This document discusses goods and services tax (GST) in India, outlining both its benefits and challenges. Some key points: 1. GST unified several indirect taxes and aimed to create a single, nationwide market. It launched on July 1, 2017. 2. Benefits include eliminating cascading taxes, increased tax revenues, and simplified tax structure. Challenges include tax cascading, complexity, and tax evasion opportunities. 3. Five years since implementation, GST revenues have grown steadily each month. While initial adoption challenges existed, compliance has increased over time as the system matures.

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.

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.

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.

26. THANK YOU