VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION.
STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED .
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.
This document discusses the history and implementation of tax reforms in India over several decades. It outlines the motivation for tax reforms, which has varied between countries but often relates to fiscal crises and the need to increase revenues. In India, past tax reform committees aimed to enhance revenue productivity to finance development plans, though economic efficiency was also considered. The document then describes key aspects of the Goods and Services Tax (GST) implemented in India in 2017, including the different tax rates, categories of goods and services that are taxed or not taxed, and monthly GST collection figures from 2022. It predicts that GST may have a limited short-term positive impact on economic growth.
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
This document discusses the concept of indirect taxes. It defines indirect taxes as taxes whose burden can be shifted to others, in part or wholly, through higher prices. Examples given are excise duties, sales tax, service tax, customs duty, and taxes on transportation fares. The objectives of indirect taxes include revenue generation, reducing income inequality, social welfare programs, earning foreign exchange, and regional development. Key features outlined are burden shifting, taxation of commodities/services, and indirect determination of taxpayer ability. Advantages include convenience, disguise of tax effect, difficulty evading, broad tax base, and potential for forced savings. Disadvantages involve regressivity, high collection costs, inflationary effects, and lack of educative value
Goods and Services Tax (GST) is an indirect tax on the sale, consumption, and manufacturing of goods and services throughout India. It aims to eliminate multiple indirect taxes and create a single, unified Indian market. Unlike other countries, Indian GST consists of three taxes - Central GST, State GST, and Integrated GST. India follows a dual GST model where both central and state governments levy GST concurrently on the same base of goods and services.
This document provides an overview of the Goods and Services Tax (GST) in India. It discusses the key features of GST, including that it will combine multiple taxes into a single tax on goods and services, provide full tax credits, and follow a multi-rate structure. The document also reviews the journey towards implementing GST in India and compares GST structures in other countries.
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.
This document discusses the history and implementation of tax reforms in India over several decades. It outlines the motivation for tax reforms, which has varied between countries but often relates to fiscal crises and the need to increase revenues. In India, past tax reform committees aimed to enhance revenue productivity to finance development plans, though economic efficiency was also considered. The document then describes key aspects of the Goods and Services Tax (GST) implemented in India in 2017, including the different tax rates, categories of goods and services that are taxed or not taxed, and monthly GST collection figures from 2022. It predicts that GST may have a limited short-term positive impact on economic growth.
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
This document discusses the concept of indirect taxes. It defines indirect taxes as taxes whose burden can be shifted to others, in part or wholly, through higher prices. Examples given are excise duties, sales tax, service tax, customs duty, and taxes on transportation fares. The objectives of indirect taxes include revenue generation, reducing income inequality, social welfare programs, earning foreign exchange, and regional development. Key features outlined are burden shifting, taxation of commodities/services, and indirect determination of taxpayer ability. Advantages include convenience, disguise of tax effect, difficulty evading, broad tax base, and potential for forced savings. Disadvantages involve regressivity, high collection costs, inflationary effects, and lack of educative value
Goods and Services Tax (GST) is an indirect tax on the sale, consumption, and manufacturing of goods and services throughout India. It aims to eliminate multiple indirect taxes and create a single, unified Indian market. Unlike other countries, Indian GST consists of three taxes - Central GST, State GST, and Integrated GST. India follows a dual GST model where both central and state governments levy GST concurrently on the same base of goods and services.
This document provides an overview of the Goods and Services Tax (GST) in India. It discusses the key features of GST, including that it will combine multiple taxes into a single tax on goods and services, provide full tax credits, and follow a multi-rate structure. The document also reviews the journey towards implementing GST in India and compares GST structures in other countries.
The document provides an overview of the Goods and Services Tax (GST) system in India. Some key points:
- GST is a consumption-based tax levied on the supply of goods and services. It comprises Central GST, State GST, and Integrated GST.
- Many existing taxes at the central and state level will be subsumed under GST including excise duty, VAT, service tax, etc.
- GST will have multiple tax slabs of 0%, 5%, 12%, 18%, 28% and a cess on luxury and 'sin' goods. Composition scheme available for small businesses.
- Input tax credit mechanism allows set-off of taxes paid
The GST Council is the governing body for GST implementation in India. It is chaired by the Union Finance Minister and comprises state finance ministers. The Council determines GST rates and rules. It aims to create a uniform indirect tax system across India. The Council ensures one uniform GST rate applies to goods and services nationwide.
The document discusses the impact of Goods and Services Tax (GST) on the Indian economy. GST will reshape India's indirect tax structure by subsuming many indirect taxes into a single tax. This will simplify tax administration and improve ease of doing business. GST is also expected to boost GDP growth and exports by reducing costs, increasing competitiveness, and eliminating tax cascading. Overall, GST will lead to a more unified and formalized Indian market that attracts more investment and trade.
Fiscal policy involves a government adjusting its spending and tax rates to influence the economy. The objectives of fiscal policy include full employment, reducing inequality, price stability, and economic development. Public revenue comes from tax receipts like direct taxes on individuals/corporations and indirect taxes on goods/services. It also comes from non-tax receipts like interest. Public expenditure consists of revenue expenditure on current needs and capital expenditure on infrastructure. India's fiscal policy has shifted from indirect taxes to more direct taxes since independence. The 2017 budget aims to transform, energize and clean the economy through initiatives for farmers, MGNREGA, affordable housing, and promoting a digital India.
Presentation on the Indirect Tax system in India, the need for tax reforms, the journey to GST, basic understanding and features of GST and the benefits of GST.
This document provides an overview of the Goods and Services Tax (GST) system that is being implemented in India. Some key points:
- GST is a comprehensive indirect tax that will combine multiple state and central taxes into one. It is levied at each stage of production and distribution.
- The proposed GST structure has two components - Central GST to be levied by the Centre and State GST to be levied by the states. Standard rates are proposed at 20% for goods and 16% for services.
- GST aims to reduce tax cascading and make India's tax system simpler, more transparent and boost the economy by making exports more competitive.
