The document discusses various indirect taxes applicable in India including taxes imposed by central and state governments. It provides examples of tax scenarios in manufacturing and supply chains. Key points covered are the implications of taxes on supply chain strategies, case studies on tax planning, and how GST aims to simplify taxation by subsuming various taxes into a dual GST model.
This document discusses the implications of implementing the Goods and Services Tax (GST) for businesses in India. It notes that GST will replace existing indirect taxes and is aimed at eliminating tax cascading. However, it also acknowledges challenges in implementing GST given India's federal structure with both central and state governments collecting tax. The document analyzes how GST will impact various industries and business structures through changes to tax rates and credits across supply chains. It also examines issues around stock transfers, imports, and inter-state sales under the new GST framework.
The key proposals in direct taxes include:
1) Increase in the basic tax exemption limit to Rs. 2 lakh and reduction in tax rates for individual taxpayers.
2) Introduction of tax on unexplained share premium to curb generation of black money.
3) Reduction in threshold limit for TDS on property transactions and life insurance premium to widen the tax base.
4) Continuation of tax incentives for investment in infrastructure, scientific research, skill development, and agriculture.
The document provides an overview of the Goods and Services Tax (GST) system being implemented in India. It discusses the existing indirect tax system and its shortcomings, as well as the rationale for introducing GST. Key points include:
1) GST will replace multiple existing indirect taxes and be levied on the supply of goods and services.
2) It aims to create a common national market by removing economic distortions caused by the current tax system.
3) GST will be implemented as a dual model with taxation powers shared between the central and state governments.
Goods and Services Tax (GST) is a value-added tax to be levied on goods and services at each point of sale or provision of service. Registered dealers must charge GST on supplies and deposit this amount with the government. They can claim an input tax credit for GST paid on purchases, which can be set off against output tax. The ultimate burden of the tax falls on the final consumer as they cannot claim any credit. A dual GST with central and state components is proposed in India.
The document summarizes the impact of GST on the textile industry in India. Some key points:
- Under GST, taxes like excise duty, VAT, CST etc. will be subsumed and replaced by CGST, SGST and IGST which will remove cascading of taxes and improve input tax credit flow.
- Overall tax incidence on textiles is expected to increase slightly due to higher GST rates compared to previous taxes. This may impact product mix in the industry.
- Compliance burden is also expected to increase initially due to transition challenges but compliance overall will improve in the long run.
- Inter-state trade barriers will be removed, improving competition and organized
The document discusses key impacts of the Goods and Services Tax (GST) on India's manufacturing sector. It covers changes to input tax credit provisions including a broader scope and availability for capital goods. Reverse charge mechanisms are expanded to apply to purchases from unregistered dealers. Job work provisions have defined timelines for returning inputs and capital goods. Transitional provisions allow carry forward of credits from prior tax regimes and address goods in the supply chain as of July 1, 2017. The implementation of GST has the potential to revive manufacturing in India by simplifying taxes and ensuring seamless credit flow.
Part 9- GST - Areas of Business Impacted (1)Hina juyal
If you have any Query you can contact Us
Mail id:- ca.sanjiv.nanda@gmail.com
Youtube Channel :- https://www.youtube.com/channel/UCmmx2GFXeoF-DNtNjwnpYJA
Website :- http://www.sanjivnanda.com/
Facebook link :- https://www.facebook.com/ca.sanjivnanda919/
Twitter :- https://twitter.com/
This document discusses the implications of implementing the Goods and Services Tax (GST) for businesses in India. It notes that GST will replace existing indirect taxes and is aimed at eliminating tax cascading. However, it also acknowledges challenges in implementing GST given India's federal structure with both central and state governments collecting tax. The document analyzes how GST will impact various industries and business structures through changes to tax rates and credits across supply chains. It also examines issues around stock transfers, imports, and inter-state sales under the new GST framework.
The key proposals in direct taxes include:
1) Increase in the basic tax exemption limit to Rs. 2 lakh and reduction in tax rates for individual taxpayers.
2) Introduction of tax on unexplained share premium to curb generation of black money.
3) Reduction in threshold limit for TDS on property transactions and life insurance premium to widen the tax base.
4) Continuation of tax incentives for investment in infrastructure, scientific research, skill development, and agriculture.
