2. • INTRODUCTION
• ROAD TO JOURNEY
• JOURNEY SO FAR
• FEATURES OF CONSTITUTION AMENDMENT BILL
• CGST AND SGST
• ADVANTAGE OF GST
• TAXATION STRUCTURE IN INDIA
• TAX RATE LIST
• DISADVANTAGE
• CONCLUSION
Presentation Plan
3. Goods and Services Tax (GST) is an indirect tax which was
introduced in India on 1 July 2017. PM launched it on central
hall of parliament at midnight of 30 June.
It is a comprehensive tax levy on manufacture, sale and
consumption of goods and service at a national level .
It is a Value Added Tax (VAT) to be implemented in India
from April 2017.
It will include many state and central level indirect taxes.
It overcomes draw back present tax system.
INTRODUCTION
5. Announcement
to introduce
GST by 2010
First Discussion
Paper (FDP)
released by EC
Constitution (115th
Amendment) Bill
introduced
AUG.
2016
2009
Three
committees
constituted by EC
and GSTN set up
2013
Constitution (122nd
Amendment) Bill
(CAB) introduce in
Lok Shabha
Constitution
Amendment Bill
passed
Mar. 2017
12 GST council
Meetings
GST launched
on 1st of July
2017
July
2017
JOURNEY SO FAR
7. • 122nd Amendment Bill introduced in LS on 19.12.2014
• Key Features
o Concurrent jurisdiction for levy of GST by the Centre and the
States –proposed Article 246A
o Authority for Centre to levy & collection of IGST on supplies in
the course of inter-State trade or commerce including imports
– proposed Article 269A
o Authority for Centre to levy non-vatable Additional Tax – to
be retained by originating State
o GST defined as any tax on supply of goods or services or both
other than on alcohol for human consumption – proposed
FEATURES OF CONSTITUTION AMENDMENT BILL
8.
9. What is CGST & SGST
-
entral oods and ervice ax
-
tate oods and ervice ax
12. ADVANTAGE OF GST
• Transparent Tax System
• Uniform Tax System across India
• Reduce Tax Evasion
• Export will be more competitive
• Nature of complexities i.e. Classification to valuation
regarding taxability, exist in the present structure
Some of such burning issues are :-
Excise on MRP
Excise, VAT & Service tax on software
VAT & service tax on:
•Works contracts
•Right to use
13. TAX STRUCTURE ININDIA
• Direct Tax:
e.g.- Income Tax, Corporate Tax, Wealth Tax
• Indirect Tax:
e.g.- Excise duty, custom duty, service tax, Octrai Tax , VAT
14. Impact of GST on Household Expenses
Food
Entertainment
Transportation
Household – Personal Care
Mobile Phone
Insurance Premium
Credit Card Bills
16. RATES FOR GOODS
Commodities GST RATE
Essential farm produced mass consumption items like milk, cereals, fruits, vegetable, jaggery (gur), food grains, rice and wheat NIL
Common use and mass consumption food items such as spices, tea, coffee, sugar, vegetable/ mustard oil; newsprint, coal and Indian sweets NIL
Silk and jute fiber NIL
Gold, Silver and Processed Diamonds 3%
Fertilizers, Biogas 5%
Branded atta, wheat, pulses, maida, gram flour (besan) 5%
Railway freight 5%
Pharma (Life saving drugs) 5%
Footwear up to Rs. 500 5%
Cotton and natural fibre 5%
Packaged foods like pickles, tomato sauce, mustard sauce and fruit preserves 12%
Ayurvedic and homeopathy medicines 12%
Processed foods 12%
Fruit juices, live animals, meats, butter & cheese 12%
Mobile phones 12%
Readymade garments 12%
Computer printers 18%
Footwear above Rs. 500 18%
All FMCG goods like hair oil, soaps, toothpaste and shampoos; chemical and industrial use intermediaries 18%
LPG stoves, military weapons, electronic toys 18%
