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1. Approved by AICTE, Permanently Affiliated to SP Pune
University, Recognized by DTE, Government of Maharashtra,
NAAC Re-accredited
INSTITUTE OF INDUSTRIAL COMPUTER MANAGEMENT
AND RESEARCH(IICMR)
SubmittedT
o:
Dr.Madhura Deshpande
Submitted By:
Shivani Yadav
Indirect Taxes.

2. Introduction
Indirect taxes are levied on goods and services, rather than
directly on income or wealth.They are collected by
businesses on behalf of the government and passed on to
consumers as part of the final price. Indirect taxes can have
a significant impact on both businesses and consumers, and
it is important to understand the different types of indirect
taxes and how they work.

3. Types of IndirectTaxes
I. ValueAddedTax(VAT)
II. ExciseTaxes
III. SalesTaxes
IV. GoodsandServicesTax
(GST)
V. Customs tax

4. Value AddedTax (VAT)
Value AddedTax (VAT) is a tax on the value added to
goods and services at each stage of production and
distribution. It is a consumption tax that is ultimately
borne by the end consumer.
•VAT is a common tax system used in over 160
countries around the world.
•VAT is a major source of revenue for governments,
accounting for approximately 20% of global tax
revenue

5. ExciseTaxes
Excise taxes are taxes on specific goods, such as
alcohol, tobacco, and gasoline.These taxes are often
included in the price of the product and paid by the
consumer at the point of sale.

6. Impact of ExciseTaxes on
Businesses and Consumers
Excise taxes can have a significant impact on both
businesses and consumers. For businesses, excise
taxes can increase the cost of production and
decrease profit margins. For consumers, excise
taxes can result in higher prices for goods and
services.

7. SalesTaxes
Sales taxes are taxes imposed on the
sale or transfer of goods and services.
They are typically calculated as a
percentage of the sale price and are
collected by the seller, who then
remits the tax to the government.

8. Impact on SalesTaxes
Businesses and Consumers
Sales taxes can have a
significant impact on both
businesses and consumers. For
businesses, sales taxes can
increase the cost of goods sold
and may require additional
administrative work to collect
and remit the tax. For
consumers, sales taxes
increase the price of goods
and services, reducing their
purchasing power.

9. CustomsTax
Customs taxes, a type of indirect
tax, is charged on all imported
commodities and some items that
are exported outside of the
country. Import tariffs and export
duties are terms used to describe
taxes imposed on the import and
export of products, respectively

10. Goods and Services
Tax (GST)
The Goods and Services Tax (GST) is a value-
added tax that is levied on the supply of
goods and services. It is a comprehensive tax
system that has replaced many indirect taxes
in India and other countries.
•GST is a destination-based tax, which
means that it is levied at the point of
consumption rather than at the point of
origin.
•It is a multi-stage tax that is charged on
each stage of the supply chain, from the
manufacturer to the consumer.
•GST rates vary depending on the type of
goods or services supplied, with some items
being exempt from GST

11. Genesis Of GST
The idea of a nationwide GST in India
was first proposed by the Kelkar Task
Force on Indirect taxes in 2000. The
objective was to replace the prevailing
complex and fragmented tax structure
with a unified system that would simplify
compliance, reduce tax cascading, and
promote economic integration

12. Need Of GST
GST is justified as it has covered almost all the services for taxation. Since major state and
central indirect taxes are included under GST, the multiplicity of taxes has been substantially
reduced, reducing the operation cost of the national tax system

13. CGST - CGST stands for CentralGoods and Services tax. It replaced all the previous taxes
under the CentralGovernment. Some examples of such taxes are central
surcharges & cess and central excise duty.CGST is levied on the movement of
goods within a state
SGST -The GST collected by the State Government is known as SGST, which is applicable
on transactions within its geographical boundaries. Under the new tax regime,
previous state taxes like entertainment tax,VAT, and State Sales tax became non-
functional.
SGST stands for State Goods and Services tax, a single tax levied on intrastate
supplies of goods and services, except for alcoholic liquor. It can be charged solely
on a product’s transactional value – an amount the buyer needs to pay.
SGST features might vary state-wise since each State Government has individual
acts. However, specific characteristics like taxable events, valuation, classification
of goods and services, and measures are similar across the nation.
Thus, this tax embodies the objective of this new tax regime: one tax, one nation.
Refer to the table below to learn the maximum rate of SGST.

