SlideShare a Scribd company logo
1 of 26
GST – BOON OR BANE TO
INDIAN ECONOMY
PRESENTED BY,
21M242 – SANJAY KUMAR S
21M250 – SIVASANKARAN A
21M226 – MITHRAA PRABAKAR C B
21M210 – DARSHAN S
21M211 – GANESH KISHORE A
INTRODUCTION
 The concept of Goods and Service tax is popularly known
as GST.
 On 1st July 2017, launched Goods and Service Tax 2017
only one purpose in the eyes of Government and finance
minister make One Nation One Tax.
 It substitute most of the indirect taxes like excise, VAT,
Service Tax, Entertainment Tax, Luxury Tax, CVD, as well as
SAD.
 The GST will have a ‘Dual’ structure which means it will
have two components – the Central GST and the State
GST.
 Centre is empowered to GST on Goods & Service upon
INTRODUCTION
 It submerges a large no. of central & state taxes into a
single tax.
 GST is expected to simplify tax administration, ‘Ease of
Doing Business’ and promote ‘Make In India’.
 In GST also there is two sides (i.e. Boon or Bane) one is
good for nation and useful for grow our economy &
completely abolish the cascading effect and second is
difficulties to adopt new tax in one night, in new GST
regime taxpayers facing issues to adopt the law/act/tax.
TAX STRUCTURE IN INDIA BEFORE GST
TAX STRUCTURE IN INDIA AFTER GST
BENEFITS UNDER GST
 Single taxation point.
 Uniform tax rate.
 Common market.
 Reduces Transaction cost.
 Eliminates the cascading effect of taxes.
 Reduces corruption.
 Transparency.
 Increasing the tax base & raising compliance
 Simplified tax laws.
 Increase in exports & employments.
 Increased FDI(Foreign Direct Investment).
SHORT COMINGS UNDER GST
 Tax cascading (tax on tax)
 Complexity
 Taxation at manufacturing level
 Exclusions of service
 Tax Evasion
 Corruption
BOON TO THE ECONOMY
1). Redesign Indirect Tax structure: By subsuming majority
of indirect taxes like Excise duty, Service tax, Sales tax, VAT,
Purchase tax GST reshape the indirect tax structure.
2). Removal of Double Taxation: Under the old tax structure
every invoice had the value of goods came as well
as services. Both of these attracted a rate of 70% each giving
a total rate of 140%. Under the current taxes are unified
under the supply of services and the taxation system is
unified.
BOON TO THE ECONOMY
3) Greater tax revenues: GST has made simple tax structure.
Due to this simple tax structure, the tax revenue of government
has increased as the number of taxpayer.
4) Push to Export: GST has eliminated the custom duty of
export which Increases export of goods which has increased
international transactions and made easier.
5) Growth of Industries: as per the Indian retail industry, the
total tax component is around 30% of the product cost. Due to
impact of GST the taxes have gone down. So, the end
consumer has to pay lesser taxes. The reduced burden of taxes
has enhanced the production and growth of the retailer and
other industries.
BOON TO THE ECONOMY
6) Uniform tax regime: With only one or two tax rates across
the supply chain as against multiple tax structure at present,
state specific advantages / disadvantages are gone. This
provides a fair play ground for all stakeholder and focus be
brought in to efficiency rather than vantage points.
BANE TO THE ECONOMY
1) Lack of centralized registration: the previous taxation
system allowed the taxpayer to register form all over the
country via central authority however, with the
implementation of GST, Taxpayer have to register GST from
their state and pay the central tax.
2) Taxation for Free Services: Even if a particular provide any
services for free they are still eligible to tax for it.
3) Service Costs to Consumer: The rates of taxes to the end
customers will increase. The GST is destination based tax
which means the tax burden falls on the end customer.
SECTOR-WISE IMPACT ANALYSIS
Logistics :
In a vast country like India, the logistics sector forms the backbone of
the economy. We can fairly assume that a well organized and mature
logistics industry has the potential to leapfrog the “Make In India”
initiative of the Government of India to its desired position.
E-Commerce :
The e-commerce sector in India has been growing by leaps and
bounds. In many ways, GST will help the e-com sector’s continued
growth but the long-term effects will be particularly interesting
because the GST law specifically proposes a Tax Collection at Source
(TCS) mechanism, which e-com companies are not too happy with. The
current rate of TCS is at 1%.
SECTOR-WISE IMPACT ANALYSIS
Pharma :
 On the whole, GST is benefiting the pharma and healthcare industries. It will
create a level playing field for generic drug makers, boost medical tourism
and simplify the tax structure.
 f there is any concern whatsoever, then it relates to the pricing structure (as
per latest news). The pharma sector is hoping for a tax respite as it will make
affordable healthcare easier to access by all.
Telecommunications :
 In the telecom sector, prices will come down after GST.
 Manufacturers will save on costs through efficient management of inventory
and by consolidating their warehouses.
 Handset manufacturers will find it easier to sell their equipment as GST has
negated the need to set up state-specific entities, and transfer stocks. The
will also save up on logistics costs.
