This document provides an overview of goods and services tax (GST) implementation in India. It discusses the complex indirect tax structure that previously existed, with various central and state taxes. GST was introduced on July 1, 2017 to simplify and harmonize India's tax system. The GST Council was established to make recommendations around GST design and administration, with decisions requiring a 3/4 majority. GST aims to make India a unified market by reducing economic distortions caused by the prior complex tax regime.
The passage discusses the history and implementation of the Goods and Services Tax (GST) in India. It outlines the long journey towards introducing GST, beginning in 2000 when the Vajpayee government proposed it. Key milestones are mentioned, such as the formation of the Empowered Committee of State Finance Ministers in 2003 and the introduction of the Constitution Amendment Bill in 2014. GST was finally launched on July 1, 2017 after years of debate and discussion between the central and state governments. The passage provides background on GST and explains some of its objectives like eliminating cascading taxes and increasing tax compliance.
The document provides an overview of key aspects of the Goods and Services Tax (GST) introduced in India, including:
1) GST is an indirect tax reform that replaced existing indirect taxes and aims to create a single, unified Indian market. It is a dual GST model where tax is imposed concurrently by the Central and State governments.
2) The 101st Constitutional Amendment paved the way for GST by giving concurrent powers to Parliament and State Legislatures to make laws governing goods and services.
3) GST is composed of Central GST (CGST), State GST (SGST), Union Territory GST (UTGST), and Integrated GST (IGST) which is
The document provides a historical background of the Goods and Services Tax (GST) in India. It details how GST was proposed in 2000 with a committee headed by Asim Dasgupta tasked to design a model for India. The government began implementing Value Added Tax (VAT) in the 2000s and the Kelkar task force in 2003 recommended a comprehensive GST based on VAT. After several discussions and drafts of the constitutional amendment bill, the bill was finally passed by the Rajya Sabha in August 2016 and ratified by the required number of states within 23 days, leading to the President signing it into law on September 8, 2016.
GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
The document provides answers to frequently asked questions about the Goods and Services Tax (GST) in India. It explains that GST is an indirect tax that will replace existing indirect taxes levied by the central and state governments. It will be administered as both a Central GST and State GST to be levied simultaneously on the supply of goods and services. Transactions within a state will be taxed with SGST and CGST, while inter-state transactions will be taxed with Integrated GST to facilitate seamless tax credits across states. An integrated GST Network and IT system will be implemented to make the GST regime simple and easy to administer.
GST is a comprehensive indirect tax regime introduced in India on July 1, 2017 that replaced multiple indirect taxes. It is levied as CGST, SGST, and IGST depending on whether a supply of goods or services is intra-state or inter-state. GST is a destination-based tax collected on value addition at every stage of supply. It aims to reduce the overall tax burden through input tax credit and eliminate cascading of taxes.
This document provides an overview of the Goods and Services Tax (GST) in India, including:
1. GST aims to simplify indirect taxation by amalgamating taxes into a single tax, reducing the tax burden on goods and making Indian products more competitive.
2. It originated in 2006 and the Constitution Amendment Bill was introduced in 2014 to allow concurrent taxation powers for the Centre and States under GST.
3. A GST Council will be formed for States and the Centre to jointly decide aspects of GST. The Bill is awaiting passage in the Rajya Sabha.
The passage discusses the history and implementation of the Goods and Services Tax (GST) in India. It outlines the long journey towards introducing GST, beginning in 2000 when the Vajpayee government proposed it. Key milestones are mentioned, such as the formation of the Empowered Committee of State Finance Ministers in 2003 and the introduction of the Constitution Amendment Bill in 2014. GST was finally launched on July 1, 2017 after years of debate and discussion between the central and state governments. The passage provides background on GST and explains some of its objectives like eliminating cascading taxes and increasing tax compliance.
The document provides an overview of key aspects of the Goods and Services Tax (GST) introduced in India, including:
1) GST is an indirect tax reform that replaced existing indirect taxes and aims to create a single, unified Indian market. It is a dual GST model where tax is imposed concurrently by the Central and State governments.
2) The 101st Constitutional Amendment paved the way for GST by giving concurrent powers to Parliament and State Legislatures to make laws governing goods and services.
3) GST is composed of Central GST (CGST), State GST (SGST), Union Territory GST (UTGST), and Integrated GST (IGST) which is
The document provides a historical background of the Goods and Services Tax (GST) in India. It details how GST was proposed in 2000 with a committee headed by Asim Dasgupta tasked to design a model for India. The government began implementing Value Added Tax (VAT) in the 2000s and the Kelkar task force in 2003 recommended a comprehensive GST based on VAT. After several discussions and drafts of the constitutional amendment bill, the bill was finally passed by the Rajya Sabha in August 2016 and ratified by the required number of states within 23 days, leading to the President signing it into law on September 8, 2016.
GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
The document provides answers to frequently asked questions about the Goods and Services Tax (GST) in India. It explains that GST is an indirect tax that will replace existing indirect taxes levied by the central and state governments. It will be administered as both a Central GST and State GST to be levied simultaneously on the supply of goods and services. Transactions within a state will be taxed with SGST and CGST, while inter-state transactions will be taxed with Integrated GST to facilitate seamless tax credits across states. An integrated GST Network and IT system will be implemented to make the GST regime simple and easy to administer.
GST is a comprehensive indirect tax regime introduced in India on July 1, 2017 that replaced multiple indirect taxes. It is levied as CGST, SGST, and IGST depending on whether a supply of goods or services is intra-state or inter-state. GST is a destination-based tax collected on value addition at every stage of supply. It aims to reduce the overall tax burden through input tax credit and eliminate cascading of taxes.
This document provides an overview of the Goods and Services Tax (GST) in India, including:
1. GST aims to simplify indirect taxation by amalgamating taxes into a single tax, reducing the tax burden on goods and making Indian products more competitive.
2. It originated in 2006 and the Constitution Amendment Bill was introduced in 2014 to allow concurrent taxation powers for the Centre and States under GST.
3. A GST Council will be formed for States and the Centre to jointly decide aspects of GST. The Bill is awaiting passage in the Rajya Sabha.
Indirect taxes are taxes collected by intermediaries in the supply chain but ultimately paid by consumers through higher prices. They contrast with direct taxes which are paid directly to the government by the person being taxed. Common indirect taxes include import duties, sales taxes, and carbon taxes. While they are a major source of government revenue, indirect taxes are often considered regressive since they place a higher relative burden on low-income individuals. They also lack transparency and can distort markets. However, they are generally convenient to administer and difficult to evade.
Constitutional Provisions To levy Taxes For G.S.T.RoopamAmbekar
This document discusses the key constitutional provisions related to goods and services tax (GST) in India. It explains that the constitution was amended to introduce GST and place it in the concurrent list, allowing both central and state governments to legislate on it. A GST Council was established under Article 279A to make recommendations on tax rates and dispute resolution. The council is chaired by the Union Finance Minister and includes state finance ministers. Inter-state GST is levied and collected by the central government under Article 269A.
The document provides an overview of the Goods and Services Tax (GST) in India. It discusses that GST is a comprehensive indirect tax replacing multiple taxes. The key points covered are the constitutional amendment for GST, the legislative framework establishing central, state and integrated GST, features of GST including the tax structure and benefits of GST such as creating a unified market, removing cascading effects of taxes, and boosting the 'Make in India' initiative.
Gst overview, gst concept and status caknowledgeRaju Choudhary
The introduction of Goods and Services Tax on 1 st of July 2017 was a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, the aim was to mitigate cascading or double taxation in a major way and pave the way for a common national market. caknowledge.com provide latest updates on GST in India
Service tax was introduced in India in 1994 on three services - telephone, insurance, and stock broking. Since then, the scope of service tax has gradually expanded to cover more services and increased rates. Currently, service tax of 14% plus cess is levied on a wide range of taxable services defined under negative list approach. The tax is levied under the constitutional authority of the central government and shared with states. Over the years, both the number of taxable services and rates of service tax have risen steadily to widen the tax base and boost government revenue from the growing services sector.
