The document discusses the key aspects of the Goods and Services Tax (GST) framework in India. It notes that GST will be a dual GST with both central and state governments levying tax concurrently on a common base. There will be four types of GST - CGST, SGST, IGST and UGST. The document outlines the GST rates, exclusions, input tax credit rules, valuation rules and place of supply rules. It also summarizes the impact of GST on various stakeholders like traders, manufacturers, service providers, consumers and the central and state governments. Overall, GST is expected to simplify and harmonize the indirect tax system in India.
The document discusses Goods and Services Tax (GST) and its impact on state government revenues. It explains that GST is a unified indirect tax that will replace multiple taxes currently levied by central and state governments. While some producing states may lose revenue initially due to changes in tax collection points, states will gain powers to tax services and benefit from increased overall tax collection and compliance. The central government will also compensate states for any revenue losses from GST implementation for a period of five years.
The document discusses the Goods and Services Tax (GST) model proposed for India. It explains that GST aims to replace existing indirect taxes with a single, unified tax to reduce the cascading effect of taxes. It will treat goods and services uniformly and ensure input tax credits are not blocked. This will help lower production costs and inflation rates. The document outlines the proposed GST model, including rate structures, inter-state transactions, exemptions, and its basis in the Indian Constitution. It also discusses the expected benefits of GST such as increased demand, competitiveness and government revenues once implemented nationally.
Introduction /Concepts of GST
Existing & Proposed Tax Structure in India
Model/Components of GST
Benefits under GST
Applicability & Rate in GST Regime
Impact of GST
GST Set off Chain & its methodology
Functioning of GST
Others Areas of GST
Key Amendments in Bill
Sector Wise Impacts
Flaws of the GST Model
Conclusion.
GST is a comprehensive indirect tax on the supply of goods and services that would replace multiple taxes levied by the central and state governments. It aims to create a single, unified Indian market to make India a common economic market. The introduction of GST would be a significant reform of indirect taxation in India and is expected to boost the country's economic growth.
The document discusses the impact of Goods and Services Tax (GST) on the Indian economy. GST will reshape India's indirect tax structure by subsuming many indirect taxes into a single tax. This will simplify tax administration and improve ease of doing business. GST is also expected to boost GDP growth and exports by reducing costs, increasing competitiveness, and eliminating tax cascading. Overall, GST will lead to a more unified and formalized Indian market that attracts more investment and trade.
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India. It replaces multiple taxes levied by the Central and State governments. GST is proposed as a dual GST model where both the Central and State government concurrently levy GST on a common tax base. Key features include nationwide applicability, multi-stage collection on value addition, and provision for input tax credit. Implementation of GST aims to remove cascading effect of taxes and create a unified common national market.
The document discusses the Goods and Service Tax (GST) that was implemented in India in 2017. It provides background on GST, describing it as an indirect tax reform that consolidated multiple taxes into a single tax applied to goods and services. The objectives, methodology, key features, and impacts of GST on the Indian economy are examined, along with the advantages it provides in reducing complexity and disadvantages around implementation challenges. In conclusion, the researcher supports GST as an important milestone for taxation in India that will help create a common market, though challenges remain in fully adapting the new system.
The document discusses Goods and Services Tax (GST) and its impact on state government revenues. It explains that GST is a unified indirect tax that will replace multiple taxes currently levied by central and state governments. While some producing states may lose revenue initially due to changes in tax collection points, states will gain powers to tax services and benefit from increased overall tax collection and compliance. The central government will also compensate states for any revenue losses from GST implementation for a period of five years.
The document discusses the Goods and Services Tax (GST) model proposed for India. It explains that GST aims to replace existing indirect taxes with a single, unified tax to reduce the cascading effect of taxes. It will treat goods and services uniformly and ensure input tax credits are not blocked. This will help lower production costs and inflation rates. The document outlines the proposed GST model, including rate structures, inter-state transactions, exemptions, and its basis in the Indian Constitution. It also discusses the expected benefits of GST such as increased demand, competitiveness and government revenues once implemented nationally.
Introduction /Concepts of GST
Existing & Proposed Tax Structure in India
Model/Components of GST
Benefits under GST
Applicability & Rate in GST Regime
Impact of GST
GST Set off Chain & its methodology
Functioning of GST
Others Areas of GST
Key Amendments in Bill
Sector Wise Impacts
Flaws of the GST Model
Conclusion.
GST is a comprehensive indirect tax on the supply of goods and services that would replace multiple taxes levied by the central and state governments. It aims to create a single, unified Indian market to make India a common economic market. The introduction of GST would be a significant reform of indirect taxation in India and is expected to boost the country's economic growth.
The document discusses the impact of Goods and Services Tax (GST) on the Indian economy. GST will reshape India's indirect tax structure by subsuming many indirect taxes into a single tax. This will simplify tax administration and improve ease of doing business. GST is also expected to boost GDP growth and exports by reducing costs, increasing competitiveness, and eliminating tax cascading. Overall, GST will lead to a more unified and formalized Indian market that attracts more investment and trade.
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India. It replaces multiple taxes levied by the Central and State governments. GST is proposed as a dual GST model where both the Central and State government concurrently levy GST on a common tax base. Key features include nationwide applicability, multi-stage collection on value addition, and provision for input tax credit. Implementation of GST aims to remove cascading effect of taxes and create a unified common national market.
The document discusses the Goods and Service Tax (GST) that was implemented in India in 2017. It provides background on GST, describing it as an indirect tax reform that consolidated multiple taxes into a single tax applied to goods and services. The objectives, methodology, key features, and impacts of GST on the Indian economy are examined, along with the advantages it provides in reducing complexity and disadvantages around implementation challenges. In conclusion, the researcher supports GST as an important milestone for taxation in India that will help create a common market, though challenges remain in fully adapting the new system.