Pastries, cakes, pasta, ice creams, soups 18%
Man made fibre and yarn 18%
White and brown goods like TV, refrigerator, AC, washing machines, microwave ovens; soft drinks and aerated beverages 28%
Cement, wall putty, paint, wallpaper 28%
Perfumes, revolver, pistols 28%
Chocolates, chewing gum, waffles containing chocolate 28%
Luxury and de-merits goods and sin category items e.g. tobacco, pan masala 28% + cess
Small cars – petrol driven 28% + 1% cess
Small cars – diesel driven 28% + 5% cess
Cigarettes 28% + 5% cess
Luxury cars 28% + 15% cess
Heavy bikes, Luxury yachts, private jets 31%
17. RATES FOR SERVICES
Services GST RATE
Sleeper, metro tickets and seasonal passes NIL
Outsourcing (in industries such as gems and jewellery, textiles) 5%
Railways (AC) 5%
Restaurants with annual turnover less than Rs. 50 lakhs 5%
Cab aggregators like Ola, Uber 5%
Airlines (Economy class) 5%
Hotels with tariff Rs. 1,000 - 2,500 12%
Non-AC restaurants without liquor license 12%
Real estate (Work contracts) 12%
State run lotteries 12%
Airlines (Business class) 12%
Telecom, financial service 18%
Hotel room tariff Rs. 2,500 - 7,500 18%
Hotel room tariff above Rs.7,500 28%
AC restaurants with liquor license 18%
Movie tickets below Rs. 100 18%
Movie tickets above Rs. 100 28%
5 star hotels 28%
State authorized lotteries 28%
18. METHOD OF TAXATION
• Progressive Tax:
Increasing rate of tax for Increasing Value or Volume
• Regressive Tax:
Decreasing rate tax for Increasing Value or Volume
• Proportional Tax:
Fixed rate of tax for every level of income or production
Source:https://www.google.com/search?hl=en&gst&oq=&gs Source:https://www.google.com/search?hl=en&gst&oq=&gs_l Source:https://www.google.com/search?hl=en&gst&oq=&HH.J
20. GST COUNCIL
• GST levy will be administered by
1. Union finance minister (chairmen).
2. Union minister in charge of state revenue or finance.
3. Minister in charge of finance or taxation.
4. Any other minister (finance minister of the state)
nominated by each state that would constitute the council.
Source
https://twitter.com/bharathbunny27/status/875671051446779904/photo/1?ref_src=twsrc%5Etfw&ref_url=http%3A%2F%2Fwww.india.com%2Fb
uzz%2Fgst-effect-jokes-and-memes-on-goods-service-tax-take-over-whatsapp-facebook-twitter-before-date-of-implementation-2280852%2F
21. More than 140 countries have already introduced
GST/National VAT.
France was the first country to introduced GST system
in 1954.
Typically it is a single rate system system are also
prevent Canada and Brazil alone have a dual VAT.
Standard GST rate in most countries ranges between
15-20% .
GST GLOBAL SCENERIO
Source
https://twitter.com/bharathbunny27/status/875671051446779904/photo/1?ref_src=twsrc%5Etfw&ref_url=http%3A%2F%2Fwww.india.com%2Fb
uzz%2Fgst-effect-jokes-and-memes-on-goods-service-tax-take-over-whatsapp-facebook-twitter-before-date-of-implementation-2280852%2F
22. GST :GLOBALPERSPECTIVE
•Goods and services tax in brazil
•Brazil was the first country to adopt GST system.
•Brazil has adopted a dual get where the tax is levied
by both the central and the provincial governments.
•GST rate is 20%.
Source
https://twitter.com/bharathbunny27/status/875671051446779904/photo/1?ref_src=twsrc%5Etfw&ref_url=http%3A%2F%2Fwww.india.com%2Fb
uzz%2Fgst-effect-jokes-and-memes-on-goods-service-tax-take-over-whatsapp-facebook-twitter-before-date-of-implementation-2280852%2F
24. KNOWING MORE ABOUT GST
•We all will pay GST on every product or we service buy/consume.
