GST and Indian Manufacturing Sector
The document discusses the impact of GST on the Indian manufacturing sector. It provides background on the manufacturing sector and issues with the previous indirect taxation system, such as cascading taxes. It then describes the history of GST in India and implementation in 2017. Key impacts of GST on manufacturing include simplification, reduced costs through elimination of entry taxes, improved cash flows due to input tax credits, and restructuring of supply chains for efficiency. Overall, GST is expected to boost the manufacturing sector by lowering costs and prices through removal of cascading taxes.
Business environment chapter 3 - class 12 business studiesPriyanka Rao
The document discusses the business environment and its key dimensions that can impact businesses. It defines business environment as the sum of all external factors that influence a business and are outside its control. The key dimensions discussed are the economic, social, technological, political, and legal environments. Any changes in these environments can positively or negatively affect businesses directly or indirectly. The economic environment includes factors like interest rates, inflation, income levels, and currency values. The social environment comprises factors like customs, traditions, and literacy rates that influence consumer behavior. Technological advancements introduce new production processes and methods. The political and legal environments involve government policies, stability, and laws that businesses must comply with.
This document provides an overview of accounting for depreciation as per AS-6. It defines depreciation as a permanent decrease in the value of a fixed asset due to use, age, or obsolescence. Depreciation is a non-cash expenditure used to allocate the cost of a fixed asset over its useful life. The document outlines the objectives and importance of providing depreciation, the causes and basic factors used to calculate depreciation, and common methods for calculating depreciation including fixed installation, diminishing balance, and annuity methods. It also defines depreciable assets and disclosure requirements regarding depreciation accounting policies under AS-6.
Advantages, Limitations and Characteristics of Management AccountingShyama Shankar
Management accounting has several advantages and limitations. The key advantages are that it helps increase management efficiency, allows for target-setting and decision-making, and enables forecasting and budgeting to plan for the future. However, it also has limitations, such as being expensive for smaller companies to implement, requiring new rules and regulations that could face opposition, and only providing data rather than actual decisions. Management accounting tools include marginal costing, standard costing, budgetary control, ratio analysis, and cash flow analysis.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
Reconciliation of Cost & Financial AccountsDhrumil Shah
The cost and financial accounts of a firm need to be reconciled when the profits reported in each do not match. Reasons for differences include items recorded in one account but not the other, and under or over absorption of overheads or valuation of inventory. The reconciliation statement balances the profits by adding income and expenses only in one account and subtracting the same from the other. It helps check accuracy and identify reasons for profit differences between accounts. An example shows reconciling the ₹3.5 lakh profit reported in cost accounts of JK Ltd to the ₹3.385 lakh profit in financial accounts by adjusting for various items treated differently.
This document provides an overview of basic accounting principles for an 11th grade class. It defines accounting as recording, summarizing, reporting and analyzing financial transactions. Generally Accepted Accounting Principles (GAAP) establish uniform rules for recording transactions to bring consistency to financial statements. Key principles discussed include the business entity, money measurement, going concern, accounting period concepts as well as revenue recognition, matching, accrual, full disclosure, consistency and conservatism. The objectives are for students to understand and apply these principles when recording business transactions.
This document discusses Goods and Services Tax (GST) in India. It provides an introduction to GST, defining it as an indirect tax on the supply of goods and services that replaced multiple taxes. The document outlines some key advantages of GST, including creating a single market, reducing corruption, and increasing GDP. It also notes some disadvantages such as dual control by central and state governments and potential loss of revenue for some states.
1. GST is an indirect tax that will combine multiple taxes into a single tax. It will have a dual structure with both central GST and state GST.
2. Under GST, tax will be collected at each point of sale with businesses able to claim credits for taxes paid on purchases. This will help reduce cascading of taxes and boost economic growth.
3. Compliance under GST will be primarily online with businesses required to file regular returns. Proper documentation of invoices and maintaining of records is important under GST.
Business environment chapter 3 - class 12 business studiesPriyanka Rao
The document discusses the business environment and its key dimensions that can impact businesses. It defines business environment as the sum of all external factors that influence a business and are outside its control. The key dimensions discussed are the economic, social, technological, political, and legal environments. Any changes in these environments can positively or negatively affect businesses directly or indirectly. The economic environment includes factors like interest rates, inflation, income levels, and currency values. The social environment comprises factors like customs, traditions, and literacy rates that influence consumer behavior. Technological advancements introduce new production processes and methods. The political and legal environments involve government policies, stability, and laws that businesses must comply with.
This document provides an overview of accounting for depreciation as per AS-6. It defines depreciation as a permanent decrease in the value of a fixed asset due to use, age, or obsolescence. Depreciation is a non-cash expenditure used to allocate the cost of a fixed asset over its useful life. The document outlines the objectives and importance of providing depreciation, the causes and basic factors used to calculate depreciation, and common methods for calculating depreciation including fixed installation, diminishing balance, and annuity methods. It also defines depreciable assets and disclosure requirements regarding depreciation accounting policies under AS-6.
Advantages, Limitations and Characteristics of Management AccountingShyama Shankar
Management accounting has several advantages and limitations. The key advantages are that it helps increase management efficiency, allows for target-setting and decision-making, and enables forecasting and budgeting to plan for the future. However, it also has limitations, such as being expensive for smaller companies to implement, requiring new rules and regulations that could face opposition, and only providing data rather than actual decisions. Management accounting tools include marginal costing, standard costing, budgetary control, ratio analysis, and cash flow analysis.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
Reconciliation of Cost & Financial AccountsDhrumil Shah
The cost and financial accounts of a firm need to be reconciled when the profits reported in each do not match. Reasons for differences include items recorded in one account but not the other, and under or over absorption of overheads or valuation of inventory. The reconciliation statement balances the profits by adding income and expenses only in one account and subtracting the same from the other. It helps check accuracy and identify reasons for profit differences between accounts. An example shows reconciling the ₹3.5 lakh profit reported in cost accounts of JK Ltd to the ₹3.385 lakh profit in financial accounts by adjusting for various items treated differently.