This document outlines the provisions of the Central Goods and Services Tax Act (CGST Act), 2017 in India. It provides an overview of key aspects of the Act including levy and collection of tax, input tax credit, registration requirements, tax invoices and credit/debit notes. Specifically, it notes that the CGST Act provides for the levy and collection of tax on intra-state supply of goods or services. It also summarizes some of the major chapters and provisions related to administration, determination of tax liability, registration, returns and payments.
This document provides definitions and explanations of key terms related to direct taxes, specifically income tax, in India. It discusses the differences between direct and indirect taxes, the meaning of income tax, the evolution of income tax law in India, the key laws related to income tax, and defines important terms like assessee, deemed assessee, total income, and agricultural income. The document also outlines the tax rates for the assessment year 2012-2013 in India.
The document provides an overview of the Goods and Services Tax (GST) Constitutional Amendment Bill in India. It explains that GST will create a single, unified indirect tax replacing existing central and state taxes. It will function as a dual GST with both central and state components administered jointly through a GST Council. The bill faces opposition from the Congress party over demands like capping the GST rate and changing the Council's composition.
The Goods and Services Tax (GST) is a comprehensive indirect tax on the supply of goods and services throughout India. GST is levied on manufacturing, sale, and consumption of goods and services at the national level and has replaced multiple taxes imposed by the central and state governments. There are four types of GST - Central GST, State GST, Integrated GST, and Union Territory GST. GST is implemented as a dual GST model where both the central and state governments levy GST on intra-state supplies.
This document provides answers to frequently asked questions regarding government services and GST. It explains that not all services provided by the government or local authorities are exempt from GST. It clarifies the meaning of key terms like "government" and "local authority" under the GST Acts. It also discusses the tax treatment and compliance requirements for government departments and authorities in relation to supplying services, deducting tax at source, and obtaining registrations.
A Revolutionary Reform for Indirect Tax with an Analysisof The GST Constituti...Vartika Sahu
In this present article, I have analyses inside the GST Constitutional [101stAmendment] Act 2016, various provisions, which contains 20 amendments relating to this constitutional amendment act. Since the beginning of the new Millennium, India has repeatedly flirted with the new idea of imposing a nationwide Goods and Services Tax (GST). The GST Constitutional [101st Amendment] Bill passed by the Lower House (LokSabha) in May 2015 and passed by the Upper House (RajyaSabha) on August 3, 2016, with further amendments. On August 8, 2016, the LokSabha unanimously approved the amendments, meaning the bills are aligned and the way is clear for a complete reform of indirect taxation in India. On September 8, 2016 the GST Constitutional [122nd] Bill, 2014 became the GST [101st] Act, 2016 when the president assented the provisions of bill. With the force of the empowering constitutional amendment behind it, a national GST has been implemented throughout India (except J&K) from July 1, 2017. It consider as a historic achievement, contains the amendments which are essential for the implementation of GST Regime. It subsumed various indirect taxes levied by Union and State Governments into GST thereby doing away the cascading effect of taxes and providing a one Indian market for Goods and Services. The object to bring about these amendments in the Constitution is to confer simultaneous power on Parliament and State legislatures to make laws for levying GST simultaneously on every transaction of supply of Goods, or of Services or both.
The document provides information about amendments to customs law in India through the Finance Act of 2015. Key points include:
- The penalty for non-fraudulent cases of short payment of customs duty has been reduced from 25% to 15% of the duty amount if full payment is made within 30 days of notice.
- For cases where notice was issued but an order was not passed before May 14, 2015, proceedings will be deemed concluded if full payment is made within 30 days of assent to the Finance Act of 2015.
- Recovery of duties not levied or short levied can be made upon notice to the person, and if full payment of duty and interest is made within 30 days, no penalty
India plans to implement the Goods and Services Tax (GST) in October 2012 to create a unified indirect tax system. GST will combine multiple taxes into a single tax applied to the supply of goods and services. It will be administered as two separate taxes - Central GST and State GST. Inter-state transactions will be taxed under Integrated GST. While most taxes will be subsumed, some items like petroleum products, alcohol, and electricity may remain outside the GST regime. The government is considering a revenue neutral GST rate of 18-22% but rates for goods and services have not been finalized.
CASE STUDY PAPER - GST- INTRICATE ISSUES IN ENTERTAINMENT & HOSPITALITY SEC...Ramandeep Bhatia
The document discusses various GST related issues for amusement parks and charity events. For the amusement park case study, it analyzes whether input tax credit will be available for various construction activities and components. It also examines how different ticketing options would be taxed under GST. For the charity marathon event case study, it questions whether donations collected by the trust organizing the event will be exempt from GST. Key discussion points include whether the activities can be considered charitable, and how reducing donation amounts could impact exemptions.
GST A Journey to Make India a Single Tax Economyijtsrd
Goods and Service tax is the Comprehensive levy on the goods and services at the stage of consumption. This paper will try to highlight the changes in out indirect structure that has finally resulted in the introduction of GST. This paper gives a detailed account of how we started with L.K. Jha Committee report in 1976 and ended up with 101st Constitutional Amendment Act that led to the unification of the Economy. The GST is also very important from the view of Cooperative federalism because the introduction of GST was not possible if the State and Central Government would not have forgo some of there power to tax under 7th schedule. The paper has tried to cover the whole journey of GST and the need for integrated tax structure in India. The paper will further evaluate the policy changes and its impact in past 3 years. Manisha Patawari | Dr. S. P. Srivastava "GST: A Journey to Make India a Single Tax Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31326.pdf Paper Url :https://www.ijtsrd.com/management/law-and-management/31326/gst-a-journey-to-make-india-a-single-tax-economy/manisha-patawari
The document provides an overview of the Goods and Services Tax (GST) in India. Some key points:
- GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services that will replace multiple taxes at the central and state levels.
- It is proposed to be levied as dual GST - CGST by the Centre and SGST by States on intra-state supplies, and IGST on inter-state supplies.
- GST is expected to benefit consumers through a reduction in overall tax burden, make Indian products competitive globally, and boost economic growth.
- A GST Council has been constituted to make recommendations on rates and procedures for levy of CGST, SGST
The document provides an overview of the Goods and Services Tax (GST) in India, including:
1) GST is a comprehensive indirect tax that combines taxes on goods and services into a single tax applied at the national level. It replaces existing indirect taxes levied by the central and state governments.
2) The concept and implementation of GST has a long history in India dating back to 2000, with various committees studying it and a bill being passed in 2016.
3) Key objectives of GST include creating a single, unified Indian market, boosting tax compliance and GDP, and reducing the cascading effect of taxes on goods and services.
After implementations of GST In India from 01 Jul 2017,many questions are coming to the mind of people which may or may not be right.Min of Fin Govt of India has put this information of all.
The document provides answers to frequently asked questions about the Goods and Services Tax (GST) in India. It explains that GST is an indirect tax that will replace existing indirect taxes levied by the central and state governments. It will be administered as both a Central GST and State GST to be levied simultaneously on the supply of goods and services. Transactions within a state will be taxed with SGST and CGST, while inter-state transactions will be taxed with Integrated GST to facilitate seamless tax credits across states. An integrated GST Network and IT system is being developed to facilitate online registration, returns and payments for easy compliance.
The document discusses the levy and collection of goods and services tax (GST) in India. It provides details on:
- GST subsumed multiple indirect taxes and is levied on supply of goods and services across India.
- GST is levied and collected under the Central GST Act for intra-state supplies and the Integrated GST Act for inter-state supplies. The recipient is liable to pay tax on notified supplies under reverse charge.