- There were challenges
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.
The document summarizes the key aspects of the 14th Finance Commission of India. It discusses the Commission's composition, functions, recommendations and implications. The major recommendation was increasing the states' share of central taxes from 32% to 42%. This provided states greater fiscal autonomy but reduced central assistance. Overall, the recommendations aimed to further cooperative federalism between central and state governments in India.
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.
The Good and services tax (GST) is the biggest and substantial indirect tax reform since 1947. The main idea of GST is to replace existing taxes like value-added tax, excise duty, service tax and sales tax. GST as it is known is all set to be a game changer for the Indian economy. India as world’s one of the biggest democratic country follow the federal tax system for levy and collection of various taxes.GST tax system plays a vital role in growth of India.GST cover 12 taxes (Like Vat, Sale tax, CST, KKC etc). GST is one of the most crucial tax reforms in India which has been long pending. It will be levied on manufacture sale and consumption of goods and services. GST is expected to address the cascading effect of the existing tax structure and result in uniting the country economically.
The document provides a historical background of the Goods and Services Tax (GST) in India. It details how GST was proposed in 2000 with a committee headed by Asim Dasgupta tasked to design a model for India. The government began implementing Value Added Tax (VAT) in the 2000s and the Kelkar task force in 2003 recommended a comprehensive GST based on VAT. After several discussions and drafts of the constitutional amendment bill, the bill was finally passed by the Rajya Sabha in August 2016 and ratified by the required number of states within 23 days, leading to the President signing it into law on September 8, 2016.
This presentation discusses India's federal financial system and center-state financial relations. It explains that India follows a federal finance system with revenue and expenditures divided between the central and state governments. The central government can levy taxes listed in the Union List, while states can levy taxes in the State List. Taxes like income tax are shared according to principles set by the Finance Commission to ensure fiscal autonomy and responsibility. This system promotes independence, accountability, administrative efficiency and coordination between levels of government.
TDS stands for Tax Deduction at Source. It is a mechanism for collecting income tax in India whereby the tax is deducted at source from payments like salary, interest, rent, etc. at the time of payment/credit. The payer has to deduct tax as per rates specified in the Income Tax Act 1961 from the payments, deposit the deducted tax with the government, file quarterly TDS returns, and issue annual TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return. The document outlines the basics of TDS, rates of deduction for different types of payments, due dates for depositing deducted taxes, filing returns and issuing certificates
GST (Goods and Services Tax) is a comprehensive indirect tax that will combine multiple taxes and levies into a single tax to be applied at every stage of supply of goods and services in India. It aims to overcome the cascading effect of taxes and provide seamless tax credits across the entire supply chain. The GST model proposed for India is a dual GST where both the central and state governments will simultaneously levy GST across the country.
This document provides an overview of Goods and Services Tax (GST) in India. Some key points:
1) GST is a comprehensive indirect tax that will replace multiple taxes levied by the central and state governments. It aims to create a unified national market.
2) The Constitution was amended to implement GST, which will be levied as Central GST, State GST, and Integrated GST on inter-state supplies.
3) A GST Council will be formed comprising representatives of the central and state governments to make recommendations on tax rates and other aspects.
4) GST will apply broadly to all goods and services, with exemptions. It follows a destination-
GST stands for Goods and Services Tax, which will be levied on the sale or purchase of goods and services. It will replace existing indirect taxes and create a single, national tax system to help drive economic growth. Implementing GST is an important reform that will simplify taxation, boost consumption, and have widespread impacts by streamlining India's tax structure and market. While it aims to reduce costs, some disadvantages include its complexity for individuals and lack of infrastructure.
The document discusses the various income tax authorities in India according to the Income Tax Act. It outlines the central authorities like the Central Board of Direct Taxes (CBDT) which is responsible for tax policy and administration. Below the CBDT are various officers like Directors General, Commissioners, Deputy/Assistant Commissioners, and Income Tax Officers who have powers to assess taxes, conduct searches and seizures, and investigate tax evasion. Their roles, appointment processes, and jurisdictions are explained. Key powers of authorities like the CBDT, Commissioners and Income Tax Officers are also summarized.
Indirect taxes are the most important source of revenue in India according to the document. It discusses the history of tax reforms committees in India from 1953 onwards and their recommendations to rationalize and simplify indirect tax structures. Key suggestions included introducing VAT and service tax, reducing exemptions, and integrating credit schemes. Most recommendations were accepted over time, like implementing service tax in 1994, introducing CENVAT in 2000, and finally Goods and Services Tax (GST) in 2016 to subsume multiple indirect taxes into one.
This document provides an overview of the Goods and Services Tax (GST) in India. It defines GST as a comprehensive tax on the manufacture, sale, and consumption of goods and services at the national level. It discusses the need for GST to replace existing multiple tax structures and simplify taxation. The document outlines the key features of GST, including that it will have dual components of Central GST and State GST, and covers topics such as taxable events, persons, rates, and subsuming of existing taxes. It provides the latest updates regarding proposals for an optional GST and other recommendations from a parliamentary panel.
The document provides an overview of the Goods and Services Tax (GST) system in India. Some key points:
- GST is a consumption-based tax levied on the supply of goods and services. It comprises Central GST, State GST, and Integrated GST.
- Many existing taxes at the central and state level will be subsumed under GST including excise duty, VAT, service tax, etc.
- GST will have multiple tax slabs of 0%, 5%, 12%, 18%, 28% and a cess on luxury and 'sin' goods. Composition scheme available for small businesses.
- Input tax credit mechanism allows set-off of taxes paid
The GST Council is the governing body for GST implementation in India. It is chaired by the Union Finance Minister and comprises state finance ministers. The Council determines GST rates and rules. It aims to create a uniform indirect tax system across India. The Council ensures one uniform GST rate applies to goods and services nationwide.
The document discusses the impact of Goods and Services Tax (GST) on the Indian economy. GST will reshape India's indirect tax structure by subsuming many indirect taxes into a single tax. This will simplify tax administration and improve ease of doing business. GST is also expected to boost GDP growth and exports by reducing costs, increasing competitiveness, and eliminating tax cascading. Overall, GST will lead to a more unified and formalized Indian market that attracts more investment and trade.