SECTOR-WISE IMPACT ANALYSIS
Textile :
The Indian textile industry provides employment to a large number of
skilled and unskilled workers in the country. It contributes about 10%
of the total annual export, and this value is likely to increase under GST.
GST would affect the cotton value chain of the textile industry which is
chosen by most small medium enterprises as it previously attracted
zero central excise duty.
Agriculture :
The agricultural sector is the largest contributing sector the overall
Indian GDP. It covers around 16% of Indian GDP. One of the major
issues faced by the agricultural sector is the transportation of agri-
products across state lines all over India. GST will resolve the issue of
transportation.
SECTOR-WISE IMPACT ANALYSIS
Automobiles :
The automobile industry in India is a vast business producing a large
number of cars annually, fueled mostly by the huge population of the
country. Under the previous tax system, there were several taxes
applicable to this sector like excise, VAT, sales tax, road tax, motor
vehicle tax, registration duty which will be subsumed by GST.
Freelancers :
Freelancing in India is still a nascent industry and the rules and
regulations for this chaotic industry are still up in the air. But with GST, it
will become much easier for freelancers to file their taxes as they can
easily do it online. They are taxed as service providers, and the new tax
structure has brought about coherence and accountability in this sector.
SECTOR-WISE IMPACT ANALYSIS
Real Estate :
The real estate sector is one of the most pivotal sectors of the Indian
economy, playing an important role in employment generation in India.
The impact of GST on the real estate sector cannot be fully assessed as it
largely depends on the tax rates. However, the sector will see substantial
benefits from GST implementation, as it has brought to the industry
much-required transparency and accountability.
FMCG :
The FMCG sector is experiencing significant savings in logistics and
distribution costs as the GST has eliminated the need for multiple sales
depots.
SECTOR-WISE IMPACT ANALYSIS
Startups :
With increased limits for registration, a DIY compliance model, tax
credit on purchases, and a free flow of goods and services, the GST
regime truly augurs well for the Indian startup scene. Previously, many
Indian states had different VAT laws which were confusing for
companies that have a pan-India presence, especially the e-com sector.
All of this has changed under GST.
IMPACT OF GST ON NGOS AND CHARITABLE
TRUSTS
• Implementation of GST has seen as a great tax reform that will unify the
entire nation, as far as taxation is concerned.
• Let us take a look at the impact that GST’s implementation had on
NGOs and charitable trusts.
• Under GST, charities will come be subject to pay Goods and Services Tax.
This means that GST will be applicable on some of the services and
goods supplied by a charitable trust or an NGO.
What are the criteria for a charitable trust to be exempted from
GST?
There are certain criteria for a charitable trust or an NGO to be
exempted from the Goods and Services Tax. The charitable trust or NGO
must be registered under Section 12AA of the Income Tax Act, and the
services provided by the charitable trust or the NGO must be for a
charitable cause.
GST – GLOBAL PERSPECTIVE
GST REVENUE - JANUARY 2021
• The gross GST revenue collected in the month of January 2021 till 6PM
on 31.01.2021 is ₹ 1,19,847 crore.
• The total revenue earned by Central Government and the State
Governments after regular settlement in the month of January 2021 is
₹ 46,454 crore for CGST and ₹ 48,385 crore for the SGST.
• The average growth in GST revenue over the first four months in the
second half of the financial year has been 8% as compared to (-) 24%
during the first half of the year.
GST REVENUE - OCTOBER 2022
• ₹ 1,51,718 crore gross GST revenue collected for October 2022.
• Second highest collection ever with, next only to the collection in
April 2022.
• Monthly GST revenues more than 1.4 lakh crore for eight months in a
row, with 1.5 lakh crore crossed for the 2nd time since inception of
GST.
• October also saw the second highest collection from domestic
transactions, next only to April 2022.
• This is the ninth month and for eight months in a row now, that the
monthly GST revenues have been more than the ₹ 1.4 lakh crore
mark.
CONCLUSION
 In this way GST law or act going to have a changes in
economy and taxpayers take some time to habituate for new
positive changes in indirect taxation and council member or
committee working on that in five years of GST regime for
making simple indirect taxation in India.
 Looking at the five years completed journey to GST, mostly all
taxpayers are on track to follow law and facing challenges is
reduced compare to new GST regime. It is going to shows
positive impact on our economy.
CONCLUSION
 For GST to be effective, there should be identical GST laws /
procedures across states as well as the centre.
 So, it is now universally acknowledged an recognized that the
GST, in whatever form should be introduced at the earliest as
a fundamental fiscal reform measure.
 In Nutshell, GST is the biggest tax reform till date in our
country.
THANK YOU