- For intra-state supplies, CGST and SGST/UTGST are levied simultaneously by the Central and State Governments respectively. For inter-state supplies, IGST is levied by the Central Government.
Indirect taxes are taxes collected by intermediaries in the supply chain but ultimately paid by consumers through higher prices. They contrast with direct taxes which are paid directly to the government by the person being taxed. Common indirect taxes include import duties, sales taxes, and carbon taxes. While they are a major source of government revenue, indirect taxes are often considered regressive since they place a higher relative burden on low-income individuals. They also lack transparency and can distort markets. However, they are generally convenient to administer and difficult to evade.
Constitutional Provisions To levy Taxes For G.S.T.RoopamAmbekar
This document discusses the key constitutional provisions related to goods and services tax (GST) in India. It explains that the constitution was amended to introduce GST and place it in the concurrent list, allowing both central and state governments to legislate on it. A GST Council was established under Article 279A to make recommendations on tax rates and dispute resolution. The council is chaired by the Union Finance Minister and includes state finance ministers. Inter-state GST is levied and collected by the central government under Article 269A.
The document provides an overview of the Goods and Services Tax (GST) in India. It discusses that GST is a comprehensive indirect tax replacing multiple taxes. The key points covered are the constitutional amendment for GST, the legislative framework establishing central, state and integrated GST, features of GST including the tax structure and benefits of GST such as creating a unified market, removing cascading effects of taxes, and boosting the 'Make in India' initiative.
Gst overview, gst concept and status caknowledgeRaju Choudhary
The introduction of Goods and Services Tax on 1 st of July 2017 was a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, the aim was to mitigate cascading or double taxation in a major way and pave the way for a common national market. caknowledge.com provide latest updates on GST in India
Service tax was introduced in India in 1994 on three services - telephone, insurance, and stock broking. Since then, the scope of service tax has gradually expanded to cover more services and increased rates. Currently, service tax of 14% plus cess is levied on a wide range of taxable services defined under negative list approach. The tax is levied under the constitutional authority of the central government and shared with states. Over the years, both the number of taxable services and rates of service tax have risen steadily to widen the tax base and boost government revenue from the growing services sector.
This document outlines the provisions of the Central Goods and Services Tax Act (CGST Act), 2017 in India. It provides an overview of key aspects of the Act including levy and collection of tax, input tax credit, registration requirements, tax invoices and credit/debit notes. Specifically, it notes that the CGST Act provides for the levy and collection of tax on intra-state supply of goods or services. It also summarizes some of the major chapters and provisions related to administration, determination of tax liability, registration, returns and payments.
This document provides definitions and explanations of key terms related to direct taxes, specifically income tax, in India. It discusses the differences between direct and indirect taxes, the meaning of income tax, the evolution of income tax law in India, the key laws related to income tax, and defines important terms like assessee, deemed assessee, total income, and agricultural income. The document also outlines the tax rates for the assessment year 2012-2013 in India.
The document provides an overview of the Goods and Services Tax (GST) Constitutional Amendment Bill in India. It explains that GST will create a single, unified indirect tax replacing existing central and state taxes. It will function as a dual GST with both central and state components administered jointly through a GST Council. The bill faces opposition from the Congress party over demands like capping the GST rate and changing the Council's composition.
The Goods and Services Tax (GST) is a comprehensive indirect tax on the supply of goods and services throughout India. GST is levied on manufacturing, sale, and consumption of goods and services at the national level and has replaced multiple taxes imposed by the central and state governments. There are four types of GST - Central GST, State GST, Integrated GST, and Union Territory GST. GST is implemented as a dual GST model where both the central and state governments levy GST on intra-state supplies.
This document provides answers to frequently asked questions regarding government services and GST. It explains that not all services provided by the government or local authorities are exempt from GST. It clarifies the meaning of key terms like "government" and "local authority" under the GST Acts. It also discusses the tax treatment and compliance requirements for government departments and authorities in relation to supplying services, deducting tax at source, and obtaining registrations.
A Revolutionary Reform for Indirect Tax with an Analysisof The GST Constituti...Vartika Sahu
In this present article, I have analyses inside the GST Constitutional [101stAmendment] Act 2016, various provisions, which contains 20 amendments relating to this constitutional amendment act. Since the beginning of the new Millennium, India has repeatedly flirted with the new idea of imposing a nationwide Goods and Services Tax (GST). The GST Constitutional [101st Amendment] Bill passed by the Lower House (LokSabha) in May 2015 and passed by the Upper House (RajyaSabha) on August 3, 2016, with further amendments. On August 8, 2016, the LokSabha unanimously approved the amendments, meaning the bills are aligned and the way is clear for a complete reform of indirect taxation in India. On September 8, 2016 the GST Constitutional [122nd] Bill, 2014 became the GST [101st] Act, 2016 when the president assented the provisions of bill. With the force of the empowering constitutional amendment behind it, a national GST has been implemented throughout India (except J&K) from July 1, 2017. It consider as a historic achievement, contains the amendments which are essential for the implementation of GST Regime. It subsumed various indirect taxes levied by Union and State Governments into GST thereby doing away the cascading effect of taxes and providing a one Indian market for Goods and Services. The object to bring about these amendments in the Constitution is to confer simultaneous power on Parliament and State legislatures to make laws for levying GST simultaneously on every transaction of supply of Goods, or of Services or both.
The document provides information about amendments to customs law in India through the Finance Act of 2015. Key points include:
- The penalty for non-fraudulent cases of short payment of customs duty has been reduced from 25% to 15% of the duty amount if full payment is made within 30 days of notice.
- For cases where notice was issued but an order was not passed before May 14, 2015, proceedings will be deemed concluded if full payment is made within 30 days of assent to the Finance Act of 2015.
- Recovery of duties not levied or short levied can be made upon notice to the person, and if full payment of duty and interest is made within 30 days, no penalty
India plans to implement the Goods and Services Tax (GST) in October 2012 to create a unified indirect tax system. GST will combine multiple taxes into a single tax applied to the supply of goods and services. It will be administered as two separate taxes - Central GST and State GST. Inter-state transactions will be taxed under Integrated GST. While most taxes will be subsumed, some items like petroleum products, alcohol, and electricity may remain outside the GST regime. The government is considering a revenue neutral GST rate of 18-22% but rates for goods and services have not been finalized.
CASE STUDY PAPER - GST- INTRICATE ISSUES IN ENTERTAINMENT & HOSPITALITY SEC...Ramandeep Bhatia
The document discusses various GST related issues for amusement parks and charity events. For the amusement park case study, it analyzes whether input tax credit will be available for various construction activities and components. It also examines how different ticketing options would be taxed under GST. For the charity marathon event case study, it questions whether donations collected by the trust organizing the event will be exempt from GST. Key discussion points include whether the activities can be considered charitable, and how reducing donation amounts could impact exemptions.
GST A Journey to Make India a Single Tax Economyijtsrd
Goods and Service tax is the Comprehensive levy on the goods and services at the stage of consumption. This paper will try to highlight the changes in out indirect structure that has finally resulted in the introduction of GST. This paper gives a detailed account of how we started with L.K. Jha Committee report in 1976 and ended up with 101st Constitutional Amendment Act that led to the unification of the Economy. The GST is also very important from the view of Cooperative federalism because the introduction of GST was not possible if the State and Central Government would not have forgo some of there power to tax under 7th schedule. The paper has tried to cover the whole journey of GST and the need for integrated tax structure in India. The paper will further evaluate the policy changes and its impact in past 3 years. Manisha Patawari | Dr. S. P. Srivastava "GST: A Journey to Make India a Single Tax Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31326.pdf Paper Url :https://www.ijtsrd.com/management/law-and-management/31326/gst-a-journey-to-make-india-a-single-tax-economy/manisha-patawari
The document provides an overview of the Goods and Services Tax (GST) in India. Some key points:
- GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services that will replace multiple taxes at the central and state levels.
