GST is a new indirect tax regime in India that combines multiple taxes into one. It is levied on the supply of goods and services. GST helps eliminate cascading of taxes and reduces the overall tax burden. It includes CGST for the central government, SGST for state governments, and IGST for inter-state transactions. The implementation of GST is expected to simplify indirect taxation in India and boost economic growth by reducing costs and improving ease of doing business. While it offers various benefits, there are also challenges to its implementation regarding tax credits, impact on certain sectors, and operational complexities.

1. GOODS & SERVICES TAX
GST
Presentation
By
Rajkumar.P

2. WHAT IS GOODS AND SERVICE TAX(GST)
 • GST is a tax on goods and services. GST is an Indirect Tax which
has replaced many Indirect Taxes in India. The Goods and Service
Tax Act was passed in the Parliament on 29th March 2017. The Act
came into effect on 1st July 2017
 • It is assessable at each point of sale or provision of
service.
 • At the time of sale of goods or providing the services the seller or
service provider can claim the input credit of tax which he has paid
while purchasing the goods or procuring the service
 • This is simply very similar to VAT.
 • It can be termed as National level VAT on Goods and Services.
 • Only difference in this system is that not only goods but also
services are involved.
 • The rate of tax on goods and services are generally the
same.

3. HISTORY OF GST

4. PROPOSED TAX STRUCTURE IN INDIA

5. COMPONENTS OF GST
CGST- Central goods and Service Tax-To be
administered by Central Government.
SGST- State Goods and Service Tax-To be
administered by State VAT Department
IGST- Inter-State Goods and Service Tax- To
be administered by A common Centralized
Authority

6. TAXES PROPOSED TO BE SUBSUMED IN GST
• Central Taxes
Excise Duty
Additional Excise duty
Service Tax
CVD, SAD
Surcharge
• State Taxes
VAT
Entertainment tax levied by states
Luxury Tax
Tax on Lottery
Entry tax other than for local bodies

7. GST- INCLUDES
1. A sale or supply includes a sale of
goods.
2. Lease of premises.
3. Hire of equipment.
4. Export of goods and supply of other
things.
5. A purchase includes an acquisition of
goods or services such as trading
stock a lease, consumables and other
things.

8. TAXES NOT BE INCLUDED IN GST
• Central Taxes
Specific Cess
Excise duty on tobacco products
• State Taxes
Items containing alcohol
Entertainment tax (Local Bodies)
Entry tax for local bodies
Electricity duty

9. GST: A UNIFICATION OF TAXES
A GST classically entails unification of all levies on
goods and services. In the Indian context, this would
mean merging the following:
• Tax on manufacture of goods (excise duty
levied by the Centre).
• Tax on sale of goods (CST / VAT levied by
both Centre and states).
• Tax on services (levied by Centre and to
some extent by states such as Entertainment
tax, electricity cess, etc).

10. CGST (CENTRAL GST)
Replace central Excise Duty & service Tax.
 Cover Sale transaction.
SGST (STATE GST)
Replace State Vat, Entry Tax, Entertainment Tax, & Luxury Tax.
Cover taxing of Services
IGST (INTER STATE-GST)
•Levied on all inter – state supplies of goods or
services which are sold or transferred.
•Applicable to imports of goods or services.

11. RATES UNDER GST
No GST on necessities.
 5% GST on agricultural, medicines and daily
needs products.
12% GST on utility items like salt, biscuits,
computer parts etc.
18% GST on manufacturing and services like air
travelling, hotel stay, cars etc.
28% GST on luxury items like expensive cars,
expensive perfumes, stay at 5 star hotels etc.

12. GST-KNOW TAXES PAID BY YOU
We all will pay GST on every product or service we buy.
Since all indirect taxes levied by the States and the
Centre will be merged into one GST, we would exactly
know how much tax we pay which at present is difficult to
understand.
No distinction would be made between imported or Indian
goods and they would be taxed at the same rate.
The sellers or service providers collect the tax from their
customer.
Before depositing the same to the exchequer, they deduct
the tax they have already paid.
The success of GST would rest upon efficiency, equity
and simplicity.

13. ADVANTAGES
• Boost Economic Growth
• Streamline domestic supply chain
• Reduce compliance burden
• Removes contradictory tax regimes
• Increase global competitiveness
Government
• Increases GDP
• Enhanced Revenue
• Improved Ranking
Trade and Industry
• Reduction in cost
• Enhanced Margins
• Reduction of Litigations
Consumers
• Same quality and Reduced price

14. Benefits under GST
Reduces Transaction cost.
Eliminates the cascading effect of taxes.
 Single taxation point.
Reduces corruption.
Uniform tax rate .
Cheaper exports.
Reduction in purchase price.
Transparency.
Increased collection of CGST & IGST.
Increased FDI.
Growth in overall Revenues.
Simplified tax laws.
Increase in exports & employments.
GDP Growth Go Up by about 3%.
International competitiveness Go Up by about 8%.
Common market.
Prevention of unhealthy competition among states.
Increasing the tax base & raising compliance

15. DISADVANTAGES OF GST TAX
•Would impact the Real-State Market
•Costlier Service
•Complexity for the Businessmen Income
•Tax Credit Mismatch Disability Tax
•Expensive Banking and Insurance
•Impact on Discounts
•Registration in the Many States Required
•Changing Tax Slabs
•Petrol not Under GST
•Online Taxation
•Higher Tax Burden for SME

16. WHY DO WE NEED GST TODAY
• In Indian economy the service sector
contributes over 55%.
• Separate taxation of goods and services is
neither viable nor desirable
• Value added in manufacture and sale of
goods require inputs of both — goods and
services and vice versa, which is often not
separable.

17. CONCLUSION
GST being a dynamic & comprehensive legislation which
shall replace most of the Indirect Taxes of our Country.
Since it is a major indirect tax reform in India, there would
be new legislation and procedures.
Most concerns expressed about the implementation of GST
can be divided into 3 categories :
•Design Issues
•Operational Issues
• Infrastructure Issues
For GST to be effective there should be identical GST
laws/procedures across states as well as the centre.
In the mean time ,those state who are not opposing against
the implementation of GST may want assurances that their
existing revenues will be protected.

18. THANK YOU
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