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Change In Tax Regime In India
With Reference To
GST
10/13/2017 1
Presented By:
Rahul Dhakad
CONTENTS:
• Indian Economy- An overview
• Taxonomy of Indian taxation
• Present – tax system suffer from
• What is GST and its key features
• GST- How it works ?
• GST – Advantages
• Challenges
10/13/2017 2
Indian Economy :- Overview
• 6th largest economy in the world (GDP $2.454 trillion, 2017)
• 3rd largest by Purchasing Power Parity (PPP)
• G-20 major economies and a member of BRICS
• World is presently facing recession-II but Indian economy is still better than
comparable economies.
• Agriculture, services and industry are the major sector of India an economy.
Contribution of different sectors in March, 2016 was :
• Services 53.66%
• Industry 29.02%
• Agriculture 17.32%
10/13/2017 3
Taxonomy of Indian Taxation
Center
State
• Excise Duty
• CST
• Custom
• Service Tax
• VAT
• Entry Tax
• Octroi
• Luxury Tax
10/13/2017 4
10/13/2017 5
Before 1st July – Tax System Suffer
From
Confusion and Mistrust
Complex and lacking in stability
Hidden tax on exports, no state tax on imports
High transaction costs
Narrow base
High compliance cost
To much litigations
Lack of harmony and inter state practices
Highly corruption
10/13/2017 6
What Is GST..?
» Goods and Services Tax (GST) is an indirect tax
» Introduced in India on 1 July 2017
» It replaced multiple cascading taxes levied by the central & state
govts.
» A value-added tax
10/13/2017 7
Taxes Under GST
GST
Intra-State
Movement
Central GST
(CGST)
State GST
(SGST)
Inter-State
Movement
Integrated GST
(IGST)
10/13/2017 8
10/13/2017 9
GST – How It Works …?
10/13/2017 10
10/13/2017 11
Advantages Of GST
It replace all Major Indirect Taxes
It will remove Cascading effect (Tax on Tax)
It will reduce flow of BLACK MONEY
One India one market
Seamless flow of goods across nation
Ease to doing business
10/13/2017 12
Challenges:
GST preparedness among clients is missing
Lack of Clarity on GST Provisions (Rules and Regulation)
Increased compliance, with increase in the number of returns to be filed annually
Preparedness of IT Systems
Lack of skilled resources and need for re-skilling
10/13/2017 13
10/13/2017 14

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Change In Tax Regime In India With Reference to GST

  • 1. Change In Tax Regime In India With Reference To GST 10/13/2017 1 Presented By: Rahul Dhakad
  • 2. CONTENTS: • Indian Economy- An overview • Taxonomy of Indian taxation • Present – tax system suffer from • What is GST and its key features • GST- How it works ? • GST – Advantages • Challenges 10/13/2017 2
  • 3. Indian Economy :- Overview • 6th largest economy in the world (GDP $2.454 trillion, 2017) • 3rd largest by Purchasing Power Parity (PPP) • G-20 major economies and a member of BRICS • World is presently facing recession-II but Indian economy is still better than comparable economies. • Agriculture, services and industry are the major sector of India an economy. Contribution of different sectors in March, 2016 was : • Services 53.66% • Industry 29.02% • Agriculture 17.32% 10/13/2017 3
  • 4. Taxonomy of Indian Taxation Center State • Excise Duty • CST • Custom • Service Tax • VAT • Entry Tax • Octroi • Luxury Tax 10/13/2017 4
  • 6. Before 1st July – Tax System Suffer From Confusion and Mistrust Complex and lacking in stability Hidden tax on exports, no state tax on imports High transaction costs Narrow base High compliance cost To much litigations Lack of harmony and inter state practices Highly corruption 10/13/2017 6
  • 7. What Is GST..? » Goods and Services Tax (GST) is an indirect tax » Introduced in India on 1 July 2017 » It replaced multiple cascading taxes levied by the central & state govts. » A value-added tax 10/13/2017 7
  • 8. Taxes Under GST GST Intra-State Movement Central GST (CGST) State GST (SGST) Inter-State Movement Integrated GST (IGST) 10/13/2017 8
  • 10. GST – How It Works …? 10/13/2017 10
  • 12. Advantages Of GST It replace all Major Indirect Taxes It will remove Cascading effect (Tax on Tax) It will reduce flow of BLACK MONEY One India one market Seamless flow of goods across nation Ease to doing business 10/13/2017 12
  • 13. Challenges: GST preparedness among clients is missing Lack of Clarity on GST Provisions (Rules and Regulation) Increased compliance, with increase in the number of returns to be filed annually Preparedness of IT Systems Lack of skilled resources and need for re-skilling 10/13/2017 13