More Related Content

What's hot

Introduction to GST
Introduction to GSTIntroduction to GST
Introduction to GSTmmdaga
 
Gst & it's impact on GDP- rishabh mishra
Gst & it's impact on GDP-  rishabh mishraGst & it's impact on GDP-  rishabh mishra
Gst & it's impact on GDP- rishabh mishraRishabhMishra233
 
Gst presentation by satyajit das
Gst presentation by satyajit dasGst presentation by satyajit das
Gst presentation by satyajit dasThe Satyajit Das
 
Taxation system of india
Taxation system of indiaTaxation system of india
Taxation system of indiaMeenal Gupta
 
Gst ppt nextgen data technologies1
Gst ppt nextgen data technologies1Gst ppt nextgen data technologies1
Gst ppt nextgen data technologies1Ranjit Sadangi
 
An Overview of GST
An Overview of GST An Overview of GST
An Overview of GST Sheetal Wagh
 
GOOD AND SERVICE TAX (GST)
GOOD AND SERVICE TAX (GST)GOOD AND SERVICE TAX (GST)
GOOD AND SERVICE TAX (GST)Abhinav Tiwari
 
Goods and Services Tax(GST) vs Simple Tax System
Goods and Services Tax(GST) vs Simple Tax SystemGoods and Services Tax(GST) vs Simple Tax System
Goods and Services Tax(GST) vs Simple Tax SystemSachin Chauhan
 
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in India
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in IndiaMacro-economic Framework in Indian Economy–Tax Structure & Tax system in India
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in Indiaviveksangwan007
 
Concept and method national income in india 5
Concept and method national income in india  5Concept and method national income in india  5
Concept and method national income in india 5Rahul Chauhan
 
GST - Changes and its impact
GST - Changes and its impactGST - Changes and its impact
GST - Changes and its impactsandesh mundra
 

What's hot (20)

Gst presentation
Gst presentationGst presentation
Gst presentation
 
Presentation On GST
Presentation On GSTPresentation On GST
Presentation On GST
 
Introduction to GST
Introduction to GSTIntroduction to GST
Introduction to GST
 
Gst & it's impact on GDP- rishabh mishra
Gst & it's impact on GDP-  rishabh mishraGst & it's impact on GDP-  rishabh mishra
Gst & it's impact on GDP- rishabh mishra
 
GOODS & SERVICE TAX
GOODS & SERVICE TAXGOODS & SERVICE TAX
GOODS & SERVICE TAX
 
Gst presentation by satyajit das
Gst presentation by satyajit dasGst presentation by satyajit das
Gst presentation by satyajit das
 
GST INDIA
GST INDIA GST INDIA
GST INDIA
 
Taxation system of india
Taxation system of indiaTaxation system of india
Taxation system of india
 
BASICS OF INTERNATIONAL TAXATION
BASICS OF INTERNATIONAL TAXATIONBASICS OF INTERNATIONAL TAXATION
BASICS OF INTERNATIONAL TAXATION
 
All about GST
All about GSTAll about GST
All about GST
 
Gst ppt nextgen data technologies1
Gst ppt nextgen data technologies1Gst ppt nextgen data technologies1
Gst ppt nextgen data technologies1
 
Gst (2017)
Gst (2017)Gst (2017)
Gst (2017)
 
An Overview of GST
An Overview of GST An Overview of GST
An Overview of GST
 
GOOD AND SERVICE TAX (GST)
GOOD AND SERVICE TAX (GST)GOOD AND SERVICE TAX (GST)
GOOD AND SERVICE TAX (GST)
 
Goods and Services Tax(GST) vs Simple Tax System
Goods and Services Tax(GST) vs Simple Tax SystemGoods and Services Tax(GST) vs Simple Tax System
Goods and Services Tax(GST) vs Simple Tax System
 
Gst india
Gst indiaGst india
Gst india
 
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in India
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in IndiaMacro-economic Framework in Indian Economy–Tax Structure & Tax system in India
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in India
 
Concept and method national income in india 5
Concept and method national income in india  5Concept and method national income in india  5
Concept and method national income in india 5
 