This document discusses the impact of Goods and Services Tax (GST) on infrastructure in India. It provides an overview of GST, describing how it will merge various taxes into a single system. It outlines the current tax structure and rates in India. The document then analyzes how specific infrastructure sectors like real estate, power, logistics, and IT may be affected by GST, noting both opportunities like reduced taxes on materials but also challenges like loss of certain exemptions. In conclusion, it argues that GST has the potential to accelerate infrastructure development in India in the long run through increased efficiency and competitiveness.
This document provides an overview of the Goods and Services Tax (GST) in India. It defines GST and explains that it is a comprehensive tax on the manufacture, sale, and consumption of goods and services. It also describes how GST will operate across states, the registration process, tax rates, items that may or may not be included, and benefits and challenges of implementing GST in India.
Accolet gst - understanding india gst - comprehensive presentation moduleDeepak Kumar Jain B
Comprehensive Understanding to Levy of India GST. It explains the law, the charge, valuation, time and place of supply, compliances under GST and transitional provisions - more on www.IndiaGST.com
The document summarizes a student forum discussion on Goods and Services Tax (GST) in India. Several students presented on topics related to GST, including the history of India's tax system, an introduction and implementation of GST, types of GST and comparison to VAT, advantages and limitations of GST, and the impact of GST. The discussion covered key aspects of GST such as the replacement of existing taxes, tax rates and slabs, registration process, and effects on various sectors of society, health, and industry.
This is a presentation for those people who wants to understands the basics of gst. This ppt includes how the gst works, Inpu ax Credit, Rates of GST, Composition Scheme etc.
Businesses need to register for GST by September 30, 2017. Stock on hand as of June 30, 2017 can be taxed under GST, with credit given for prior taxes paid. Invoices under GST must include seller and buyer details as well as tax rates and amounts. There will be five GST tax rates: 0%, 5%, 12%, 18%, and 28%. Small businesses with under Rs. 75 lakhs turnover can register for the composition scheme with simplified compliance.
This ppt was presented for a district level inter college paper presentation competition conducted by Sri Krishna College of Engineering and Technology. The event was conducted within three days of the announcement of the IMPLEMENTATION OF GST by THE GOVERNMENT OF INDIA.The topic is "Effect of GST on Various Sectors". The team comprises of myself, Mr.Ajay, Mr. Akhil Naga Surya, Mr.Prasanna. We won the first prize in the competition. We presented under the topic, "Effect of GST on Paint & Cement Sectors of Indian Economy".
PowerPoint Presentation on Goods and Services TaxMr. Shivam Gupta
GST is a comprehensive indirect tax applied to the manufacture, sale, and consumption of goods and services in India. It aims to replace existing indirect taxes and provide a single tax rate with fewer exemptions to reduce the cascading effect of taxes. GST is divided into CGST collected by the central government, SGST collected by state governments, and IGST on inter-state transactions collected by both. Key features include subsuming of various central and state taxes, distribution of GST revenues between states and center, and establishment of a GST council.
The document provides information about Goods and Services Tax (GST) in India. It discusses what GST is, the objectives of implementing GST, taxes that will be subsumed under GST, timeline of GST implementation, GST structure and rates, impact of GST on various sectors of the economy, expert opinions on GST, and potential positive and negative impacts of GST on India's GDP. Key points include that GST is an indirect tax for the entire nation aimed at creating a single market, it will subsume many indirect taxes at the central and state levels, the target implementation date was July 2017, and studies estimate that GST could increase India's GDP by 0.9-1.7
The document provides an overview of the Goods and Services Tax (GST) in India. It discusses the need for GST, key features of GST such as the dual GST model and tax rates, issues in implementation, and recent news items about GST. The introduction of GST aims to integrate state economies through a unified tax system, replace multiple taxes, and boost overall economic growth.
This document discusses Goods and Services Tax (GST) in India. It provides an introduction to GST, defining it as an indirect tax on the supply of goods and services that replaced multiple taxes. The document outlines some key advantages of GST, including creating a single market, reducing corruption, and increasing GDP. It also notes some disadvantages such as dual control by central and state governments and potential loss of revenue for some states.
This document provides an introduction and overview of the Goods and Services Tax (GST) implemented in India. It begins by explaining that GST consolidates several indirect taxes into a single tax applied to the supply of goods and services. It highlights that GST eliminates the cascading effect of taxation. The document then outlines some of the key features of GST, including that it is a consumption-based tax applied at the location where goods or services are consumed. It also describes some of the major taxes subsumed under GST and compares the previous tax regime to GST. Finally, it discusses important aspects of GST such as taxable events, tax rates, input tax credit, and the treatment of inter-state transactions
After a decade of negotiations, hectic parleys, many climb down and heart burn, India is ready to bring in what has been touted as Independent India's most celebrated tax reform, the Goods and Services Tax.
GST is a single, indirect tax levied on the supply of goods and services. It is levied at each stage of the production and distribution process. The final consumer bears only the GST charged by the last dealer. GST in India will have two components - the Central GST (CGST) levied and collected by the Centre, and the State GST (SGST) levied and collected by states on all transactions. GST aims to create a common national market by removing economic distortions and bringing about development through a transparent, corruption-free tax system. However, some challenges in implementing GST in India include dissatisfaction among manufacturing states, potential increase in taxes on services hampering growth, lack of
The document provides updates on India's implementation of the Goods and Services Tax (GST), including:
1) The GST rollout date has been delayed by 3 months to July 1, 2017 to allow industries more time to prepare for changes.