This document provides an overview of basic accounting principles for an 11th grade class. It defines accounting as recording, summarizing, reporting and analyzing financial transactions. Generally Accepted Accounting Principles (GAAP) establish uniform rules for recording transactions to bring consistency to financial statements. Key principles discussed include the business entity, money measurement, going concern, accounting period concepts as well as revenue recognition, matching, accrual, full disclosure, consistency and conservatism. The objectives are for students to understand and apply these principles when recording business transactions.
This document discusses Goods and Services Tax (GST) in India. It provides an introduction to GST, defining it as an indirect tax on the supply of goods and services that replaced multiple taxes. The document outlines some key advantages of GST, including creating a single market, reducing corruption, and increasing GDP. It also notes some disadvantages such as dual control by central and state governments and potential loss of revenue for some states.
1. GST is an indirect tax that will combine multiple taxes into a single tax. It will have a dual structure with both central GST and state GST.
2. Under GST, tax will be collected at each point of sale with businesses able to claim credits for taxes paid on purchases. This will help reduce cascading of taxes and boost economic growth.
3. Compliance under GST will be primarily online with businesses required to file regular returns. Proper documentation of invoices and maintaining of records is important under GST.
GST is an indirect tax that will unify India's tax system and make it simpler. It aims to eliminate cascading taxes, increase tax collection, and formalize the economy. The document outlines the historical background, objectives, tax structure, types of taxes, and rates under GST. It discusses advantages like removing hidden taxes and the cascading effect. Disadvantages include increased costs for small businesses and the need for online compliance. The impact on GDP is estimated to be 0.9-1.7% increase initially, though some sectors like real estate may see short-term negative effects. Overall, GST has the potential to reform India's tax system but also poses challenges during implementation.
Introduction,Why MNCs are exist in International Business? , Alternative Methods of Foreign Investment by MNCs, There are three main modes of foreign investment, Role of Multinational Corporations in the Indian Economy, Disadvantages of Multinational Corporations,
- International business involves commercial transactions between two or more countries, including trade in goods and services, investments, and transportation. It can involve private companies or governments.
- There are several approaches that companies take when entering international business - from an ethnocentric view focusing only on the home country market, to a geocentric view developing a standardized approach across all foreign markets.
- International business offers both advantages like access to new markets and resources, as well as disadvantages such as additional costs and risks of operating in foreign environments. Liberalization of trade and improvements in transportation and communication have contributed to recent growth in international business.
This document discusses accounting concepts related to types of accounts, transactions, and journal entries. It covers the four main types of accounts - assets, liabilities, income, and expenses. It also discusses the differences between capital and revenue expenditures, and how to classify transactions as affecting personal, real, or nominal accounts. The document provides examples of journal entries and explains the rules for debiting and crediting different types of accounts.
This document discusses subsidiary books, which are books of original entry where transactions are first recorded. It provides examples of common subsidiary books like purchase books, sales books, cash books, bills receivable books and bills payable books. It also discusses the advantages of using subsidiary books and their various formats.
Import - Export Policy of India(EXIM POLICY)Sandip Besra
policies in the sphere of Foreign trade i.e. with respect to import & export from the country and more especially export promotion measures, policies and procedure related there to.
This document discusses various methods for pricing material issues, including first in first out (FIFO), last in first out (LIFO), and average cost methods. FIFO prices issues based on the earliest materials received, while LIFO prices based on the latest materials. Average cost methods calculate a weighted average price based on total cost and quantity to smooth out price fluctuations. The appropriate pricing method depends on factors like price trends and the nature of materials.
The presentation covers the basics of Cost Accounting.
It gives a birds eye view of the subject of Cost Accounting.
The advantages, limitations, need, scope, classification are covered.
This document provides an overview of India's Export-Import (EXIM) policy. It begins with definitions of key terms like EXIM and foreign trade policy. It then discusses the brief history and objectives of India's EXIM policy. It provides details on important documents in the Indian EXIM policy and trends in India's imports and exports before and after the 1990s. The document also summarizes key aspects of India's EXIM policies from 2009-2014 and 2015-2020, including targets, legal framework, general provisions, special focus initiatives, promotional measures, duty exemption schemes, and the Export Promotion Capital Goods Scheme.
Achievements and failures of indian economic planninganita rani
Indian economic planning since independence has led to increases in national income, per capita income, capital formation, and employment. Key achievements include the Green Revolution, development of industries and infrastructure, and improvements in social services and technology. However, planning has also been associated with failures such as insufficient gains in standard of living, rising prices, unemployment, uneven growth across sectors and regions, and inefficient administration.
1. The document provides an overview of marketing concepts including the nature and scope of marketing, the marketing mix, and different promotional methods.
2. It defines marketing as the total system of business activities designed to plan, price, promote and distribute want-satisfying products to target markets to achieve organizational objectives.
3. The marketing mix is described as the set of controllable tactical variables (product, price, place, promotion) that an organization combines to produce the response it wants in a target market.
MAT or Minimum Alternate Tax was introduced in 1987 to collect taxes from zero tax companies. It levies a tax rate of 15% on the book profits of companies to bring them in the tax net. Companies can claim MAT credit for taxes paid over their normal tax liability which can be carried forward for 15 years. All companies, including those in Special Economic Zones, are required to pay MAT and file MAT reports. The introduction of MAT helps reduce tax evasion and ensures that companies pay a minimum level of tax.