GST - Changes and its impact
GST - Changes and its impactGST - Changes and its impact
GST - Changes and its impact
 
GST PRESENTATION
GST PRESENTATIONGST PRESENTATION
GST PRESENTATION
 

Similar to GST - BOON OR BANE TO INDIAN ECONOMY.pptx

GST(Goods And Service Tax)
GST(Goods And Service Tax)GST(Goods And Service Tax)
GST(Goods And Service Tax)Ashiwani Atul
 
GST UNIT 1 learning and practice of goods and services
GST UNIT 1 learning and practice of goods and servicesGST UNIT 1 learning and practice of goods and services
GST UNIT 1 learning and practice of goods and serviceshpotter46103
 
Eco GST & Effect on Indian Economy
Eco  GST &Effect on Indian Economy Eco  GST &Effect on Indian Economy
Eco GST & Effect on Indian Economy Lalit Chaudhary
 
GST Bill- Bull run or Bear slide
GST Bill- Bull run or Bear slideGST Bill- Bull run or Bear slide
GST Bill- Bull run or Bear slideSWAROOP PANDAO
 
Goods & Service Tax
Goods & Service TaxGoods & Service Tax
Goods & Service TaxLuckyLodha
 
GST and Indian Manufacturing Sector
GST and Indian Manufacturing SectorGST and Indian Manufacturing Sector
GST and Indian Manufacturing SectorRajendranC4
 
Gst in india
Gst in indiaGst in india
Gst in indiaRupa R
 
[GST] Goods and service taxes In India
[GST] Goods and service taxes In India [GST] Goods and service taxes In India
[GST] Goods and service taxes In India Harish Bramhaver
 
GST Economic Project.pptx 1.pptx
GST Economic Project.pptx 1.pptxGST Economic Project.pptx 1.pptx
GST Economic Project.pptx 1.pptxVishnu15600
 
Amendments in taxation system of india
Amendments in taxation system of indiaAmendments in taxation system of india
Amendments in taxation system of indiaKapil Agarwal
 
GST A Journey to Make India a Single Tax Economy
GST A Journey to Make India a Single Tax EconomyGST A Journey to Make India a Single Tax Economy
GST A Journey to Make India a Single Tax Economyijtsrd
 
Revolution in indian tax system goods and
Revolution in indian tax system goods andRevolution in indian tax system goods and
Revolution in indian tax system goods andSubramanya Bhat
 
Goods And Service Tax(GST).pptx
Goods And Service Tax(GST).pptxGoods And Service Tax(GST).pptx
Goods And Service Tax(GST).pptxjkjklol
 
What is GST and its Impact on current entrepreneurs ?
What is GST and its Impact on current entrepreneurs ?What is GST and its Impact on current entrepreneurs ?
What is GST and its Impact on current entrepreneurs ?Zaheer Sayyed
 
A Pre Experimental Study to Assess the Effectiveness of Planned Teaching Prog...
A Pre Experimental Study to Assess the Effectiveness of Planned Teaching Prog...A Pre Experimental Study to Assess the Effectiveness of Planned Teaching Prog...
A Pre Experimental Study to Assess the Effectiveness of Planned Teaching Prog...ijtsrd
 
Good and service tax (gst)
Good and service tax (gst)Good and service tax (gst)
Good and service tax (gst)Avi Vani
 

Similar to GST - BOON OR BANE TO INDIAN ECONOMY.pptx (20)

GST(Goods And Service Tax)
GST(Goods And Service Tax)GST(Goods And Service Tax)
GST(Goods And Service Tax)
 
GST UNIT 1 learning and practice of goods and services
GST UNIT 1 learning and practice of goods and servicesGST UNIT 1 learning and practice of goods and services
GST UNIT 1 learning and practice of goods and services
 
Eco GST & Effect on Indian Economy
Eco  GST &Effect on Indian Economy Eco  GST &Effect on Indian Economy
Eco GST & Effect on Indian Economy
 
GST Bill- Bull run or Bear slide
GST Bill- Bull run or Bear slideGST Bill- Bull run or Bear slide
GST Bill- Bull run or Bear slide
 
Goods & Service Tax
Goods & Service TaxGoods & Service Tax
Goods & Service Tax
 
GST and Indian Manufacturing Sector
GST and Indian Manufacturing SectorGST and Indian Manufacturing Sector
GST and Indian Manufacturing Sector
 
Gst in india
Gst in indiaGst in india
Gst in india
 
[GST] Goods and service taxes In India
[GST] Goods and service taxes In India [GST] Goods and service taxes In India
[GST] Goods and service taxes In India
 
