The document provides an overview of the Goods and Services Tax (GST) system that is being introduced in India. It discusses the history and development of GST in India, the key features of GST including the different tax rates that will apply to goods and services, and the overall benefits of moving to a GST system. GST aims to create a single, unified Indian market by replacing existing indirect taxes and harmonizing rates and rules across states.

1. CREATED BY
TAX MASTER

2. INDEX :
 INDIA’S EXISTING TAX SYSTEM
 HISTORY OF GST
 INTRODUCTION ON GST
 MILESTONE OF GST
 MODEL OF GST
 FEATURES OF GST
 NEED OF GST
 BENEFITS OF GST
 GST RATES STRUCTURE
 GST RATES ON SERVICES
 GST RATES ON GOODS

3. INDIA’S EXISTING TAX SYSTEM

4. HISTORY OF GST
 The GST or the Goods and Services Tax, is a new tax regime being
introduced in India and will be levied on all transactions of goods and
services made for a consideration. When implemented, the new levy will
replace almost all the indirect taxes at both central and state levels.
Internationally, GST was first introduced in France and now more than 160
countries have introduced it. Most countries, depending on their own
socio-economic formation, have introduced National level GST or Dual
GST. Malaysia is a recent entrant to have introduced GST on April 1, 2015.
In India, the GST is expected to come into effect by July 2017.

5. INTRODUCTION ON GST
 GST is a tax that we need to pay on supply of goods & services. Any person, who is
providing or supplying goods and services is liable to charge GST.
 Goods and Services Tax (GST) is an indirect tax reform which aims to remove tax
barriers between states and create a single market.
 The main expectation from this system is to abolish all indirect taxes and only GST
would be levied. As the name suggests, the GST will be levied both on Goods and
Services.

6. MILESTONE OF GST
2000
• The Vajpayee Government started discussion on GST by setting up an
empowered committee.
2002-04
• The Kelkar Task force on the implementation of FRBM Act,2003 and
suggested comprehensive GST
2006
• The proposal to introduce GST was first mooted in the budget speech
(2006-07)
Continue.......

7. Continued.........
2007
• Empowered Committee started work on GST roadmap
• The Joint Working Group submitted its report to the empowered committee.
2008
• Empowered Committee finalized views over GST and submitted report titled
“ A MODEL AND ROADMAP FOR GST IN INDIA”
2009
• First discussion paper released by empowered committee
Continue........

8. Continued........
2010
• Mentioned in the speech of Finance Minister- GST to be introduced in April
2011
2011
• The Bill introduced in Loksabha for levy of GST on all goods or services except
for the specified goods
2013
• Standing Committee submitted its report on GST
• Empowered Committee rejected government’s proposal to include petroleum
products
Continue......

9. Continued.........
2014
• Bill passed in loksabha for levy of GST which enables the introduction
of GST probably by April 2016
2016
• Bill passed by Rajyasabha
2017
• GST council clears state GST and Union Territory GST laws

10. MODEL OF GST
GST
INTRA STATE
MOVEMENT
INTER STATE
MOVEMENT
CGST SGST IGST

11. FEATURES OF GST
CENTRAL TAXES TO SUBSUMED STATE TAXES TO SUBSUMED
 Central Excise Duty (CENVAT)  State VAT / Sales Tax
 Additional Duties of Excise  Central Sales Tax (CST)
 Excise Duty levied under medicinal &
toiletries preparation Act
 Purchase Tax
 Additional Duties of Customs (CVD &
SAD)
 Entertainment Tax
 Service Tax  Luxury Tax
 Surcharges & Cess  Entry Tax (All forms)
 Taxes on Lottery, Betting & Gambling
 Surcharges & Cess
TAXES TO BE SUBSUMED :

12. NEED OF GST
 VAT rates and regulations differ from state to state. And it has been
observed that states often resort to slashing these rates for attracting
investors. This results in loss of revenue for both the Central as well as
State government.
 GST brings in uniform tax laws across all the states spanning across
diverse industries. Here, the taxes would be divided between the Central
and State government based on a predefined and pre-approved formula.
In addition, it would become much easier to offer services and goods
uniformly across the nation, since there won’t be any additional state-
levied tax.

