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Gst ppt
- 1. GOODS AND SERVICES TAX (GST) Presented By Ayush Gupta Abhishek Jain Kunal Mittal Mohd. Anas Bhanu Garg
- 3. Need For GST GOODS AND SERVICES TAX
- 4. A sells goods to B after charging sales tax 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
- 5. INPUT VAT OUTPUT VAT INPUT EXCISE OUTPUT EXCISE -Credit of VAT is not available against Excise and vice versa. -This shows that there is a tax on tax
- 6. History of GST GOODS AND SERVICES TAX
- 7. Feb ,2006:First time introduced concept of GST and announced the date of its implementation in 2010 Feb .2007: F.M. Announced introduction of GST from 1April2010 in Budget The Government came out with a First Discussion Paper on GST in November , 2009 Introduced the 115 th Constitution Amendment (GST) Bill in the year 2011.
- 8. GST ‘G’ –Goods ‘S’ –Services ‘T’ –Tax 1. Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level. 2. GST is a tax on goods and services with value addition at each stage. 3. GST will include many state and central level indirect taxes 4. It overcomes drawback present tax system
- 9. Various taxes levied in current Tax System GOODS AND SERVICES TAX
- 10. TAXATION POWERS OF CENTRE • Income Tax – on income, other than agricultural income • Excise Duty – on goods manufactured or produced in India • Custom Duty – on imports and exports • Service Tax – on specified services • Central Sales Tax – on inter-State sale of goods
- 11. TAXATION POWERS OF STATES • VAT/Sales Tax - on purchase or sale of goods, other than newspapers, within a State • Excise duty - on alcoholic liquor for human consumption • Land Revenue • Tax – on agricultural income • Toll tax • Professions, Trades, Callings and Employments • Luxuries, including taxes on entertainment, betting and gambling
- 13. 1. A sale or supply includes a sale of goods 2. Lease of premises 3. Hire of equipment 4. Giving advice 5. Export of goods and supply of other things.
- 14. • Central Taxes Excise Duty Additional Excise duty Service Tax CVD, SAD Surcharge • State Taxes VAT Entertainment tax levied by states Luxury Tax Tax on Lottery Entry tax other than for local bodies TAXES Proposed TO BE SUBSUMED IN GST
- 15. • Central Taxes Specific Cess Excise duty on tobacco products • State Taxes Items containing alcohol Entertainment tax (Local Bodies) Entry tax for local bodies Electricity duty TAXES NOT BE INCLUDED IN GST
- 16. Short comings in current Tax System
- 17. • Tax Cascading (Tax on Tax) • Complexity • Taxation at Manufacturing Level • Exclusion of Services • Tax Evasion • Corruption
- 19. What is GST? GOODS AND SERVICES TAX
- 20. What is GOODS AND SERVICE TAX • Goods and Service Tax is a tax on goods and services. • It is leviable at each point of sale or provision of service. • This is simply very similar to VAT. • It can be termed as National level VAT on Goods and Services. • Only difference in this system is that not only goods but also services are involved. • The rate of tax on goods and services are generally the same.
- 21. GST-AT A GLANCE Roadmap to GSTRoadmap to GST Recommend united effort for mega tax reformRecommend united effort for mega tax reform To develop roadmap & milestonesTo develop roadmap & milestones To build consensus with States, Center & Empowered CommitteeTo build consensus with States, Center & Empowered Committee Create awareness and acceptance for GSTCreate awareness and acceptance for GST VAT GST Extend scope to Inter-state Sales Bring AED items under VAT CST phase-out Move to single VAT rate of 8% Extend scope to Inter-state Sales Shift to destination based VAT Integrate Services, Imports & CENVAT
- 26. 1.Reduction in prices 2.Increase in Government Revenues 3.Less compliance and procedural cost 4.Move towards a Unified GST
- 27. GST will simplify India's tax structure, broaden the tax base, and create a common market across states. This will lead to increased compliance and will support India's GDP growth. It will be beneficial for India Inc. as the average tax burden on companies will fall due to transparent set-off mechanism and elimination of cascading taxes leading to reduced production costs and increased export competitiveness. GOODS AND SERVICES TAX
- 28. Why do we need GST today ? GOODS AND SERVICES TAX
- 29. • In Indian economy the service sector contributes over 55%. • Separate taxation of goods and services is neither viable nor desirable • Value added in manufacture and sale of goods require inputs of both — goods and services and vice versa, which is often not separable
- 31. • CGST – To be administered by Central Government. • SGST – To be administered by State VAT Department • Inter State Transaction – To be administered by A common Centralized Authority
- 33. Sale in one state, resale in the same state
- 34. Sale in one state, resale in another state
- 35. Sale outside the state, resale in that state
- 36. GST WORLD WIDE GOODS AND SERVICES TAX
- 37. • More than 140 countries have already introduced GST/National VAT. • France was the first country to introduce GST system in 1954. • Standard GST rate in most countries ranges between 15-20%.
- 38. GST- RATES WORLD WIDE
- 40. Let us see the formulaof the CurrentAccountBalance (CAB) CAB = X -M + NI+ NCT X = Exports of goods and services M = Importsof goods and services NI = Net income abroad [Salariespaid orreceived, credit /debitofincomefrom FII&FDIetc.] NCT= Net current transfers [Workers'Remittances (unilateral),Donations, Aids& Grants,Official, Assistance and Pensionsetc] CURRENT ACCOUNT DEFICIT Hope you have now understood the concept of Goods and Services Tax. GOODS AND SERVICES TAX
- 41. THANK YOU You were good audience