Message/ whatsapp your ID on the details provided in the presentation if you want to get the Excel sheet "lets calculate" which shows the impact on tax and price of goods/services.

1. Naman Garg
Rajesh Chander and Associates
Email – namangarg1206@gmail.com
Mobile: +91 991-01-46869
Goods And Service Tax (GST)
G S TAre you ready
for GST ?

2. Executive Summary
Introduction
GST Applicability
Advantages
Types of GST
GST in other countries Taxes to be merged
Utilization of credit
Who will be benefited ?

3. Goods And Service Tax
A Common tax on
Goods Services

4. GST stands for goods and service tax
 It will be a Value added tax
It means tax will be charged on the value addition in the goods or services.
 It will be a domestic trade tax
It means it exempts all inputs including capital goods and hence become a
general tax on domestic consumption.
Introduction

5. GST will apply to all goods and services except-
GST Applicability
Alcohol for human consumption
• Tax levied will be State excise and VAT
Electricity
• Tax levied will be electricity duty which will be
collected by State
Tobacoo
• Excise duty and GST both will be levied
Real Estate
• Stamp duty and property
tax will be levied.

6. CGST
• CGST stands for Central
goods and service tax.
• This will be levied on all
intra-state transactions of
goods and services. It will
be levied and collected
by Centre.
SGST
• SGST stands for State
goods and service tax.
• This will be levied on all
intra-state of goods and
services. It will be levied
and collected by State.
IGST
• IGST stands for Inter-
state goods and service
tax.
• This will be levied on all
inter-state transactions
of goods and services. It
will be levied and
collected by Centre.
Types of GST

7. Sample list of GST in different countries are as below
GST in other countries
Country Rate of GST Country Rate of GST
India ??? Australia 10.00%
France 19.60% Singapore 7.00%
Germany 19.00% Canada 5.00%
Pakistan 18.00% Japan 5.00%
New Zealand 15.00% Sweden 25.00%

8. Following taxes will be merged in GST:-
 Excise duty (Both central and state except on Alcohol)
 CVD and SAD in customs
 Service tax
 VAT and CST
 Entry tax
 Entertainment tax (levied by state government)
 Purchase tax (tax levied on purchase of goods from unregistered dealer)
 Surcharges and Cess (both i.e. central and state)
Taxes to be merged in GST

9. • Removal of cascading effect
In present system tax is levied on the tax itself such as VAT on excise
duty. In GST there will not be any cascading effect.
• More clarity and less complications
It will make the tax calculation very easy as
there will not be requirement of judging the type of tax
weather the process is manufacturing or service etc.
• Increase in revenue
Government revenue will increase from the GST without effecting the
prices of goods. (explained later in detail)
Advantages of GST

10. GST
CGST 150 Lakhs
SGST 10 Lakhs
Threshold Limit
Threshold limit means if the sum total of sales (total turnover) in the previous
year is below that limit then there will not be any liability to pay tax thereon.
Entities with turnover below INR 150 Lakhs would pay their taxes to states, which
would subsequently pass on to the Centre its share.

11. Utilization of credit
CGST
• CGST can be utilized for
the payment of IGST but
not SGST.
SGST
• SGST can be utilized for
the payment of IGST but
not CGST.
IGST
• It can be utilized for the
payment of CGST and if
whole utilization from
CGST is not possible then
it can be utilized for the
payment of SGST.
*Credit is a sum subtracted from the total amount a taxpayer owes to the government.
*Credit here means tax credit

12. • Benefit of GST will be in the following sequence
 Trader
 Service provider
 Manufacturer
Who will be benefited
Persons
Excise Duty Service tax VAT CST
Before After Before After Before After Before After
Manufactures a a a a a a r a
Traders r a r a a a r a
Service Provider a a a a r a r a
Table shows credit of
duties paid on inputs
available before and
after GST

13. Generally it is assumed that if there is increase in tax then there will be
increase in price of goods. Whereas, impact of GST on goods and services is
as below-
Refer attached MS-Excel sheet for the calculation of increase and decrease in
revenue and prices of goods and services in both the case i.e. in case of intra-
state sale and inter-state sale of goods and services.
Revenue VS Price of goods
Particulars Revenue Prices
Intra-state goods Increase Decrease
Inter-state goods Decrease Decrease
Services Increase Increase
Lets Calculate

14. Naman Garg
Rajesh ChanderAnd Associates
+91 991-01-46869
namangarg1206@gmail.com
rajeshchanderassociates@gmail.com
For any queries, contact at below details
namangarg869@gmail.com
namangargi@facebook.com
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