Fiscal policy involves a government adjusting its spending and tax rates to influence the economy. The objectives of fiscal policy include full employment, reducing inequality, price stability, and economic development. Public revenue comes from tax receipts like direct taxes on individuals/corporations and indirect taxes on goods/services. It also comes from non-tax receipts like interest. Public expenditure consists of revenue expenditure on current needs and capital expenditure on infrastructure. India's fiscal policy has shifted from indirect taxes to more direct taxes since independence. The 2017 budget aims to transform, energize and clean the economy through initiatives for farmers, MGNREGA, affordable housing, and promoting a digital India.
Presentation on the Indirect Tax system in India, the need for tax reforms, the journey to GST, basic understanding and features of GST and the benefits of GST.
This document provides an overview of the Goods and Services Tax (GST) system that is being implemented in India. Some key points:
- GST is a comprehensive indirect tax that will combine multiple state and central taxes into one. It is levied at each stage of production and distribution.
- The proposed GST structure has two components - Central GST to be levied by the Centre and State GST to be levied by the states. Standard rates are proposed at 20% for goods and 16% for services.
- GST aims to reduce tax cascading and make India's tax system simpler, more transparent and boost the economy by making exports more competitive.
- There were challenges
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.
The document summarizes the key aspects of the 14th Finance Commission of India. It discusses the Commission's composition, functions, recommendations and implications. The major recommendation was increasing the states' share of central taxes from 32% to 42%. This provided states greater fiscal autonomy but reduced central assistance. Overall, the recommendations aimed to further cooperative federalism between central and state governments in India.
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.
The Good and services tax (GST) is the biggest and substantial indirect tax reform since 1947. The main idea of GST is to replace existing taxes like value-added tax, excise duty, service tax and sales tax. GST as it is known is all set to be a game changer for the Indian economy. India as world’s one of the biggest democratic country follow the federal tax system for levy and collection of various taxes.GST tax system plays a vital role in growth of India.GST cover 12 taxes (Like Vat, Sale tax, CST, KKC etc). GST is one of the most crucial tax reforms in India which has been long pending. It will be levied on manufacture sale and consumption of goods and services. GST is expected to address the cascading effect of the existing tax structure and result in uniting the country economically.
The document provides a historical background of the Goods and Services Tax (GST) in India. It details how GST was proposed in 2000 with a committee headed by Asim Dasgupta tasked to design a model for India. The government began implementing Value Added Tax (VAT) in the 2000s and the Kelkar task force in 2003 recommended a comprehensive GST based on VAT. After several discussions and drafts of the constitutional amendment bill, the bill was finally passed by the Rajya Sabha in August 2016 and ratified by the required number of states within 23 days, leading to the President signing it into law on September 8, 2016.
This presentation discusses India's federal financial system and center-state financial relations. It explains that India follows a federal finance system with revenue and expenditures divided between the central and state governments. The central government can levy taxes listed in the Union List, while states can levy taxes in the State List. Taxes like income tax are shared according to principles set by the Finance Commission to ensure fiscal autonomy and responsibility. This system promotes independence, accountability, administrative efficiency and coordination between levels of government.
TDS stands for Tax Deduction at Source. It is a mechanism for collecting income tax in India whereby the tax is deducted at source from payments like salary, interest, rent, etc. at the time of payment/credit. The payer has to deduct tax as per rates specified in the Income Tax Act 1961 from the payments, deposit the deducted tax with the government, file quarterly TDS returns, and issue annual TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return. The document outlines the basics of TDS, rates of deduction for different types of payments, due dates for depositing deducted taxes, filing returns and issuing certificates
GST (Goods and Services Tax) is a comprehensive indirect tax that will combine multiple taxes and levies into a single tax to be applied at every stage of supply of goods and services in India. It aims to overcome the cascading effect of taxes and provide seamless tax credits across the entire supply chain. The GST model proposed for India is a dual GST where both the central and state governments will simultaneously levy GST across the country.
This document provides an overview of Goods and Services Tax (GST) in India. Some key points:
1) GST is a comprehensive indirect tax that will replace multiple taxes levied by the central and state governments. It aims to create a unified national market.
2) The Constitution was amended to implement GST, which will be levied as Central GST, State GST, and Integrated GST on inter-state supplies.
3) A GST Council will be formed comprising representatives of the central and state governments to make recommendations on tax rates and other aspects.
4) GST will apply broadly to all goods and services, with exemptions. It follows a destination-
GST stands for Goods and Services Tax, which will be levied on the sale or purchase of goods and services. It will replace existing indirect taxes and create a single, national tax system to help drive economic growth. Implementing GST is an important reform that will simplify taxation, boost consumption, and have widespread impacts by streamlining India's tax structure and market. While it aims to reduce costs, some disadvantages include its complexity for individuals and lack of infrastructure.
The document discusses the various income tax authorities in India according to the Income Tax Act. It outlines the central authorities like the Central Board of Direct Taxes (CBDT) which is responsible for tax policy and administration. Below the CBDT are various officers like Directors General, Commissioners, Deputy/Assistant Commissioners, and Income Tax Officers who have powers to assess taxes, conduct searches and seizures, and investigate tax evasion. Their roles, appointment processes, and jurisdictions are explained. Key powers of authorities like the CBDT, Commissioners and Income Tax Officers are also summarized.
Indirect taxes are the most important source of revenue in India according to the document. It discusses the history of tax reforms committees in India from 1953 onwards and their recommendations to rationalize and simplify indirect tax structures. Key suggestions included introducing VAT and service tax, reducing exemptions, and integrating credit schemes. Most recommendations were accepted over time, like implementing service tax in 1994, introducing CENVAT in 2000, and finally Goods and Services Tax (GST) in 2016 to subsume multiple indirect taxes into one.