•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 .
•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.
Source
https://twitter.com/bharathbunny27/status/875671051446779904/photo/1?ref_src=twsrc%5Etfw&ref_url=http%3A%2F%2Fwww.india.com%2Fb
25. S. No Country Rate(%)
1 Australia 10
2 Austria 20
3 Canada 7
4 China 17
5 Denmark 25
6 Finland 22
7 France 19.6
8 Germany 16
9 Indonesia 10
10 Italy 20
11 Japan 5
12 Malaysia 5
13 Mexico 15
14 New Zealand 12.5
15 Philippines 10
16 Russia 18
17 Singapore 7
18 South Africa 14
19 Sweden 25
20 Taiwan 5
21 U.K. 17.5
GENERAL GST IN ALLOVER WORLD
26. REGISTRATION
PAN based Registration
• required to be obtained for each State from where taxable supplies are being
made
A person having multiple business verticals in a State may obtain separate
registration for each business vertical
Liability to be registered:
• Every person who is registered or who holds a license under an earlier law;
• Every person whose turnover in a year exceeds the threshold
A person, though not liable to be registered, may take voluntary registration
Certain suppliers liable for registration without threshold
Registration to be given by both Central and State Tax Authorities on a
common e-application
Deemed registration after three common working days from date of
application unless objected to
Self –serviced Amendments except for certain core fields
Provision for surrender of registration and also for submitted cancellation by the
tax authorities
Source: https://www.google.com/search?hl=en&q=cracking+the+csat+paper-
2+(csat+resource+books)&tb4#imgrc=uexP9jE20iAUDM:
27. Normal taxpayers, compositions taxpayers, Casual
taxpayers, non-resident taxpayers, TDS Deductors, Input
service Distributors (ISDs) to file separate electronic returns
with different cut-off dates
Annual return to be filed by 31st December of the
following Financial Year along with a reconciliation
statement
Short-filed returns not to be treated as a valid return for
matching & allowing ITC and fund transfer between Centre
and States
GST practitioners scheme to assist taxpayers mainly in
filing of returns
RETURNS
Source: https://www.google.com/search?hl=en&q=cracking+the+csat+paper-
2+(csat+resource+books)&tb4#imgrc=uex 1j0i5i30k1.0.5kXG7uGryhAM
28. Illustration
• A dealer in Maharashtra sells goods to a consumer in
Maharashtra worth Rs. 10,000. The GST rate is 18% : comprising
CGST of 9% and SGST of 9%.
• In such cases, the dealer collects Rs. 1800 and of this amount,
Rs. 900 will go to the Central Government and Rs. 900 will go to the
Maharashtra government.
• Now, let us assume the dealer in Maharashtra had sold the
goods to a dealer in Gujarat worth Rs. 10,000.
• The GST rate is 18% comprising of only IGST. In such case, the
dealer has to charge Rs. 1800 as IGST. This IGST revenue will go to
the Central Government.
30. Impact Areas for Businesses
Pricing, Costing, Margins
Supply-chain management
Change in IT systems
Treatment of tax incentives
Treatment of excluded sectors
Transaction issues
Tax compliance
31. Role Of Professionals
Tracking GST development
Review of draft legislation and impact analysis
Industry Consultation for improvement in business process
Review of final legislation and impact analysis
Implementation assistance
Post implementation support
Tax Planning
Record Keeping
Departmental Audit
32. •Increased costs due to software purchase
•Being GST-compliant
• GST will mean an increase in operational costs
• GST came into effect in the middle of the financial year
•GST is an online taxation system
•SMEs will have higher tax burden
DISADVANTAGE OF GST
33. CONCLUSION
• GST is the major tax reform in India
• At starting it create some confusion but now every one familiar with this.
• It will give more benefits in long term.
• GST creates one tax for whole nation.