GST Economic Project.pptx 1.pptx
GST Economic Project.pptx 1.pptxGST Economic Project.pptx 1.pptx
GST Economic Project.pptx 1.pptx
 
Amendments in taxation system of india
Amendments in taxation system of indiaAmendments in taxation system of india
Amendments in taxation system of india
 
GST in india
GST in indiaGST in india
GST in india
 
3310 pdf
3310 pdf3310 pdf
3310 pdf
 
Gs tin india
Gs tin indiaGs tin india
Gs tin india
 
GST A Journey to Make India a Single Tax Economy
GST A Journey to Make India a Single Tax EconomyGST A Journey to Make India a Single Tax Economy
GST A Journey to Make India a Single Tax Economy
 
Revolution in indian tax system goods and
Revolution in indian tax system goods andRevolution in indian tax system goods and
Revolution in indian tax system goods and
 
Goods And Service Tax(GST).pptx
Goods And Service Tax(GST).pptxGoods And Service Tax(GST).pptx
Goods And Service Tax(GST).pptx
 
What is GST and its Impact on current entrepreneurs ?
What is GST and its Impact on current entrepreneurs ?What is GST and its Impact on current entrepreneurs ?
What is GST and its Impact on current entrepreneurs ?
 
A Pre Experimental Study to Assess the Effectiveness of Planned Teaching Prog...
A Pre Experimental Study to Assess the Effectiveness of Planned Teaching Prog...A Pre Experimental Study to Assess the Effectiveness of Planned Teaching Prog...
A Pre Experimental Study to Assess the Effectiveness of Planned Teaching Prog...
 
Gst
GstGst
Gst
 
Good and service tax (gst)
Good and service tax (gst)Good and service tax (gst)
Good and service tax (gst)
 

Recently uploaded

會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽中 央社
 
REPRODUCTIVE TOXICITY STUDIE OF MALE AND FEMALEpptx
REPRODUCTIVE TOXICITY  STUDIE OF MALE AND FEMALEpptxREPRODUCTIVE TOXICITY  STUDIE OF MALE AND FEMALEpptx
REPRODUCTIVE TOXICITY STUDIE OF MALE AND FEMALEpptxmanishaJyala2
 
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...Nguyen Thanh Tu Collection
 
2024_Student Session 2_ Set Plan Preparation.pptx
2024_Student Session 2_ Set Plan Preparation.pptx2024_Student Session 2_ Set Plan Preparation.pptx
2024_Student Session 2_ Set Plan Preparation.pptxmansk2
 
Navigating the Misinformation Minefield: The Role of Higher Education in the ...
Navigating the Misinformation Minefield: The Role of Higher Education in the ...Navigating the Misinformation Minefield: The Role of Higher Education in the ...
Navigating the Misinformation Minefield: The Role of Higher Education in the ...Mark Carrigan
 
Essential Safety precautions during monsoon season
Essential Safety precautions during monsoon seasonEssential Safety precautions during monsoon season
Essential Safety precautions during monsoon seasonMayur Khatri
 
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17Celine George
 
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfmstarkes24
 
ppt your views.ppt your views of your college in your eyes
ppt your views.ppt your views of your college in your eyesppt your views.ppt your views of your college in your eyes
ppt your views.ppt your views of your college in your eyesashishpaul799
 
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17Celine George
 
The basics of sentences session 4pptx.pptx
The basics of sentences session 4pptx.pptxThe basics of sentences session 4pptx.pptx
The basics of sentences session 4pptx.pptxheathfieldcps1
 
An Overview of the Odoo 17 Discuss App.pptx
An Overview of the Odoo 17 Discuss App.pptxAn Overview of the Odoo 17 Discuss App.pptx
An Overview of the Odoo 17 Discuss App.pptxCeline George
 
Open Educational Resources Primer PowerPoint
Open Educational Resources Primer PowerPointOpen Educational Resources Primer PowerPoint
Open Educational Resources Primer PowerPointELaRue0
 
How to Manage Closest Location in Odoo 17 Inventory
How to Manage Closest Location in Odoo 17 InventoryHow to Manage Closest Location in Odoo 17 Inventory
How to Manage Closest Location in Odoo 17 InventoryCeline George
 
philosophy and it's principles based on the life
philosophy and it's principles based on the lifephilosophy and it's principles based on the life
philosophy and it's principles based on the lifeNitinDeodare
 