This document provides an overview of the Goods and Services Tax (GST) in India. It defines GST as a comprehensive tax on the manufacture, sale, and consumption of goods and services at the national level. It discusses the need for GST to replace existing multiple tax structures and simplify taxation. The document outlines the key features of GST, including that it will have dual components of Central GST and State GST, and covers topics such as taxable events, persons, rates, and subsuming of existing taxes. It provides the latest updates regarding proposals for an optional GST and other recommendations from a parliamentary panel.
The document discusses Goods and Services Tax (GST) in India. It defines GST and explains its key components. It discusses the need for GST to replace existing indirect tax structures. It outlines the justification for GST at central and state levels. It describes the proposed dual GST model and some salient features of GST including chargeability, taxable events, persons, rates, and registration. It also discusses subsuming of existing taxes, exemptions, treatment of exports and imports, and inter-state transactions under GST.
The document provides an overview of the Goods and Services Tax (GST) system that is proposed to be implemented in India. It discusses what GST is, the need for GST to replace existing tax structures, the justification for GST at central and state levels, the proposed dual GST model, key features of GST including coverage, tax rates, registration requirements, invoices, and periodic tax payments. It also addresses taxes that may be subsumed under GST, treatment of exports and imports, inter-state transactions, and emerging issues related to implementation.
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India. It replaces multiple taxes levied by the central and state governments. GST is proposed as a dual GST model where both the central and state government concurrently levy GST on a common tax base. Key features include nationwide applicability, multi-stage collection on value addition, and provision for input tax credit. Implementation of GST aims to remove cascading effect of taxes and create a unified common national market.
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India. It replaces multiple taxes levied by the Central and State governments. GST is proposed as a dual GST model where both the Central and State government concurrently levy GST on a common tax base. Key features include nationwide applicability, multi-stage collection on value addition, and provision for input tax credit. Implementation of GST aims to remove cascading effect of taxes and create a unified common national market.
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India. It replaces multiple taxes levied by the central and state governments. GST is proposed as a dual GST model where both the central and state government concurrently levy GST on a common tax base. GST will be levied at every stage of supply of goods and services based on the input tax credit method. This will ensure a seamless transfer of input tax credit between the central GST and state GST.
This document provides an overview of the Goods and Services Tax (GST) system proposed to be implemented in India. It defines GST as a comprehensive indirect tax on the manufacture, sale and consumption of goods and services that will replace existing central and state level taxes. The document discusses the need for GST, its justification by replacing existing complex tax structures. It describes the key features of GST including the dual GST model, taxable events, persons, rates, treatment of imports and exports, and advantages of the proposed system.
The document discusses the Goods and Service Tax (GST) that was implemented in India in 2017. It provides background on GST, describing it as an indirect tax reform that consolidated multiple taxes into a single tax applied to goods and services. The objectives, methodology, key features, and impacts of GST on the Indian economy are examined, along with the advantages it provides in reducing complexity and disadvantages around implementation challenges. In conclusion, the researcher supports GST as an important milestone for taxation in India that will help create a common market, though challenges remain in fully adapting the new system.
The document discusses Goods and Services Tax (GST) in India. It provides details on:
1) GST is a comprehensive tax on the manufacture, sale, and consumption of goods and services applied nationally. It is levied as a value-added tax at each stage, with the final consumer bearing the burden.
2) GST has two components - Central GST and State GST. It would subsume several other taxes currently levied on goods and services.
3) Introducing GST is imperative to replace existing complex multiple tax structures and integrate the Indian market through uniform tax rates across states. It is expected to boost tax collection and economic development in India.
VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION. STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED . FOR PRACTITIONERS ALSO WILL BENEFIT.
The document provides an overview of the Goods and Services Tax (GST) implemented in India. It discusses what GST is, the constitution of the GST Council, the journey to implementing GST, the need for a constitutional amendment, benefits of GST, the proposed dual GST model, key features of GST including chargeability, taxable events, persons, rates, and registration. It also outlines taxes that would be subsumed under GST and those that would be out of the GST regime. The latest updates on GST and emerging implementation issues are also summarized.
An overview of Goods and Services tax in IndiaKushal Setty
The document provides an overview of the proposed Goods and Services Tax (GST) model in India. It discusses that GST will replace many existing indirect taxes and be composed of two levels - Central GST and State GST. It notes GST will provide a comprehensive tax credit offset across the supply chain. The document also outlines some of the key aspects of GST including taxable events, identification numbers, payment procedures, and proposed tax rates.
The document discusses the proposed introduction of Goods and Services Tax (GST) in India, which would replace multiple indirect taxes with a single, comprehensive tax. Key points:
1. GST is proposed as a single, indirect tax on the supply of goods and services, with taxation levied at the place of consumption. It aims to remove cascading effects of taxes and create a unified national market.
2. GST will have two components - Central GST and State GST. Taxes will be applicable on all transactions of goods and services within a state. Inter-state transactions will be taxed by Integrated GST.
3. GST is expected to simplify and harmonize the
If you go through this whole document very carefully, then it will helps you to understand the overall concept of GST, which is the new taxation system of India.
Brief Introduction of India's Biggest Tax Reform GST[GOODS & SERVICE TAX]. Its impact on Indian economy , Its Benefit, Limitations and its Current Scenario in Other Countries
This document provides an overview of the Goods and Services Tax (GST) in India. It defines GST and explains that it is a comprehensive tax on the manufacture, sale, and consumption of goods and services. It also describes how GST will operate across states, the registration process, tax rates, items that may or may not be included, and benefits and challenges of implementing GST in India.
Dear Friends,
As we all know that GST has been introduced w.e.f 01/07/2017 and this could be a landmark move. For reference of all, I have attached a brief introduction for your reference.
The document discusses Goods and Services Tax (GST) in India. It explains that GST is a comprehensive indirect tax on the supply of goods and services that will replace existing central and state level taxes. GST is proposed as a dual GST model with taxation shared between the central and state governments. There are still challenges to its implementation, including the need for constitutional amendments, IT infrastructure development, and consensus among states on tax rates.
