PPT on GST, The new rule introduced by our Government. Tax will be equal everywhere. Sorry For any mistake. Instagram - @itsyoursumit E-mail - spppandey252@gmail.com

3. GST ( Goods & Service Tax )
GST is a comprehensive Value Added
Tax on Goods & Services.
It will include many stages & central level
indirect taxes.
All sectors are taxed with a very few
exceptions / exemptions.
It overcomes drawback present Tax System.

4. GST
Centre GST
To Be levied
by the Centre
To Be levied
by the State
To Be levied
by the
Centre &
States
State GST Dual GST

5. Why Do We Need GST Today ?
In Indian Economy the Service Sector
contributes over 55%.
Separate taxation of Goods &
Services is neither Viable nor Desirable.
Value Added in manufacture & Sale
of Goods require inputs of both - Goods
& Services & Vice Versa, which is often
not separable.

6. 9/5/2018
How GST works?
The Dealers registered under GST ( Manufactures,
Wholesalers, Retailers & Service Providers ) will charge
GST on the Price of Goods & Services from their
Customers.
They will claim credits for the GST included in the
Price of their own Purchases of Goods & Services used
by them.
The sellers or service providers collect the tax from
their customers, who may or may not be the ultimate
customers, & before depositing the same to the
exchequer, they deduct the tax they have already paid.

8. RECOMMENDATIONS
As per Article 279A (4),the Council will make
recommendations to the Union and the States on important
issues related to GST, like the goods and services that
may be subjected or exempted from GST,model GST Laws,
principles that govern Place of Supply, threshold limits,
GST rates including the floor rates with bands,special
rates for raising additional resources during natural
calamities/disasters, special provisions for certain States, etc.
The Goods and Services Tax Council shall make
recommendations to the Union and the States on.
The taxes, cesses and surcharges levied by the Union,
the States and the local bodies which may be subsumed in
the goods and services tax.
The goods and services that may be subjected to, or
exempted from the goods and services tax.

9. E
V
I
D
E
N
C
E

10. GST WORLD WIDE!
In most of the countries of the world, a
single VAT exist which covers both
Goods & Services.
Full Tax credits on inputs -100% set
off.
Canada & Brazil alone have a Dual
VAT.
India also likely to adopt Dual GST.

11. 9/5/2018

13. GST – KNOW TAXES PAID BY YOU
We all will pay GST on every product or
service we buy.
Since all indirect taxes levied by the States
& the Culture will be merged into one GST,
we would exactly know how much tax we pay
which at present is difficult to understand.
No distinction would be made between
imported or Indian goods & they would be
taxed at the same rate.
Continued…

14. The sellers or Service Providers
collect the tax from their customers.
Before depositing the same to the
exchequer, they deduct the tax they
have already paid.
The success of GST would be rest
upon efficiency, equity & Simplicity.
GST – KNOW TAXES PAID BY YOU
…Continued

15. BENEFITS

16. BENEFITS (Part 2)
♦ As a developing country, India needs a transport &
unambiguous tax structure.
♦ A complex tax structure with multiple rates of taxes.
Multiple taxes across the chain supply.
♦ High transaction cost in the hands of the tax payers.
♦ Increased tax collections due to wider tax base and
better compliance.
♦ Improvement in international cost competitiveness of
indigenous goods and scale .
♦ GST encourages an unbiased tax structure that is
neutral to business models , organization structure,
product substitutes and geographical locations.

17. NOWSOME HARMS TOO!
♦ Services will become expensive. Eg:
Telecom, banking, airline etc.
♦ Being a new tax, it will take some time
for the people to understand its
implications.
♦ It is easier said than done .There
are always some complications attached.
It is a consumption based tax , so in case
of services the place where service is
provided needs to be determined.
♦ If actual benefit is not passed to consumer and
seller increases his profit margin , the prices of
goods can also see a rising trend.

19. ♦ The main road block is the coordination among
states and center and states.
♦ Another major hurdle is getting the constitution
amended by agreement of both the houses.
♦ Consensus on uniform GST rates.
♦ Inter-state transaction of goods and services.
♦ Administrative efficiency.
♦ Infrastructural preparedness to implement the new
tax reform.

21. Criticisms
♦ Some has argued that, whatever federal powers were bestowed
upon States by virtue of their powers to tax, will be lost once
the GST Bill becomes law.
♦ As per the current arrangements, dispute settlement would be
subjected to lengthy court procedures, if the Council is
opposed, as GST Dispute Settlement Authority in the proposed
Bill will only comply with the jurisdiction of the Supreme
Court.
♦ India is adopting a dual GST, wherein the Central GST will be
called CGST and state SGST.
♦ Some critics consider GST to be a regressive tax, meaning the
poor pay more, as a percentage of their income, than the rich.
♦ Deferring the levy of GST on five petroleum products could
lead to cascading of taxes.

25. Oops, u r at the End!

26. 9/5/2018