INU_CAPSTONEDESIGN_비밀번호486_업로드용 발표자료.pdf
INU_CAPSTONEDESIGN_비밀번호486_업로드용 발표자료.pdfINU_CAPSTONEDESIGN_비밀번호486_업로드용 발표자료.pdf
INU_CAPSTONEDESIGN_비밀번호486_업로드용 발표자료.pdfbu07226
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...Nguyen Thanh Tu Collection
 
How to Manage Notification Preferences in the Odoo 17
How to Manage Notification Preferences in the Odoo 17How to Manage Notification Preferences in the Odoo 17
How to Manage Notification Preferences in the Odoo 17Celine George
 
factors influencing drug absorption-final-2.pptx
factors influencing drug absorption-final-2.pptxfactors influencing drug absorption-final-2.pptx
factors influencing drug absorption-final-2.pptxSanjay Shekar
 

Recently uploaded (20)

會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
 
REPRODUCTIVE TOXICITY STUDIE OF MALE AND FEMALEpptx
REPRODUCTIVE TOXICITY  STUDIE OF MALE AND FEMALEpptxREPRODUCTIVE TOXICITY  STUDIE OF MALE AND FEMALEpptx
REPRODUCTIVE TOXICITY STUDIE OF MALE AND FEMALEpptx
 
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
 
2024_Student Session 2_ Set Plan Preparation.pptx
2024_Student Session 2_ Set Plan Preparation.pptx2024_Student Session 2_ Set Plan Preparation.pptx
2024_Student Session 2_ Set Plan Preparation.pptx
 
Navigating the Misinformation Minefield: The Role of Higher Education in the ...
Navigating the Misinformation Minefield: The Role of Higher Education in the ...Navigating the Misinformation Minefield: The Role of Higher Education in the ...
Navigating the Misinformation Minefield: The Role of Higher Education in the ...
 
Essential Safety precautions during monsoon season
Essential Safety precautions during monsoon seasonEssential Safety precautions during monsoon season
Essential Safety precautions during monsoon season
 
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 2 STEPS Using Odoo 17
 
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdf
 
Operations Management - Book1.p - Dr. Abdulfatah A. Salem
Operations Management - Book1.p  - Dr. Abdulfatah A. SalemOperations Management - Book1.p  - Dr. Abdulfatah A. Salem
Operations Management - Book1.p - Dr. Abdulfatah A. Salem
 
ppt your views.ppt your views of your college in your eyes
ppt your views.ppt your views of your college in your eyesppt your views.ppt your views of your college in your eyes
ppt your views.ppt your views of your college in your eyes
 
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
 
The basics of sentences session 4pptx.pptx
The basics of sentences session 4pptx.pptxThe basics of sentences session 4pptx.pptx
The basics of sentences session 4pptx.pptx
 
An Overview of the Odoo 17 Discuss App.pptx
An Overview of the Odoo 17 Discuss App.pptxAn Overview of the Odoo 17 Discuss App.pptx
An Overview of the Odoo 17 Discuss App.pptx
 
Open Educational Resources Primer PowerPoint
Open Educational Resources Primer PowerPointOpen Educational Resources Primer PowerPoint
Open Educational Resources Primer PowerPoint
 
How to Manage Closest Location in Odoo 17 Inventory
How to Manage Closest Location in Odoo 17 InventoryHow to Manage Closest Location in Odoo 17 Inventory
How to Manage Closest Location in Odoo 17 Inventory
 
philosophy and it's principles based on the life
philosophy and it's principles based on the lifephilosophy and it's principles based on the life
philosophy and it's principles based on the life
 
INU_CAPSTONEDESIGN_비밀번호486_업로드용 발표자료.pdf
INU_CAPSTONEDESIGN_비밀번호486_업로드용 발표자료.pdfINU_CAPSTONEDESIGN_비밀번호486_업로드용 발표자료.pdf
INU_CAPSTONEDESIGN_비밀번호486_업로드용 발표자료.pdf
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
 
How to Manage Notification Preferences in the Odoo 17
How to Manage Notification Preferences in the Odoo 17How to Manage Notification Preferences in the Odoo 17
How to Manage Notification Preferences in the Odoo 17
 
factors influencing drug absorption-final-2.pptx
factors influencing drug absorption-final-2.pptxfactors influencing drug absorption-final-2.pptx
factors influencing drug absorption-final-2.pptx
 

