This ppt gives an overview of the proposed GST bill in India. This ppt has custom animations which look like overlapped content on slideshare-viewer. It is recommended to download it on your system and then open using powerPoint-viewer.
As everyone know that our country has recently taken a bold step to eliminate the all indirect taxes levied at different level by different government under the leadership of our energetic PM.
Therefore I have the view that Industry will take time to get settle down since yet some of the part of country engaged into strikes/ deadlocks.
Therefore to overcome that situation we have a detail & summarized presentation on the subject for beginners and every efforts have been put in to make it easy to understand.
This ppt gives an overview of the proposed GST bill in India. This ppt has custom animations which look like overlapped content on slideshare-viewer. It is recommended to download it on your system and then open using powerPoint-viewer.
As everyone know that our country has recently taken a bold step to eliminate the all indirect taxes levied at different level by different government under the leadership of our energetic PM.
Therefore I have the view that Industry will take time to get settle down since yet some of the part of country engaged into strikes/ deadlocks.
Therefore to overcome that situation we have a detail & summarized presentation on the subject for beginners and every efforts have been put in to make it easy to understand.
GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the Producer’s point and Service provider’s point up to the retailer level.
The Goods and Services Tax is being billed as the significant next step in indirect tax reform since VAT was successfully introduced all over India.
However, in introducing GST, there are some objections from some State governments.
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.The presentation in a nutshell describes the baseline of it.
GST In India An Overview and Impact.
Types of Taxes Covered in CGST, SGST, IGST
Benefits for Government and Customer
GDP growth rate
Many more to find in PPT
GST is one indirect tax for the whole nation, which will make India one unified common market.
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
www.actouch.com
The upcoming indirect tax structure of India. Would be eliminating most of the indirect taxes prevailing in India. There we will be disussing all about GST. What & why of GST in a brief. An Initiative by CA Connect India & team
GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the Producer’s point and Service provider’s point up to the retailer level.
The Goods and Services Tax is being billed as the significant next step in indirect tax reform since VAT was successfully introduced all over India.
However, in introducing GST, there are some objections from some State governments.
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.The presentation in a nutshell describes the baseline of it.
GST In India An Overview and Impact.
Types of Taxes Covered in CGST, SGST, IGST
Benefits for Government and Customer
GDP growth rate
Many more to find in PPT
GST is one indirect tax for the whole nation, which will make India one unified common market.
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
www.actouch.com
The upcoming indirect tax structure of India. Would be eliminating most of the indirect taxes prevailing in India. There we will be disussing all about GST. What & why of GST in a brief. An Initiative by CA Connect India & team
INDIRECT TAX REVENUE - AN ASSESSMENT OF CENTAL V/S STATE GOVERNMENT IAEME Publication
Tax collection in India is primarily done under the category of direct and indirect sources of tax by three tier system that is, the central government, the state government and the local government. However, the concentrate of present study is on the assessment of indirect tax revenues by central and state government. In addition to this certain statistical tools are also applied in order to present a livelier picture of tax collection by central government and state government through indirect sources.
GST is regarded as the major reform in the field of Indian Indirect Taxation. This presentation will help in understanding the likely framework of GST, its impact and some challenges in its implementation.
Basic Concept and Impact Presentation on GST by RAMAKapil Bansal
India is fast moving towards one of the most critical tax reforms i.e. the Goods and Services Tax (GST). In fact, as widely acclaimed GST is not just a reform in tax structure rather it is a paradigm shift in the way business is conducted in India. Attached herewith is a brief thoughtful presentation, prepared by the team RAMA, aimed to assist in understanding the basics of GST and its wide impact on businesses. Will be delighted to have your feedback on the subject (please do share as appropriate).
Power point presentation for GST:-
GST is a tax on goods and services. GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017
Goods and services tax in nutshell ,possibility and problemsPrashant Arsul
It is a destination based tax on consumption of goods and services
It is levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff.
only value addition will be taxed and burden of tax is to be borne by the final consumer
i feel this presentation enriched with hyperlinks u can easily understand the basics of gst. and i feel the beginners must download this ppt for a better understanding of gst
2. WHAT IS GST?
• The GST is an indirect tax that brings most of the taxes
imposed on most goods and services, on manufacture, sale
and consumption of goods and services, under a single
domain at the national level.
• GST will be levied only at the final destination of
consumption based on VAT principle and not at various points
(from manufacturing to retail outlets).
3. TAXES TO BE COVERED IN GST
CENTRAL GST STATE GST
• Value Added Tax/Sales Tax.
• Entertainment Tax (other than the tax
levied by the local bodies).
• Central Sales Tax.
• Octroi and Entry Tax.
• Purchase Tax.
• Luxury Tax
• Taxes on lottery, betting and gambling
• State cess and surcharges in so far as they
relate to supply of goods and services.
• Central excise duty.
• Services tax.
• Additional excise duty.
• Excise Duty levied under the Medicinal
and Toilet Preparations (Excise Duties) Act,
1955.
• Additional Duty and Special Additional
Duty of Customs.
• Central cess and surcharges in so far as
they relate to supply of goods and
services.
*Notes:
Alcoholic beverages for human consumption are proposed to be kept out of the purview of GST.
GST on petroleum products would be levied from a notified date recommended by the GST council
4. DUAL GST MODEL
• SGST – State GST, collected by the State Govt.
• CGST – Central GST, collected by the Central Govt.
• IGST – Integrated GST, collected by the Central Govt.
TRANSACTION NEW SYSTEM OLD SYSTEM COMMENTS
Sale within the state SGST & CGST VAT & EXCISE/ST Under the new
system, a transaction
sale within the state,
shall have two taxes.
Sale outside the state IGST CST & EXCISE/ST Under the new
system , a transaction
sale from one state to
another will have only
one type of tax.