Business research involves planning, collecting, analyzing relevant data to help business decision making and communicating the results to management. It helps in various functional areas like marketing, accounting and finance, human resources, and production. Marketing research helps with forecasting demand, analyzing consumer behavior, and measuring advertising effectiveness. Accounting and finance research examines issues like depreciation, transfer pricing, and their impacts on profits. Human resources research studies employee behavior, attitudes, leadership styles, and performance appraisal. Production research identifies better production methods, standardization techniques, and troubleshooting strategies.
There are three main managerial theories described in the document:
1. Baumol's Model of Sales Revenue Maximization suggests that managers pursue sales maximization over profit maximization to boost their prestige, power, and job security.
2. Marris's Theory of Managerial Enterprise notes the separation of ownership and management allows managers to set goals that benefit themselves rather than owners, such as prioritizing growth over profits.
3. Williamson's Theory of Managerial Discretion discusses how managers have discretion over decisions and may not always act in the owners' best interests.
The document provides an overview of corporate taxes. It defines a corporation as a separate legal entity that can be incorporated through legislation or registration. Corporations have legal personhood and can be responsible for crimes. They provide benefits like liability protection and raising funds through stock sales. The document then discusses taxes in general and how they are imposed by governments. It outlines different types of taxes including corporate taxes. Corporate tax rates vary globally from around 15-35% in different countries. The document provides details on India's corporate tax rates and regulations. It concludes with discussing tax planning strategies that corporations can use like accounting methods, inventory valuation, equipment purchases and benefits plans.
This document discusses emerging modes of e-business. It defines various types of e-business including B2B (business to business), B2C (business to consumer), C2C (consumer to consumer), and intra-business commerce. B2B refers to businesses conducting business with other businesses. B2C involves businesses selling products or services to consumers. C2C has no middle businesses and allows consumers to become sellers. Intra-business commerce occurs within a single firm using an intranet. The document also outlines the benefits and limitations of e-business, such as increased accessibility but also security and technical challenges. It describes online transactions and payment options including cash-on-delivery, checks, credit/debit cards,
The document discusses disinvestment in India, including its objectives, benefits, types, and process. Some key points:
- Objectives of disinvestment include reducing financial burden on the government, improving public finances, and introducing competition.
- Benefits are for the government, markets, taxpayers, employees, and public sector units. It allows the government to focus on core activities.
- Types of disinvestment are minority disinvestment, majority disinvestment, and complete privatization.
- The disinvestment process involves methods like net asset value, profit earning capacity, and discounted cash flow valuation.
This document discusses the treatment of waste, scrap, defectives, and spoilage in costing. It defines each term and explains how their costs should be treated. Normal waste and scrap are factored into per unit costs, while abnormal amounts are transferred to the costing profit and loss account. Defectives may have their rectification costs charged to specific jobs or overhead, or transferred to profit and loss depending on the reason. The cost of normal spoilage is covered by good production, while abnormal spoilage costs go to profit and loss.
1. The document discusses the impact of GST on the Indian economy, noting that it unifies indirect taxes and brings transparency.
2. Key impacts include increasing competitiveness by reducing costs, simplifying the tax structure, creating a unified economic zone in India, and potentially increasing tax revenues.
3. The rates under GST are 0%, 5%, 12%, 18%, and 28% for different goods and services. The document provides examples of how GST affects prices of items like footwear, cab rides, airline tickets, and more.
GST came to India as a medicine that would treat taxable diseases at one go. It was described by economists as the biggest economic reform after independence. Till the year 2017 indirect tax structure in India was a complex mixture of central taxes and state taxes, here different types of taxes were levied at different stages, which made the tax structure difficult and most of the taxes were not adjusted for this system tax. Increases effect such as taxes on taxes that increase the value of products and services. This economic reform is extremely essential for an emerging economic power like India. Impact of The last deputy speaker from the government, the government and the economy will present its influence in both positive and negative forms. This research of mine will throw light on the study of these two sides. Dr. Sumit Trivedi "Impact of GST on Different Classes" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42333.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42333/impact-of-gst-on-different-classes/dr-sumit-trivedi
GST is an indirect tax that will unify India's tax system and make it simpler. It aims to eliminate cascading taxes, increase tax collection, and formalize the economy. The document outlines the historical background, objectives, tax structure, types of taxes, and rates under GST. It discusses advantages like removing hidden taxes and the cascading effect. Disadvantages include increased costs for small businesses and the need for online compliance. The impact on GDP is estimated to be 0.9-1.7% increase initially, though some sectors like real estate may see short-term negative effects. Overall, GST has the potential to reform India's tax system but also poses challenges during implementation.
Introduction,Why MNCs are exist in International Business? , Alternative Methods of Foreign Investment by MNCs, There are three main modes of foreign investment, Role of Multinational Corporations in the Indian Economy, Disadvantages of Multinational Corporations,
- International business involves commercial transactions between two or more countries, including trade in goods and services, investments, and transportation. It can involve private companies or governments.
- There are several approaches that companies take when entering international business - from an ethnocentric view focusing only on the home country market, to a geocentric view developing a standardized approach across all foreign markets.
- International business offers both advantages like access to new markets and resources, as well as disadvantages such as additional costs and risks of operating in foreign environments. Liberalization of trade and improvements in transportation and communication have contributed to recent growth in international business.
This document discusses accounting concepts related to types of accounts, transactions, and journal entries. It covers the four main types of accounts - assets, liabilities, income, and expenses. It also discusses the differences between capital and revenue expenditures, and how to classify transactions as affecting personal, real, or nominal accounts. The document provides examples of journal entries and explains the rules for debiting and crediting different types of accounts.
This document discusses subsidiary books, which are books of original entry where transactions are first recorded. It provides examples of common subsidiary books like purchase books, sales books, cash books, bills receivable books and bills payable books. It also discusses the advantages of using subsidiary books and their various formats.
Import - Export Policy of India(EXIM POLICY)Sandip Besra
policies in the sphere of Foreign trade i.e. with respect to import & export from the country and more especially export promotion measures, policies and procedure related there to.