GST - BOON OR BANE TO INDIAN ECONOMY.pptx

  • 1. GST – BOON OR BANE TO INDIAN ECONOMY PRESENTED BY, 21M242 – SANJAY KUMAR S 21M250 – SIVASANKARAN A 21M226 – MITHRAA PRABAKAR C B 21M210 – DARSHAN S 21M211 – GANESH KISHORE A
  • 2. INTRODUCTION  The concept of Goods and Service tax is popularly known as GST.  On 1st July 2017, launched Goods and Service Tax 2017 only one purpose in the eyes of Government and finance minister make One Nation One Tax.  It substitute most of the indirect taxes like excise, VAT, Service Tax, Entertainment Tax, Luxury Tax, CVD, as well as SAD.  The GST will have a ‘Dual’ structure which means it will have two components – the Central GST and the State GST.  Centre is empowered to GST on Goods & Service upon
  • 3. INTRODUCTION  It submerges a large no. of central & state taxes into a single tax.  GST is expected to simplify tax administration, ‘Ease of Doing Business’ and promote ‘Make In India’.  In GST also there is two sides (i.e. Boon or Bane) one is good for nation and useful for grow our economy & completely abolish the cascading effect and second is difficulties to adopt new tax in one night, in new GST regime taxpayers facing issues to adopt the law/act/tax.
  • 4. TAX STRUCTURE IN INDIA BEFORE GST
  • 5. TAX STRUCTURE IN INDIA AFTER GST
  • 6. BENEFITS UNDER GST  Single taxation point.  Uniform tax rate.  Common market.  Reduces Transaction cost.  Eliminates the cascading effect of taxes.  Reduces corruption.  Transparency.  Increasing the tax base & raising compliance  Simplified tax laws.  Increase in exports & employments.  Increased FDI(Foreign Direct Investment).
  • 7. SHORT COMINGS UNDER GST  Tax cascading (tax on tax)  Complexity  Taxation at manufacturing level  Exclusions of service  Tax Evasion  Corruption
  • 8. BOON TO THE ECONOMY 1). Redesign Indirect Tax structure: By subsuming majority of indirect taxes like Excise duty, Service tax, Sales tax, VAT, Purchase tax GST reshape the indirect tax structure. 2). Removal of Double Taxation: Under the old tax structure every invoice had the value of goods came as well as services. Both of these attracted a rate of 70% each giving a total rate of 140%. Under the current taxes are unified under the supply of services and the taxation system is unified.
  • 9. BOON TO THE ECONOMY 3) Greater tax revenues: GST has made simple tax structure. Due to this simple tax structure, the tax revenue of government has increased as the number of taxpayer. 4) Push to Export: GST has eliminated the custom duty of export which Increases export of goods which has increased international transactions and made easier. 5) Growth of Industries: as per the Indian retail industry, the total tax component is around 30% of the product cost. Due to impact of GST the taxes have gone down. So, the end consumer has to pay lesser taxes. The reduced burden of taxes has enhanced the production and growth of the retailer and other industries.
  • 10. BOON TO THE ECONOMY 6) Uniform tax regime: With only one or two tax rates across the supply chain as against multiple tax structure at present, state specific advantages / disadvantages are gone. This provides a fair play ground for all stakeholder and focus be brought in to efficiency rather than vantage points.
  • 11. BANE TO THE ECONOMY 1) Lack of centralized registration: the previous taxation system allowed the taxpayer to register form all over the country via central authority however, with the implementation of GST, Taxpayer have to register GST from their state and pay the central tax. 2) Taxation for Free Services: Even if a particular provide any services for free they are still eligible to tax for it. 3) Service Costs to Consumer: The rates of taxes to the end customers will increase. The GST is destination based tax which means the tax burden falls on the end customer.
  • 12. SECTOR-WISE IMPACT ANALYSIS Logistics : In a vast country like India, the logistics sector forms the backbone of the economy. We can fairly assume that a well organized and mature logistics industry has the potential to leapfrog the “Make In India” initiative of the Government of India to its desired position. E-Commerce : The e-commerce sector in India has been growing by leaps and bounds. In many ways, GST will help the e-com sector’s continued growth but the long-term effects will be particularly interesting because the GST law specifically proposes a Tax Collection at Source (TCS) mechanism, which e-com companies are not too happy with. The current rate of TCS is at 1%.
  • 13. SECTOR-WISE IMPACT ANALYSIS Pharma :  On the whole, GST is benefiting the pharma and healthcare industries. It will create a level playing field for generic drug makers, boost medical tourism and simplify the tax structure.  f there is any concern whatsoever, then it relates to the pricing structure (as per latest news). The pharma sector is hoping for a tax respite as it will make affordable healthcare easier to access by all. Telecommunications :  In the telecom sector, prices will come down after GST.  Manufacturers will save on costs through efficient management of inventory and by consolidating their warehouses.  Handset manufacturers will find it easier to sell their equipment as GST has negated the need to set up state-specific entities, and transfer stocks. The will also save up on logistics costs.