2) Key recommended GST tax slab rates by the GST council are 28%, 18%, 12%, and 5%, and the service tax rate is expected to increase from 15% to 18%.
3) Industries will need to ensure price reductions from GST benefits are passed to consumers to comply with anti-profiteering provisions.
Goods and Services Tax (GST) is an indirect tax on the sale, consumption, and manufacturing of goods and services throughout India. It aims to eliminate multiple indirect taxes and create a single, unified Indian market. Unlike other countries, Indian GST consists of three taxes - Central GST, State GST, and Integrated GST. India follows a dual GST model where both central and state governments levy GST concurrently on the same base of goods and services.
Goods and Services Tax(GST) vs Simple Tax SystemSachin Chauhan
This presentation provides an overview of Goods and Services Tax (GST) in India. It discusses the history of taxation in India, the current indirect tax system, and the key aspects of GST such as unified tax rate, subsuming of various indirect taxes, and dual GST model with CGST and SGST. It also compares GST with the current VAT and service tax system, and outlines some advantages like removing cascading effect of taxes as well as challenges of implementation like robust IT infrastructure and trained staff. Overall, GST is expected to boost India's GDP and have widespread economic impacts.
Goods & Services Tax_GST v/s Old Tax Structure (Part 3 of 5)Suryansh Dhawan
This document discusses the key differences between India's old indirect tax structure and the new Goods and Services Tax (GST). It provides an overview of the major central and state indirect taxes that existed previously compared to the three components of GST: Central GST, State GST, and Integrated GST. The document also gives an example showing how total costs are lower for businesses under GST compared to the old system due to fewer cumulative taxes. It outlines the process for businesses to claim input tax credits under GST by providing the necessary documents like GST invoices and filing returns.
The document provides an overview of the proposed Goods and Services Tax (GST) in India, including:
1) GST will combine multiple indirect taxes into a single tax, aiming to reduce complexity and inefficiencies. It will be levied as Central GST, State GST, and Integrated GST on inter-state sales.
2) Under GST, tax will be collected at the destination of goods and services rather than origin. Credits for taxes paid on inputs and capital goods will be available across states.
3) Implementation will require changes to contracts, purchase/work orders, IT/EDP systems, and awareness/training within organizations. Works contracts and other provisions may also
Dear Friends,
As we all know that GST has been introduced w.e.f 01/07/2017 and this could be a landmark move. For reference of all, I have attached a brief introduction for your reference.
This document discusses the impact of Goods and Services Tax (GST) on infrastructure in India. It provides an overview of GST, describing how it will merge various taxes into a single system. It outlines the current tax structure and rates in India. The document then analyzes how specific infrastructure sectors like real estate, power, logistics, and IT may be affected by GST, noting both opportunities like reduced taxes on materials but also challenges like loss of certain exemptions. In conclusion, it argues that GST has the potential to accelerate infrastructure development in India in the long run through increased efficiency and competitiveness.
This document provides an overview of the Goods and Services Tax (GST) in India. It defines GST and explains that it is a comprehensive tax on the manufacture, sale, and consumption of goods and services. It also describes how GST will operate across states, the registration process, tax rates, items that may or may not be included, and benefits and challenges of implementing GST in India.
Accolet gst - understanding india gst - comprehensive presentation moduleDeepak Kumar Jain B
Comprehensive Understanding to Levy of India GST. It explains the law, the charge, valuation, time and place of supply, compliances under GST and transitional provisions - more on www.IndiaGST.com
The document summarizes a student forum discussion on Goods and Services Tax (GST) in India. Several students presented on topics related to GST, including the history of India's tax system, an introduction and implementation of GST, types of GST and comparison to VAT, advantages and limitations of GST, and the impact of GST. The discussion covered key aspects of GST such as the replacement of existing taxes, tax rates and slabs, registration process, and effects on various sectors of society, health, and industry.
This is a presentation for those people who wants to understands the basics of gst. This ppt includes how the gst works, Inpu ax Credit, Rates of GST, Composition Scheme etc.
Businesses need to register for GST by September 30, 2017. Stock on hand as of June 30, 2017 can be taxed under GST, with credit given for prior taxes paid. Invoices under GST must include seller and buyer details as well as tax rates and amounts. There will be five GST tax rates: 0%, 5%, 12%, 18%, and 28%. Small businesses with under Rs. 75 lakhs turnover can register for the composition scheme with simplified compliance.
This ppt was presented for a district level inter college paper presentation competition conducted by Sri Krishna College of Engineering and Technology. The event was conducted within three days of the announcement of the IMPLEMENTATION OF GST by THE GOVERNMENT OF INDIA.The topic is "Effect of GST on Various Sectors". The team comprises of myself, Mr.Ajay, Mr. Akhil Naga Surya, Mr.Prasanna. We won the first prize in the competition. We presented under the topic, "Effect of GST on Paint & Cement Sectors of Indian Economy".
PowerPoint Presentation on Goods and Services TaxMr. Shivam Gupta
GST is a comprehensive indirect tax applied to the manufacture, sale, and consumption of goods and services in India. It aims to replace existing indirect taxes and provide a single tax rate with fewer exemptions to reduce the cascading effect of taxes. GST is divided into CGST collected by the central government, SGST collected by state governments, and IGST on inter-state transactions collected by both. Key features include subsuming of various central and state taxes, distribution of GST revenues between states and center, and establishment of a GST council.