13. BENEFITS OF GST
 Easy compliance
 Removal of cascading of taxes
 Improved competitiveness
 Facilitating manufacturers and exporters
 Uniformity of tax rates and structures
 Single and transparent tax
 Relief in overall tax burden

14. GST RATES STRUCTURE
0% 5% 12%
18% 28%

15. GST RATES ON SERVICES
SI NO DESCRIPTION OF SERVICES TAX RATES
1. Selling of space for advertisement in print media 5%
With Full ITC
2. Services by way of job work in relation to printing of newspapers 5%
With Full ITC
3. Supply of tour operators’ services 5%
No ITC
4. Transport of goods by rail 5% with ITC of
input services
5. Transport of passengers by rail (other than sleeper class) 5% with ITC of
input services
6. Transport of passengers by air in economy class 5% with ITC of
input services
7. Renting of motorcab (If fuel cost is borne by the service recipient,
then 18% GST will apply)
5%
No ITC
NOTE: IT’S NOT THE COMPLETE LIST OF SERVICES TAXABLE @ 5%

16. CONTINUED...............
SI NO DESCRIPTION OF SERVICES TAX RATES
8. Transport of goods in containers by rail by any person other than
Indian Railways
12%
(With Full ITC)
9. Transport of passengers by air in other than economy class 12%
(With Full ITC)
10. Services provided by foreman of chit fund in relation to chit 12% with ITC of
input services
11. Supply of Food/drinks in restaurant not having facility of air-
conditioning or central heating at any time during the year and
not having license to serve liquor
12%
(With Full ITC )
12. Temporary transfer or permitting the use or enjoyment of any
Intellectual Property (IP) to attract the same rate as in respect of
permanent transfer of IP;
12%
(with full ITC)
NOTE: IT’S NOT THE COMPLETE LIST OF SERVICES TAXABLE @ 12%

17. CONTINUED............
SI NO DESCRIPTION OF SERVICES TAX RATES
13. Supply of Food/drinks in restaurant having license to serve
liquor
18%
(With Full ITC)
14. Supply of Food/drinks in restaurant having facility of air-
conditioning or central heating at any time during the year
18%
(With Full ITC)
15. Supply of Food/drinks in outdoor catering 18%
(With Full ITC)
16. Services by way of admission or access to circus, Indian
classical dance including folk dance, theatrical performance,
drama
18%
(With Full ITC)
17. Composite supply of Works contract as defined in clause 119
of section 2 of CGST Act
18%
(With Full ITC)
NOTE: IT’S NOT THE COMPLETE LIST OF SERVICES TAXABLE @ 18%

18. CONTINUED............
SI NO DESCRIPTION OF SERVICES TAX RATES
18. Services provided by a race club by way of totalisator or a
licensed bookmaker in such club
28%
(With Full ITC)
19. Gambling 28%
(With Full ITC)
20. Supply of Food/drinks in air-conditioned restaurant in 5-star or
above rated Hotel
28%
(With Full ITC)
21. Accommodation in hotels including 5 star and above rated
hotels, inns, guest houses, clubs, campsites or other
commercial places meant for residential or lodging purposes,
where room rent is Rs 5000/- and above per night per room
28%
(With Full ITC)
NOTE: IT’S NOT THE COMPLETE LIST OF SERVICES TAXABLE @ 28%

19. GST RATES ON GOODS
EXEMPTED GOODS(0%)
No tax will be imposed on items like
milk, eggs, fresh meat, bread, salt,
butter milk, natural honey, fresh fruits
& vegetables, stamp, judicial paper,
printed books, newspaper ,handlooms
etc..

20. CONTINUED.............
TAX @5%
This tax rate is imposed on cream,
branded paneer, frozen vegetables, tea,
coffee, coal, kerosene, lifeboats,
skimmed milk powder, fish fillet, pizza
bread, rusk, sabudana, vanilla,
cinnamon, cloves etc..

21. CONTINUED............
TAX@12%
This rate of tax is imposed on live horses,
pig fat, edible flours & meals of meat,
butter, ghee, cheese, dry fruits, starches,
fruit juices, ice & snow, soya milk drinks,
tender coconut water put up in unit
container, marble & granite blocks etc...

22. CONTINUED..........
TAX@18%
This tax rate is imposed on condensed
milk, malt, vegetable waxes, pasta,
pastries & cakes
Corn flakes, jams, fruit jellies, sauces, ice
cream, vinegar, mineral water, camera,
speaker, steel products etc...

23. CONTINUED................
TAX@28%
Molasses, chewing gum, white chocolate
not containing cocoa, cocoa butter,
shaving cream,
After shaving lotion, hair shampoo,
wafers coated with chocolate, water
heater, washing machine, pan masala,
ATM vending machine, vacuum cleaner,
motor cycle, automobiles
Ceramic tiles etc..