The document provides an overview of the Goods and Services Tax (GST) system being implemented in India. It discusses the existing indirect tax system and its shortcomings, as well as the rationale for introducing GST. Key points include:
1) GST will replace multiple existing indirect taxes and be levied on the supply of goods and services.
2) It aims to create a common national market by removing economic distortions caused by the current tax system.
3) GST will be implemented as a dual model with taxation powers shared between the central and state governments.
Goods and Services Tax (GST) is a value-added tax to be levied on goods and services at each point of sale or provision of service. Registered dealers must charge GST on supplies and deposit this amount with the government. They can claim an input tax credit for GST paid on purchases, which can be set off against output tax. The ultimate burden of the tax falls on the final consumer as they cannot claim any credit. A dual GST with central and state components is proposed in India.
The document summarizes the impact of GST on the textile industry in India. Some key points:
- Under GST, taxes like excise duty, VAT, CST etc. will be subsumed and replaced by CGST, SGST and IGST which will remove cascading of taxes and improve input tax credit flow.
- Overall tax incidence on textiles is expected to increase slightly due to higher GST rates compared to previous taxes. This may impact product mix in the industry.
- Compliance burden is also expected to increase initially due to transition challenges but compliance overall will improve in the long run.
- Inter-state trade barriers will be removed, improving competition and organized
The document discusses key impacts of the Goods and Services Tax (GST) on India's manufacturing sector. It covers changes to input tax credit provisions including a broader scope and availability for capital goods. Reverse charge mechanisms are expanded to apply to purchases from unregistered dealers. Job work provisions have defined timelines for returning inputs and capital goods. Transitional provisions allow carry forward of credits from prior tax regimes and address goods in the supply chain as of July 1, 2017. The implementation of GST has the potential to revive manufacturing in India by simplifying taxes and ensuring seamless credit flow.
Part 9- GST - Areas of Business Impacted (1)Hina juyal
If you have any Query you can contact Us
Mail id:- ca.sanjiv.nanda@gmail.com
Youtube Channel :- https://www.youtube.com/channel/UCmmx2GFXeoF-DNtNjwnpYJA
Website :- http://www.sanjivnanda.com/
Facebook link :- https://www.facebook.com/ca.sanjivnanda919/
Twitter :- https://twitter.com/
This document outlines some of the key impact areas of implementing the Goods and Services Tax (GST) in India. It notes that GST will create a uniform tax rate nationwide and remove exemptions, cascading taxes, and barriers to interstate trade. This is expected to lead to supply chain reengineering, consolidation of warehouses, and flexibility in sourcing. It also may cause some initial inflation and working capital strains. The document provides an example of how prices will be lower after GST compared to the pre-GST tax regime due to full tax credits being available. Finally, it states that GST will significantly impact many business functions and processes across every industry.
Salient Features of GST,
GST Model,
Payment of Tax,
Benefit of GST,
Subsuming of Existing Taxes,
Tax Levy under GST,
Input Tax Credit (ITC),
Payment of Taxes
gst 2017 ppt,
goods and service tax,
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.
The document discusses the proposed introduction of Goods and Services Tax (GST) in India, which would replace multiple indirect taxes with a single, comprehensive tax. Key points:
1. GST is proposed as a single, indirect tax on the supply of goods and services, with taxation levied at the place of consumption. It aims to remove cascading effects of taxes and create a unified national market.
2. GST will have two components - Central GST and State GST. Taxes will be applicable on all transactions of goods and services within a state. Inter-state transactions will be taxed by Integrated GST.
3. GST is expected to simplify and harmonize the
This document provides an overview of the Goods and Services Tax (GST) system that is being implemented in India, including:
- The benefits of GST for trade and consumers through simplification and harmonization of taxes.
- The existing complex indirect tax structure that GST intends to replace.
- The Constitutional amendment that was passed to allow for GST and the powers it assigns.
- The role and decisions of the GST Council in determining features of the law and tax rates.
- The main features of the GST laws, including the four-tier tax rate structure, input tax credit system, and registration requirements.
- The roles of the GST Network and Central
Impact of GST on entertainment industry and media sector Shashwat Tulsian
India's media and entertainment market which is the 5th largest in the world .GST will do more good than harm for the entertainment industry on the whole prots for multiplexes are likely to go up
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.