The document provides information about Goods and Services Tax (GST) in India. It discusses what GST is, the objectives of implementing GST, taxes that will be subsumed under GST, timeline of GST implementation, GST structure and rates, impact of GST on various sectors of the economy, expert opinions on GST, and potential positive and negative impacts of GST on India's GDP. Key points include that GST is an indirect tax for the entire nation aimed at creating a single market, it will subsume many indirect taxes at the central and state levels, the target implementation date was July 2017, and studies estimate that GST could increase India's GDP by 0.9-1.7
The document provides an overview of the Goods and Services Tax (GST) in India. It discusses the need for GST, key features of GST such as the dual GST model and tax rates, issues in implementation, and recent news items about GST. The introduction of GST aims to integrate state economies through a unified tax system, replace multiple taxes, and boost overall economic growth.
This document discusses Goods and Services Tax (GST) in India. It provides an introduction to GST, defining it as an indirect tax on the supply of goods and services that replaced multiple taxes. The document outlines some key advantages of GST, including creating a single market, reducing corruption, and increasing GDP. It also notes some disadvantages such as dual control by central and state governments and potential loss of revenue for some states.
This document provides an introduction and overview of the Goods and Services Tax (GST) implemented in India. It begins by explaining that GST consolidates several indirect taxes into a single tax applied to the supply of goods and services. It highlights that GST eliminates the cascading effect of taxation. The document then outlines some of the key features of GST, including that it is a consumption-based tax applied at the location where goods or services are consumed. It also describes some of the major taxes subsumed under GST and compares the previous tax regime to GST. Finally, it discusses important aspects of GST such as taxable events, tax rates, input tax credit, and the treatment of inter-state transactions
After a decade of negotiations, hectic parleys, many climb down and heart burn, India is ready to bring in what has been touted as Independent India's most celebrated tax reform, the Goods and Services Tax.
GST is a single, indirect tax levied on the supply of goods and services. It is levied at each stage of the production and distribution process. The final consumer bears only the GST charged by the last dealer. GST in India will have two components - the Central GST (CGST) levied and collected by the Centre, and the State GST (SGST) levied and collected by states on all transactions. GST aims to create a common national market by removing economic distortions and bringing about development through a transparent, corruption-free tax system. However, some challenges in implementing GST in India include dissatisfaction among manufacturing states, potential increase in taxes on services hampering growth, lack of
The document provides updates on India's implementation of the Goods and Services Tax (GST), including:
1) The GST rollout date has been delayed by 3 months to July 1, 2017 to allow industries more time to prepare for changes.
2) Key recommended GST tax slab rates by the GST council are 28%, 18%, 12%, and 5%, and the service tax rate is expected to increase from 15% to 18%.
3) Industries will need to ensure price reductions from GST benefits are passed to consumers to comply with anti-profiteering provisions.
Goods and Services Tax (GST) is an indirect tax on the sale, consumption, and manufacturing of goods and services throughout India. It aims to eliminate multiple indirect taxes and create a single, unified Indian market. Unlike other countries, Indian GST consists of three taxes - Central GST, State GST, and Integrated GST. India follows a dual GST model where both central and state governments levy GST concurrently on the same base of goods and services.
Goods and Services Tax(GST) vs Simple Tax SystemSachin Chauhan
This presentation provides an overview of Goods and Services Tax (GST) in India. It discusses the history of taxation in India, the current indirect tax system, and the key aspects of GST such as unified tax rate, subsuming of various indirect taxes, and dual GST model with CGST and SGST. It also compares GST with the current VAT and service tax system, and outlines some advantages like removing cascading effect of taxes as well as challenges of implementation like robust IT infrastructure and trained staff. Overall, GST is expected to boost India's GDP and have widespread economic impacts.
Goods & Services Tax_GST v/s Old Tax Structure (Part 3 of 5)Suryansh Dhawan
This document discusses the key differences between India's old indirect tax structure and the new Goods and Services Tax (GST). It provides an overview of the major central and state indirect taxes that existed previously compared to the three components of GST: Central GST, State GST, and Integrated GST. The document also gives an example showing how total costs are lower for businesses under GST compared to the old system due to fewer cumulative taxes. It outlines the process for businesses to claim input tax credits under GST by providing the necessary documents like GST invoices and filing returns.
The document provides an overview of the proposed Goods and Services Tax (GST) in India, including:
1) GST will combine multiple indirect taxes into a single tax, aiming to reduce complexity and inefficiencies. It will be levied as Central GST, State GST, and Integrated GST on inter-state sales.
2) Under GST, tax will be collected at the destination of goods and services rather than origin. Credits for taxes paid on inputs and capital goods will be available across states.
3) Implementation will require changes to contracts, purchase/work orders, IT/EDP systems, and awareness/training within organizations. Works contracts and other provisions may also
Dear Friends,
As we all know that GST has been introduced w.e.f 01/07/2017 and this could be a landmark move. For reference of all, I have attached a brief introduction for your reference.
VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION.
STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED .
An article on Role of Company Secretaries in GST Era was published in Souvenir of 43rd National Convention of Institute of Company Secretaries of India. Article was contributed by Team : Lex Bolster Global LLP.
Analyse how will gst impact your businessvramaratnam
The document discusses the financial impact of implementing GST for organizations. It identifies 11 key factors that will affect finances, including the removal of taxes like octroi and entry tax, availability of input tax credits for IGST and VAT, elimination of tax reversals for trading activities, and changes to tax treatment of processes like assembly. The financial impact will vary for each organization and they should assess each factor to minimize adverse impacts and restructure their business under GST.