- It is proposed to be levied as dual GST - CGST by the Centre and SGST by States on intra-state supplies, and IGST on inter-state supplies.
- GST is expected to benefit consumers through a reduction in overall tax burden, make Indian products competitive globally, and boost economic growth.
- A GST Council has been constituted to make recommendations on rates and procedures for levy of CGST, SGST
The document provides an overview of the Goods and Services Tax (GST) in India, including:
1) GST is a comprehensive indirect tax that combines taxes on goods and services into a single tax applied at the national level. It replaces existing indirect taxes levied by the central and state governments.
2) The concept and implementation of GST has a long history in India dating back to 2000, with various committees studying it and a bill being passed in 2016.
3) Key objectives of GST include creating a single, unified Indian market, boosting tax compliance and GDP, and reducing the cascading effect of taxes on goods and services.
After implementations of GST In India from 01 Jul 2017,many questions are coming to the mind of people which may or may not be right.Min of Fin Govt of India has put this information of all.
The document provides answers to frequently asked questions about the Goods and Services Tax (GST) in India. It explains that GST is an indirect tax that will replace existing indirect taxes levied by the central and state governments. It will be administered as both a Central GST and State GST to be levied simultaneously on the supply of goods and services. Transactions within a state will be taxed with SGST and CGST, while inter-state transactions will be taxed with Integrated GST to facilitate seamless tax credits across states. An integrated GST Network and IT system is being developed to facilitate online registration, returns and payments for easy compliance.
The document discusses the levy and collection of goods and services tax (GST) in India. It provides details on:
- GST subsumed multiple indirect taxes and is levied on supply of goods and services across India.
- GST is levied and collected under the Central GST Act for intra-state supplies and the Integrated GST Act for inter-state supplies. The recipient is liable to pay tax on notified supplies under reverse charge.
- For intra-state supplies, CGST and SGST/UTGST are levied simultaneously by the Central and State Governments respectively. For inter-state supplies, IGST is levied by the Central Government.
This document provides an overview of the Goods and Services Tax (GST) in India. It discusses the genesis and need for GST, the key benefits, and the constitutional amendment process. It also covers the core concepts of GST including the dual GST model and relevant definitions such as goods, services, consideration, reverse charge, and taxable person. The overview contains several tables and charts to illustrate the topics in a clear and visual manner.
This document provides an overview of Goods and Services Tax (GST) in India, including:
1) GST is a comprehensive indirect tax that will replace existing indirect taxes levied by the central and state governments. It is proposed to be implemented in India from April 2016.
2) GST is based on a value-added tax system and is levied on the supply of goods and services. It aims to create a unified national market by reducing the cascading effect of tax on the cost of goods and services.
3) The introduction of GST has been in discussion in India since 2000. A bill was introduced in parliament in 2014 and passed in 2016. GST will be implemented concurrently by
Cbec releases document on updated gst concept and statusH K Chhabra & Co.
The document provides an overview of the Goods and Services Tax (GST) in India, including:
1) GST was introduced on July 1, 2017 to simplify indirect taxes and reduce tax cascading. It amalgamated many central and state taxes into a single tax.
2) The genesis of GST began in 2006 and its introduction required amendments to the Indian Constitution to allow both central and state governments to levy GST.
3) A GST Council was constituted to make recommendations regarding GST rates, exemptions, and other features to harmonize policies between central and state governments.
The Good and services tax (GST) is the biggest and substantial indirect tax reform since 1947. The main idea of GST is to replace existing taxes like value-added tax, excise duty, service tax and sales tax. GST as it is known is all set to be a game changer for the Indian economy. India as world’s one of the biggest democratic country follow the federal tax system for levy and collection of various taxes.GST tax system plays a vital role in growth of India.GST cover 12 taxes (Like Vat, Sale tax, CST, KKC etc). GST is one of the most crucial tax reforms in India which has been long pending. It will be levied on manufacture sale and consumption of goods and services. GST is expected to address the cascading effect of the existing tax structure and result in uniting the country economically.
GST RETURN and Tally Internship report.docxGOLDY SINGH
Title: GST Return and Tally Prime: A Comprehensive Internship Report
Description:
🌐 Explore the Essence of GST and Tally Prime:
Embark on a journey through the intricacies of Goods and Services Tax (GST) and Tally Prime with our comprehensive internship report. Gain profound insights into the world of taxation, accounting, and business management.
📈 Chapter 1: Decoding GST - One Nation, One Tax, One Market:
Delve into the evolution and impact of GST in India. Uncover the rationale behind its implementation, the components of GST, and the transformative changes it brought to the taxation landscape. Investigate the challenges, regulatory framework, and major modes of tax evasion under GST.
🚀 Chapter 2: Tally Prime - Empowering Businesses for Success:
Unlock the potential of Tally Prime, a versatile business management software. Explore its core features, from seamless invoicing and inventory management to insightful business reports and efficient taxation compliance. Understand how Tally Prime simplifies credit and cash flow management, multitasking capabilities, and secure data handling.
🔍 Chapter 3: GST Return Process Simplified:
Navigate through the step-by-step process of filing GST returns. From GST registration to the submission of returns, discover the nuances of preparing and filing returns using Tally Prime. Learn about Form GSTR-3B and the vital role it plays in declaring and discharging GST liabilities.
📚 Literature Review - Insights from Tax Committees:
Gain a deeper understanding of the research context with a literature review that explores reports from prominent tax committees in India. From the Parthasarathi Shome Committee to the recent Amit Mitra Committee, witness the evolution of tax reforms and recommendations shaping the Indian tax landscape.
🔗 Research Methodology - An Exploratory Approach:
Understand the methodology employed in this research, drawing on secondary data sources, including journals, articles, newspapers, research papers, and feedback from industry experts. Explore the objectives of the study, limitations, and the significance of the chosen approach.
💡 Findings and Analysis - Unveiling Operational Realities:
Delve into the findings and analysis derived from the examination of a company's tax and financial processes. Understand the significance of accurate GST numbers and Unique Document Identification Numbers (UDIN) in maintaining transaction integrity.
🔒 Conclusions - Navigating Towards Efficiency and Compliance:
Summarize key takeaways from the research, emphasizing the importance of efficient GST processes, staff training, supplier collaboration, and regular compliance checks. Explore practical suggestions for companies to enhance their adherence to GST rules and contribute to a robust Indian tax system.
Embark on an insightful journey into the world of Goods and Services Tax (GST) with a special focus on the tech giant, Google. This presentation aims to demystify the complexities of GST, shedding light on its principles, implications, and the transformative impact it has on businesses worldwide.
The journey begins with an overview of GST, unraveling its fundamental concepts and its role in streamlining the taxation system. We explore how GST simplifies the tax structure, promotes transparency, and eliminates cascading effects, providing a comprehensive understanding of its benefits for businesses and consumers alike.
Zooming in on Google, we analyze how this global tech powerhouse navigates the intricacies of GST. From compliance to strategic financial planning, we delve into Google's approach to GST, offering real-world insights into how one of the most influential companies in the digital landscape manages its tax responsibilities.
Visual aids and infographics will illustrate the key components of GST, making the information accessible and engaging. Case studies and examples related to Google's experiences with GST will provide a practical dimension to the theoretical framework, offering a unique perspective on the challenges and opportunities presented by GST in the digital realm.
The document provides an overview of the Goods and Services Tax (GST) system implemented in India in July 2017. It discusses how GST unifies several central and state taxes into a single tax system. GST is levied on the final consumption of goods and services, with credits provided for taxes paid at previous stages. A GST Council was established to make recommendations on tax rates and policies. The implementation involved passing legislation at both the central and state government levels.
