Hospitality Industry in India, a big contributor to the country’s economic growth is on high growth. Definitely, gst implementation from July 1,2017 will have huge impact on the hospitality sector.
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This document discusses the impact of Goods and Services Tax (GST) implementation on India's hospitality sector. It notes that hospitality is a fast-growing industry that includes food, lodging, and travel. GST is a destination-based value-added tax that aims to replace existing indirect taxes. For hotels, GST's 18% tax rate on room tariffs could increase costs for higher-priced hotels but reduce costs for others. While GST may streamline processes, the hospitality industry faces increased technological and compliance costs as well as higher taxes than competitors in countries like Singapore and Japan. Overall, the effects of GST on the hospitality industry are mixed.
The implementation of GST will help the hospitality and tourism industry by reducing costs for customers, harmonizing taxes, and reducing business transaction costs. Under GST, the hospitality sector stands to benefit from standardized uniform tax rates and easier input tax credit utilization. Key rates include 0% for hotels below ₹999, 12% for ₹1000-₹2499, 18% for ₹2500-₹7499, and 28% for above ₹7500. Non-AC restaurants serving alcohol will be taxed at 18%. While economy air travel will be cheaper at 5%, business class tickets will be dearer at 12%. Restaurants expect costs and prices to decrease due to lower
The report contain Impact of GST on Hospitality sectors and various provision that are applicable to Goods and Service Tax for Hotels, Restaurant sector in India.
It covers Rates of GST, Provision of place of supply, valuation
describes that what is GST, why it is being implemented and what taxes will be replaced by GST. benefits of GST will be covered under this presentation
This document discusses the impact of the Goods and Services Tax (GST) law in India on various sectors including MSMEs, general industries, and multinational corporations (MNCs). It identifies both positive and negative impacts. Positively, GST will eliminate cascading taxation, simplify the tax process, and reduce logistics costs. However, it may also increase compliance costs for small businesses and require multiple state registrations for pan-India businesses. The impacts on specific industries like automobiles, real estate, and services are mixed. MNCs may see reduced production costs but higher costs for some services.
This document provides an overview of goods and services tax (GST) in India, including:
1. The journey to implementing GST over the past decade through constitutional amendments and legislation.
2. Key features of the GST system such as four indirect tax rates, a GST Council to make recommendations, and a common electronic portal for registration and returns.
3. Anticipated benefits of GST include reduced prices for consumers, fewer taxes and barriers to trade, and a broader, less evasive tax 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.
This document discusses the impact of Goods and Services Tax (GST) implementation on India's hospitality sector. It notes that hospitality is a fast-growing industry that includes food, lodging, and travel. GST is a destination-based value-added tax that aims to replace existing indirect taxes. For hotels, GST's 18% tax rate on room tariffs could increase costs for higher-priced hotels but reduce costs for others. While GST may streamline processes, the hospitality industry faces increased technological and compliance costs as well as higher taxes than competitors in countries like Singapore and Japan. Overall, the effects of GST on the hospitality industry are mixed.
The implementation of GST will help the hospitality and tourism industry by reducing costs for customers, harmonizing taxes, and reducing business transaction costs. Under GST, the hospitality sector stands to benefit from standardized uniform tax rates and easier input tax credit utilization. Key rates include 0% for hotels below ₹999, 12% for ₹1000-₹2499, 18% for ₹2500-₹7499, and 28% for above ₹7500. Non-AC restaurants serving alcohol will be taxed at 18%. While economy air travel will be cheaper at 5%, business class tickets will be dearer at 12%. Restaurants expect costs and prices to decrease due to lower
The report contain Impact of GST on Hospitality sectors and various provision that are applicable to Goods and Service Tax for Hotels, Restaurant sector in India.