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India. It replaces multiple taxes levied by the central and state governments. GST is proposed as a dual GST model where both the central and state government concurrently levy GST on a common tax base. Key features include nationwide applicability, multi-stage collection on value addition, and provision for input tax credit. Implementation of GST aims to remove cascading effect of taxes and create a unified common national market.
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India. It replaces multiple taxes levied by the central and state governments. GST is proposed as a dual GST model where both the central and state government concurrently levy GST on a common tax base. GST will be levied at every stage of supply of goods and services based on the input tax credit method. This will ensure a seamless transfer of input tax credit between the central GST and state GST.
The document discusses India's proposed Goods and Services Tax (GST) bill. It provides an overview of the existing indirect tax structure, the need for GST reform to address issues like tax cascading and complexity, and key aspects of the proposed GST model such as a dual GST system administered by both central and state authorities. The GST is expected to lower costs for businesses and consumers while simplifying taxation and boosting the economy.
GST is a multi-stage, destination-based indirect tax applicable throughout India that replaced multiple taxes levied by the central and state governments. Key objectives of GST were to establish an economically efficient and neutral tax system that is simple to administer. GST subsumed many central and state taxes such as excise duty, VAT, and service tax into a single tax to mitigate cascading of taxes and make India a unified market. It was implemented on July 1, 2017 through a constitutional amendment that empowered both parliament and state legislatures to levy GST.
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
Understanding GST and its implications.Anirudh Daga
This document provides information on India's current and proposed indirect tax structures. The current system includes taxes levied by the central and state governments, while the proposed GST system would introduce CGST, SGST and IGST. Key features of GST include a dual-levy structure, seamless credit across states, and the replacement of multiple taxes with one. The document also outlines registration requirements, returns, and other operational details of the proposed GST system.
This Power Point presentation is the latest in the series of GST related slides uploaded by me earlier. This Specifically discusses the Concept of CGST, SGST and IGST. Examples and illustrations have been given to help in understanding.
Ms. Suchitra Kumari has assisted me in editing these slides
Input tax credit (ITC) is a key feature of GST that aims to avoid cascading of taxes or "tax on tax". Under the current system, taxes paid at each stage of production and distribution cannot be offset, resulting in higher prices for consumers. GST will allow businesses to claim ITC for taxes paid on inputs at each stage of the supply chain. This will ensure that only the value added at each stage is taxed, eliminating cascading of taxes. ITC has to be claimed within time limits and is subject to certain restrictions to prevent misuse or use for non-business purposes. The seamless availability of ITC across India will create a common national market and boost economic growth.
This document provides an overview of the Goods and Services Tax (GST) in India. It defines GST as a comprehensive tax on the manufacture, sale, and consumption of goods and services at the national level. It discusses the need for GST to replace existing multiple tax structures and simplify taxation. The document outlines the key features of GST, including that it will have dual components of Central GST and State GST, and covers topics such as taxable events, persons, rates, and subsuming of existing taxes. It provides the latest updates regarding proposals for an optional GST and other recommendations from a parliamentary panel.
This presentation is on GST (Goods and Services Tax), it is about the new taxation system implemented in India. I have tried to keep all information about GST India.
The document provides an overview of the Goods and Services Tax (GST) system that is proposed to be implemented in India. It discusses what GST is, the need for GST to replace existing tax structures, the justification for GST at central and state levels, the proposed dual GST model, key features of GST including coverage, tax rates, registration requirements, invoices, and periodic tax payments. It also addresses taxes that may be subsumed under GST, treatment of exports and imports, inter-state transactions, and emerging issues related to implementation.
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
This document provides an overview of the Goods and Services Tax (GST) in India. Some key points:
- GST is an indirect tax that will replace existing taxes like sales tax, service tax, and duties. It aims to create a unified market and reduce the cascading effect of taxes.
- GST will be levied by the central and state governments simultaneously on the supply of goods and services. There will also be an integrated GST for inter-state transactions.
- GST is expected to simplify taxation, boost revenue, increase competitiveness, and benefit consumers, industry and agriculture by reducing costs and improving the tax system. It is an important reform that could boost India's economic growth.
The document discusses Goods and Services Tax (GST) in India. It defines GST and explains its key components. It discusses the need for GST to replace existing indirect tax structures. It outlines the justification for GST at central and state levels. It describes the proposed dual GST model and some salient features of GST including chargeability, taxable events, persons, rates, and registration. It also discusses subsuming of existing taxes, exemptions, treatment of exports and imports, and inter-state transactions under GST.
Similar to How GST Impacts the Current Economy. (20)
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
What Lessons Can New Investors Learn from Newman Leech’s Success?Newman Leech
Newman Leech's success in the real estate industry is based on key lessons and principles, offering practical advice for new investors and serving as a blueprint for building a successful career.
Monthly Market Risk Update: June 2024 [SlideShare]Commonwealth
Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Budgeting as a Control Tool in Government Accounting in Nigeria
Being a Paper Presented at the Nigerian Maritime Administration and Safety Agency (NIMASA) Budget Office Staff at Sojourner Hotel, GRA, Ikeja Lagos on Saturday 8th June, 2024.
1. By Sai Uttarpal
Phanindra Associates
Chartered Accountants
Hyderabad.
Phanindra & Associates, Hyd.6/7/2017 1
2. PROLOGUE
The GST law in India would be a Dual GST.
There are 1 CGST Law, 33 SGST Laws, 1 IGST Law, 7 UGSTs laws .
The Central Government and the State Governments would levy GST concurrently
on a Common Base Value.
All the goods and services, except for a few excluded/ exempted goods, would be
brought into the GST base.
There would be no major distinction between goods and services for the purpose
of imposition of tax though in case of place of supply there could be some
differences. In addition, difference in rate of GST shall also there.