The document provides an overview of Goods and Services Tax (GST) in India, including:
1) It discusses the tax structure in India before and after the implementation of GST, replacing multiple indirect taxes with a single tax at the national level.
2) GST is levied on the supply of goods and services, with taxpayers able to claim input tax credits.
3) The genesis and development of GST in India and globally is outlined, with India establishing a GST Council to make recommendations.
4) The document details the types of GST in India, registration requirements, and benefits and disadvantages of the new system.
The Central Board of Excise and Customs has made available a FAQ that answers all your questions about the Goods and Services Tax that will come to effect starting July 1.
This document provides an overview of Goods and Services Tax (GST) in India. It begins by defining tax and the types of taxes imposed by governments, namely direct and indirect taxes. It then discusses the history and need for implementing GST in India, addressing deficiencies in the prior indirect tax regime. The key aspects of GST covered include it being a destination-based consumption tax, the dual GST model adopted in India, classification of goods and services, the four-tier GST rate structure, and exemptions. Registration requirements and benefits are also summarized.
This document provides an overview of Goods and Service Tax (GST) in India. It discusses the history of GST in India from 2000 to 2017 when it was implemented. It describes key features of GST such as applying a dual GST model concurrently by the central and state governments, categorizing goods and services into five tax slabs, and exempting certain items like petroleum from GST. The goals of GST are to replace existing indirect taxes and harmonize tax rates and structures across the country.
GST UNIT 1 learning and practice of goods and serviceshpotter46103
The document discusses Goods and Services Tax (GST) in India. It provides an overview of GST, including that it replaced multiple indirect taxes and brought uniformity to the tax structure across states. GST is a consumption-based tax that is levied as Central GST, State GST, and Integrated GST on inter-state supplies. The document outlines several key features of GST like the input tax credit mechanism, threshold exemptions for small businesses, and an online compliance system. It also discusses the benefits of GST for government, businesses, and consumers in India.
The document provides an analysis of the proposed Goods and Services Tax (GST) in India. It discusses the current status of the GST bill, which has been passed by the Lok Sabha but is pending in the Rajya Sabha. There are some issues still being debated, such as the GST rate. The document also analyzes how GST will work in India as a dual GST model with both central and state governments levying tax. It outlines the scope of goods and services to be taxed under GST and how the levy will be implemented. Overall the analysis finds that GST could boost economic growth and make India's tax regime more efficient and transparent.
OBJECTIVE
Goods and Services Tax (GST) is the Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. GST subsumed various indirect laws in the country and the led to the formation of a common national market. In this webinar, we shall understand the background and rationale for the introduction of GST in India. We shall understand the overview of the law behind GST.
this presentation gives an overview of concept of leverages in financial management. after reading this presentation you are able to understand the complete concept of leverages.
1) The document discusses the t-test for a single mean, which is used to test hypotheses about population means using small samples (n ≤ 30) that are assumed to be normally distributed.
2) It provides the formula for the t-test statistic and explains how to compare it to critical t-values to reject or fail to reject the null hypothesis.
3) An example applies the t-test to test if the average thickness of a sample of 10 washers matches the expected average thickness. The null hypothesis is not rejected.
this presentation explained about the type of obseravations in primary data collection methods. it will be used for experimental, behavioural and social sciences
six sigma is a concept applied in modern management to improve process quality of a service. it also applied in quality management and production and operations management to improve the quality of a product.
The document discusses the North West Corner method for solving transportation problems. It describes the key steps of the method which include assigning quantities to cells beginning from the top-left corner and moving either right or down until all supply and demand quantities are satisfied. An example is provided to illustrate how the North West Corner method is applied to find an initial basic feasible solution for a given transportation problem. The maximum profit for the example problem is calculated to be 27 units.
This document provides an overview of monopolistic competition. It defines monopolistic competition as a market structure with many small businesses that sell differentiated but substitutable products, allowing them some control over prices. While firms can set prices, entry of new competitors in the long run will eliminate supernormal profits and result in normal profits. The document outlines key features of monopolistic competition, including a large number of sellers, product differentiation, freedom of entry and exit, independent behavior among firms, and non-price competition. It also discusses how firms determine price and output in the short and long run under monopolistic competition.
this presentation discussed about ratio analysis and types of ratios like liquidity, solvency ratios, etc
all the images used in this presentation are collected from various sources ffrom the internet
Human resource management involves planning, organizing, directing and controlling human resources within an organization. Global or international HRM has three dimensions: human resource activities, types of employees, and countries. There are three categories of human resource activities - procurement, allocation, and utilization. The three types of employees are host-country nationals, parent-country nationals, and third-country nationals. The key countries involved are the host country where a subsidiary is located, the home country where the firm is headquartered, and other countries that supply labor, finance, and other resources.
Colby Hobson: Residential Construction Leader Building a Solid Reputation Thr...dsnow9802
Colby Hobson stands out as a dynamic leader in the residential construction industry. With a solid reputation built on his exceptional communication and presentation skills, Colby has proven himself to be an excellent team player, fostering a collaborative and efficient work environment.
Designing and Sustaining Large-Scale Value-Centered Agile Ecosystems (powered...Alexey Krivitsky
Is Agile dead? It depends on what you mean by 'Agile'. If you mean that the organizations are not getting the promised benefits because they were focusing too much on the team-level agile "ways of working" instead of systemic global improvements -- then we are in agreement. It is a misunderstanding of Agility that led us down a dead-end. At Org Topologies, we see bright sparks -- the signs of the 'second wave of Agile' as we call it. The emphasis is shifting towards both in-team and inter-team collaboration. Away from false dichotomies. Both: team autonomy and shared broad product ownership are required to sustain true result-oriented organizational agility. Org Topologies is a package offering a visual language plus thinking tools required to communicate org development direction and can be used to help design and then sustain org change aiming at higher organizational archetypes.
A team is a group of individuals, all working together for a common purpose. This Ppt derives a detail information on team building process and ats type with effective example by Tuckmans Model. it also describes about team issues and effective team work. Unclear Roles and Responsibilities of teams as well as individuals.
Enriching engagement with ethical review processesstrikingabalance
New ethics review processes at the University of Bath. Presented at the 8th World Conference on Research Integrity by Filipa Vance, Head of Research Governance and Compliance at the University of Bath. June 2024, Athens
Employment PracticesRegulation and Multinational CorporationsRoopaTemkar
Employment PracticesRegulation and Multinational Corporations
Strategic decision making within MNCs constrained or determined by the implementation of laws and codes of practice and by pressure from political actors. Managers in MNCs have to make choices that are shaped by gvmt. intervention and the local economy.
Originally presented at XP2024 Bolzano
While agile has entered the post-mainstream age, possibly losing its mojo along the way, the rise of remote working is dealing a more severe blow than its industrialization.
In this talk we'll have a look to the cumulative effect of the constraints of a remote working environment and of the common countermeasures.
A presentation on mastering key management concepts across projects, products, programs, and portfolios. Whether you're an aspiring manager or looking to enhance your skills, this session will provide you with the knowledge and tools to succeed in various management roles. Learn about the distinct lifecycles, methodologies, and essential skillsets needed to thrive in today's dynamic business environment.
12 steps to transform your organization into the agile org you deservePierre E. NEIS
During an organizational transformation, the shift is from the previous state to an improved one. In the realm of agility, I emphasize the significance of identifying polarities. This approach helps establish a clear understanding of your objectives. I have outlined 12 incremental actions to delineate your organizational strategy.
Org Design is a core skill to be mastered by management for any successful org change.
Org Topologies™ in its essence is a two-dimensional space with 16 distinctive boxes - atomic organizational archetypes. That space helps you to plot your current operating model by positioning individuals, departments, and teams on the map. This will give a profound understanding of the performance of your value-creating organizational ecosystem.
