full gst presentation including updates

2. TAXATIONS POWERS VESTS WITH-
STATEUNION
1. Income Tax
2. Excise Duty
3. Custom Duty
4. Service Tax
5. Central Sales Tax
6. Stamp Duty
(Rates of Stamp Duty on 10 specified instruments)
1. VAT/Sales Tax
2. Stamp Duty
3. Tax on
betting,gambling
4. Toll Tax
5. Other Taxes-entry tax,
sale or consumption
of electricity, luxury
tax , etc.

3. Present- tax system suffer from
Confusion and mistrust
Complex and lacking in stability
High transactions cost
Narrow base
To much litigations
Highly corruption etc.
No state tax on imports

4.  Goods and service tax is a comprehensive tax
levy on manufacturer, sale and consumption of
goods and services at national level.
 GST includes many state and central level
indirect tax.
 It overcomes drawback present tax system.
 It is leviable at each point of sale or provision of
service

5. GST: A UNIFICATION OF TAXES
• A GST classically entails unification of all levies on goods and
services. In the Indian context, this would mean merging the
following:
• Tax on manufacture of goods (excise duty levied by the
Centre).
• Tax on sale of goods (CST / VAT levied by both Centre and
states).
• Tax on services (levied by Centre and to some extent by states
such as Entertainment tax, electricity cess, etc).

6. GST WORLDWIDE APPLICABLITY-
(more than 140 countries have introduced GST)
In present, 165 countries has been
implemented GST TAX STRUCTURE in the
world.
PAKISTAN – 18%

8. GST JOURNEY-
GST introduced after 13 years
First discussed in report of kelkar
Task Force on indirect tax.
Proposal to introduce GST by 1st April 2010
was first mooted in the budget speech of FY
2006-07
For designing roadmap- Empowered
Committee of State Finance Minister
Standing Committee of Finance of
Parliament- for examination and
reports

9. GST-Journey so far
• FEB 2006- First time introduced concept of GST
and announced the date of its
implementation in2010.
• Feb. 2007- F.M. announced introduction of GST
from 1 April 2010 in budget.
• May 2007- Joint working group formed by EC and
they submits their report.
• July 2009- FM announces commitment to bring
GST from April 2010.
BUDGET 2010- FAILED TO APPLY GST
BUDGET 2011- FAILED TO APPLY GST
BUDGET 2012- FAILED TO APPLY GST

11. IN 2014
• The constitution (122nd amendment) Bill,2014 was introduced in
the Lok Sabha (16th)by Finance Minister Arun Jaitley on 19th
December 2014.
The bill was passed by the
LOK SABHA house on 6th may
2015.
Then govt. attempted to
move the bill for
consideration in Rajya Sabha
on 11th may 2015.
FAVOUR AGAINST
352 37
PASS

13. ON 3RD AUG. 2016
voting on GST BILL in Rajya Sabha-
FAVOUR AGAINST
203 0
PASS

14. THE ROAD AHEAD-
Then the bill has to be passed in at least 50% of
the state legislatures (i.e. 15 out of 29 states) by a
way of simple majority. Then it will sent to the
president for its approval.
IT HAS TO BE IMPLEMENTED IN INDIA FROM
1ST APRIL 2017After Presidential assent, a GST council comprising
representatives from the States and the Centre will be setup.
The council will help codify central GST and State GST laws
which would be passed by Parliament and State assemblies.

15. GST IS ON THE WAY-------
The GST bill needs to be ratified by at
least 15 STATE LEGISLATURES before the
president can notify the GST council
which will decide the new tax rate and
other issues.

16. STATES RATIFICATION DATE
1) ASSAM 12 August
2) BIHAR 16 August
3) JHARKHAND 17 August
4) HIMACHAL PRADESH 22 August
5) CHHATISGARH 22 August
6) GUJARAT 23 August
7) MADHYA PRADESH 24 August
8) DELHI 24 August
9) NAGALAND 26 August
10) MAHARASTRA 29 August
11) HARYANA 29 August
12) SIKKIM 30 August
13)TELANGANA 30 August
14) MIZORAM 30 August
15)GOA 31 August
16)ODISHA 1 September

17. STATES RATIFICATION DATE
17) Puducherry 2 Sept.
18) Rajesthan 2 Sept.
19) Andhra Pradesh 8 Sept.
20)Arunachal Pradesh 8 Sept.
21) Meghalaya 9 Sept.
22) Punjab 12 Sept.
23) Tripura 26 Sept.

18. States ratified GST BILL

20. Gst council meeting on 22nd and 23rd
September -
 The council agreed to an exemption threshold
of Rs. 20 lac for all the states except the north
east and all hill area states i.e. of 10lac.
 Formula for compensating states.
(center will pay quarterly or bi-monthly)
 Gst council also agreed to settle 2015-2016 as
the base year for calculating the compensation.

21. Administrative control issue- state will have sole jurisdiction
over assesses having a turnover of rs. 1.5crore or less. In case
turnover exceeding that limit, the administrative control will
be jointly of both the center and the state.