Phanindra & Associates, Hyd.6/7/2017 2
3. Prescribed procedure and
time limit :
To carry forward credits relating to
present regime including unclaimed
credit of Capital goods.
Specific provision to collect pending
C/F/H/I forms for carry forward of
credits.
To avail credit of stock lying with
GST registered person who is not
registered in present regime –Excise
duty.
For compliance with respect to
goods lying with job worker.
Prescribed valuation Rules were:
Value of supply of goods or services where
consideration is not wholly in money.
Value of supply of goods or services
between distinct or related party :
Open market value
Invoice value, if full credit available to
recipient.
Value of supply of goods supplied through
an agent.
Valuation on cost plus basis –110% of
cost of manufacture or cost of provision of
services. (If the value of supply cannot be
determined by any of the previous rules)
Valuation on basis of reasonable method.
Valuation for second hand goods.
Specified services like air travel agent, life
insurance etc.
Documentary requirement and
conditions for claiming ITC
Prescribed procedure for :
Reversal of credit in case of non-
payment of consideration.
Distribution of credit by an input
service distributor. Additional points to
consider:
a) Input tax credit to be distributed in the
same month.
b) A negative credit balance (due to
receipt of credit note by the input service
distributor) and ineligible credit will also
need to be distributed.
c) Credit of Central GST (CGST), State GST
(SGST), Union Territory GST (UTGST) and
Integrated GST (IGST) will be distributed
separately.
Goods to be supplied to a job worker
under the cover of challan/where goods
are sent directly to job worker
Transition
Rules
Valuation
Rules
Input Tax
Credit Rules
Phanindra & Associates, Hyd.6/7/2017 3
4. LEVYLEVY
Dual GSTDual GST
SGST+CGST
on Intra-
state
Supplies
SGST+CGST
on Intra-
state
Supplies
IGST on
Interstate
Supplies
IGST on
Interstate
Supplies
RATERATE
0%0%
5%5%
12%12%
18%18%
28%+
Cesses
28%+
Cesses
EXCLUSIONSEXCLUSIONS
Basic
Customs
duty
Basic
Customs
duty
Petroleum
Products,
Alcohol,
Electricity
Petroleum
Products,
Alcohol,
Electricity
Stamp DutyStamp Duty
CREDITSCREDITS
Credit for
all
expenses in
course,
furtherance
of business
Credit for
all
expenses in
course,
furtherance
of business
State-wise
credit .
No cross
utilization
between
CGST and
SGST.
State-wise
credit .
No cross
utilization
between
CGST and
SGST.
PLACEPLACE
Destination
based,
Location of
service
recipient.
Destination
based,
Location of
service
recipient.
Point of
Supply
Rules to
determine
levy /
jurisdiction
Point of
Supply
Rules to
determine
levy /
jurisdiction
VALUATIONVALUATION
Transactio
n value
based –no
MRP
valuation
Transactio
n value
based –no
MRP
valuation
Separate
Valuation
Rules for
Related
Party
Transactio
n
Separate
Valuation
Rules for
Related
Party
Transactio
n
GST FRAMEWORK
Phanindra & Associates, Hyd.6/7/2017 4
5. Approximately
50% goods of
Consumer Price
Index.
This may
include fruits,
vegetables,
food grains,
essential
medicines
etc.
Essential items
of Mass
Consumption
used by
common people.
i.e. essential
commodities.
Standard
concessional
rate of Tax for
goods.
Standard rate
for goods –
may also
include goods
increasingly
used by
common
households.
Higher rate for
luxury, demerit
and sin goods.
Further, Cess
may also be
imposed on
products such
as luxury cars,
aerated
beverages,
tobacco etc.,
0%
5%
12%
18%
28%
GST RATES DECLARED BY GST COUNCIL
Phanindra & Associates, Hyd.6/7/2017 5
6. Company Network of Banks
GSTIN
System
Vendors
Distributors/
Stockist / Sellers
State Centre
Database
Payment of GST in cash
Uploading of details of sales to dealers/ Filing of periodic
returns
Automatic linking
of details of purchases
from company
for creditUploading of details of sales to company
Details of GST
and credits
Automatic uploading of challan details
for GST paid in cash
Phanindra & Associates, Hyd.6/7/2017 6
7. • Local supply of goods /services.
CGST
• Local supply of goods /services
SGST
• Inter-State supply of goods/services.
• Imports into India.
IGST
Cross utilization of
credits between goods
and services would be
allowed.
Credit Pool to be
maintained State
wise.
CGST &
IGST
SGST &
IGST
IGST,
CGST &
SGST
Credit structure
Phanindra & Associates, Hyd.6/7/2017 7
9. IMPACT ON TRADE
(a) Tax on value addition
The impact of tax on the wholesaler or retailer would be limited to the value addition. The tax
paid at earlier stages (except CGST & SGST of other States) would be available as set off for
payment of GST on supplies. Therefore, traders would prefer to buy/receive supplies with
invoice post GST.
(b) Reduce cascading:
Cost of products and services would reduce normally due to the cascading effect of tax being
reduced.
Service tax credits would be available and going forward even on the capital goods used for
storing, handling etc.
(c) GST levy:
CGST and SGST/UTGST would be levied on the local supply of goods within State/Union
Territory.
IGST (comprising of CGST and SGST/UTGST) would be levied on inter-State/inter-UT supply of
goods.
Phanindra & Associates, Hyd.6/7/2017 9
10. IMPACT ON TRADE
(d) No subsequent sale or sale in transit under the CST Act against Forms E-I/II:
This exemption as per section 6(2) of the CST Act is not continued under GST levy.