It covers Rates of GST, Provision of place of supply, valuation
describes that what is GST, why it is being implemented and what taxes will be replaced by GST. benefits of GST will be covered under this presentation
This document discusses the impact of the Goods and Services Tax (GST) law in India on various sectors including MSMEs, general industries, and multinational corporations (MNCs). It identifies both positive and negative impacts. Positively, GST will eliminate cascading taxation, simplify the tax process, and reduce logistics costs. However, it may also increase compliance costs for small businesses and require multiple state registrations for pan-India businesses. The impacts on specific industries like automobiles, real estate, and services are mixed. MNCs may see reduced production costs but higher costs for some services.
This document provides an overview of goods and services tax (GST) in India, including:
1. The journey to implementing GST over the past decade through constitutional amendments and legislation.
2. Key features of the GST system such as four indirect tax rates, a GST Council to make recommendations, and a common electronic portal for registration and returns.
3. Anticipated benefits of GST include reduced prices for consumers, fewer taxes and barriers to trade, and a broader, less evasive tax 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.
This document provides an overview of the Goods and Services Tax (GST) implemented in India. It discusses what GST is, the history and need for GST, how GST works, its key features and effects on the Indian economy. It also outlines what items are taxed and exempted under GST and notes that multiple Indian states accepted GST between August 2016 to September 2016. The conclusion emphasizes that GST aims to create a unified market by replacing existing indirect taxes and collecting tax on final consumption within each jurisdiction.
This document provides an overview of the Goods and Services Tax (GST) in India. It discusses the key features of GST, including that it will combine multiple taxes into a single tax on goods and services, provide full tax credits, and follow a multi-rate structure. The document also reviews the journey towards implementing GST in India and compares GST structures in other countries.
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 Goods and Services Tax (GST) in India. It provides background on the efforts to introduce GST, potential benefits including reduced tax burden for companies and economic growth. However, it also notes challenges such as impact on the real estate market and need for strong IT infrastructure. Industry leaders express support for GST, expecting it to enhance economic development and reduce tax evasion. Case studies of GST implementation in other countries like Australia and New Zealand are also presented.
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.
GST is an indirect tax that will create a unified Indian market by harmonizing tax rates and structures across states. It replaces multiple taxes like VAT, excise, and service tax. The pre-GST system lacked harmonization of tax laws and automation, leading to delays, lack of cross-verification and assessment problems. GST will be charged on businesses, industries, central and state governments, and consumers. It will simplify compliance, remove the cascading effect of taxes, increase competitiveness, and lead to uniform prices and potentially lower prices overall. Various sectors like manufacturing, services, logistics, ecommerce, agriculture, telecom, and textiles will be impacted by GST in both positive and negative ways such as
This document discusses the impact of implementing the Goods and Services Tax (GST) in India. It provides background on GST globally and the existing indirect tax system in India. The key points are:
1) Over 160 countries have implemented GST, with some using a dual GST model like Canada that India has adopted, with CGST and SGST.
2) India's existing indirect tax system included multiple central and state taxes like excise duty, VAT, entertainment tax, and others.
3) GST unifies these taxes and introduces CGST and SGST at rates of 0%, 5%, 12%, 18%, and 28% with some items like alcohol and petrol exempted.
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.
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.
GST is an indirect tax that was implemented in India to replace many existing indirect taxes. It is a comprehensive tax applied at every stage of supply of goods and services. GST has three components - CGST collected by the central government for intra-state sales, SGST collected by state governments for intra-state sales, and IGST for inter-state sales collected by the central government. The key advantages of GST are that it eliminates cascading of taxes and reduces the overall tax burden.
This edition of GST book extensively covers in-depth analyses of Model CGST/SGST and IGST Act, 2016 and the Draft Business Processes released by the Government of India. This edition comprehensively discusses all the key GST provisions along with impact, preparations required for GST and challenges ahead, providing an insight to the readers for assisting in smooth transition to GST.
Have you had trouble making sense of the hundreds of articles on the Goods and Service Tax? We did too. We realized that we could not make sense of GST because we did not understand the basics. So we studied many documents and met a lot of experts to understand the logic of GST.
We are very happy to share that understanding with you. You can learn about Input Tax credit, what changes with GST, how many taxes are going away and what does it all mean for industry and government. What is more, all this has been communicated using simple examples and easy language.