DEFINITIONS: Business, Dealer, Goods, Declared Goods, Input Tax, Manufacture, Out Put Tax, Person, Sale, Sale Price, Turnover, Works-Contract, Taxable Turnover.
Tax refund includes refund of tax on goods and/or services exported out of India or on inputs or input services used in the goods and/or services which are exported outside India, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax credit as provided under section 38(2).
1 highlights of income tax provisions in budget 2018Subramanya Bhat
The document summarizes key changes to India's income tax provisions in the 2018 budget. Some key points:
- Long-term capital gains (LTCG) over Rs. 1 lakh from listed equity shares will now be taxed at 10%. All LTCG until January 31, 2018 will be exempt.
- Standard deduction of Rs. 40,000 introduced for salaried employees in lieu of transport/medical exemptions.
- Deduction limits for senior citizens increased for interest income, health insurance premiums, and medical expenditure.
- Corporate tax rate reduced to 25% for domestic companies with turnover up to Rs. 250 crores.
- Income Tax Return (ITR) is a document filed with the Indian Income Tax Department by taxpayers annually detailing their earnings and taxes paid for the year. It must be filed by all Indian citizens earning a taxable income.
- The due date for individual ITR filing for financial year 2018-2019 was July 31, 2018. The date is extended for individuals requiring tax audit. Late filers may face penalties.
- The Indian income tax system levies tax on both earned and unearned incomes based on multiple tax slabs ranging from 0-30% depending on the amount of total annual income. Tax rates are lower for senior citizens.
VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION. STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED . FOR PRACTITIONERS ALSO WILL BENEFIT.
VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION. STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED . FOR PRACTITIONERS ALSO WILL BENEFIT.
This document discusses depreciation accounting and various depreciation methods. It begins by defining depreciation as the reduction in value of an asset due to factors like usage, passage of time, wear and tear, etc. Depreciation is allocated over the useful life of an asset using methods like straight line, reducing balance, etc. The document then discusses various depreciation methods in detail like sinking fund method, insurance policy method, annuity method, and machine hour rate method. It also discusses accounting standard 6 related to depreciation accounting.
VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION. STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED . FOR PRACTITIONERS ALSO WILL BENEFIT.
VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION. STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED . FOR PRACTITIONERS ALSO WILL BENEFIT.
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VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION.
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VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION.
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3. What is 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 having comprehensive and
continuous chain of set-of benefits from the
producer’s/ service provider’s point up to the
retailer’s level where only the final consumer
should bear the tax.” Sunday, April 8, 2018
4. ROAD TO GST –ROAD TO GST –
MILESTONESMILESTONES
4
5. Road to GST- Milestones
2006, announcement of the intent to introduce GST by
01.04.2010
November 2009 – First Discussion Paper (FDP) released by
EC on which Comments were provided by Government of
India.
June 2010- Three sub-working Groups constituted by
Government of India on:
Business Process related issues.
Drafting of Central GST and model State GST legislations.
Basic design of IT systems required for GST in general and
IGST in particular.
6. Road TO GST- Milestones contd.
March 2011 - Constitution (115th Amendment) Bill
introduced in Parliament
November 2012 – Committee on GST Design constituted by
EC
February 2013 - Three Committees constituted by EC
o Dual Control, Thresholds and Exemptions in GST
regime
o RNRs for SGST & CGST and Place of Supply Rules
o IGST and GST on Imports
March 2013- GSTN Incorporated as Section 25 Company
7. Road To GST- Milestones contd.
June 2013- Committee constituted by EC to draft model GST
Law
August 2013- Standing Committee on Finance submitted
Report
April 2014- Committee constituted by EC to examine
business processes under GST
December 2014- 122nd
Constitutional Amendment bill
introduced in Parliament.
.1st
July2017 GST Implemented.
8. GST is a tax on goods and services with comprehensive and continuous chain of
setoff benefits from the Producer’s point and Service provider’s point up to the
retailer level.
GST is expected be levied only at the destination point, and not at various points
(from manufacturing to retail outlets). It is essentially a tax only on value addition at
each stage and a supplier at each stage is permitted to setoff through a tax credit
mechanism which would eliminate the burden of all cascading effects, including the
burden of CENVAT and service tax.
Under GST structure, all different stages of production and distribution can be
interpreted as a mere tax pass through and the tax essentially sticks on final
consumption within the taxing jurisdiction.
Earlier a manufacturer needs to pay tax when a finished product moves out from the
factory, and it is again taxed at the retail outlet when sold. The taxes are levied at
the multiple stages such as CENVAT, Central sales tax, State Sales Tax, Octroi, etc.
will be replaced by GST to be introduced at Central and State level.
Continued…….
Concept of GST
9. All goods and services, barring a few exceptions, will be brought into the GST
base. There will be no distinction between goods and services.
Under GST, the taxation burden will be divided equitably between
manufacturing and services, through a lower tax rate by increasing the tax base
and minimizing exemptions.
However, the basic features of law such as chargeability, definition of taxable
event and taxable person, measure of levy including valuation provisions,
basis of classification etc. would be uniform across these statutes as far as
practicable.
The existing CST will be discontinued. Instead, a new statute known as IGST
will come into place on the inter-state transfer of the Goods and Services.
By removing the cascading effect of taxes (CST, additional customs duty,
surcharges, luxury Tax, Entertainment Tax, etc. ),CGST & SGST will be
charged on same price .
Concept of GST
10. Need for GST
Introduction of a GST to replace the existing multiple tax structures of
Centre and State taxes is not only desirable but imperative in the
emerging economic environment. Increasingly, services are used or
consumed in production and distribution of goods and vice versa.
Separate taxation of goods and services often requires splitting of
transaction values into value of goods and services for taxation, which
leads to greater complexities, administration and compliances costs.
Integration of various taxes into a GST system would make it possible
to give full credit for inputs taxes collected. GST, being a destination-
based consumption tax based on VAT principle, would also greatly
help in removing economic distortions and will help in development
of a common national market.
