With this PPT we want bring some knowledge on GST, soon we will come with some more and detailed information...

1. BY
SUBBU PULLELA

3. GOODS AND SERVICES TAX
GST
WHAT IS GST...?
Goods and Services Tax (GST) is an upcoming
system of taxation in India which will merge many
individually applied taxes into a single tax. It was
introduced as The Constitution (One Hundred and
First Amendment) Act 2016, following the passage of
Constitution 101st Amendment Bill.
The GST is governed by GST Council and its
Chairman is Union Finance Minister of India .

4. GST is a comprehensive indirect tax on
manufacture, sale and consumption of goods
and services throughout India to replace many
taxes levied by
the central and state governments.
GST was first recommended by Kelkar Task Force
on implementation of Fiscal Reforms and Budget
Management Act 2004 but the First Discussion Paper
on Goods and Services Tax in India was presented
by the Empowered Committee of State Finance
Ministers .10th Nov.10th, 2009.
In 2011, the Constitution (115th Amendment) Bill,
2011 was introduced in Parliament to enable the levy of
GST.

5. The Constitution (One Hundred and Twenty-
Second Amendment) Bill, 2014 was introduced in
the Lok Sabha by Finance Minister Arun Jaitley on 19
December 2014, and passed by the House on 6 May
2015. In the Rajya Sabha, the bill was referred to a
Select Committee on 14 May 2015. The Select
Committee of the Rajya Sabha submitted its report on
the bill on 22 July 2015. The bill was passed by the
Rajya Sabha on 3 August 2016, and the amended bill
was passed by the Lok Sabha on 8 August 2016.
The bill, after ratification by the States, received
assent from President Pranab Mukherjee on 8
September 2016,and was notified in The Gazette of
India on the same date. The GOI wants to implement
GST from 1st July, 2017

6. Objectives of GST:
 One Country – One Tax
 Consumption based tax instead of Manufacturing
 Uniform registration, payment and Input Credit
 To eliminate the cascading effect of Indirect taxes on
single transaction
 Subsume all indirect taxes at Centre and State Level
under
 Reduce tax evasion and corruption
 Increase productivity
 Increase Tax to GDP Ratio and revenue surplus
 Increase Compliance
 Reducing economic distortions

7. Scope of GST:
 All goods and services are covered under GST Regime
except Alcoholic liquor for Human Consumption,
 Tobacco Products subject to levy of GST and Centre
may also levy excise duty
 GST Council yet to decide the incidence and levy of
GST on following:
a) Crude Petroleum
b) High Speed Diesel (HSD)
c) Natural Gas
d) Aviation Turbine Fuel

8. To Trade
 Reduction in multiplicity
of taxes
 Mitigation of cascading/
double taxation
 More efficient
neutralization of taxes
especially for exports
 Development of common
national market
 Simpler tax regime
 Fewer rates and exemptions
 Distinction between Goods
& Services no longer
required
To Consumer
 Simple Tax System.
 Reduction in prices of
goods & services due to
elimination of cascading.
 Uniform prices
throughout the country.
 Transparency in taxation
system.
 Increase in employment
opportunities.

9. key features of the proposed GST model:-
 Dual Goods and Service Tax : CGST and SGST
 Inter-State Transactions and the IGST Mechanism:
The Centre would levy and collect the
Integrated Goods and Services Tax (IGST) on all
inter-State supply of goods and services. The IGST
mechanism has been designed to ensure seamless
flow of input tax credit from one State to another.
The inter-State seller would pay IGST on the sale
of his goods to the Central Government after
adjusting credit of IGST, CGST and SGST on his
purchases (in that order). The exporting State will
transfer to the Centre the credit of SGST used in
payment of IGST.

10. The importing dealer will claim credit of IGST
while discharging his output tax liability (both
CGST and SGST) in his own State. The Centre will
transfer to the importing State the credit of IGST
used in payment of SGST.
 Destination-Based Consumption Tax: GST will be a
destination-based tax. This implies that all SGST collected
will ordinarily accrue to the State where the consumer of
the goods or services sold resides.
 Computation of GST on the basis of invoice credit
method: The liability under the GST will be invoice
credit method i.e. cenvat credit will be allowed on the
basis of invoice issued by the suppliers.