If you find this presentation useful, please do share it on Email, FaceBook, Twitter and other social media.
The document summarizes key aspects of the Goods and Services Tax (GST) proposed to be implemented in India. It discusses how GST aims to address the cascading effect of taxes under the current system by introducing a single indirect tax on the supply of goods and services. It highlights some benefits of GST like reducing economic distortions, boosting tax revenues, and making exports more competitive. However, it also notes challenges in GST implementation like the deferred application to some petroleum products potentially leading to continued tax cascading, and the need for cooperation between central and state governments.
The document discusses India's proposed Goods and Services Tax (GST). It provides an overview of India's economy and current tax structure, which includes direct taxes like income tax and indirect taxes like excise duties and VAT that are levied by both central and state governments. The current system suffers from issues like tax cascading, complexity, and tax evasion. GST is presented as a comprehensive indirect tax that will replace existing indirect taxes and be levied as CGST, SGST, and IGST depending on whether a good or service is transacted intra-state or inter-state. The GST is aimed to simplify taxation, reduce the compliance burden, increase tax collection, and create a common national market. While G
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.
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.
This document is a research report on Goods and Services Tax (GST) submitted by Tara Kumari for her MBA program. The report provides an introduction to GST, including its meaning and purpose. It discusses the history and background of GST in India. The report also outlines the different types of categories under the GST rate and analyzes the impact of GST across various sectors. Key aspects of the proposed GST system such as returns, rates, and benefits are examined.
The document provides an overview of goods and services tax (GST) in India. It describes the existing indirect tax structure, including various central and state taxes like VAT, CST, excise duty, and service tax. It explains the problems with the current system, such as cascading effects and compliance burden. GST aims to simplify and harmonize indirect taxation by introducing a single tax on the supply of goods and services throughout India, subsuming multiple taxes. It will follow a dual GST model with taxation powers shared between the central and state governments. The key benefits of GST include removing cascading taxes, improving compliance, and creating a unified national market.
The document discusses the role of GST in the hotel industry in India. It notes that GST replaced many indirect taxes and established a unified tax rate across India. For hotels, GST rates are now 18% for room prices over ₹7,500, 12% for rooms from ₹1,000 to ₹7,500, and 0% for rooms under ₹1,000. This is expected to benefit hotels through lower taxes and attract more tourism to India. However, some challenges remain such as valuation of restaurant discounts and increased paperwork requirements under GST.
Taxation on hotel industry under GST regime - Dr Sanjiv AgarwalD Murali ☆
Taxation on hotel industry under GST regime - Dr Sanjiv Agarwal - Article published in Business Advisor, dated January 10, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
This document provides an overview of the Goods and Services Tax (GST) implemented in India. It discusses what GST is, the history and need for GST, how GST works, its key features and effects on the Indian economy. It also outlines what items are taxed and exempted under GST and notes that multiple Indian states accepted GST between August 2016 to September 2016. The conclusion emphasizes that GST aims to create a unified market by replacing existing indirect taxes and collecting tax on final consumption within each jurisdiction.
This document provides an overview of the Goods and Services Tax (GST) in India. It discusses the key features of GST, including that it will combine multiple taxes into a single tax on goods and services, provide full tax credits, and follow a multi-rate structure. The document also reviews the journey towards implementing GST in India and compares GST structures in other countries.
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 Goods and Services Tax (GST) in India. It provides background on the efforts to introduce GST, potential benefits including reduced tax burden for companies and economic growth. However, it also notes challenges such as impact on the real estate market and need for strong IT infrastructure. Industry leaders express support for GST, expecting it to enhance economic development and reduce tax evasion. Case studies of GST implementation in other countries like Australia and New Zealand are also presented.
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.