This document discusses various methods for pricing material issues, including first in first out (FIFO), last in first out (LIFO), and average cost methods. FIFO prices issues based on the earliest materials received, while LIFO prices based on the latest materials. Average cost methods calculate a weighted average price based on total cost and quantity to smooth out price fluctuations. The appropriate pricing method depends on factors like price trends and the nature of materials.
The presentation covers the basics of Cost Accounting.
It gives a birds eye view of the subject of Cost Accounting.
The advantages, limitations, need, scope, classification are covered.
This document provides an overview of India's Export-Import (EXIM) policy. It begins with definitions of key terms like EXIM and foreign trade policy. It then discusses the brief history and objectives of India's EXIM policy. It provides details on important documents in the Indian EXIM policy and trends in India's imports and exports before and after the 1990s. The document also summarizes key aspects of India's EXIM policies from 2009-2014 and 2015-2020, including targets, legal framework, general provisions, special focus initiatives, promotional measures, duty exemption schemes, and the Export Promotion Capital Goods Scheme.
Achievements and failures of indian economic planninganita rani
Indian economic planning since independence has led to increases in national income, per capita income, capital formation, and employment. Key achievements include the Green Revolution, development of industries and infrastructure, and improvements in social services and technology. However, planning has also been associated with failures such as insufficient gains in standard of living, rising prices, unemployment, uneven growth across sectors and regions, and inefficient administration.
1. The document provides an overview of marketing concepts including the nature and scope of marketing, the marketing mix, and different promotional methods.
2. It defines marketing as the total system of business activities designed to plan, price, promote and distribute want-satisfying products to target markets to achieve organizational objectives.
3. The marketing mix is described as the set of controllable tactical variables (product, price, place, promotion) that an organization combines to produce the response it wants in a target market.
MAT or Minimum Alternate Tax was introduced in 1987 to collect taxes from zero tax companies. It levies a tax rate of 15% on the book profits of companies to bring them in the tax net. Companies can claim MAT credit for taxes paid over their normal tax liability which can be carried forward for 15 years. All companies, including those in Special Economic Zones, are required to pay MAT and file MAT reports. The introduction of MAT helps reduce tax evasion and ensures that companies pay a minimum level of tax.
Business research involves planning, collecting, analyzing relevant data to help business decision making and communicating the results to management. It helps in various functional areas like marketing, accounting and finance, human resources, and production. Marketing research helps with forecasting demand, analyzing consumer behavior, and measuring advertising effectiveness. Accounting and finance research examines issues like depreciation, transfer pricing, and their impacts on profits. Human resources research studies employee behavior, attitudes, leadership styles, and performance appraisal. Production research identifies better production methods, standardization techniques, and troubleshooting strategies.
There are three main managerial theories described in the document:
1. Baumol's Model of Sales Revenue Maximization suggests that managers pursue sales maximization over profit maximization to boost their prestige, power, and job security.
2. Marris's Theory of Managerial Enterprise notes the separation of ownership and management allows managers to set goals that benefit themselves rather than owners, such as prioritizing growth over profits.
3. Williamson's Theory of Managerial Discretion discusses how managers have discretion over decisions and may not always act in the owners' best interests.
The document provides an overview of corporate taxes. It defines a corporation as a separate legal entity that can be incorporated through legislation or registration. Corporations have legal personhood and can be responsible for crimes. They provide benefits like liability protection and raising funds through stock sales. The document then discusses taxes in general and how they are imposed by governments. It outlines different types of taxes including corporate taxes. Corporate tax rates vary globally from around 15-35% in different countries. The document provides details on India's corporate tax rates and regulations. It concludes with discussing tax planning strategies that corporations can use like accounting methods, inventory valuation, equipment purchases and benefits plans.
This document discusses emerging modes of e-business. It defines various types of e-business including B2B (business to business), B2C (business to consumer), C2C (consumer to consumer), and intra-business commerce. B2B refers to businesses conducting business with other businesses. B2C involves businesses selling products or services to consumers. C2C has no middle businesses and allows consumers to become sellers. Intra-business commerce occurs within a single firm using an intranet. The document also outlines the benefits and limitations of e-business, such as increased accessibility but also security and technical challenges. It describes online transactions and payment options including cash-on-delivery, checks, credit/debit cards,
The document discusses disinvestment in India, including its objectives, benefits, types, and process. Some key points:
- Objectives of disinvestment include reducing financial burden on the government, improving public finances, and introducing competition.
- Benefits are for the government, markets, taxpayers, employees, and public sector units. It allows the government to focus on core activities.
- Types of disinvestment are minority disinvestment, majority disinvestment, and complete privatization.
- The disinvestment process involves methods like net asset value, profit earning capacity, and discounted cash flow valuation.
This document discusses the treatment of waste, scrap, defectives, and spoilage in costing. It defines each term and explains how their costs should be treated. Normal waste and scrap are factored into per unit costs, while abnormal amounts are transferred to the costing profit and loss account. Defectives may have their rectification costs charged to specific jobs or overhead, or transferred to profit and loss depending on the reason. The cost of normal spoilage is covered by good production, while abnormal spoilage costs go to profit and loss.
1. The document discusses the impact of GST on the Indian economy, noting that it unifies indirect taxes and brings transparency.
2. Key impacts include increasing competitiveness by reducing costs, simplifying the tax structure, creating a unified economic zone in India, and potentially increasing tax revenues.
3. The rates under GST are 0%, 5%, 12%, 18%, and 28% for different goods and services. The document provides examples of how GST affects prices of items like footwear, cab rides, airline tickets, and more.
