GST (Good and services Tax)

1. Biggest Tax Reform Since Independence…..
By Rahul Kumar(132073405)

2. Tax Structure in India
• Direct Tax :
e.g.: Income Tax, Corporate Tax, Wealth Tax
• Indirect Tax :
e.g.: Excise duty, custom duty, Service Tax, Octrai Tax,
VAT.

3. Method Of Taxation
Progressive Tax :
Increasing rate of tax for Increasing Value or
Volume.
Regressive Tax :
Decreasing rate tax for Increasing Value or Volume
Proportional Tax :
Fixed rate of tax for every level of income or production

4. Short comings in current
Tax System
 Tax Cascading (Tax on Tax)
 Complexity
 Taxation at Manufacturing Level
 Exclusion of Services
 Tax Evasion
 Corruption

5. Gst
• Goods and service tax (GST) is a comprehensive tax levy on
manufacture, sale and consumption of goods and service at a
national level.
• Gst is a tax on goods and services with value addition at each
stage.
• Gst will include many state and central
level indirect taxes.
• It overcomes drawback present tax system

6. Model Of GST
GST Structure
centre GST
GST to be levied by the
Centre
State GST
GST to be levied by the
State
Dual GST
GST to be levied by the Centre and the States
concurrently

7. Proposed GST Rate
Presently it is (26.5 % , CENVAT-14 % and State VAT
12.5% )
Items Total GST rates
(in %)
Centre State
Goods 20 12 8
Services 16 8 8
Essential
Goods
12 6 6

8. EXAMPLE OF GST SYSTEM

9. Product Excluded from
GST
Petroleum Product
Alcohol
Tobacco Product

10. Benefits of GST
Transparent Tax System
Uniform Tax system Across India
Reduce Tax Evasion
Export will be more competitive

11. Critics say that GST would impact negatively on the real estate market.
It would add up to 8 percent to the cost of new homes and reduce
demand by about 12 percent.
Some Economist says that CGST, SGST and IGST are nothing but new
names for Central Excise/Service Tax, VAT and CST and hence
GST brings nothing new for which we should cheer.
Demerit of GST

12. Hurdles in Implementation
Dispute between centre and Tax over Tax Sharing
Highly sophisticated IT infrastructure required .
Issue of taxing e-commerce is to be appropriately addressed and
integrated.
Political Imbalace

13. Why does India Need GST
• GST is being introduced majorly due to 2 reason
1. The current indirect tax structure is full of uncertainties due to multiple
rates.
2. Due to multiple rates there are multiple forms.
• GST the tax complexity in the prevailing tax regime.

14. Thank You