GST is an indirect tax that will create a unified Indian market by harmonizing tax rates and structures across states. It replaces multiple taxes like VAT, excise, and service tax. The pre-GST system lacked harmonization of tax laws and automation, leading to delays, lack of cross-verification and assessment problems. GST will be charged on businesses, industries, central and state governments, and consumers. It will simplify compliance, remove the cascading effect of taxes, increase competitiveness, and lead to uniform prices and potentially lower prices overall. Various sectors like manufacturing, services, logistics, ecommerce, agriculture, telecom, and textiles will be impacted by GST in both positive and negative ways such as
This document discusses the impact of implementing the Goods and Services Tax (GST) in India. It provides background on GST globally and the existing indirect tax system in India. The key points are:
1) Over 160 countries have implemented GST, with some using a dual GST model like Canada that India has adopted, with CGST and SGST.
2) India's existing indirect tax system included multiple central and state taxes like excise duty, VAT, entertainment tax, and others.
3) GST unifies these taxes and introduces CGST and SGST at rates of 0%, 5%, 12%, 18%, and 28% with some items like alcohol and petrol exempted.
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.
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.
GST is an indirect tax that was implemented in India to replace many existing indirect taxes. It is a comprehensive tax applied at every stage of supply of goods and services. GST has three components - CGST collected by the central government for intra-state sales, SGST collected by state governments for intra-state sales, and IGST for inter-state sales collected by the central government. The key advantages of GST are that it eliminates cascading of taxes and reduces the overall tax burden.
This edition of GST book extensively covers in-depth analyses of Model CGST/SGST and IGST Act, 2016 and the Draft Business Processes released by the Government of India. This edition comprehensively discusses all the key GST provisions along with impact, preparations required for GST and challenges ahead, providing an insight to the readers for assisting in smooth transition to GST.
Have you had trouble making sense of the hundreds of articles on the Goods and Service Tax? We did too. We realized that we could not make sense of GST because we did not understand the basics. So we studied many documents and met a lot of experts to understand the logic of GST.
We are very happy to share that understanding with you. You can learn about Input Tax credit, what changes with GST, how many taxes are going away and what does it all mean for industry and government. What is more, all this has been communicated using simple examples and easy language.
If you find this presentation useful, please do share it on Email, FaceBook, Twitter and other social media.
The document summarizes key aspects of the Goods and Services Tax (GST) proposed to be implemented in India. It discusses how GST aims to address the cascading effect of taxes under the current system by introducing a single indirect tax on the supply of goods and services. It highlights some benefits of GST like reducing economic distortions, boosting tax revenues, and making exports more competitive. However, it also notes challenges in GST implementation like the deferred application to some petroleum products potentially leading to continued tax cascading, and the need for cooperation between central and state governments.
The document discusses India's proposed Goods and Services Tax (GST). It provides an overview of India's economy and current tax structure, which includes direct taxes like income tax and indirect taxes like excise duties and VAT that are levied by both central and state governments. The current system suffers from issues like tax cascading, complexity, and tax evasion. GST is presented as a comprehensive indirect tax that will replace existing indirect taxes and be levied as CGST, SGST, and IGST depending on whether a good or service is transacted intra-state or inter-state. The GST is aimed to simplify taxation, reduce the compliance burden, increase tax collection, and create a common national market. While G
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.
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.
This document is a research report on Goods and Services Tax (GST) submitted by Tara Kumari for her MBA program. The report provides an introduction to GST, including its meaning and purpose. It discusses the history and background of GST in India. The report also outlines the different types of categories under the GST rate and analyzes the impact of GST across various sectors. Key aspects of the proposed GST system such as returns, rates, and benefits are examined.
The document provides an overview of goods and services tax (GST) in India. It describes the existing indirect tax structure, including various central and state taxes like VAT, CST, excise duty, and service tax. It explains the problems with the current system, such as cascading effects and compliance burden. GST aims to simplify and harmonize indirect taxation by introducing a single tax on the supply of goods and services throughout India, subsuming multiple taxes. It will follow a dual GST model with taxation powers shared between the central and state governments. The key benefits of GST include removing cascading taxes, improving compliance, and creating a unified national market.