GST came to India as a medicine that would treat taxable diseases at one go. It was described by economists as the biggest economic reform after independence. Till the year 2017 indirect tax structure in India was a complex mixture of central taxes and state taxes, here different types of taxes were levied at different stages, which made the tax structure difficult and most of the taxes were not adjusted for this system tax. Increases effect such as taxes on taxes that increase the value of products and services. This economic reform is extremely essential for an emerging economic power like India. Impact of The last deputy speaker from the government, the government and the economy will present its influence in both positive and negative forms. This research of mine will throw light on the study of these two sides. Dr. Sumit Trivedi "Impact of GST on Different Classes" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42333.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42333/impact-of-gst-on-different-classes/dr-sumit-trivedi
This document provides an overview of the Goods and Services Tax (GST) implemented in India. It discusses what GST is, the history and need for GST, how GST works, its key features and effects on the Indian economy. It also outlines what items are taxed and exempted under GST and notes that multiple Indian states accepted GST between August 2016 to September 2016. The conclusion emphasizes that GST aims to create a unified market by replacing existing indirect taxes and collecting tax on final consumption within each jurisdiction.
Traditionally India’s tax regime relied heavily on indirect taxes. Revenue from indirect taxes was the major source of tax revenue till tax reforms were undertaken during nineties. The major argument put forth for heavy reliance on indirect taxes was that the India’s majority of population was poor and thus widening base of direct taxes had inherent limitations. But the Indian system of indirect taxation is characterized by cascading, distorting tax on production of goods and services which leads to hampering productivity and slower economic growth. There are endless taxes in present system few levied by Centre and rest levied by state, to remove this multiplicity of taxes and reducing the burden of the tax payer a simple tax is required and that is Goods and Service Tax (GST). This paper throws an insight into the Goods and Service Tax concept, advantages, disadvantages and international scenario
Goods and Services Tax: Benefits and its Impact on Indian EconomyDr. Amarjeet Singh
The Goods and Services Tax, or GST, took effect on July 1, 2017. The new tax system was designed to replace all current indirect taxes with a single, comprehensive tax. The Products and Services Tax (GST) is a consumption tax imposed on goods and services depending on their final destination (Bhushan Satya). Simply said, GST is a single tax that applies to the delivery of goods and services from the producer to the end user. In a nutshell, it's a tax imposed solely on value addition, with input tax credits transferred to successive stages of value addition, implying that the ultimate tax burden would fall on the end user of products or services.
The anticipated advantages of implementing the GST are that it would decrease the cascading impact of taxes, i.e. it will eliminate tax on tax. It was also anticipated to stimulate demand for products and the elimination of a number of indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise, among others, which would help to improve the Indian economy in the long term.
This paper tries to highlight the cost and benefits bear by the economy due to implementation of the GST. The paper also tries to find out the expected rate of growth of economy after the GST. Finally, the study tries to conclude that how it would be disrupted and benefits the economy in the long run.
This document discusses goods and services tax (GST) in India, outlining both its benefits and challenges. Some key points:
1. GST unified several indirect taxes and aimed to create a single, nationwide market. It launched on July 1, 2017.
2. Benefits include eliminating cascading taxes, increased tax revenues, and simplified tax structure. Challenges include tax cascading, complexity, and tax evasion opportunities.
3. Five years since implementation, GST revenues have grown steadily each month. While initial adoption challenges existed, compliance has increased over time as the system matures.
This document provides an overview of the Goods and Services Tax (GST) implemented in India in 2017, including its basics, salient features, rationale, and impact on various sectors. Key points:
1) GST consolidates many indirect taxes into a single tax rate and aims to simplify taxation, increase revenue, and create a unified market. However, implementation challenges may arise.
2) GST consists of CGST, SGST, and IGST and is levied on the supply of goods and services. It is expected to boost the economy by reducing costs and complexity.
3) Sectors like education, FMCG, pharmaceuticals, healthcare, finance, and insurance will be impacted, with some
This document provides an overview of the Goods and Services Tax (GST) implemented in India. It explains that GST aims to simplify the tax system by consolidating multiple taxes into a single tax. It also discusses input tax credits, who is liable to pay GST, the taxes it replaces, the different GST slabs, items covered and excluded, and the benefits of GST such as increased transparency, easier inter-state trade, and accelerated economic growth. The document concludes by stating that GST was implemented in India on July 1, 2017.
This document discusses India's complex indirect taxation system and the proposed introduction of a Goods and Services Tax (GST). It notes that India currently has the highest percentage of indirect taxes compared to other countries. The document outlines the evolution of India's indirect tax system over time, including the introduction of excise duties, sales taxes, and value-added taxes at different government levels. It argues that while reforms have benefited consumers and companies, a unified GST is still needed to further simplify the system. The proposed GST model and potential impacts on the FMCG industry are also summarized, including reduced compliance costs and elimination of some cascading taxes.
1) The document discusses the proposed implementation of Goods and Services Tax (GST) in India and how it will lead to economic growth.
2) GST is expected to simplify India's tax structure, increase tax collection, and create a common national market, reducing costs for businesses.
3) Studies estimate that GST could increase India's economic growth by 0.9-1.7% annually and boost annual government revenues by $15 billion by expanding the tax base and reducing evasion.
4) Implementing GST as a unified indirect tax is projected to facilitate investment, manufacturing, trade between states, and overall economic development in India.
This document provides an overview of Goods and Service Tax (GST) in India. It discusses the history of GST in India from 2000 to 2017 when it was implemented. It describes key features of GST such as applying a dual GST model concurrently by the central and state governments, categorizing goods and services into five tax slabs, and exempting certain items like petroleum from GST. The goals of GST are to replace existing indirect taxes and harmonize tax rates and structures across the country.
Impact of Goods and Services Tax (GST) to the Common Mantridentbull
The Goods and Services Tax (Amendment) Bill — officially known as, the Constitution (122nd Amendment) (GST) Bill, 2014 — is believed to be the biggest tax reform since independence. The Constitution Amendment Bill for Goods and Services Tax (GST) passed in the Rajya Sabha on 3 August 2016, which was approved by the Lok Sabha in May 2015.