Ganpati Kumar Choudhary Indian Ethos PPT.pptx, The Dilemma of Green Energy Corporation
Green Energy Corporation, a leading renewable energy company, faces a dilemma: balancing profitability and sustainability. Pressure to scale rapidly has led to ethical concerns, as the company's commitment to sustainable practices is tested by the need to satisfy shareholders and maintain a competitive edge.
Sethurathnam Ravi: A Legacy in Finance and LeadershipAnjana Josie
Sethurathnam Ravi, also known as S Ravi, is a distinguished Chartered Accountant and former Chairman of the Bombay Stock Exchange (BSE). As the Founder and Managing Partner of Ravi Rajan & Co. LLP, he has made significant contributions to the fields of finance, banking, and corporate governance. His extensive career includes directorships in over 45 major organizations, including LIC, BHEL, and ONGC. With a passion for financial consulting and social issues, S Ravi continues to influence the industry and inspire future leaders.
1. An impact of GST in India
M JAYA CHANDRA
19L31E0007
MANAGERIAL COMMUNICATION AND SOFT SKILLS
DEPARTMENT OF MBA
2. PAGE 1
TABLE OF CONTENTS
References and bibliography
1
SNO PARTICULAR
1 introduction
2 GST in brief
3 How GST effects Indian economy
4 implementation
5 conclusion
3. PAGE 2
1
Introduction to GST
Before the implementation of Goods and services tax in India.
There is a complex tax structure in India. In this structure the
taxes are classified into two types. They are
Direct tax
Indirect tax
Direct tax: Direct tax is the tax which is charged directly on the tax payer.
For e.g. property tax and income tax.
In other words direct tax is that tax that is deducted from one's salary.
Direct taxation in India is taken care by the Central Board of Direct Taxes (CBDT); it
is a division of Department of revenue under Ministry of Finance.
Indirect Tax: Indirect tax is not directly levied on the taxpayers. This tax is often
levied on goods and services which results in their higher prices. A few examples of
indirect taxes in India include service tax, central excise and customs duty, and value
added tax (VAT).
Major Central Taxes
Income Tax
Central Goods & Services Tax(CGST)
Customs Duty
Integrated Goods & Services Tax(IGST)
Major State Taxes
State Goods & Services Tax(SGST)
4. PAGE 3
Stamp Duty & Registration
direct taxes imposed in India?
Some of the important direct taxes imposed in India are mentioned below:
Income Tax- It is imposed on an individual who falls under the
different tax brackets based on their earning or revenue and they have
to file an income tax return every year after which they will either need
to pay the tax or be eligible for a tax refund.
Estate Tax– Also known as Inheritance tax, it is raised on an estate or
the total value of money and property that an individual has left behind
after their death.
Wealth Tax– Wealth tax is imposed on the value of the property that a
person possesses.
Indirect tax imposed in india
Customs Duty- It is an Import duty levied on goods coming from outside the
country, ultimately paid for by consumers and retailers in India.
Central Excise Duty– This tax was payable by the manufacturers who would then
shift the tax burden to retailers and wholesalers.
Service Tax– It was imposed on the gross or aggregate amount charged by the
service provider on the recipient.
Sales Tax– This tax was paid by the retailer, who would then shifts the tax burden
to customers by charging sales tax on goods and service.
Value Added Tax (VAT)– It was collected on the value of goods or services that
were added at each stage of their manufacture or distribution and then finally passed
on to the customer.
Disadvantages of this indirect tax
It shows difficulty to pay the taxes by consumer.
5. PAGE 4
It is a complex structure for all types of people
Revenue generation is very difficult to the government.
It gives loses to all types of consumers.
Evolution of GST in India
The idea of a Goodsand Services Tax (GST) for India was first mooted
sixteen years back, during the Prime Ministership of Shri Atal Bihari
Vajpayee. Thereafter, on 28th February, 2006, the then Union Finance
Minister in his Budget for 2006-07 proposed that GST would be introduced
from 1st April, 2010. The Empowered Committee of State Finance Ministers
(EC), which had formulated the design of State VAT was requested to come
up with a roadmap and structure for the GST. Joint Working Groups of
officials having representatives of the States as well as the Centre were set
up to examine various aspects of the GST and draw up reports specifically
on exemptions and thresholds, taxation of services and taxation of inter-State
supplies. Based on discussions within and between it and the Central
Government, the EC released its First Discussion Paper (FDP) on GST in
November, 2009. The FDP spelled out the features of the proposed GST and
has formed the basis for the present GST laws and rules.
In March 2011, Constitution (115th Amendment) Bill, 2011 was introduced
in the Lok Sabha to enable levy of GST. However, due to lack of political
consensus, the Bill lapsed after the dissolution of 15th Lok Sabha in August
2013.
On 19th December, 2014, The Constitution (122nd Amendment) Bill 2014
was introduced in the Lok Sabha and was passed by Lok Sabha in May
2015. The Bill was taken up in Rajya Sabha and was referred to the Joint
Committee of the Rajya Sabha and the Lok Sabha on 14th May, 2015. The
Select Committee submitted its report on 22nd July, 2015. Thereafter, the
Constitutional Amendment Bill was moved on 1st August 2016 based on
political consensus. The Bill was passed by the Rajya Sabha on 3rd August
2016 and by the Lok Sabha on 8th August 2016. After ratification by
required number of State legislatures and assent of the President, the
Constitutional amendment was notified as Constitution (101st Amendment)
6. PAGE 5
Act 2016 on 8th September, 2016. The Constitutional amendment paved
way for introduction of Goods and Services Tax in India.
After GST Council approved the Central Goods and Services Tax Bill 2017
(The CGST Bill), the Integrated Goods and Services Tax Bill 2017 (The
IGST Bill), the Union Territory Goodsand Services Tax Bill 2017 (The
UTGST Bill), the Goods and Services Tax (Compensation to the States) Bill
2017 (The Compensation Bill), these Bills were passed by the Lok Sabha on
29th March, 2017. The Rajya Sabha passed these Bills on 6th April, 2017
and were then enacted as Acts on 12th April, 2017. T 2015. 6 on 08.09.2016
Thereafter, State Legislatures of different States have passed respective State
Goods and Services Tax Bills. After the enactment of various GST laws,
GST was launched with effect from 1st July 2017 by Sh.Narendra Modi,
Hon'ble Prime Minister of India in the presence of Sh.Pranab Mukherjee, the
then President of India in a mid-night function at the Central Hall of
Parliament of India.
7. PAGE 6
2
GST in brief
GST Council structure
As per Article 279A of the amended Constitution, the GST Council is a joint
forum of the Centre and the States, and consists of the following members: -
Union Finance Minister
The Union Minister of State, in-charge of Revenue, Min. of Finance
The Minister In-charge of Finance or Taxation or any other Minister nominated by each Stat
The Council is empowered to make recommendations to the Union and the
States on the following:-
(a) the taxes, cesses and surcharges levied by the Union, the States and the
local bodies which may be subsumed in the goods and services tax;
(b) the goods and services that may be subjected to, or exempted from the
goods and services tax;
(c) model Goods and Services Tax Laws, principles of levy, apportionment
of Integrated Goodsand Services Tax and the principles that govern the
place of supply;
(d) the threshold limit of turnover below which goods and services may be
exempted from goods and services tax;
8. PAGE 7
(e) the rates including floor rates with bands of goods and services tax;
(f) any special rate or rates for a specified period, to raise additional
resources during any natural calamity or disaster;
(g) special provision with respect to the States of Arunachal Pradesh, Assam,
Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,
Tripura, Himachal Pradeshand Uttarakhand; and
(h) the date on which GST shall be levied on petroleum crude, high speed
diesel, motor spirit (petrol), natural gas and aviation turbine fuel
(i) any other matter relating to the goods and services tax, as the Council
may decide.