The document discusses the role of GST in the hotel industry in India. It notes that GST replaced many indirect taxes and established a unified tax rate across India. For hotels, GST rates are now 18% for room prices over ₹7,500, 12% for rooms from ₹1,000 to ₹7,500, and 0% for rooms under ₹1,000. This is expected to benefit hotels through lower taxes and attract more tourism to India. However, some challenges remain such as valuation of restaurant discounts and increased paperwork requirements under GST.
Taxation on hotel industry under GST regime - Dr Sanjiv AgarwalD Murali ☆
Taxation on hotel industry under GST regime - Dr Sanjiv Agarwal - Article published in Business Advisor, dated January 10, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The document discusses the impacts of the Goods and Services Tax (GST) on various industries in India. It explains that under GST, consumers and restaurant owners will benefit as the total tax burden will be reduced. For textiles and clothing, GST will be 5% for yarn/cotton and 12% for readymade garments over Rs. 1,000, replacing excise and VAT. For real estate, GST of 12% will apply to under-construction projects. Banks will see an increase in service charges from 15% to 18% under GST.
impact of GST on trade and business development Prakash Kuma
This document provides an overview of the Goods and Services Tax (GST) in India including:
- What GST is and how it works as a comprehensive indirect tax on the supply of goods and services.
- Why India needed GST to replace the complex indirect tax structure with multiple rates and forms.
- A brief history of GST implementation in India from when the concept was first introduced in 2006 to its final passage in 2017.
- Key aspects of GST including the taxes subsumed, models considered, the GST Council, benefits of GST, and composition scheme for small businesses.
- Implications and impacts of GST on different sectors such as automobiles, consumer
Hotels supplying accommodation service often supply incidental services to its resident guests, including restaurant services, transportation services, sight-seeing, concierge etc.
Impact of Goods and Services Tax (GST) to the Common Mantridentbull
The Goods and Services Tax (Amendment) Bill — officially known as, the Constitution (122nd Amendment) (GST) Bill, 2014 — is believed to be the biggest tax reform since independence. The Constitution Amendment Bill for Goods and Services Tax (GST) passed in the Rajya Sabha on 3 August 2016, which was approved by the Lok Sabha in May 2015.
The document discusses the impact of GST on India's banking sector. It introduces GST and the types implemented in India. It then summarizes the Indian banking sector. The main impacts of GST on banking are that financial services fees will increase to 18% tax, increasing costs for customers. Banks will also face challenges with state-wise registrations and determining place of supply for inter-state transactions. Benefits include banks being able to claim more input tax credits. Overall, GST implementation will be challenging for banks and increase costs but may boost digital transactions long term.
The GST Council agreed on a four-tier tax rate structure for goods and services tax (GST) in India. Nearly half of items in the consumer price index basket and major food grains will be taxed at 0%, while goods for daily use will face a 5% tax rate. There will be standard rates of 12% and 18%, while luxury and 'sin' goods as well as coal will attract additional cess. The multiple tax rates may create classification problems and rent-seeking opportunities. However, the structure is not expected to be highly inflationary due to many exemptions and lower taxes on essential goods. Some sectors like consumer goods and logistics may benefit from GST reforms. Many implementation details are still to be
GST is one of the indirect tax on the supply of goods and services from the manufacturer to consumer. GST combines all the taxes into one and subsumes all the indirect taxes. This is done for all the central level and state level taxes.
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.
The document discusses Goods and Services Tax (GST) in India. It provides details on:
1) GST is a comprehensive tax on the manufacture, sale, and consumption of goods and services applied nationally. It is levied as a value-added tax at each stage, with the final consumer bearing the burden.
2) GST has two components - Central GST and State GST. It would subsume several other taxes currently levied on goods and services.
3) Introducing GST is imperative to replace existing complex multiple tax structures and integrate the Indian market through uniform tax rates across states. It is expected to boost tax collection and economic development in India.
Goods and Service Tax (GST) is proposed to replace existing indirect taxes in India and be a game changer for the economy. GST will combine multiple taxes into a single tax to reduce compliance burden and increase tax collection. It is expected to lower prices by reducing the tax on tax effect and make exports more competitive. GST will have three components - CGST collected by the central government, SGST by state governments, and IGST on inter-state transactions. It is argued that GST will simplify tax administration and boost economic growth.