Goods and Service Tax (GST) is proposed to replace existing indirect taxes in India and be a game changer for the economy. GST will combine multiple taxes into a single tax to reduce compliance burden and increase tax collection. It is expected to lower prices by reducing the tax on tax effect and make exports more competitive. GST will have three components - CGST collected by the central government, SGST by state governments, and IGST on inter-state transactions. It is argued that GST will simplify tax administration and boost economic growth.
The document discusses India's taxation system and proposed reforms. It provides background on taxes in India, explaining that taxation powers are divided between the central and state governments. It then summarizes the Direct Tax Code proposed to replace the Income Tax Act, including its aims to lower rates while broadening the tax base and reducing exemptions. The document also summarizes the proposed Goods and Services Tax (GST), which would combine multiple taxes into a single value-added tax to reduce the overall tax burden. It outlines some of the challenges in implementing GST, such as the need to upgrade IT systems and the opposition of some states.
impact of GST on trade and business development Prakash Kuma
This document provides an overview of the Goods and Services Tax (GST) in India including:
- What GST is and how it works as a comprehensive indirect tax on the supply of goods and services.
- Why India needed GST to replace the complex indirect tax structure with multiple rates and forms.
- A brief history of GST implementation in India from when the concept was first introduced in 2006 to its final passage in 2017.
- Key aspects of GST including the taxes subsumed, models considered, the GST Council, benefits of GST, and composition scheme for small businesses.
- Implications and impacts of GST on different sectors such as automobiles, consumer
General knowledge on GST to understand the biggest tax reform in the Indian Economy.
Note: It's just a brief on GST and does not get into the intricacies. Thank you for viewing.
The document summarizes key aspects of the Goods and Services Tax (GST) implemented in India. It outlines the existing tax structure with various central and state taxes and the proposed unified GST structure. It then discusses the positive impacts of GST for consumers, such as removing cascading taxes, standardized tax rates, and potentially lower prices. However, it also notes potential negative impacts like higher costs of services initially and increased inflation. Overall, GST aims to simplify taxation but its effects will depend on execution and pass-through of benefits to consumers.
This document provides an overview of the existing taxation system in India and how it will be replaced by the Goods and Services Tax (GST). It discusses the different direct and indirect taxes currently imposed in India, including income tax, wealth tax, capital gains tax, sales tax, service tax, value added tax, customs duty, and octroi. The implementation of GST aims to simplify this complex system by integrating various central and state taxes into a single tax applicable to both goods and services. GST is expected to reduce the overall tax burden, increase tax collection and compliance, and help develop a common national market.
What is GST and its Impact on current entrepreneurs ?Zaheer Sayyed
The document discusses the Goods and Services Tax (GST) bill in India. Some key points:
1. GST will consolidate indirect taxes like VAT, service tax, etc. into a single tax to make compliance easier. It will be levied on manufacture, sale, and consumption of goods and services.
2. GST is expected to benefit businesses, especially startups, by simplifying tax compliance, increasing exemptions for new businesses, and reducing logistics costs through seamless inter-state movement of goods.
3. However, some drawbacks are also discussed, such as potential increased costs for e-commerce companies and possibility of higher tax burden for low-turnover manufacturing startups.
The document summarizes the key aspects of the proposed Goods and Services Tax (GST) Bill in India. It discusses that GST will replace existing indirect taxes and be made up of Central GST and State GST. GST is expected to make the tax system more transparent by eliminating hidden taxes. It will help reduce the cost of doing business and make exports more competitive by not taxing registered retailers. The target implementation date for GST is January 2016.
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2. What is Manufacturing Sector?
The manufacturing sector is part of the goods-producing
Industries.
The Manufacturing sector comprises establishments engaged
in the mechanical, physical, or chemical transformation of
materials, substances, or components into new products.
Manufacturing holds a key position in the Indian economy,
accounting for nearly 16 per cent of real GDP.
Employing about 12.0 per cent of India’s labour force.
Growth in the sector has been matching the strong pace in
overall GDP growth over the past few years.
Growth however has remained below that of services, an
issue that has not escaped the attention of policy makers in the
country.
3. Earlier Taxation System in Indian Manufacturing
Sector
The Indian Taxation system can be broadly divided into two
major categories- Direct Taxes and Indirect Taxes.
The nomenclature is purely based on whether the tax burden
is borne by the payer directly or shifted to others.
The Manufacturing sector itself is majorly governed by the
Indirect Taxes regime.
The Indirect Taxes are further named as Excise Duty, Sales Tax
and Service tax.
4. Deficiency in the Earlier Tax System:
The biggest problem with Indirect
Taxes is prevailing since its inception.
It is a well-known issue called Tax on
Tax or Cascading Effect of Taxes.
5. GST - Brief History :
GST was first introduced in France in 1954.
In India , in 1974 the L K Jha committee first highlighted the
need to move into VAT regime .
In 1991 , Chelliah committee recommended VAT or GST
implementation.
In 1994, Service Tax was implemented in India
In the year 2000, the Central Government under the Prime
Ministership of Mr. Atal Bihari Vajpayee set up a model taxation
scheme for a universal tax in India.
In 2003, Haryana become the first State to implement VAT
6. In 2004 CENVAT was introduced to integrate Central Level taxes
In 2006, Union Finance minister Mr. Chidambaram proposed roll
out of GST by April 2010.
In 2007, the report on GST submitted by Joint Working Group got
accepted by the Empowered Committee.
The committee released its First Discussion Paper (FDP) on GST in
November 2009.
In 2011 , Mr. Nandan Nilekani released Information Technology
Strategy for GST.
After several years of political drama, the Lok Sabha in 2015
passed the 122nd Constitutional Amendment Bill for GST.
