Benefits and impact of gst

1. IMPACT OF GST IN INDIAN
ECONOMY
Dr. C. PARAMASIVAN, Ph.D., D.Litt
Assistant Professor of Commerce
PERIYAR E.V.R.COLLEGE (Autonomous)
Tiruchirappalli - 23

2. Budget
Budget
Revenue
(Income)
Disbursement
( Expenditure )

3. Revenue Generation
◦Resource utilization
◦Public undertaking
◦Contribution
◦Donation
◦Fee & fines
◦Taxes

4. Tax
◦It is a compulsory contribution by the people
◦To meet the expenses of the government
◦Part of the income or profit should be tax

5. Types of Taxes
Tax
Direct tax Indirect tax

6. Direct tax
Directly paid by the assessee
Tax on income generated by assessee
Income tax
Wealth tax

7. Indirect tax
Before 1 April 2005
Excise duty
Sales tax
Customs tax
From 1 April 2005
VAT
From 1st July 2017
CST

8. GST IN INDIA – OBJECTIVES
One Nation
One Market
One Tax

9. Structure of GST
GST
CGST SGST IGST

10. MODEL OF GST
Single Rate Model
Multi Rate Model - Canadian Model
◦0%
◦5%
◦12%
◦18%
◦28%

16. Benefits of GST
Central Excise Duty
Commercial Tax
Value Added Tax
Central Sales Tax
Entertainment Tax
Food Tax
Introit
Octroi
Entry Tax
Purchase Tax
Luxury Tax
Advertisement Tax
Service Tax
Customs Duty
Surcharges
Removal of bundled Indirect taxes such as

17. Less tax compliance
Simplified tax policy
Removal of tax on tax
Reduction of manufacturing costs
Prices of consumer goods come down

18. Lower the burden on the common
man
Increased demand and consumption
of goods
Increased demand will lead to
increase supply
Control of black money circulation
Boost to the Indian economy in the
long run.

19. GST Registration
Applying for GST-Registration – PART A
Applying for GST-Registration – PART B
Application for Enrolment of GST Practitioner
GST Composition Scheme Registration
GST Recovery forms

20. GST impact in Indian
Economy
Reduces tax burden on producers and
fosters growth through more production.
Different tax barriers, such as check posts
and toll plazas, lead to wastage of
unpreserved items being transported.
More transparency in the system.
Customers know how much taxes they are
being charged and on what base.

21. 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.
GST will remove the custom duties
applicable on exports.
The nation’s competitiveness in
foreign markets will increase on
account of lower costs of transaction.

22. Criticisms of GST
◦Federal powers of States by
constitution will be question.
◦Dispute settlement is lengthy
court procedures.
◦India is adopting a dual GST.
◦Petrol, Stock market not in GST.

23. GST to be a regressive tax, the poor
pay more, as a % of their income,
than the rich
India is the only country with 28% of
GST
State Govt. may add tax beyond GST
Additional 1% tax levied on goods
that are transported across states
Inter-state trade of a good would be
more expensive than intra-state
trade

24. WHAT SHOULD BE GST
Single tax model
One tax slab
Includes all products
GST link with Aadhar
Digitalized payment system
GST deducted from income tax
GST revenue distribution should be 75:25

25. THANKS FOR YOUR PATIENCE