3. Tax Structure In India before and after
implementation of GST.
GST (Goods and Services Tax).
Genesis of GST.
GST Council – Structure.
Types of GST in India.
GST Registration in India.
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4. Tax Structure in India
Structure of Taxes in India can be divided into following
two parts:
1). Before
implementation
of GST
2). After
implementation of GST
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5. Tax Structure in India before
implementation of GST
1).Direct
Tax
2). Indirect
Tax
Sales Tax
Custom
Duty
VAT
On Interstate
Sale
On Import of
Goods
On within state
sales
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6. Tax is said to be direct when the impact and
incidents of a tax are on one and the same
person. That is when a person on whom tax is
levied is the same who finally bears burden of
tax. He cannot shift its burden to some other
person. For example, if a person pays income
tax, he has to bear its burden and he cannot
shifts it burden to some other person.
Therefore, it is a direct tax.
Some of the direct taxes are
Income Tax
Corporate Tax
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7. Indirect taxes are those whose burden
can be shifted to others so that those
who pay these taxes to the
government do not bear the whole
burden but pass it on to others. Thus,
the impact of tax on one person and
incidents on another, tax is called
indirect tax.
The some important indirect taxes
imposed in India are
Customs Duty
Sales Tax
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8. 1). Direct Taxes: Direct Taxes are not significantly affected by the
implementation of GST.
2). Indirect Taxes: Indirect taxes are significantly affected by the
implementation of GST.
Tax Structure in India after Implementation of GST:
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11. Goods and Services Tax (GST)
GST is a tax on supply of goods and services.
GST is a single tax at a national level to be levied at
all stages right from manufacture up to final
consumption.
It will mostly substitute all indirect taxes levied on
goods and services by the central and state
governments in India.
Under GST every person is liable to pay tax on his
output and entitled to get input tax credit on the tax
paid on its inputs.
It is a tax on value addition only.
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12. Genesis of GST can be divided into following two
parts:
Genesis of GST
Globally
In India
Genesis
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13. Genesis of GST Globally:
Goods and Services Tax(GST) is globally accepted in the field of indirect
tax. It is clear from the following points:
Number of countries adopted: Currently around 160 countries have adopted
system of GST.
First country to introduce: France was the country of the world to adopt GST in
1954.
Unified GST system: Most of the countries have a unified GST system.
Standard rate of GST: In most of the countries the standard rate of GST ranges
between 15% and 20%.
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15. 2000
2004
PM Shri Atal Bihari Vajpayee set
up a committee to draft GST
model of the country.
The Kelkar task force suggested a
comprehensive Goods and
Services Tax based on VAT
principal.
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16. 2006
Announcement by Union Finance
Minister Shri P. Chidambaran during
budget of 2006-2007 that GST would
introduced from 1 April 2010.
2007
The Empowered Committee
of State Finance Ministers
had been formulated.
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17. 2009
The Empowered Committee of
State Finance Minister released its
First Discussion paper (FDP) on
GST in November, 2009.
2011
115th Constitution Amendment
Bill introduced, but not passed.
2014
The Constitution (122nd
Amendment Bill) was introduced
in the 16th Lok Sabha on 19 Dec.
2014
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18. 2015
2016
The Constitution Amendment Bill
was passed by the Lok Sabha in
May, 2015.
The Bill with certain
amendments was finally passed
in the Rajya Sabha and thereafter
by Lok Sabha in August, 2016.
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19. 2017
A 22- members select committee
was formed to look into the proposed
GST laws.
State and Union Territory GST laws
were passed by all the states and
union Territories of India except
Jammu & Kashmir.
The Jammu and Kashmir state
legislature passed its GST on 7 July
2017.
July 2017: Finally on 1st
July 2017, GST came into
effect.
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20. GST Council – Structure
GST Council has been established under Article 279A of the
Constitution of India
Chairperson: The Union Finance Minister as the chairperson of
the GST Council.
Vice Chairperson is to be chosen amongst the Minister of State
Government.
Members: MOF(Finance) and all Minister of Finance/Taxation of
each State.
Presently, the GST council consists of 33 members, out of which
2 members are from the centre and 31 members are from 28
states and 3 Union territories.
Quorum is 50% of total members.
Council to make recommendations on everything related to GST
including laws, rules and rates etc. 20
21. The 48th GST Council meeting will happen on 17th December
2022, Saturday, virtually. Smt Nirmala Sitharaman, the Union
Finance Minister, will chair the meeting, and the Finance Ministers
of the states/Union Territories are expected to attend.
Since the 48th GST Council meeting has been scheduled after a
gap of five months, there shall be many items on the agenda of the
GST Council. The 47th GST Council meeting was held on 28th and
29th June 2022 in Chandigarh.
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34. Elimination of Multiple Taxes: The biggest benefit of GST is an elimination
of multiple indirect taxes. This means current taxes like sale tax , service tax etc. will
not be applicable and all that will fall under common tax called as GST.
Reduction in corruption: Under GST all interaction to be through the
common GSTN portal. This is done to ensure less public interface between the
taxpayer and the tax administration.
Helpful in poverty eradication: GST will help in poverty eradication by
generating more employment and more financial resources.
Prevent cascading of taxes: GST will prevent cascading of taxes. In it Input
Tax Credit will be available across goods and services at every stage of supply.
Simplified and automated procedures: GST is an attempt to make the
system taxpayer friendly. Under GST simplified and automated procedures for various
processes such as registration, returns, tax payments, etc.
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35. Disadvantages
of GST
Not a Single Tax
Multiple of Tax Rates
Problems due to multiple
State Registrations
Computerized GST
Problems in Adoption
and migration
People
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