As per proposal, GST became effective from 2nd July 2017 in
India.
7. GST around the world (Selected countries):
1. France
There are 4 rates in France: 2.1 per cent, 5.5 per cent, 10 per cent and 20
per cent since its first implementation in 1954
2. United Kingdom
Since 2011, UK's is set at 20 per cent
3. Ukraine
There are two slabs in Ukraine, which are 20 per cent for most goods and
services and 7 per cent mostly for medicines
4. New Zealand
GST was introduced in New Zealand in 1986 at a rate of 10 per cent which
was later increased to 15 per cent in 2010
5. Australia
Introduced in 2000, the rate has been set at 10 per cent.
8. 6. Vietnam
Three rates i.e 0 per cent, 5 per cent and 10 per cent are
applied to most goods and services
7. Singapore
Implemented at 3 per cent in 1994, GST was increased to 7%
in 2007.
8. Malaysia
Introduced in 2015, Malaysia's GST is set at 6 per cent.
9. Canada
GST is set at 5 per cent on supplies of goods or services
and includes most products.
9. What is GST ?
The Goods and Service Tax system is an indirect
taxation system .
Merged into a single taxation system.
It is a consumption based tax.
The basic principle is to tax the value addition at
each transaction.
It is being levied on all transactions of goods and
services .
10. Goods and Services Tax (GST) is an
indirect tax which was introduced
in India on 1 July 2017 and was
applicable throughout India which
replaced multiple cascading taxes levied
by the central and state governments.
The rate of GST in India is between
double to four times.
11. GST is expected to fill the loopholes in the prevailed
tax system and boost the Indian economy.
This is being done by unifying the indirect taxes for all
states throughout India.
The tax rate under GST are set at 0%, 5%, 12%, 18%
and 28% for various goods and services, and almost
50% of goods & services comes under 18% tax rate.
But how is our life going to change post GST?
Let’s see how GST impact on an end user’s pocket.
12. WHY GST ?
1. Removal of multiple valuations will create
simplification:
The old tax system subjects manufactured goods to excise
duty, which was calculated differently in different
states. While some states calculated excise duty based on
transaction value, others calculated it based on quantity.
For most manufactured goods’ excise duty was
considered on MRP valuation. This created lot of confusion
in valuation methods.
GST – a transaction-based valuation, making calculation of
tax much simpler for the manufacturer.
13. 2.Entry tax subsummation will reduce cost of production:
The subsuming of the entry tax for inter-state transfers is
a key reason for reducing cost of goods and services.
1. For example, a supplier of cement from Maharashtra to
Karnataka was earlier required to pay entry tax when the
supply crossed the inter-state border. For Karnataka, the
entry tax rate was 5% of the value of the goods. The
supplier would pass on this additional cost to the customer,
resulting in increase in selling price. With entry tax
being subsumed, the supplier need not pay the entry tax
rate amount and consequently, not charge the customer
this amount either.
14. Example:
2. Suppose a manufacturer of a shirt buys a
raw material or inputs like cloth, thread,
buttons, tailoring equipment worth Rs.100, a
sum that includes a tax of Rs.10 with these
manufacturing inputs of a shirt.
In this process, the manufacturer adds a
value to the materials he started out. Let us
take this value added by him to be Rs.30.
Now, the gross value of his good would be RS
(100+30=Rs.130)
15. 3.Improved cash flows:
Under the new tax laws, manufacturers
can claim input tax credit on input goods,
which seems to be a positive sign for
cash flow.
SMEs are keenly observing the time
difference between input tax credit and
the credit being available.
16. 4. Single registration process will provide ease of
registration:
The old regime required manufacturers to register each
manufacturing facility separately, even those in the same
state.
GST will simplify the plant registration process by allowing
single registration for all manufacturing entities within the
same state.
Previously, if a brick manufacturer had factories in Bangalore,
Hubli and Dharwad, each unit had to be registered separately.
Under GST, all of these factories would be jointly registered
under the state of Karnataka. Of course, different state- entities will
require separate registrations under GST too.
17. 5. Removal of cascading will lead to lower cost to consumer:
The old tax regime does not allow manufacturers to claim tax
credit on inter-state transaction taxes such as octroi, central
sales tax, entry tax etc. This results in cascading of taxes—an
extra cost to the manufacturing company. Manufacturers end up
passing on these extra costs to the consumer.
The unified GST regime will eliminate multiple taxes and thus
lower cost of production; this, in turn, will mean lower pricing for
the consumer. For example, prior to 1 July 2017, SMEs in
manufacturing used to pay Excise Duty, Central State Tax and
sometimes VAT too at 12.5%, 2% and 5.5% respectively. With
GST in effect, they are required to pay 18% in taxes.
18. 6. Restructuring of supply chain:
To align with the GST law, businesses will be
required to realign their supply chains.
However, this is a blessing in disguise. Till date,
most supply chain structuring has been
designed around how to manage tax regimes.
With a single tax regime, this will change, and
supply chain structures will focus on driving
business efficiencies.
19. IMPACT ….?
Footwear & Apparels/Garments:
Footwear costing more than Rs. 500 will have
a GST rate of 18% from an earlier rate of 14.41
rate but rates for the footwear below Rs. 500
has been reduced to 5%.
So, you need to shell out more for buying a
footwear above Rs. 500/-. And with respect to
the ready-made garments, the rates have
been reduced to 12% from an existing 18.16%
which will make them cheaper.
20. Cab and Taxi rides:
Now, taking an Ola or an Uber will be
cheaper because the tax rate has come
down to 5% from an earlier 6% for a cab
booking made online.
Airline tickets:
Under the GST, tax rate for economy class
for flight tickets is set at 5% but the tax
for business class tickets will have a
higher tax rate of 12%.
21. Train Fare:
There will not be much of an impact. The effective
tax rate has increased from 4.5% to 5% in GST.