Sunday, April 8, 2018
11. Limitations of old Tax regime
Credit of Excise not
allowed
Credit of CST Not
Available (This should
relate to interstate
supply. An arrow can
be shown from
wholesaler in
KARNATAKA
MADHYA
PRADESH
1. Cascading Effect of Tax
18. SGST and CGST for intrastate transaction : In the GST system, both Central and
State taxes will be collected at the point of sale. Both components (the Central and
State GST) will be charged on the manufacturing cost. This will benefit individuals
as prices are likely to come down. Lower prices will lead to more consumption,
thereby helping companies.
IGST for Interstate transaction: ‘IGST Model’ will be in place for taxation of
inter State transaction of Goods and Services. The scope of IGST Model is that
center would levy IGST which would be CGST plus SGST on all inter State
transactions of taxable goods and services with appropriate provision for
consignment or stock transfer of goods and services.
The GST paid on the purchase of goods and services, to be paid on the supply of
goods and services.
There should be no distinction between raw materials and capital goods in allowing
input tax credit. The tax base should comprehensively extend over all goods and
services up to final consumption point on value addition.
Assessable value for all the taxes will be same.
Model of GST
20. Salient features of GST...
Destination based consumption tax
The tax would accrue to the State which has jurisdiction over
the place of consumption which is also termed as place of
supply.
Levied at all stages right from manufacture up to final
consumption with credit of taxes paid at previous stages
available as setoff.
In a nutshell, only value addition will be taxed and burden of
tax is to be borne by the final consumer.
Exports would be tax-free and imports taxed at the same rate as
integrated tax (IGST) levied on inter-State supply of like
domestic products
20
21. Salient features of GST... (contd.)
Tax payers with an aggregate turnover in a financial year up to Rs.20
lakhs would be exempt from tax.
For special category states specified in Article 279A, the threshold
exemption shall be Rs. 10 lakhs.
Tax payers making inter-State supplies or paying tax on
reverse charge basis shall not be eligible for threshold
exemption.
Small taxpayers with an aggregate turnover in a financial year up to
Rs. 150 lakhs shall be eligible for composition levy.
21
22. Each taxpayer would be allotted a PAN linked taxpayer
identification number with a total of 13/15 digits.
This would bring the GST PAN-linked system in line with
the prevailing PAN-based system for Income tax
facilitating data exchange and taxpayer compliance.
The exact design would be worked out in consultation with
the Income-Tax Department.
Registration under GST
23. Mandatory Registration
(irrespective of threshold)
Persons making inter-State taxable supply
Persons required to pay tax under reverse charge
Casual and non-resident taxable persons
E-Commerce operator /Those required to collect TDS
Persons supplying goods through e-commerce operator
Persons making supplies on behalf of a registered taxable
person
Input Service Distributer
Every person supplying online information and data
base access or retrieval services from a place outside
India to a person in India, other than a registered person
24. Justification of GST
Despite the success of VAT, there are still certain
shortcomings in the structure of VAT, both at the Centre
and at the State level.
A. Justification at the Central Level
i. Excise duty paid on the raw material consumed is being
allowed as input credit only. For other taxes and duties paid
for post-manufacturing expenses, there is no mechanism for
input credit under the Central Excise Duty Act.
Contd….
Sunday, April 8, 2018
25. i. adfl
ii. Credit for service tax paid is being allowed
manufacturer/ service provider to a limited extent. In
order to give the credit of service tax paid in respect
of services consumed, it is necessary that there should
be a comprehensive system under which both the
goods and services are covered.
iii. The service tax is levied on restricted items only.
Many other large number of services could not be
taxed. It is to reduce the effect of cascading of taxes,
which means levying tax on taxes.
Contd…
Sunday, April 8, 2018
26. B. Justification at the State Level
i. A major defect under the State VAT is that the State is charging
VAT on the excise duty paid to the Central Government, which
goes against the principle of not levying tax on taxes.
ii. In the present State level VAT scheme, Cenvat allowed on the
goods remains included in the value of goods to be taxed which is
a cascading effect on account of Cenvat element.
iii.Many of the States were continuing with various types of indirect
taxes, such as luxury tax, entertainment tax, etc.
iv.As tax is being levied on inter-state transfer of goods, there was
no provision for taking input credit on CST leading to additional
burden on the dealers.
Sunday, April 8, 2018
27. GST Rates
Rates: 0%( on essential items, rice/wheat)
5%: ( on items of mass consumption )
12%/18%:(standard rates covering most manufactured items and
Services)
28% : ( on Consumer Durable Goods, Pan masala, tobacco and
aerated drinks etc)
Basic philosophy behind these rates are that, to the extent
possible, the current combined rate of tax levied on individual
goods by the Central and the State Governments should be
maintained in GST
Uniform GST rate not possible at this stage as luxury goods and
goods consumed by poorer sections of society cannot be taxed at
the same rate
Rates will be notified by Government on
28. Implications of GST – A Study
1. To study the need of Goods and Service Tax
(GST) in India.
2. To study the advantages of Goods and Service
Tax (GST) to the Manufactures, traders and
society.
3. To study the outcomes of GST in India.
4. To Study on Implications on Implementation
of GST in India.
Sunday, April 8, 2018
29. Salient features of GST
The GST would be applicable on the supply of goods or
services.
It would be a single GST on any item out of which 50% will go
to Central Govt and 50% will go to State Govt / Union
Territory.
Central tax (CGST) and State tax (SGST) / Union territory tax
(UTGST).
The GST would apply on all goods or services or both other
than alcoholic liquor for human consumption and five petroleum
products.
29
30. Research Methodology
The Researchers used an exploratory research technique
based on past literature from respective journals, annual
reports, newspapers and magazines covering wide
collection of academic literature on Goods and Service
Tax. According to the objectives of the study, the
research design is of descriptive in nature. Available
secondary data was extensively used for the study.