*CGST, SGST & IGST would be levied at rates to be mutually agreed upon by the Centre and the
States under the ward of the Goods & Services Tax Council.
5. PAYMENT MECHANISM OF GST
• The taxpayer would need to submit periodical returns, in
common format as far as possible, to both the Central GST
authority and to the concerned State GST authorities.
• Each taxpayer would be allotted a PAN-linked taxpayer
identification number with a total of 14/15 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.
6. NEED FOR GST TO ECONOMY
• It would improve manufacturing and distribution efficiency by removing cascading
effect of taxation.
• Cascading effect of taxes: It is also, logically, referred to as “taxes on taxes”. It is
simple to illustrate – say A sells goods to B after charging sales tax, and then B re-
sells those goods to C after charging sales tax. While B was computing his sales tax
liability, he also included the sales tax paid on previous purchase, which is how it
becomes a tax on tax.
7. Pros & Cons
Pros
• An end of Cascading Effect
• Growth of Revenue in States and
Union
• One Point Single Tax
• Reduces the corruption
• Reduce after Tax burden
• Reduces transaction costs and
unnecessary items.
Cons
• A domination Centre
• Not a Good choice for some states
• Dual GST
• Requires Strong Information &
Technology.
8.
9. GST IMPACT ON CONSUMER
• Goods likely to get cheaper
For manufactured consumer goods, the current tax regime means
the consumer pays approximately 25-26% more than the cost of
production due to excise duty (peak of about 12.5%) and value
added tax. While there hasn’t been any indication of a GST rate,
experts suggest between 18% and 22%. Given this, basic goods are
likely to become marginally cheaper.
• Processed food will continue to be taxed, but the applicable GST is
likely to be lower than the current combined tax on such products.
Hence, expect these to become slightly cheaper.
• Heavy vehicles such as SUVs and large cars that have an excise
duty of 27-30% will see a marked drop in prices if GST is
implemented in the expected range of 18-22%.
10. GST IMPACT ON CONSUMER
• Goods likely to get costlier
• small cars, which have an excise duty of only 8%, the impact of GST
will most likely be opposite—these can get more expensive.
• Petroleum has been proposed to keep this out of the GST umbrella
for at least the first two years, which means petroleum prices aren’t
likely to change with the advent of GST and the variance in prices
across states could also continue.
11. Services
• Services that could get costlier
• Service tax rate at present is 14% and it applies to almost all services
other than essential ones such as ambulance services, cultural activities,
certain pilgrimages, sporting events, among others.
• If GST is implemented, this rate will increase (given the expectation that
GST will be 18-22%) making services more expensive.
• Investment management and insurance premiums(financial services),
which attract a service tax currently, will also become costlier with the
higher rate of GST.
12. GST AND MANUFACTURING
• Reduced Cost of Production -The new GST regime will be greatly beneficial as a
reduction in tax cascading may lead to a lower cost of production.
One of the major defects of the current indirect tax regime – the non-availability
of tax credit of central/union taxes over state taxes and vice versa – could be
eliminated by allowing unrestrictive tax credit under GST.
• Hassle-free Supply Of Goods -State-border checkpoints, which are tasked with
material scrutiny and location-based tax compliance, negatively impact the
overall production and logistics time. The new GST regime will unify the Indian
market and assist the smooth flow of goods within the country.
• Area-based Exemptions- As GST would lead to the entire country being
considered a common and unified market, the current area-based exemptions
would become irrelevant.
13. GST AND RETAILER & WHOLESALER
• Procurement of goods, movement of goods would become less
cumbersome.
• Less state boundary paperwork.
• Reduction in transit inventory.
• Reduction in working capital requirement.
• Increase in cost of rentals.
14. GST AND START-UP
• Ease of starting business: Any new business needs to have
a VAT registration from sales tax department. GST will bring
about a uniformity in process and centralized registration
that will make starting business and expanding in different
States much simpler.
• Higher exemptions to new businesses: As per the current
structure, any business with a turnover of more than Rs five
lakh has to get VAT registration and pay VAT.
GST will make this limit higher, to up to Rs 10 lakh and,
further to it, businesses with turnover between Rs 10 and
50 lakh will be taxed at a lower rates. This will bring respite
from tax burdens to newly established businesses.
15. GST AND START-UPS
• Simple taxation: GST will simplify the process by integrating all
taxes, making the process of paying tax simpler.
• Respite for businesses in both sales and services: Businesses like
restaurants, which fall under both sales and service taxation, have
to calculate the VAT and service tax on both items separately. GST
will not distinguish between sales and services, and thus the tax
calculation will be done on total.
• Reduction in logistics cost and time across States: Many transport
vehicles get delayed during movement across States due to small
border tax and check post issues. Interstate movement will become
cheaper and less time consuming, as these taxes will be eliminated.
The whole Indian market opens up for manufacturers as interstate
supply becomes tax-neutral. This will also bring down costs
associated with maintaining high stocks, as there will be
undisrupted movement of goods
16. DIFFERENCE BETWEEN UPA & NDA GST
KEY DIFFERENCES NDA UPA
ADDITIONAL 1% TAX There will be 1% extra tax (in
addition to GST) in case of inter-state
sale. This tax will go to the
originating i.e. manufacturing state.
GST was shifting the tax collection
from manufacturing states to
consuming states. Therefore,
manufacturing states were not
comfortable with GST.
COMPENSATION TO STATES NDA bill agrees to indemnify the
states for any loss of revenue due to
introduction of GST.
No such compensation was agreed
to provide to the state.
Petroleum deferred GST shall not be applicable on
petroleum products at the initial
stage.
Standing Committee had
recommended that all petroleum
products should be incorporated in
GST without any exceptions.