The mechanism of GST Council would ensure harmonisation on different
aspects of GST between the Centre and the States as well as amongst the
States. It has been provided in the Constitution (One Hundred and First
Amendment) Act, 2016 that the GST Council, in discharge of various
functions, shall be guided by the need for a harmonized structure of GST
and for the development of a harmonized national market for goods and
services.
The Constitution (One Hundred and First Amendment) Act, 2016 provides
that every decision of the GST Council shall be taken at its meeting by a
majority of not less than 3/4th of the weighted votes of the Members present
and voting. The vote of the Central Government shall have a weightage of
1/3rd of the votes cast and the votes of all the State Governments taken
together shall have a weightage of 2/3rd of the total votes cast in that
meeting. One half of the total number of members of the GST Council shall
constitute the quorum at its meeting.
On 12th September,2016 the Union Cabinet under the Chairmanship of the
Hon'ble Prime Minister approved setting up of GST Council and creation of
its Secretariat as follows:
(a) GST Council as per Article 279A of the amended Constitution;
(b) GST Council Secretariat, with its office at New Delhi;
(c) Secretary (Revenue) as the Ex-officio Secretary to the GST Council;
(d) Inclusion of the Chairperson, Central Board of Excise and Customs
(CBEC), as a permanent invitee (non-voting) to all proceedings of the GST
Council;
(e) One postof Additional Secretary to the GST Council in the GST Council
Secretariat (at the level of Additional Secretary to the Government of India),
9. PAGE 8
and four posts of Commissioners in the GST Council Secretariat (at the level
of Joint Secretary to the Government of India).
The Cabinet also decided to provide for adequate funds for meeting the
recurring and non-recurring expenses of the GST Council Secretariat, which
shall be borne by the Central Government. The GST Council Secretariat
shall be manned by officers taken on deputation from both the Central and
State Governments.
Launch[edit]
The GST was launched at midnight on 1 July 2017 by the President of India,
and the Government of India. The launch was marked by a historic midnight
(30 June – 1 July) session of both the houses of parliament convened at the
Central Hall of the Parliament. Though the sessionwas attended by high-
profile guests from the business and the entertainment industry
including Ratan Tata, it was boycotted bythe opposition due to the predicted
problems that it was bound to lead for the middle and lower class
Indians.[12][13] It is one of the few midnight sessions that have been held by
the parliament - the others being the declaration of India's independence on
15 August 1947, and the silver and golden jubilees of that occasion.[13] After
10. PAGE 9
its launch, the GST rates have been modified multiple times, the latest being
on 22 December 2018, where a panel of federal and state finance ministers
decided to revise GST rates on 28 goods and 53 services.[14]
Members of the Congress boycotted the GST launch altogether.[15] They
were joined by members of the Trinamool Congress, Communist Parties of
India and the DMK. The parties reported that they found virtually no
difference between the GST and the existing taxation system, claiming that
the government was trying to merely rebrand the current taxation
system.[citation needed] They also argued that the GST would increase existing
rates on common daily goods while reducing rates on luxury items, and
affect many Indians adversely, especially the middle, lower middle and
poorerincome groups.[16].
TAX
Taxes subsumed
The single GST subsumed several taxes and levies, which included central
excise duty, services tax, additional customs duty, surcharges, state-
level value added tax and Octroi.[17][18] Other levies which were applicable
on inter-state transportation of goods have also been done away with in GST
regime.[19][20] GST is levied on all transactions such as sale, transfer,
purchase, barter, lease, or import of goods and/or services.
India adopted a dual GST model, meaning that taxation is administered by
both the Union and state governments. Transactions made within a single
state are levied with Central GST (CGST)by the Central Government and
State GST (SGST)by the State governments. For inter-state transactions and
imported goods or services, an Integrated GST (IGST)is levied by the
Central Government. GST is a consumption-based tax/destination-based tax,
therefore, taxes are paid to the state where the goods or services are
consumed not the state in which they were produced. IGST complicates tax
collection for State Governments by disabling them from collecting the tax
owed to them directly from the Central Government. Under the previous
system, a state would only have to deal with a single government in order to
collect tax revenue
HSN code
HSN is a 4 to 8-digit codefor identifying the applicable rate of GST on
different products as per CGST rules of government of India. If a company
11. PAGE 10
has turnover up to INR 15 million in the preceding financial year then they
need not mention the HSN codewhile supplying goods on invoices. If a
company has turnover more than INR 15 million but up to INR 50 million,
then they need to mention the first two digits of HSN codewhile supplying
goods on invoices. If turnover crosses INR 50 million then they shall
mention the first 4 digits of HSN codeon invoices.[22]
Rate
The GST is imposed at variable rates on variable items. The rate of GST is
18% for soaps and 28% on washing detergents. GST on movie tickets is
based on slabs, with 18% GST for tickets that costless than Rs. 100 and
28% GST on tickets costing more than Rs.100 and 28% on commercial
vehicle and private and 5% on readymade clothes.The rate on under-
construction property booking is 12% Some industries and products were
exempted by the government and remain untaxed under GST, such as dairy
products, productsofmilling industries, fresh vegetables & fruits, meat
products, and other groceries and necessities.
Checkposts acrossthe country were abolished ensuring free and fast
movement of goods
The Central Government had proposedto insulate the revenues of the States
from the impact of GST, with the expectation that in due course, GST will
be levied on petroleum and petroleum products. The central government had
assured states of compensation for any revenue loss incurred by them from
the date of GST for a period of five years. However, no concrete laws have
yet been made to supportsuchaction. GST council adopted conceptpaper
discouraging tinkering with rates.
12. PAGE 11
E-Way Bill
An e-Way Bill is an electronic permit for shipping goods any another similar
to a waybill. It was made compulsory for inter-state transport of goods from
1 June 2018. It is required to be generated for every inter-state movement of
goods beyond 10 kilometres (6.2 mi) and the threshold limit
of ₹50,000 (US$720).[29]
It is a paperless, technology solution and critical anti-evasion toolto check
tax leakages and clamping down on trade that currently happens on a cash
basis. The pilot started on 1 February 2018 but was withdrawn after glitches
in the GST Network. The states are divided into four zones for rolling out in
phases by end of April 2018.
A unique e-Way Bill Number (EBN) is generated either by the supplier,
recipient or the transporter. The EBN can be a printout, SMS or written on
invoice is valid. The GST/TaxOfficers tally the e-Way Bill listed goods
with goods carried with it. The mechanism is aimed at plugging loopholes
like overloading, understating etc. Each e-way bill has to be matched with a
GST invoice.
Transporter ID and PIN Codenow compulsory from 01-Oct-2018.
13. PAGE 12
It is a critical compliance related GSTNproject under the GST, with a
capacity to process 75 lakh e-way bills per day.
Intra-State e-Way Bill
The five states piloting this project are Andhra Pradesh, Gujarat, Kerala,
Telangana and Uttar Pradesh, which account for 61.8% of the inter-state e-
way bills, started mandatory intrastate e-way bill from 15 April 2018 to
further reduce tax evasion.[30] It was successfully introduced in Karnataka
from 1 April 2018.[31] The intrastate e-way bill will pave the way for a
seamless, nationwide single e-way bill system. Six more states Jharkhand,
Bihar, Tripura, Madhya Pradesh, Uttarakhand and Haryana will roll it out
from 20 April 18. All states are mandated to introduce it by May 30, 2018.
Reverse Charge Mechanism
Reverse Charge Mechanism (RCM) is a system in GST where the receiver
pays the tax on behalf of unregistered, smaller material and service
suppliers. The receiver of the goods is eligible for Input Tax Credit, while
the unregistered dealer is not.
In a notification on 29 January 2019, the Indian government implemented
the Reverse Charge Mechanism which started from 1 February 2019 as per
the GST acts and amendments. Exemptions up to INR 5000 were removed
effectively
Goods keptoutside the GST
Alcohol for human consumption (i.e., not for commercial use).