Sunday, April 8, 2018
31. NEED FOR GST IN INDIA
Under VAT system, an input tax set-off is given for
purchases made only within the State. For example under
Goa VAT Act, the dealer can claim the Input Tax Credits
towards Out Put tax if the goods are purchased only from
the state. If the goods purchased from outside state the dealer
cannot claim the Input Tax Credit. Under the State level
VAT scheme, CENVAT load on goods has not been removed
and cascading effect of that part of tax burden still remains.
Further the burden of CST on purchase of inter-state goods
which has been reduced from four percent to two percent
has not been fully phased out.
Sunday, April 8, 2018
32. Model of GST
The dual GST model proposed by the Empowered Committee and
accepted by the Centre will have dual system for imposing the tax.
GST shall have two components i.e.
(i) Central GST
(ii) State GST
Central Excise duty, additional excise duty, services tax and
additional duty of customs (equivalent to excise), state VAT
entertainment tax, taxes on lotteries, betting and gambling and
entry tax (not levied by local bodies)would be subsumed within
GST
Sunday, April 8, 2018
33. GST - Salient Features
It would be applicable to all transactions of goods and service.
It to be paid to the accounts of the Centre and the States separately.
The rules for taking and utilization of credit for the Central GST and the State GST
would be aligned.
Cross utilization of ITC between the Central
GST and the State GST would not be allowed except in the case of inter-State
supply of goods.
The Centre and the States would have concurrent jurisdiction for the entire value
chain and for all taxpayers on the basis of thresholds for goods and services
prescribed for the States and the Centre.
The taxpayer would need to submit common format for periodical returns, to both
the Central and to the concerned State GST authorities.
Each taxpayer would be allotted a PAN-linked taxpayer identification number with
a total of 13/15 digits.
Sunday, April 8, 2018
34. Chargeability of Tax under GST
It will be replacement of ED and other taxes.
There will be two parallel Statutes – one at the Centre and other under the
respective State GST Act – governing the tax liability of the same
transaction.
All the items of goods and services are proposed to be covered and
exemptions will be granted to few selected items.
After introduction of GST, all the traders will be paying both the types of
taxes i.e. CGST and SGST.
Sunday, April 8, 2018
35. Taxable Event
Following questions arises:
At what point of time, the tax will be levied?
Will TE covers both i.e. supply of goods and rendering of services?
What will be the nature of TE?
Will it not involve new language and terminology?
What impact the change in TE can have?
GST is proposed to be levied by both the CG and SGs. How will it be
defined under CGST and SGST?
Sunday, April 8, 2018
36. Taxable Person
It will cover all types of person carrying on business activities, i.e.
manufacturer, job-worker, trader, importer, exporter, all types of service
providers, etc.
If a company is having four branches in four different states, all the four
branches will be considered as TP under each jurisdiction of SGs.
All the dealers/ business entities will have to pay both the types of taxes on
all the transactions.
A dealer must get registered under CGST as it will make him entitle to
claim ITC of CGST thereby attracting buyers under B2B transactions.
Importers have to register under both CGST and SGST as well.
Sunday, April 8, 2018
37. Subsumed of IndirectTaxes
The sub-sumation should result in free flow of tax credit in intra
and inter-State levels so that unrelated taxes, levies and fees are
not be subsumed under GST.
Sl.
No.
Subsumed under CGST Subsumed under SGST
1 Central Excise Duty VAT / Sales tax
2 Additional Excise Duties Entertainment tax (unless it is levied by the local bodies).
3 Excise Duty-Medicinal and Toiletries Preparation Act Luxury tax
4 Service Tax Taxes on lottery, betting and gambling.
5 Additional CVD State Cesses and Surcharges (supply of goods and services)
6 Special Additional Duty of Customs - 4% (SAD) Entry tax not in lieu of Octroi
7 Surcharges
8 Ceses
Sunday, April 8, 2018
38. Alcohol, tobacco, petroleum products are likely to be out of the GST regime.
Tax on items containing Alcohol: Alcoholic beverages would be kept out of the
purview of GST. Sales Tax/VAT could be continued to be levied on alcoholic beverages
as per the existing practice. In case it has been made VA table by some States, there is
no objection to that. Excise Duty, which is presently levied by the States may not also
be affected.
Tax on Petroleum Products: Petroleum and petroleum products have also been
constitutionally brought under the GST. However, it has also been provided that
petroleum and petroleum products shall not be subject to the levy of GST till notified at
a future date on the recommendation of the GST Council.
Tax on Tobacco products: Tobacco products would be subjected to GST with ITC.
Centre may be allowed to levy excise duty on tobacco products over and above GST
with ITC.
Taxation of Services: As indicated earlier, both the Centre and the States will have
concurrent power to levy tax on goods and services. In the case of States, the principle
for taxation of intra-State and inter46 State has already been formulated by the Working
Group of Principal Secretaries /Secretaries of Finance / Taxation and Commissioners of
Trade Taxes with senior representatives of Department of Revenue, Government of
India. For inter-State transactions an innovative model of Integrated GST will be
adopted by appropriately aligning and integrating CGST and IGST.
Exemption of Goods and
Services
39. Taxes that may or may not be
subsumed
There are few other indirect taxes that may or may not be
subsumed under the GST regime as there is no consensus among
States and Centre & States –
Purchase tax
Stamp Duty
Vehicle Tax
Electricity Duty
Other Entry taxes and Octroi Sunday, April 8, 2018
40. ADVANTAGES OF GST:
Under GST there will be input credit set-off at every stage and
this can be used to payment of service tax.
CST will be abolished and in the absence of it there is no need to
collect it.
Many Central and State indirect taxes will be subsumed in GST.
There will be uniformity of tax rates in all the states.
It may ensure better compliance due to aggregate tax rate
reduction.
By reducing the tax burden the competitiveness of Indian
products in international market is expected to increase.
Sunday, April 8, 2018
41. Rate of Tax
There with be a two-rate structure –a lower rate for necessary items and
items of basic importance and a standard rate for goods in general. There will
also be a special rate for precious metals and a list of exempted items.
For CGST relating to goods, the States considered that the Government of
India might also have a two-rate structure, with conformity in the levels of
rate with the SGST. For taxation of services, there may be a single rate for
both CGST and SGST.