14. IGST - GST stands for Integrated Goods and Services tax. It is generally applicable during interstate
transactions, i.e., transactions between two different states. Among the types of GST, it’s levied on
supplies of products and services between two states and even on exports and imports (IGST +
customs).The Central Government is responsible for its collection as per the IGST Act.
UTGST - UTGST stands for UnionTerritory Goods and Services tax, applicable to the transaction of
goods and services in the UnionTerritories. It is levied on the supply of products in Andaman and
Nicobar Islands, Lakshadweep, Daman Diu, Chandigarh, and Dadra and Nagar Haveli.
Note that UTGST is only applicable on UnionTerritories without a legislature.
Hence, Delhi, Puducherry, and even the newly formed UTs of Jammu & Kashmir are not liable
for UTGST but SGST. Simply understanding the UTGST meaning is not sufficient.You must also
know the applicable rates.
This tax is collected by the Central Government and is a substitute for the State Goods and
Services tax in UTs.Thus, the UTGST percentage is similar to that of SGST, which are 2.5%, 6%,
9%, and 14%.
Furthermore, after understanding the types of GST and rates associated with them, it is vital to
know that some products are taxed at 0%. Meat from mammals, birds and fish do not draw such
a tax. Additionally, sanitary napkins, bananas, apples, and grapes are other tax-free products

15. GSTN - Goods and ServicesTax Network (GSTN) has built IndirectTaxation platform
for GST to help taxpayers in India to prepare, file returns, make payments of
indirect tax liabilities and do other compliances.
In addition to providing a single platform for filing taxes, GSTN also plays an
important role in the management of GST law. It helps the government to
track the GST revenues collected from taxpayers and to ensure that the
correct amount of taxes are collected from them.

16. GST Council
The GSTCouncil, consisting of the Union Finance Minister
and representatives from all States and UnionTerritories,
was established to make decisions on various aspects of
GST, including tax rates, exemptions, and administrative
procedures. It played a crucial role in shaping theGST
framework in India.Finalizing the principles for revenue
distribution between the Central and State governments.
Formulating the rules and regulations for the smooth
functioning ofGST. Resolving disputes and differences
arising between the Central and State governments in the
context of GST.

17. Roles Of GST Council
•Determining the tax rates, tax base, and exemptions for goods and services under
GST.
•Finalizing the principles for revenue distribution between the Central and State
governments.
•Formulating the rules and regulations for the smooth functioning ofGST.
•Resolving disputes and differences arising between the Central and State
governments in the context of GST.
•Recommending measures to improve the overall tax system and ensure a
harmonized tax structure across the country

18. Phases Of GST Council
As per Article 279A (4), the
Council will make
recommendations to the Union
and the States on important
issues related to GST, like the
goods and services that may
be subjected or exempted from
GST, model GST Laws,
principles that govern Place of
Supply, threshold limits, GST
rates including the floor rates
with bands

19. Constitutional provisions
to enforce Indirect taxes
and GST
Article 269(A) of the Constitution of India was
inserted by the 122nd Amendment of the
Constitution in 2017.This article gives the power to
collect goods and services tax (GST) on supplies in
the course of inter-state trade or commerce to the
Government of India.The proceeds of this tax are
then apportioned between the Union and the
States in the following manner:
50% of the proceeds are directly apportioned to the
States.
The remaining 50% is credited to the Consolidated
Fund of India (CFI). Out of this amount, a prescribed
percentage is then distributed to the States

20. CESS
Article 270 of the
Constitution allows cess to
be excluded from the
purview of the divisible pool
of taxes that the Union
government must share
with the States