The document summarizes key aspects of the Goods and Services Tax (GST) implemented in India. It outlines the existing tax structure with various central and state taxes and the proposed unified GST structure. It then discusses the positive impacts of GST for consumers, such as removing cascading taxes, standardized tax rates, and potentially lower prices. However, it also notes potential negative impacts like higher costs of services initially and increased inflation. Overall, GST aims to simplify taxation but its effects will depend on execution and pass-through of benefits to consumers.
GST is an indirect tax that will unify India's tax system and make it simpler. It aims to eliminate cascading taxes, increase tax collection, and formalize the economy. The document outlines the historical background, objectives, tax structure, types of taxes, and rates under GST. It discusses advantages like removing hidden taxes and the cascading effect. Disadvantages include increased costs for small businesses and the need for online compliance. The impact on GDP is estimated to be 0.9-1.7% increase initially, though some sectors like real estate may see short-term negative effects. Overall, GST has the potential to reform India's tax system but also poses challenges during implementation.
Presentation made on the Cambodia Restaurant Association, "Tax for Restaurants". Discusses tax incentives granted during Covid 19 for the restaurant industry and proposes a tax incentive model for the hospitality industry post Covid.
The taxation system in India includes direct taxes like income tax and indirect taxes like goods and service tax (GST). Income tax rates vary based on an individual's age and income level, with lower rates for those below age 60 and senior citizens. Corporate tax rates were recently reduced to 22% for existing companies and 15% for new manufacturing companies. Indirect taxes include GST applied between 0.25-28% on various goods and services, as well as taxes like customs duty and excise duty. The document provides details on tax slabs, rates and policies in India.
The document discusses the Goods and Services Tax (GST) implemented in India. It notes that GST aims to simplify India's tax regime by replacing multiple indirect taxes levied by central and state governments with a single tax applicable to both goods and services. GST is expected to reduce costs for businesses and consumers by eliminating cascading taxes and enabling seamless credit for input taxes paid. It will be comprised of three components: CGST (Central GST) collected by the central government, SGST (State GST) collected by state governments, and IGST (Integrated GST) for inter-state transactions.
GST (Goods and Services Tax) is a comprehensive indirect tax that will replace existing indirect taxes and integrate taxes at the Central and State levels. It is proposed to be implemented in India in 2016. GST is based on the idea of providing set-off benefits from taxes paid at earlier stages of production, allowing only the value addition at each stage to be taxed. This will eliminate cascading of taxes and reduce the overall tax burden. The key benefits of GST include reducing business compliance costs, boosting export competitiveness, and lowering prices for consumers.
What is GST and its Impact on current entrepreneurs ?Zaheer Sayyed
The document discusses the Goods and Services Tax (GST) bill in India. Some key points:
1. GST will consolidate indirect taxes like VAT, service tax, etc. into a single tax to make compliance easier. It will be levied on manufacture, sale, and consumption of goods and services.
2. GST is expected to benefit businesses, especially startups, by simplifying tax compliance, increasing exemptions for new businesses, and reducing logistics costs through seamless inter-state movement of goods.
3. However, some drawbacks are also discussed, such as potential increased costs for e-commerce companies and possibility of higher tax burden for low-turnover manufacturing startups.
Similar to How GST implementation will have a impact on hospitality sector? (20)
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2. Hospitality Industry in India, a big contributor to
the country’s economic growth is on high growth
trajectory and is expected to reach Rs 2796.9
thousand crores by 2022.
The industry also contributes significantly to
employment, FDI and Foreign exchange.
Recently the industry has already been severely
impacted by the Supreme Court liquor ban and the
much awaited Goods and Services Tax (GST) rates
has come as another shocker.
3.
4. Current Situation
The hospitality industry, like every other sector
in the Indian economy, pays multiple taxes (VAT,
luxury tax, and service tax) in the existing
indirect tax regime.