11.  Payment of GST: The CGST and SGST are to be
paid to the accounts of the central and states
respectively.
 Goods and Services Tax Network (GSTN): A not-for-
profit, Non-Government Company called Goods and
Services Tax Network (GSTN), jointly set up by the
Central and State Governments will provide shared
IT infrastructure and services to the Central and
State Governments, tax payers and other
stakeholders.
 Input Tax Credit (ITC) Set Off : ITC for CGST & SGST
will be taken for taxes allowed against central and state
respectively.

12.  GST on Imports : Centre will levy IGST on inter-
State supply of goods and services. Import of goods
will be subject to basic customs duty and IGST.
 Maintenance of Records : A taxpayer or exporter
would have to maintain separate details in books of
account for availment, utilization or refund of
Input Tax Credit of CGST, SGST and IGST.
 Administration of GST : Administration of GST will
be the responsibility of the GST Council , which
will be the apex policy making body of the GST.
Members of GST Council comprised of the Central
and State ministers in charge of the finance
portfolio.

13.  Goods and Service Tax Council: The GST Council will
be a joint forum of the Centre and the States. The
Council will make recommendations to the Union and
the States on important issues like tax rates, exemption
list, threshold limits, etc. One-half of the total number
of Members of the Council will constitute the quorum of
GST council.

14. Here We are Sharing Information About GST
Slabs .
The four GST slabs have been set at 5%, 12%, 18%
and 28% for different items or services.
To keep inflation in check, essential items including
food, which at present constitute roughly half of the
consumer inflation basket, will be taxed at a zero rate. The
lowest rate of 5 per cent would apply to common use
items.

15. SLABS DETAILS
0% Food grains, milk and other articles of daily use have been
exempted from taxation under the GST regime.
These items are: foodg rains, gur, milk, eggs, curd, lassi,
unpacked paneer, natural honey, fresh vegetables, fruits,
atta, besan, maida, vegetable oil, Prasad, common salt,
contraceptive, bread, bindi, vermillion, stamp, judicial
documents, printed books, bangles and handloom
products.
5%
The items that are used daily but are not considered articles of
basic necessity are taxed at 5 per cent under the GST regime.
These items are: sugar, tea, coffee, edible oil, coal, skimmed milk
powder, milk food for babies, condensed milk, packed paneer,
newsprint, umbrella, PDS kerosene, LPG, broom, fish fillet,
cream, frozen vegetables, spices, pizza bread, juice, sabudana,
coal, medicines, stent and lifeboat.

16. SLABS DETAILS
12% The items that are not essential but used by large number
of households and people will attract 12 per cent GST.
These items are: butter, ghee, mobile phones, cashew,
almonds, sausages, fruit juices, packed coconut water,
agarbatti, frozen meat products, animal fat, mixtures,
ayurvedic medicines, tooth powder, colour books and
sewing machine.
18% The articles are considered to be used by middle class
people will attract 18 per cent GST from July 1.
These items are: hair oil, soap, toothpaste, capital goods,
industrial intermediaries, pasta, corn flakes, jams, soups,
ice-cream, toilet paper, facial tissues, iron and steel,
fountain pen, mineral water, camera, speaker, icecream,
envelops and instant food items.

17. SLABS DETAILS
28% Such items, which are considered as luxury
goods or health hazards will attract 28 per cent
GST under the new taxation regime from July 1.
These articles are: consumer durables, cars,
cement, chewing gum, custard powder, pan
masala, perfume, shampoo, make-up items,
fireworks, motorcycles, paint, deodorant,
shaving cream, hair dye, washing machine,
vending machines, vacuum cleaner, hair clippers
and dish washer.

19. Indirect Taxes That Will Be Included Under GST
State taxes which will be subsumed in SGST
 VAT/Sales tax
 Entertainment tax (unless it is levied by local
bodies)
 Luxury tax
 Taxes on lottery, betting and gambling
 State cess and surcharges to the extent related
to supply of goods and services.
 Entry tax not on in lieu of octroi

20. Central taxes which will be subsumed in CGST
 Central excise duty
 Additional excise duty
 The excise duty levied under The Medical and
Toiletries Preparation Act
 Service tax
 Additional customs duty, commonly known as
countervailing duty (CVD)
 Special additional duty of customs (SAD)
 Education cess
 Surcharges

21. Taxes That May or May Not Be Subsumed Due To
No Consensus Between The Central And The State
Governments and various other reasons
 Stamp duty
 Vehicle tax
 Electricity duty
 Other entry taxes and octroi
 Entertainment tax (levied by local bodies)
 Basic customs duty and safeguard duties on
import of goods into India

22. We are always trying to bring you the latest
information on GST, So keep in touch with
us to get updates...