This document discusses the Goods and Services Tax (GST) implemented in India. It provides background on GST and why it was needed to replace the complex indirect tax system. The key components of GST including CGST, SGST, and IGST are outlined. The document also discusses tax rates before and after GST, advantages like simplifying compliance and reducing corruption, and some disadvantages in the initial period. It concludes that GST was implemented to create a uniform indirect tax system and faster economic growth in India.

1. SUBMITTED BY:
B.Lokesh.
REGD NO.:-
1401210044

2.  INTRODUCTION.
 WHY INDIA NEED GST ?
 HISTORY OF GST.
 COMPONENTS OF GST.
 TAX LEVIED BEFORE GST.
 TAX LEVIED AFTER GST.
 ADVANTAGES.
 DISADVANTAGES.
 CONCLUSION.

3.  GST
 ‘G’ –Goods
 ‘S’ –Services
 ‘T’ –Tax
 Goods and Service Tax(GST) is a comprehensive
tax levy on manufacture , sale and consumption
of goods and service at a national level.
 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.  Purpose- GST is introduced majorly due to two
reasons:
1. The current indirect tax structure is full of uncertainties
due to multiple taxes and multiple rates.
2. Due to multiple rates, there are multiple forms and
intern cumbersome compliances. This will improve Tax
compliances.
 Because of above transparency, Taxation would
increase and lead to reduced tax evasion.
 It would also reduce cascading effect(tax on tax)
up to much extent.

6.  The Goods and Services Tax has
revolutionized the Indian taxation system.
 The GST Act was passed in the Lok Shaba on
29th March, 2017.
 The Goods and Services Tax has came into
effect from 1st July, 2017.

7.  There are 3 applicable taxes under GST: CGST,
SGST & IGST.
 CGST: Collected by the Central Government on an
intra-state sale (Eg: Within Odisha)
 SGST: Collected by the State Government on an
intra-state sale (Eg: Within Odisha)
 IGST: Collected by the Central Government for
inter-state sale (Eg: Odisha to Andhra pradesh)

8. Action Cost 10% Tax Total
Buys Raw
Material @ 100
100 10 110
Manufactures @
40
150 15 165
Adds value @ 30 195 19.5 214.5
Total 170 44.5 214.5

9. Action Cost 10% Tax Actual
Liability
Total
Buys Raw
Material
100 10 10 110
Manufacture
s @ 40
140 14 4 154
Adds Value
@ 30
170 17 3 187
Total 170 17 187

11.  Petroleum products: The government has left petroleum out
of GST for now until all states are agreed to it. Industries that
require petroleum products for manufacturing cannot input
for tax credits which will increase the final price.
 Multiple State registration: Businesses are required to register
for GST in each state they operate in.
 Professional assistance: New startups or small businesses
who lack knowledge of GST may require hiring professionals
for managing their taxes.
 Luxury items to get costly: Drinking tea/coffee at branded
cafes, staying in hotels with tariff above 7500rs, electronic
devices like TV, washing machine, bikes with engine capacity
more than 350cc, Movie tickets above 100. etc. will be
costlier with GST bill.
 Unstable economy: Right after
implementation demonetization bill and now GST bill India’s
economy will take approximately 1-2 years to become stable.

12. COUNTRIES IMPLEMENTED GST BEFORE INDIA AND
THEIR TAX SLABS

13.  India is a collective economy where each state has its
own set of rules for them. This makes the growth of
the country slow, causes difficulties to the businesses
and higher possibilities of corruption. To make the
tax payment process simpler and create a win-win
environment for both, government as well as
businesses, and to reduce the corruption GST is
implemented.
 GST is a simple, sophisticated and consumer-friendly
way how the Government of India will collect the tax
from the businesses and individual citizens. GST is
implemented in India to replace the previous indirect
tax systems which were very complex system, with a
simpler and uniform tax system. Indian tax slabs are
divided into least as 0% slab and highest as 28%.
Intermediate slabs as 5%,12%,18%.