  • 14. SECTOR-WISE IMPACT ANALYSIS Textile : The Indian textile industry provides employment to a large number of skilled and unskilled workers in the country. It contributes about 10% of the total annual export, and this value is likely to increase under GST. GST would affect the cotton value chain of the textile industry which is chosen by most small medium enterprises as it previously attracted zero central excise duty. Agriculture : The agricultural sector is the largest contributing sector the overall Indian GDP. It covers around 16% of Indian GDP. One of the major issues faced by the agricultural sector is the transportation of agri- products across state lines all over India. GST will resolve the issue of transportation.
  • 15. SECTOR-WISE IMPACT ANALYSIS Automobiles : The automobile industry in India is a vast business producing a large number of cars annually, fueled mostly by the huge population of the country. Under the previous tax system, there were several taxes applicable to this sector like excise, VAT, sales tax, road tax, motor vehicle tax, registration duty which will be subsumed by GST. Freelancers : Freelancing in India is still a nascent industry and the rules and regulations for this chaotic industry are still up in the air. But with GST, it will become much easier for freelancers to file their taxes as they can easily do it online. They are taxed as service providers, and the new tax structure has brought about coherence and accountability in this sector.
  • 16. SECTOR-WISE IMPACT ANALYSIS Real Estate : The real estate sector is one of the most pivotal sectors of the Indian economy, playing an important role in employment generation in India. The impact of GST on the real estate sector cannot be fully assessed as it largely depends on the tax rates. However, the sector will see substantial benefits from GST implementation, as it has brought to the industry much-required transparency and accountability. FMCG : The FMCG sector is experiencing significant savings in logistics and distribution costs as the GST has eliminated the need for multiple sales depots.
  • 17. SECTOR-WISE IMPACT ANALYSIS Startups : With increased limits for registration, a DIY compliance model, tax credit on purchases, and a free flow of goods and services, the GST regime truly augurs well for the Indian startup scene. Previously, many Indian states had different VAT laws which were confusing for companies that have a pan-India presence, especially the e-com sector. All of this has changed under GST.
  • 18. IMPACT OF GST ON NGOS AND CHARITABLE TRUSTS • Implementation of GST has seen as a great tax reform that will unify the entire nation, as far as taxation is concerned. • Let us take a look at the impact that GST’s implementation had on NGOs and charitable trusts. • Under GST, charities will come be subject to pay Goods and Services Tax. This means that GST will be applicable on some of the services and goods supplied by a charitable trust or an NGO. What are the criteria for a charitable trust to be exempted from GST? There are certain criteria for a charitable trust or an NGO to be exempted from the Goods and Services Tax. The charitable trust or NGO must be registered under Section 12AA of the Income Tax Act, and the services provided by the charitable trust or the NGO must be for a charitable cause.
  • 19. GST – GLOBAL PERSPECTIVE
  • 20. GST REVENUE - JANUARY 2021 • The gross GST revenue collected in the month of January 2021 till 6PM on 31.01.2021 is ₹ 1,19,847 crore. • The total revenue earned by Central Government and the State Governments after regular settlement in the month of January 2021 is ₹ 46,454 crore for CGST and ₹ 48,385 crore for the SGST. • The average growth in GST revenue over the first four months in the second half of the financial year has been 8% as compared to (-) 24% during the first half of the year.
  • 21.
  • 22. GST REVENUE - OCTOBER 2022 • ₹ 1,51,718 crore gross GST revenue collected for October 2022. • Second highest collection ever with, next only to the collection in April 2022. • Monthly GST revenues more than 1.4 lakh crore for eight months in a row, with 1.5 lakh crore crossed for the 2nd time since inception of GST. • October also saw the second highest collection from domestic transactions, next only to April 2022. • This is the ninth month and for eight months in a row now, that the monthly GST revenues have been more than the ₹ 1.4 lakh crore mark.
  • 23.
  • 24. CONCLUSION  In this way GST law or act going to have a changes in economy and taxpayers take some time to habituate for new positive changes in indirect taxation and council member or committee working on that in five years of GST regime for making simple indirect taxation in India.  Looking at the five years completed journey to GST, mostly all taxpayers are on track to follow law and facing challenges is reduced compare to new GST regime. It is going to shows positive impact on our economy.
  • 25. CONCLUSION  For GST to be effective, there should be identical GST laws / procedures across states as well as the centre.  So, it is now universally acknowledged an recognized that the GST, in whatever form should be introduced at the earliest as a fundamental fiscal reform measure.  In Nutshell, GST is the biggest tax reform till date in our country.