It will be total of the rate as applicable under CGST & SGST.
It is understood that the Government is considering pegging the revenue
neutral rate of GST at a rate between 18% to 22%. This represents the
aggregate of CGST and SGST payable on the transaction. However, it may
be noted that at this stage, the Government is yet to indicate whether the
revenue neutral rate of tax on goods and services would be the same.
Sunday, April 8, 2018
42. What will be out of GST?
Levies on petroleum products
Levies on alcoholic products
Taxes on lottery and betting
Basic customs duty and safeguard duties on import of goods
into India
Entry taxes levied by municipalities or panchayats
Entertainment and Luxury taxes
Electricity duties/ taxes
Stamp duties on immovable properties
Taxes on vehicles
Sunday, April 8, 2018
43. Inter-State Transactions of
Goods & Services
The existing CST will be discontinued. Instead, a new
statute known as IGST will come into place. It will
empower the GC to levy and collect the tax on the inter-
state transfer of the GS.
The scope of IGST Model is that Centre would levy IGST
which would be CGST plus SGST on all inter-State
transactions of taxable goods and services with
appropriate provision for consignment or stock transfer of
goods and services.
Contd…
Sunday, April 8, 2018
44. Inter-State Transactions of
Goods & Services
The inter-State seller will pay IGST on value addition after adjusting
available credit of IGST, CGST, and SGST on his purchases. The
Exporting State will transfer to the Centre the credit of SGST used
in payment of IGST. The Importing dealer will claim credit of IGST
while discharging his output tax liability in his own State. The
Centre will transfer to the importing State the credit of IGST used
in payment of SGST. The relevant information will also be
submitted to the Central Agency which will act as a clearing house
mechanism, verify the claims and inform the respective
governments to transfer the funds.
Sunday, April 8, 2018
45. OUTCOME OF GST
The taxes Centre and State level are being subsumed into GST
Keeping in mind the federal structure of India, there will be two
components of GST – Central GST (CGST) and State GST
(SGST). Both Centre and States will simultaneously levy GST
across the value chain. Tax will be levied on every supply of
goods and services. Centre would levy and collect Central
Goods and Services Tax (CGST), and States would levy and
collect the State Goods and Services Tax (SGST) on all
transactions within a State. The input tax credit of CGST would
be available for discharging the CGST liability on the output at
each stage. Similarly, the credit of SGST paid on inputs would be
allowed for paying the SGST on output.
Sunday, April 8, 2018
47. ADMINISTRATION OF GST
State Value Added Tax and GST
Central Excise and GST:
IMPLICATIONS OF GST ON DEALERS
Sunday, April 8, 2018
48. The taxpayer would need to submit periodical returns to
both the Central GST authority and to the concerned State
GST authorities.
ITC credit can also be verified on the basis of the returns
filed and revenues reconciled against Challan data from
banks.
Common standardized return for all taxes (with different
account heads for CGST, SGST, IGST) can come into
picture.
Common standardized Challan for all taxes (with different
account heads for CGST, SGST, IGST) can come into
picture.
Returns under GST
49. IMPLICATIONS OF GST ON DEALERS
In the GST regime, any regular business has to file three
monthly returns and one annual return. This amounts to 37
returns in a year.
Types of GST Returns
Sunday, April 8, 2018
50. Conclusion
The taxation of goods and services in India has, hitherto, been characterized as a
cascading and distortionary tax on production resulting in mis-allocation of
resources and lower productivity and economic growth. It also inhibits voluntary
compliance. It is well recognized that this problem can be effectively addressed by
shifting the tax burden from production and trade to final consumption. A well
designed destination-based value added tax on all goods and services is the most
elegant method of eliminating distortions and taxing consumption. Under this
structure, all different stages of production and distribution can be interpreted as
a mere tax pass-through, and the tax essentially ‘sticks’ on final consumption
within the taxing jurisdiction.
A ‘flawless’ GST in the context of the federal structure which would optimize
efficiency, equity and effectiveness. The ‘flawless’ GST is designed as a
consumption type destination VAT based on invoice-credit method.
Sunday, April 8, 2018
Whether you are manufacturer, trader, dealer, service supplier- all will be considered as same i.e taxpayer. Whether you supply within the same state or anywhere in the country, the rate of tax is same, thereby obviating any need for various forms and border check points which is prevalent today.
The Old tax regime is grossly inefficient with breakage of input tax chain at multiple stages resulting in tax being imposed on tax which is commonly termed as cascade of taxes. All this adds to the costs of a product and results in tendency to avoid paying taxes by using all possible means.
Multiple laws require multiple compliances and registrations with no interlinkages amongst them leading to silos being created. In many cases, these different governments- Centre, states are trying to tax same transactions.
Harmonisation in the different taxation laws of states appears to be missing many a times. Uniformity is lacking while levying VAT or entry taxes in many states. The companies try to take advantage of tax arbitrages leading to decisions being taken on the basis of tax structure rather than on the basis of pure economic reasons. All this leads to inefficiencies in the system.
This is a very important feature of GST and needs to be understood fully. The consumption tax is a much more efficient tax. The taxes would move with the goods/services along the supply chain to their place of consumption. At every state, only the value added part will be taxed. This will be achieved by way of multi-stage collection mechanism and simultaneously giving credit of taxes paid at the previous stage.
Small taxpayers need to be relieved as the compliance costs as well as compliance complexities in %age terms may be high for them. Therefore threshold limits for registration have been fixed. Besides, composition scheme has been prescribed for small taxpayers wherein they can pay a small fix % age of their turnover and they do not have to keep detailed compliance documents
GST Rate schedule shall be notified later.
Centre as well as State shall have concurrent powers to levy GST; Both shall levy GST on common set of registered persons; It will be levied on all goods or services except a very few specified transactions which will be out of the ambit of GST. Alcoholic liquor is out of GST by way of an exclusion in the constitution itself. Petroleum products have been kept out temporarily and will be included in GST at a later date to be decided by GST Council.