GST would be charged on both transactions.
(e) Export supplies Under Form H/ Supplies to SEZ under form I : Zero Rate under GST Regime
(f) Stock transfers:
Presently, stock transfer is done without charging CST against Form F.
Under GST law, stock transfers from one State to other would be liable to GST.
(g) Small Traders:
They would be eligible for the composition scheme up to Rs 50 lakhs provided their aggregate
turnover in the preceding financial year did not exceed Rs. 50 lakhs. After that, normal rate will
apply.
The essential conditions to be complied for availing the benefit of the aforesaid Composition
Scheme are as under :
No credit to dealer/ customer;
No inter-state supply of goods.
Only suitable for Business to Consumer transactions.
Phanindra & Associates, Hyd.6/7/2017 10
11. IMPACT ON MANUFACTURERS
(a) Competitive in market:
There would be a saving in taxes due to less restrictions in taking setoff of taxes paid at
various stages of manufacture reducing the cost of goods/ services supplied.
This would make them more competitive both in domestic and the international markets.
(b) Valuation of the supply of goods:
At present, excise duty is paid on the event of manufacture of excisable goods and VAT on the
sale of goods. VAT/CST is computed on sale price + excise duty paid.
With the shift of taxable event from manufacture to supply of goods, the valuation of goods
could be simplified.
Under GST, actual value received as a consideration for the supply of goods would be subject
to GST with some exceptions.
(c) Cheaper exports:
Exports would be cheaper as taxes paid at earlier stages could be refunded to a larger
extent. [credit restrictions can lead to tax sticking]
Phanindra & Associates, Hyd.6/7/2017 11
12. IMPACT ON MANUFACTURERS
(d) Ease of doing Business:
Adoption of Information technology in GST regime will enable the organization to do
business with ease. (Internet of Things, Real time Processing)
(e) Transaction costs:
The transaction costs of compliance would reduce due to widespread computerization and
online filling of forms and returns and payment of taxes.
However, the need to upload all transactions may lead to increased compliance cost for
medium sector while for the small sector it may not be bearable.
Phanindra & Associates, Hyd.6/7/2017 12
13. Impact on Service Providers
(a) Origin based to Destination based levy:
Presently, service tax is levied mainly at the origin and is a destination based levy, the
burden of which is borne by the end customer.
Under GST generally they would be taxed in the same way except that the place of supply
would have to be confirmed.
Tax would flow to the place of consumption. (Telangana & Tamilnadu).
(b) Taxes received by consuming State:
If services are rendered from one State to another, then tax would ultimately go to the
consuming State.
(c) Service tax-SGST levied by States:
Under GST law, the service tax would be levied not just by Central Govt but also by the States
which would be empowered to levy SGST by amendment to the Constitution of India.
Phanindra & Associates, Hyd.6/7/2017 13
14. IMPACT ON THE CONSUMERS
(a) Reduction in price:
Generally, the purchase price would reduce as tax content of most products would come down.
But if a product has hitherto not been subjected to tax completely then the price would
increase.
Further those items which are now taxable where tax rate earlier was zero may be more
expensive as exemption and zero rated lists of items may come down in the GST regime.
(b) Transparency:
The tax paid would be clearly mentioned in the invoice given to the customer.
(c) Options to customer:
There would be free trade and commerce between States and throughout the country which
would provide more options to the consumer .
Phanindra & Associates, Hyd.6/7/2017 14
15. IMPACT ON WORKS CONTRACT
• Works contracts are composite contracts involving material and labour. The material portion
involving the supply of goods is taxable to Value Added Tax (VAT), while the service portion is
liable to service tax. If a new commodity comes into existence, in the process of executing a works
contract, then, Central Excise duty may be levied.
• Under GST law, works contract could be taxed on gross value with ITC on goods and services
being available. It would be considered as a service.
• It could be at 18%. Credit in respect of Steel, cement, electrical items would more than offset the
present net tax in most States. More clarity is expected.
Phanindra & Associates, Hyd.6/7/2017 15
16. IMPACT ON SPECIFIC SECTORS
AGRICULTURE
In India, food items are generally exempt from central excise duty. But many food items, including
food grains and cereals, attract State VAT at 4-5%.
The Exemption under the State VAT laws is restricted to unprocessed food, e.g., fresh fruits and
vegetables, meat and eggs, and coarse grains.
Those items could be subject to tax in GST at a lower rate, which is likely to be 5% (combined GST
rate), which, if so, would certainly make some of these items dearer.
PURE SALE OF LAND OR COMPLETED BUILDING
As they already attract stamp duty may be kept out of GST purview.
Phanindra & Associates, Hyd.6/7/2017 16
17. IMPACT ON INTERNATIONAL TRADE
• Importers of goods and services may be affected under the GST regime
due to -
– Change in tax rates leading to higher tax incidence when the goods or
services are imported into India from outside India.
– Exports of goods and services shall continue to be zero rated and eligible to
claim refund of input tax credit which could be fast tracked.
Phanindra & Associates, Hyd.6/7/2017 17
18. CENTRAL GOVERNMENT
(a) Increased collection of CGST and IGST:
The collection of taxes-CGST and IGST would increase when more and more assesses register
and pay taxes due to simplified tax laws under GST regime
(b) Loss of CST revenues:
The CST which was 2 % accruing to the State of collection has been subsumed into GST. This
revenue would not be available to the States.
(c) Refunds under GST:
The refunds under Central excise and service tax laws take long time.
However, in GST Regime, refunds are expected to be processed faster with 90% of the total
refund amount being available on submission of proper documents.
