why GST?

17. • Goods and Services Tax (GST) is an indirect tax throughout India
to replace about 17 taxes levied by the Central and State
governments.
• The Central Goods and Services Tax Act, 2017 was introduced
following the passage of Constitution 122nd Amendment Bill.
• The GST is governed by GST Council and its Chairman is Union
Finance Minister – Shri Arun Jaitley
• Under GST, goods and services will be taxed at the following
rates, 0%, 5%, 12%, 18%, 28%.
• There is a special rate of 0.25% on rough precious and semi-
precious stones and 3% on gold.
• There will be additional cess on some goods like cigarettes.
• Alchohol and Petrol/Diesel yet to be included
• GST will be applicable from 1st July 2017
GST in India

19. Taxes subsumed in GST
Central Taxes
• Central Excise Duty
• Additional Duties of
Excise
• Excise duty under
Medicinal and
Toiletries Preparation
(Excise Duties) Act,
1955
• Service Tax
• Surcharges and Cesses
State Taxes
• State VAT/Sales
Tax/CST
• Purchase Tax
• Entertainment Tax
• Luxury Tax
• Entry Tax (not levied
by local bodies)
• Taxes on Lottery,
Betting, Gambling
• Surcharges & Cesses

20. Taxes subsumed in GST

21. Levy of GST in India

22. GST - Subsuming of Existing Taxes

23. Taxes not subsumed in GST

24. • CGST named as Central Tax
• SGST named as State Tax and,
• IGST named as Integrated Tax
• Section 2(22)- “cess” defined
shall have the meaning as assigned
to it in the Central Goods and
Services (Compensation to States)
Act
24
GST - CHANGE IN THE NAMES

25. Levy of GST

26. GST Network

27. Understanding CGST, SGST, UTGST & IGST
State 1
Foreign Territory
State 2
Union territory
IGST Credit can be used for payment of IGST, CGST, SGST / UTGST in that order
5

28. GST - Rates

31. GST Rates on Services

32. GST Administration

34. Stakeholders of GST in India
34
Payment
Taxpayer
GST
Portal
Authorized
Banks
Other
Banks
RBI
Accounting
Authorities
Tax
Authorities
Filling up Challan
Re-directed to Bank
ONLINE
Consolidation of
Payments
Accounting of
Payments

35. Maintenance of Taxpayer wise
Electronic Ledgers
There shall be three running electronic ledgers maintained on
the dashboard of taxpayer by GSTN on its portal i.e.
i. Register of all Liabilities: Liabilities of a taxable person in the
form of tax, interest, fee & penalty towards CGST, SGST & IGST
is recorded and maintained in this ledger. [Section 35 (7)]
ii. ITC ledger: ITC as self-assessed in the return shall be credited to
his electronic credit ledger in the first instance. It will have details
on ITC claimed & utilized for CGST, SGST & IGST. [Section 35
(2)]
iii. Cash ledger: Any amount deposited to the account of the
concerned Government (CGST, SGST & IGST) shall be credited
to the electronic cash ledger of such person. [Section 35 (1)]
There shall be different ledgers for SGST, CGST, IGST & Additional
tax.

36. Every supplier liable to be registered, from the state
taxable supply of Goods and/or Services made. If his
aggregate turnover exceeds Rupees 20 lakhs, and in
North Eastern states including Sikkim exceeds Rs. 10
Lakhs.
a. Inter-state taxable supply;
b. Causal taxable persons;
c. Required to pay under reverse charge;
d. Non-resident taxable persons;
e. Required to deduct tax u/s 37 of GST Act;
f. Supply Goods and or Services by a person or on favor
of other registered taxable person – agent or
otherwise;
36
GST - Registration u/s 19

37. GST Portal

38.  Every registered person is required to file a return for the prescribed
tax period.
 A return need to file, even if there is no business activity (NIL
Return) during the said tax period of Return.
 Government entities (PSU, etc) Not dealing in GST supplies (or)
Person exclusively dealing in exempted/Nil rated/Non GST Goods
or service would neither be required to obtain registration nor
required to file return under the GST Law.
 Common Periodicity of return for a class of Tax payers is
monthly/quarterly.
 There will be different frequency for filing of different class of Tax
payer after payment of due tax, either prior (or ) at the time of filing
return.
 The return can be filed without payment of self Assessed taxes as
per the return but such return would be treated as an invalid return.
GST - Filing of Returns

39. – GSTR I (Outward Supplies), II (Inward
Supplies), III (Monthly) - Normal/Regular tax
payer with multiple registration (for Business
verticals) within a State for each of the
registration separately.
– GSTR IV (Quarterly) - Compounding Tax payer
– GSTR V - Non-Resident Taxpayer (foreigners)
– GSTR VI – Input Service Distributor
– GSTR VI – TDS Return
– GSTR VIII – TCS Return
– GSTR IX - Annual Return
GST - Returns (Online)

40. Impact of GST

41. Impact of GST

42. Impact of GST

43. Impact of GST

44. Impact of GST

45. Impact of GST

46. Implementation of GST

47. GST - Websites
• www.cbec.gov.in/htdocs-cbec/gst
• tutorial.gst.gov.in/userguide
• gst.customs.gov.my/en/Pages/default.aspx
• www.gstcouncil.gov.in
• www.gstn.org/ecosystem/
• https://www.nsdlgsp.co.in/GSPEnrolment/

48. THANK YOU