The document discusses the tax structure in India, highlighting the distinction between direct taxes, like income tax, and indirect taxes, such as Goods and Services Tax (GST). It outlines the introduction and implementation timeline of GST, its structure consisting of CGST, SGST, and IGST, and the tax slabs. It also lists the items that will become cheaper or costlier under GST and mentions potential benefits and hurdles in its implementation.

1. - Ajith V A
Class No: 3
MBA ITLM

2. Tax Structure in India
Direct Tax :
- is collected directly by government from the persons on
whom it is imposed.
e.g.: Income Tax, Corporate Tax, Wealth Tax
Indirect Tax :
- is a tax collected by an intermediary from the person who
bears the ultimate economic burden of the tax.
- the intermediary later files a tax return and forwards the
tax proceeds to government with the return
e.g.: Excise duty, custom duty, Service Tax, Octrai Tax,
VAT, CENVAT

3. GST
‘G’ –Goods
‘S’ –Services
‘T’ –Tax
Destination based tax on consumption of goods
and services.
GST is a tax on goods and services with value
addition at each stage.
GST will include many state and central level
indirect taxes
It overcomes drawback present tax system

4. BRIEF HISTORY
Feb, 2006: First time introduced concept of GST
and announced the date of its implementation in
2010
Jan, 2007: First GST study by ASSOCHAM released
by Dr. Shome
Feb, 2007: F.M. Announced introduction of GST
from 1 April 2010 in Budget
The Government came out with a First Discussion
Paper on GST in November, 2009
Introduced the 115th Constitution Amendment
(GST) Bill in the year 2011.
Going to be implemented from 1st July 2017 in
India

5. GST Global Scenario
 More than 140 countries have already introduced
GST/National VAT.
 France was the first country to introduce GST
system in 1954.
 Typically it is a single rate system but two/three
rate systems are also prevalent. Canada and Brazil
alone have a dual VAT.
 Standard GST rate in most countries ranges
between 15-20%.

6. CGST, SGST and IGST
The Central GST or CGST is the areas where the centre has
the powers
State GST or SGST where the State has taxation
capabilities
IGST or Integrated GST is for movement of goods within
the states of the Indian union

7. GST Slabs - India
 A four-tier GST tax structure
5%, 12%, 18% and 28%
 lower rates for essential items
 highest for luxury and de-merits goods that would also
attract an additional cess
 5% would be for common use items
 Luxury cars, tobacco and aerated drinks would also be
levied with an additional cess on top of the highest tax
rate

8. Taxes proposed to be subsumed in GST
Central Taxes State Taxes
 Excise Duty
 Additional Excise duty
 Excise duty under
medicinal and toilet
preparation Act
 Service Tax
 Additional Custom duty
commonly known as
countervailing duty
(CVD), special additional
duty( SAD)
 Surcharge
 CENVAT
 Value added tax
(VAT)
 Central Sales Tax
 Entertainment tax
levied by states
 Luxury Tax
 Tax on Lottery,
betting and
gambling
 Purchase Tax
 Surcharges &
Cesses

9. Commodities outside the
purview of GST
 Alcohol for human consumption
 Petroleum Products
viz. petroleum crude,
motor spirit (petrol),
high speed diesel,
natural gas and
aviation turbine fuel
 Entertainment and amusement
 Electricity etc

10. List of items that will become
cheaper under GST
 Sugar
 Toothpaste
 Washing Machine
 Furniture
 Watch
 Medicine
 Face cream
 Shampoo
 Hair Oil
 Soap
 Juices
 Mithai
 Packed Curd
 SUV’s
 Packed Paneer
 Economy class Air Ticket

11. List of items that will become
costlier under GST
 Television
 Refrigerator
 Air Conditioner
 Butter
 Packaged Chicken
 Telephone Bill
 Bhujia
 Tea/ Coffee
 Paint
 Cement
 Aerated drinks
 Services such as Insurance premium/
Internet/ DTH/ Banking
 Business Class Air ticket
 Small Cars

12. BENEFITS OF GST
Transparent Tax System
Uniform Tax system Across India
Reduce Tax Evasion
Export will more competitive

13. HURDLES IN IMPLEMENTATION
Dispute between Centre and State over Tax Sharing
Highly sophisticated IT infrastructure required .
Issue of taxing financial services and e-commerce
is to be appropriately addressed and integrated.
Political Imbalance