22. Gst council meeting on 30th September
outcomes-
GST council finalized rules for registration,
rules for payments, returns, refunds and
invoices. With this as many as six issues have
been settled by the council.

23. Gst council meeting 17-19th October
outcomes-
• Rates were not finalized.
6% 12% 18%
26%

24. The five bands of tax rates have been
fixed at 3rd Nov. meeting of council
0% 5% 12% 18%
28%

25. Another category of tax rates-
40% 65%
 Food grains will be zero rated to insulate people
from inflationary pressure.
 There has been no consensus yet on the tax rate
of gold.

26. Rs. 50000crore as
compensation

27. 0% on-
• 53% of the good of CPI basket will attract no
tax.
• Food grains

28. 5% on-
• Items for mass consumption
• (the use or purchase of goods or services by
large no. of people)

30. DUAL GST MODEL
 SGST- State GST, collected by the State Govt.
 CGST- Central GST, collected by the Central Govt.
 IGST- Integrated GST, collected by the Common Centralized
Authority.
NOTE-CGST,SGST & IGST would be levied at the rates to be mutually agreed
upon by the center and the states under the ward of the GOODS AND SERVICE
TAX COUNCIL.

31. TAXES TO BE COVERED IN GST
CENTRAL GST
1. Central Excise Duty
2. Service Tax
3. Additional Excise Duty
4. Additional duty and special
additional duty of customs
5. Central cess and surcharges.
STATE GST
1. Value added tax /sales tax
2. Entertainment tax
3. Central sales tax
4. Octroi and entry tax
5. Purchase tax
6. Luxury tax
7. Taxes on lottery, betting, and
gambling
8. State cess and surcharges
Note- ALCOHOLIC BEVERAGES FOR HUMAN CONSUMPTIONS ARE
PROPOSED TO BE KEPT OUT OF THE PREVIEW OF GST.

33. HOW DOES GST WORK-
Product A VAT system GST system
Base price 100 100
+12% Excise Duty 12 NA
+12.5% VAT 14 NA
State GST NA *
Centre GST NA *
TOTAL TAX BURDEN 26 18
Value of product to
consumer
126 118

34. Pros.
• An end of cascading effect
• Growth of revenue in states
and unions
• One point single tax
• Reduces the corruption
• Reduce after tax burden
• Reduces transaction cost
and unnecessary items.
Cons.
• A domination Centre
• Note a good choice for some
states
• More rates of tax
• Required strong information
and technology.
• They decided all the things on
the way and during the way.
• Inflation may have to face by
the people.

36. After GST-
What become cheaper
( 30-31% then28% or 18%)

39. What become expensive-
(25-35% then 40-65%)

40. All tobacco
products-

41. Impact of GST on economy-
SECTORS CHANGES
AFTER GST
IMPACT
 Banks 18% to 15% negative
 Pharmaceuti
cal
15% to 18% negative
 Real estate 15% to 16% Negligible
impact
 Media 22% to 18% positive
 Telecom 15% to 18% negative
 Auto
mobiles
27% to 18% positive
 Cement 27% to 18% positive

42. Hurdles in implementation-
Disputes between center and Tax over Tax
Sharing
Highly sophisticated IT infrastructure required.
Issue of taxing financial services and e-
commerce is to be appropriately addressed
and integrated
Political imbalance

44. 1. WHAT IS THE MAIN MOTIVE OF GOVT. BEHIND GST ?
2. HOW DOES GST LEAD TO INFLATION?
3. GST CAN BE PASSED IN 2015 BUT WHY IN 2016?
4. TOTAL NO. OF INDIRECT TAXES THAT ARE SUBSUMED IN GST?
5. HOW DOES GST LEAD TO BOOST THE GDP BY 2%?
6. WHY EXPERTS SAID THAT GST CAN BE IMPLEMENT FROM AUG
OR OCT NOT FROM APRIL 2018?
7. WHY MARUTI SUZUKI SAID THAT THERE WILL BE NO BAD
IMPACT ON INDUSTRY DUE TO SUB RATES?
8. CAN U DEFINE THE TERM LUXURY IN CASE OF CARS?
9. WHY CESS SHOULD NOT BE CHAREGED BUT U CAN INCREASE
THE TAX RATE?
10. IF U HAVE TO GAVE % THAT HOW MUCH PERCENT GST SHALL
GAVE RELIEF TO COMMON PEOPLE OF INDIA?

45. Experts in GST reviews-
M S Mani, Senior Director, Indirect Tax,
Deloitte India
Chief Economic Adviser
Arvind Subramanian

46. Former CBEC Chairman
Sumit Dutt Majumder
International Tax Expert
TP Ostwal
Mr. Arun Malhotra,
Managing Director, Nissan
Pawan Goenka
Mahindra & Mahindra head

47. Does GST will provide relief to
common people-
0%
10%
20%
30%
40%
50%
60%
70%
yes no
Series 1
yes
no