A hotel where the room tariff exceeds Rs 1,000 is
liable for service tax at 15 %.
An abatement of 40% is allowed on the tariff
value bringing the effective rate of service tax
down to 9%.
5. The Value Added Tax (ranging between 12 % to
14.5 %) and luxury tax will still apply.
However, for restaurants there is 60% abatement
which means that the service tax is charged at an
effective rate of 6% on the F&B bills, apart from
VAT (12 % to 14.5%).
Bills for bundled services like social functions
(seminars, marriage etc.), are taxed with an
abatement of 30%.
6. The cascading effect of the existing indirect tax
regime where the end consumer pays a tax on
tax, increases the end cost.
Hoteliers and hospitality businesses do not get
any input tax credit on the taxes they pay
currently, as central taxes cannot be set off
against state taxes (VAT) and vice-versa.
7. Present GST System
The tourism and hospitality industry in India
recently got updated with a new set of Goods and
Services Tax (GST) rates that will be rolled out
from July 1.
It will be applied on their services based on the
tariffs and turnover they draw, the GST council
has finalised.
8. While budget hotels i.e. those with INR 1,000 a
day for rooms, will attract low or even nil tax
rates, those charging INR 5,000 and more room
tariff per day will have to pay 28 pc GST.
Currently lower budget hotels make up about 80
pc of the hospitality market in India.
The new rates will come into effect from July 1.
9. GST Rates
The GST on hotels and lodges which charge
between Rs 1,000 and Rs 2,500 will be 12 %.
While, the GST on hotel rooms in the price range
of Rs 2,500-Rs 5,000 will be 18 %.
For lodges and hotels cheaper than Rs 1,000, the
GST is set at 5 %.
10.
11. Restaurants with a turnover of less than Rs 50
lakh will be levied a tax rate of 5 per cent.
Non-ac restaurants will have a 12% tax rate.
AC restaurants will have to shell out 18% tax.
12. As the final cost to end user decreases, we can
expect the industry to attract more overseas
tourists as compared to our neighbours.
Today when most of the Indian restaurants and
hotels are contributing to country’s economy as
well as to the employment sector.
GST will definitely have an impact the sector be it
a small or large scale business.
13. Qualifying the sector for the lower tax slab would
have helped to the employment generator sector,
diners and tourists.
14. Positive Impact
Administrative Ease:
GST will abolish several other taxes, leading to a
reduction in procedural steps and more chances
to streamline the taxation process.
Clarity for Consumers:
It is still very difficult to differentiate between a
Value Added Tax and an entertainment tax for
the common man.
15. However, under the GST regime customers will see
only a single charge on their bill and it would give
them a clear picture of the tax they are paying.
Improved Quality of Service:
With just one tax to compute, the checking out
process at hotels and restaurants will now become
easier – another perk that the hospitality industry
can brag about.
16. Negative Impact
Increased Technological Burden:
GST has very clear guidelines on how each industry
needs to manage their accounts and file returns
but it will require businesses to become
technologically adept, increasing the technological
burden and cost for compliance.
17. Lack of Parity with Asian
Counterparts:
Our Asian neighbours such as Japan and
Singapore have very low tax rates for their
hospitality sector (8% and 7% respectively)
which is an important reason for them ranking
high on tourist wishlists.
18. Industry Views
“Levying 28 pc on luxury and five-star hotels is
myopic,” Achin Khanna, managing director,
consulting and valuation practice, at consulting
firm HVS told the Indian press.
“Hotels charging more than INR 5,000 do not
automatically mean they are a luxury hotel or
catering to want based travel,” Khanna
commented while also saying that the move will
also impact end customers.
19.
20. “The government has not realised the
importance of providing impetus to hospitality
and tourism sectors, which are one of the highest
employment generating sectors,” Riyaaz Amlani,
president of National Restaurant Association of
India said to an Indian daily.
Amlani of National Restaurant Association of
India said heavy taxation and regulation would
only lead to “leakages” in government revenues.