(d) Reduced corruption:
When the laws are simplified, then the chances of multiple interpretations would get
reduced, leading to reduction in disputes and consequent litigation.
Also, the automation of the payments/returns filing and other compliances could mean that
the interaction between the assessee and the department officers would come down to
minimum. This would reduce corruption and increase ethics gradually.
(e) Compensation for loss of revenues to States:
In order to compensate the loss suffered by State of Manufacturing unit, Governing authorities
have taken necessary measured.
The compensation of loss of tax revenues to the States on account of implementation of GST
would be an outgo. In reality there may be minimal outgo except for the weaker States. All
expected to gain due to increased compliance.
Phanindra & Associates, Hyd.6/7/2017 18
19. STATE GOVERNMENT
(a) Rise in digitalization leading to fall in transaction costs:
Due to increase in computerization due to GSTN, the tax administration would be easier and
cost of collection would be less.
(b) The Destination Principle:
States which are net consumers would benefit due to the accrual on destination. The
producing States may have a comparative disadvantage.
Govt has take necessary measures to compensate the loss of tax revenue for the state of
production.
Phanindra & Associates, Hyd.6/7/2017 19
20. IMPACT ON THE NATION
(a) Increased FDI:
The flow of Foreign Direct Investments may increase once GST is implemented as the
present complicated/ multiple tax laws are one of the reasons foreign Companies are
precautious of coming to India in addition to widespread corruption.
(WALMART- Retail Stores, Apple – Manufacture unit)
(b) Growth in overall revenue:
It is estimated that India could get revenue of $15 billion per annum by implementing the
Goods and Services Tax as it would promote exports, raise employment and boost growth.
(c) Single point taxation:
Uniformity in tax laws will lead to single point taxation for supply of goods or services all
over India.
This increases the tax compliance and more assesses will come into Tax NET. (Small scale
trader register to claim Input credit or avoid taxation on RCM for business with Unregistered
traders).
Phanindra & Associates, Hyd.6/7/2017 20
21. IMPACT ON THE NATION
(d) Simplified tax laws:
Present law appears to be much worse and an blend of the bad parts of VAT/ ST/ CE.
This reduces litigation and waste of time of the judiciary and the assessee due to frivolous
proceedings at various levels of adjudication and appellate authorities.
(e) Increase in Exports and Employment-:
GST could also result in -
o Increased employment
o Promotion of exports and consequently a
o Significant boost to overall economic growth & factors of production viz., land, labor & capital.
Phanindra & Associates, Hyd.6/7/2017 21
22. OVERALL IMPACT
(1) Change in law and procedure:
As it is a major indirect tax reform in India, there would be new legislations and procedures. The
entire indirect tax code would be a new one.
(2) Change in tax-rates:
The standard rate of 12.5 % for central excise, Service tax, along with residuary rate of VAT at
12.5-14.5% brings the overall rate to 25%-30%.
But, post GST, the general rate will be 18%; a net gain of almost 7%-12%. Most of the dealers and
consumers would experience the change in tax rates, either significantly or marginally.
When the tax rates are increased for some products it could lead to tax evasion as well.
(3) GST based on HSN:
The central excise tariff based classification would no longer be applicable. It would reduce the
interpretational issues in respect of class of commodities.
Phanindra & Associates, Hyd.6/7/2017 22
23. OVERALL IMPACT
(4) Availment of Tax credit:
GST would facilitate near seamless credit across the entire supply chain and across all States under a common
tax base. At present no cross credits are available across central excise/service tax to local VAT/sales tax.
Under the GST law, the Input Tax Credit (ITC) (set off) would be given for Central GST against CGST and the
States would give input tax credit (ITC) SGST to SGST.
Cross-utilization of credit between Central GST and State GST would not be allowed.
(5) Credit availment based on vendor’s invoices:
The credit of excise duty paid is available based on the excise invoice raised by manufacturer or service provider.
The credit is available under the Service Tax law when the invoice amount is paid within 3 months of the invoice
date. In respect of joint charge and reverse charge, based on receipt of payment on the basis of payment challans
of the assessee. Under State VAT law, credit is allowable on the basis of tax invoice.
Under GST the credits could be availed based on the invoices of vendors under CGST and SGST. But the burden
may shift onto the assessee to ensure that the amount of the CGST/SGST has been deposited in the respective
Government treasury by the vendor. This provision has been added to bring in tax discipline but smaller
businesses may find transaction cost increasing due to this.
(6) Avoidance of Double Taxation:
Presently, several transactions suffer VAT as well as Service Tax such as works contract or licensing of software.
This could be resolved under the GST regime by redefining what is goods and service.
Phanindra & Associates, Hyd.6/7/2017 23
24. OVERALL IMPACT
(7) Changes in the Accounting Software:
Dealers and service providers need to modify/replace the Accounting and Taxation software.
Initially there could be investment costs, costs of training in GST of people at each level
starting from junior/mid to higher level managerial staff, management group/stakeholders.
(8) Training:
Comprehensive training would be required to the staff members of the business community,
both at senior level and also at junior level across the purchase, sales and finance functions.
VAT + CE/ ST officers would also need to understand the law well.
(9) Competent Professionals:
There are specialized consultants for Excise Duty, Service Tax and VAT.
With the GST, only a single consultant maybe required who can handle all GST matters.
Compliance for the SME may necessitate competent tax preparers .
(10) Amending existing contracts:
Amending existing contract with Clients for Business Assessees have to incorporate an extra
clause in the existing contracts to collect CGST and SGST as applicable.
Phanindra & Associates, Hyd.6/7/2017 24