Petrol and petroleum products (GST will apply at a later date), i.e.,
petroleum crude, high-speed diesel, motor spirit (petrol), natural gas,
aviation turbine fuel.
14. PAGE 13
3
How GST impacts Indian Economy
Impact of GST on the Indian Economy
GST is here! How is our economyand the businesses coping with this
new tax policy? Let our experts tell you about the same.
Updated on Nov28, 2019 - 12:28:55 PM
GST the biggest tax reform in India founded on the notion of “onenation,
one market, one tax” is finally here. The moment that the Indian government
was waiting for a decadehas finally arrived. The single biggest indirect tax
regime has kicked into force, dismantling all the inter-state barriers with
respect to trade. The GST rollout, with a single stroke, has converted India
into a unified market of 1.3 billion citizens. Fundamentally, the $2.4-trillion
economy is attempting to transform itself by doing away with the internal
tariff barriers and subsuming central, state and local taxes into a unified
GST.
The rollout has renewed the hope of India’s fiscal reform program regaining
momentum and widening the economy. Then again, there are fears of
disruption, embedded in what’s perceived as a rushed transition which may
not assist the interests of the country.
Will the hopes triumph over uncertainty would be determined by how our
government works towards making GST a “good and simple tax”. The idea
behind implementing GST across the country in 29 states and 7 Union
Territories is that it would offer a win-win situation for everyone.
Manufacturers and traders would benefit from fewer tax filings, transparent
rules, and easy bookkeeping; consumers would be paying less for the goods
and services, and the government would generate more revenues as revenue
leaks would be plugged. Ground realities, as we all know, vary. So, how has
GST really impacted India? Let’s take a look.
15. PAGE 14
Reduces tax burden on producers and fosters growth through more
production. The current taxation structure, pumped with myriad tax
clauses, prevents manufacturers from producing to their optimum capacity
and retards growth. GST will take care of this problem by providing tax
credit to the manufacturers.
Different tax barriers, such as check posts and toll plazas, lead to wastage
of unpreserved items being transported. This penalty transforms into
major costs due to higher needs of buffer stockand warehousing costs. A
single taxation system will eliminate this roadblock.
There will be more transparency in the system as the customers will know
exactly how much taxes they are being charged and on what base.
GST will add to the government revenues by extending the tax base.
GST will provide credit for the taxes paid by producers in the goods or
services chain. This is expected to encourage producers to buy raw
material from different registered dealers and is hoped to bring in more
vendors and suppliers under the purview of taxation.
GST will remove the customduties applicable on exports. The nation’s
competitiveness in foreign markets will increase on account of lower costs
of transaction.
Gst: the short-term impact
From the viewpoint of the consumer, they would now have pay more tax for
most of the goods and services they consume. The majority of everyday
consumables now draw the same or a slightly higher rate of tax.
Furthermore, the GST implementation has a costof compliance attached to
it. It seems that this costof compliance will be prohibitive and high for the
small scale manufacturers and traders, who have also protested against the
same. They may end up pricing their goods at higher rates.
What the future looks like
Talking about the long-term benefits, it is expected that GST would not just
mean a lower rate of taxes, but also minimum tax slabs. Countries where the
16. PAGE 15
Goods and Service Tax has helped in reforming the economy, apply only 2
or 3 rates – one being the mean rate, a lower rate for essential commodities,
and a higher tax rate for the luxurious commodities. Currently, in India, we
have 5 slabs, with as many as 3 rates – an integrated rate, a central rate, and
a state rate. In addition to these, cess is also levied. The fear of losing out on
revenue has kept the government from gambling on fewer or lower rates.
This is very unlikely to see a shift anytime soon;though the government has
said that rates may be revisited once the RNR (revenue neutral rate) is
reached.
The impact of GST on macroeconomic indicators is likely to be very
positive in the medium-term. Inflation would be reduced as the cascading
(tax on tax) effect of taxes would be eliminated. The revenue from the taxes
for the government is very likely to increase with an extended tax net, and
the fiscal deficit is expected to remain under the checks. Moreover, exports
would grow, while FDI (Foreign Direct Investment) would also increase.
The industry leaders believe that the country would climb several ladders in
the ease of doing business with the implementation of the most important tax
reform ever in the history of the country.
17. PAGE 16
4
Implementation of GST
Implementation
The year 2017 will forever be etched in Indian history as the year that saw
the implementation of the biggest and most important economic reform
since Independence - the Goods and Services Tax (GST). The reform that
took more than a decadeof intense debate was finally implemented with
effect from 1 July 2017, subsuming almost all indirect taxes at the Central
and State levels.
GST, which was publicised as ‘one nation, one tax’ by the government, aims
to provide a simplified, single tax regime in line with the tax framework
applicable in several major economies across the Globe. This single tax has
helped streamline various indirect taxes and brought in more efficiencies in
business. GST law in India is a comprehensive, multi-stage, destination-
based tax that is levied on every value addition.
The implementation of the GST got overwhelming supportfrom the
industry. The industry took this as an opportunity to redefine supply-chain
model, customise IT processes, and evaluate internal and external
arrangements to safeguard interest and minimise their tax costs.
As the GST journey progressed, there was a growing realisation of its far-
reaching impact. Industry faced various challenges, ranging from new and
unique concepts, complex documentation, high tax rates of certain goods
and services to complex or unclear treatment of several common
transactions. The matching conceptfor claiming credits, adverse and
18. PAGE 17
contrary advance rulings, ambiguity on aspects relating to Anti-Profiteering,
GST refunds etc. are some of the emerging challenges that the businesses
should be mindful of.
However, it should also be appreciated that the authorities have been quick
to address public concerns by issuing a series of notifications, clarifications,
press releases and FAQs, to resolve a wide range of issues.
There is hope that GST 2.0, which is at the works currently, will be a much
improved version compared to the first one. The government has come out
with new return filing process. There have been multiple reduction in tax
rate for various goods. With the objective to curb tax evasion, the
government has also introduced the E-way bill system across India, to track
movement of goods.
LEVY OF GST
It is a dual levy with State/Union territory GST and Central GST
Intra-state supplies attract CGST + SGST/UTGST
Inter-state supplies IGST which is the sum total of CGST and
SGST/UTGST
Exclusions under gst
Basic Customs duty on import of goods into India
Petroleum products (petrol, diesel, ATF, natural gas and crude oil)
Alcohol for human consumption
Stamp duty and Real Estate
19. PAGE 18
GST rate classification
0% - Essential food and medicines, newspaper, education services,
residential accommodation
0.25% - Diamonds, other precious stones
3% - Gold, silver, platinum, articles of jewellery
5% - Common use items, sweets, restaurant services, tour operator services
12% - Frozen meat, butter and cheese, Namkeens, Milk beverages
18% - Standard rate for goods and services
28% - Luxury and sin goods suchas motor vehicles (additional cess imposed
on certain luxury goods)
20. PAGE 19
5
Conclusion
BENFITS OF GST TO INDIAN ECONOMY
Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD,
SAD, and Excise.
Less tax compliance and a simplified tax policy compared to current tax
structure.
Removal of cascading effect of taxes i.e. removes tax on tax.
Reduction of manufacturing costs due to lower burden of taxes on the
manufacturing sector. Hence prices of consumer goods will be likely to
come down.
Lower the burden on the common man i.e. public will have to shed less
money to buy the same products that were costly earlier.
Increased demand and consumption of goods.
Increased demand will lead to increase supply. Hence, this will ultimately
lead to rise in the production of goods.
Control of black money circulation as the system normally followed by
traders and shopkeepers will be put to a mandatory check.
Boost to the Indian economy in the long run.
Wider tax base
Elimination of cascading effect of multiple indirect taxes
Rationalisation of tax structure