People travelling by local trains or in the sleeper class
will not be affected, but first-class & AC travelers will
have to pay more.
Movie Tickets:
Movie tickets costing below Rs. 100 will be charged
a GST rate of 18% but prices above Rs. 100 will have
a higher tax rate of 28%.
22. Jewellery:
The gold investment will become slightly expensive
because there will be 3% GST on gold & 5% on the
making charges. The earlier tax rate on gold was
around 2% in most of the states and the GST is
increased from the existing rate to around 2% to 3%.
Buying a Property:
The GST rate for an under-construction property is
18% but the effective rate on this kind of property will
be around 12% due to input tax credits the builder
will avail of.
23. Education & Medical Facilities:
Education and Medical sectors have been kept outside
the GST and both the primary education & healthcare is
exempt from GST. It means consumer will not pay any tax
for the money that we spent on these services. But due to
increase in the rate of taxes for certain goods & services as
procured by these organizations, they may pass on the
additional tax burden to the consumers.
Hotel Stay:
For your hotel stay, If your room tariff is less than Rs.
1,000, then there will be no GST, but anything above Rs.
5,000 will attract 28% tax.
24. Buying a Car:
Most of the cars in the Indian market will become
slightly cheaper, except for the hybrid cars because
the GST rate will be 28% tax on all the vehicles
irrespective of their make, engine capacity or model.
However, over and above this 28%, an additional cess
will be levied which can be either 1%, 3% or 15 %,
depending on the particular car segment.
Mobile Bills:
People will have to pay more on mobile phone bills
as GST on telecom services is now 18%, as against the
earlier tax rate of 15%.
25. Restaurant Bills/EATING OUT:
Now dining at five-star hotels will be charged at 18% GST rate
and the Non-AC restaurants will be charged 12% and a 5% GST
will be charged from small hotels, dhabas and restaurants
who do not cross an annual turnover of Rs. 50 Lakh.
IPL & other related events:
Events like IPL i.e. sporting events will have a 28% GST rate
which is higher than the earlier 20% rates. This will increase
the price of your tickets. And the GST rate for other events like
theatre, circus or Indian classical music shows or a folk dance
performance or a drama show will be at 18% GST rate, this is
lesser than the earlier tax rate.
26. DTH and cable services:
The money you pay towards your DTH (Direct-
To-Home) connections or to your cable operator
will reduce a bit as the rate is fixed at 18%, which is
lower than the earlier taxes which were comprising
of entertainment tax in the range of 10% to 30%,
apart from the service tax of 15%.
Amusements Parks:
The ticket price for amusement parks and theme
parks will increase as the earlier service tax of
15% will become 28% under the GST.
27. Here’s is a list of some items which are completely
exempted from the GST regime:
*The unprocessed cereals, rice & wheat etc.
*The unprocessed milk, vegetables (fresh), fish,
meat, etc.
*Unbranded Atta, Maida.
*Kid’s colouring book/drawing books.
*Sindoor/Bindis, Bangles, etc.
28. INDUSTRIAL IMPACT
1] FMCG [Fast Moving Consumer Goods Sector]
Fast moving consumer goods sector will benefit from
the GST due to the present of big unorganized
market.
GST rate for products like hair oil, soaps and
toothpaste has been lowered
Companies such as Colgate-Palmolive, HUL, Britannia,
Heritage Foods etc will benefit from the move.
29. 2] Pharma and healthcare:
Pharmaceutical products will see 12 per cent
GST as against earlier rate of 10 per cent.
Companies will be able to pass on this full
impact to the patients.
The healthcare sector will remain exempt from
the GST however the inputs by the healthcare
sector will be taxed at 18 per cent leading to
rise in the operating costs.
30. 3] Consumer durables:
White good players were previously taxed at 27 per cent
(including 13.5 per cent VAT) against 28 per cent under the
new GST regime.
There are expectations that with GST coming in picture, there
will be some increase in the prices of most consumer durable
Items.
However, market analysts do not see any significant impact on
the margins of the consumer durable companies post GST
implementation.
31. 4] Airlines
Travelling in business class will become expensive as after the
rollout of GST, tax rate increased from 9 per cent to 12 per
cent. However, GST on economy class is set at 5 per cent,
lower than the previous 6 per cent.
Aviation Turbine Fuel has kept outside the GST and the
indirect tax structure will continue. As a result, aviation
companies will now face two set of taxes, i. e. GST and indirect
tax.
Tax input credit under the GST is only available on input
services for economy class travel.
Lower tax rate on economy travel is positive for companies like
Inter Globe Aviation, Jet Airways and Spice Jet.
32. 5] Cement
GST implementation is expected to be neutral for the
cement industry.
Earlier, cement was taxed at 12.5 per cent excise and
VAT rates between 12.5-15.5 per cent. Under GST,
the cement was taxed at 28 per cent, which is nearly
the same as the current tax structure.
Reduction in the prices of coal and GST will benefit
cement companies further.
33. 6] Telecom
The sector is facing severe pressure in the form of
intense competition from Reliance Jio.
Under the GST regime, telecom services will be taxed
at 18 per cent as against 15 per cent earlier.
There are expectations that it will work as a salt on
the wound for the sector.
Any price increase will further dampen the scenario.
34. 7] Automobile and auto ancillaries:
The GST rates are mostly expected to be neutral to
the auto sector except for the hybrid cars which will be
taxed at the 28 per cent GST +15 per cent cess.
Most other vehicle categories will not see significant
change from the current tax structure.
Tractors category will be taxed at 12 per cent against
current 6-7 per cent which will be negative for the
tractor companies.
35. 8] Real Estate
The effective GST rate on under-
construction real estate projects will be
12 per cent only and not 18 per cent as
there will be abatement for land cost,
according to a report by tax consultant .
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