This ppt was presented for a district level inter college paper presentation competition conducted by Sri Krishna College of Engineering and Technology. The event was conducted within three days of the announcement of the IMPLEMENTATION OF GST by THE GOVERNMENT OF INDIA.The topic is "Effect of GST on Various Sectors". The team comprises of myself, Mr.Ajay, Mr. Akhil Naga Surya, Mr.Prasanna. We won the first prize in the competition. We presented under the topic, "Effect of GST on Paint & Cement Sectors of Indian Economy".

1. PAPER PRESENTATION ON
“EFFECT OF GST ON PAINT & CEMENT SECTOR
OF INDIAN ECONOMY”
BY
AJAY M.P
AKIL NAGA SURYA.R
PRASANNA.I
VENKADESH DAMODHARAN
II-YEAR MBA

2. WHAT IS GST?
oIt is “GOODS AND SERVICE TAX”
oGST is a tax that needs to be paid on supply
of goods & services
o It streamlines all the different types of
indirect taxes and implement a “single
taxation” system
oIt will replace all indirect taxes levied on
goods and services by the Indian Central and
State governments.

3. WHY GST?
 Simpler Tax Structure
 Increased Tax Revenues
 Competitive Pricing
 Boost to Exports

4. HOW GST WORKS?
 GST is applied on goods and services at the place where
final/actual consumption happens
 GST is collected on value-added goods and services at
each stage of sale or purchase in the supply chain
 GST paid on the procurement of goods and services can
be set off against that payable on the supply of goods or
services
 The manufacturer or wholesaler or retailer will pay the
applicable GST rate but will claim back through tax
credit mechanism

5. WHO CHARGES FOR GST?
 Any person, who is providing or supplying
goods and services is liable to charge GST

6. WHO PAYS FOR GST?
 GST is like a last-point retail tax
 Being the last person in the supply chain, the end
consumer has to bear this tax
 Streamlining of the multiple taxes, the final cost
to the customer will come out to be lower on the
elimination of double charging in the system

7. EFFECT OF GST ON PAINT AND
CEMENT INDUSTRY
 Paints and other construction chemicals
companies are expected to benefit from lower
effective tax rate
 Lower effective tax rate will narrow price
difference with unorganized players and increase
opportunities for organized players
 Lower logistics/warehouse sector
 Shift to organized segment

8. COMPARISON OF OUTPUT TAXES UNDER
CURRENT AND PROPOSED TAX REGIME
 Asian Paints highlighted that it currently pays 23%
indirect tax, which includes excise duty of 12.5% and
VAT of 11%. Any GST rate below the current tax rate
(23%) will tend to benefit the company

9. COMPARISON OF OUTPUT TAXES ON
RETAIL SALES OF CEMENT

10. AN EXAMPLE

11. CONCLUSION
 The contribution of GDP by the Paint, Cement and Real
Estate Sectors are huge
 These sectors are growing at very fast rate because of the
Government push for various infrastructure projects
 Implementation of GST has further strengthen their case
 The cost of the commodities might get shoot up initially
 But due to the elimination of double charging the prices will
definitely get down.

12. Queries

13. EFFORT NEVER DIES