The document discusses Goods and Services Tax (GST) in India. It provides details on [1] what taxes GST will subsume, [2] the meaning and history of GST in India, [3] benefits of GST, [4] how GST works, [5] exclusions from GST, [6] the current status of implementing GST, and [7] things to consider before implementing GST.

2. GST
CGST SGST
It Will Subsume the Following Taxes:
 Central excise Duty
 Additional Excise Duty
 Service Tax
 Countervailing Duty
 Additional Duty Of Customers (ADC)
 Surcharge, Education and secondary / Higher
education Cess.
It Will subsume the following taxes:
 VAT/ Sales Tax
 Purchase Tax
 Entertainment Tax
 Luxury Tax
 Lottery Tax
 Sate surcharge & Cess livable on the above as of
now
MEANING OF GOODS & SERVICE
TAX

3. HISTORY OF GOODS & SERVICE TAX
• Goods and service tax is a norm in more than 150 countries of the world and India is soon to join the guild.
• The start towards a true Value added regime was made with the introduction of MODVAT by the Central
Government and in the state level taxation with the replacement of sales tax by state Value Added Tax
• Empowered Committee of State Finance Minister(ECSFM) has set up a joint working group which submitted
its report on the proposed GST in November 2007.
• After a lot of discussion ECSFM presented its first discussion paper on GST on November 10, 2009.
• The road ahead would include discussions with various representatives of trade, industry and masses to
present their views so as to give GST code its finals shape.

4. BENEFITS OF GOODS AND SERVICE TAX
ONE POINT TAX
REDUCE THE PRICE MORE TAX
REVENUES
NO TAX ON TAX
UNIFORMITY IN
TAXATION
ADD TO GDP
GROWTH
LESS PAPERWORK
LOWER PRICE FOR
CONSUMERS

5. HOW DOES GST
WORK??

6. Disadvantages of GST
•It requires strong IT (Information Technology)
infrastructure at grass-root levels. India essentially lacks
this. This factor is going to be the bottleneck, if not
addressed well in advance.
•Very high rates 16% compared to current 12.5 % VAT.
•Tax-sharing between states and the Centre was another
bottleneck. Nice to see that there is a consensus now

7. • Petroleum(but may be included within GST subsequently, basic
recommendation by GST council)
• Alcohol for human consumption
• Lottery & betting
• Electricity duty and taxes
• Entry tax levied by municipalities or panchayats
• Stamp duties on immovable properties
• Taxes on vehicles.
EXCLUSIONS OF GOODS & SERVICE TAX.

8. CURRENT STATUS OF GOODS & SERVICE TAX
The bill was approved in Lok
Sabha but did not pass
muster in Rajya Sabha. It has
now been referred to a
select committee for scrutiny
The Government proposes to
roll out GST from April 1,
2016
The select committee is
expected to report to the
Rajya Sabha sometime in
July. The house can then
approve the
recommendations.
The bill has to finally be
approved by the President of
India.
After both the houses of
parliament ass the bill at
least 50% of India’s 29 states
have to approve the
constitutional amendment.

9. THINGS TO BE KEPT IN MIND BEFORE IMPLEMENTING
GOODS & SERVICE TAX
• What preparations are needed at the level of Central and State
Governments for implementing the GST.
• Whether the Government machinery is efficient enough for such
an enormous change.
• Whether the tax-payers are ready for such a change.
• What will be the impact on the Government’s revenue.
• How will the manufacturers, traders and ultimate consumers be
affected.
• Will GST help the small entrepreneurs and small traders.

10. THANK YOU
SHANMUKHA AKINAPELLI
VAMSI BODAVULA
SHRIYA CHOURASIYA
SOURABH MAYABHATE
PRACHI PAWAIYA