Oil & gas sector gst impact analysisshwetika12
The document provides an analysis of the impact of GST on India's oil sector. It discusses the current tax structure and rates applied at each stage of the oil value chain from upstream exploration to downstream refining and distribution. Under GST, it is proposed that petroleum products like crude oil, natural gas, gasoline and diesel be initially excluded due to their large tax contribution. This would lead to input tax credit stranding for the oil industry and downstream industries using petroleum products as inputs. The oil industry is requesting alternatives like classifying petroleum outputs as zero-rated or minimum taxation to allow full input credits. The document also analyzes other GST provisions and their potential impacts such as tax treatment of offshore supplies, inter-
GST is a proposed system that will replace existing indirect taxes in India. It will be implemented as both central GST and state GST. Under GST, tax will be charged on value addition at each stage of production and distribution. Input tax credits can be claimed at each stage, eliminating cascading of taxes. For inter-state transactions, an integrated GST will apply. This will simplify and harmonize the indirect tax system in India while reducing costs for businesses through seamless credits.
GST (Goods and Services Tax) is a comprehensive indirect tax that will combine multiple taxes and levies into a single tax to be applied at every stage of supply of goods and services in India. It aims to overcome the cascading effect of taxes and provide seamless tax credits across the entire supply chain. The GST model proposed for India is a dual GST where both the central and state governments will simultaneously levy GST across the country.
The document provides an overview of the key aspects of the Goods and Services Tax (GST) implemented in India including:
1) It describes the features and fundamentals of GST including how it is a dual tax system levied by both central and state governments.
2) It outlines the registration process and requirements to register under GST.
3) It explains the various GST returns required to be filed including monthly, annual, and other periodic returns along with due dates.
4) It provides answers to common questions about GST such as who needs to register, what the tax rates are, and how GST benefits consumers.
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 provides guidance on key actions companies need to take to prepare for GST implementation on July 1st, 2017. It outlines steps to obtain GST registration details from customers and suppliers to ensure seamless input tax credit flow. Companies must circulate product lists with HSN codes to customers and fix their own HSN and SAC codes. They are advised to close June 2017 sales by the 25th and ensure all stock is delivered by the 28th-29th to allow stockists to claim input tax credit. Companies should also reconcile any inventory or purchase mismatches by the 28th.
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 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
GST aims to simplify India's indirect tax system by introducing one indirect tax to replace multiple taxes. It faces challenges in balancing revenue sharing between the central and state governments. The new system introduces IGST to address inter-state transactions. It reduces compliance burdens by providing a single registration and return filing point. However, input tax credit claims are only allowed if matching invoices show the seller paid taxes, which may require contract modifications. Dual empowerment of central and state authorities to audit returns could lead to conflicting assessments.
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
Presentation on Model GST Law by CA. Juhin Ajmera CA Juhin Ajmera
With the ratification of the GST Bill by more than half of the State Legislatures, it is now certain that GST is round the corner with even the Prime Misnister Modi endorsing April 1, 2017 as its go live date. Whether it will go live by then or will need couple of months more is a matter of time and depends on the outcome of the GST council meets. However, it is about time what we start educating ourselves about the Biggest Tax Reform of our times.
In this presentation, I have tried to present the basic idea, framework and advantages of GST regime over the present Indirect Tax Structure.
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) in India. It provides an overview of the current taxation system and its drawbacks. It describes the proposal for GST, which would combine multiple taxes into a single tax applied to goods and services. Key points include a dual GST model at the central and state levels, common tax base and forms, and input tax credits to reduce cascading effects. Concerns from traders are also summarized.
This document outlines some of the key impact areas of implementing the Goods and Services Tax (GST) in India. It notes that GST will create a uniform tax rate nationwide and remove exemptions, cascading taxes, and barriers to interstate trade. This is expected to lead to supply chain reengineering, consolidation of warehouses, and flexibility in sourcing. It also may cause some initial inflation and working capital strains. The document provides an example of how prices will be lower after GST compared to the pre-GST tax regime due to full tax credits being available. Finally, it states that GST will significantly impact many business functions and processes across every industry.
Salient Features of GST,
GST Model,
Payment of Tax,
Benefit of GST,
Subsuming of Existing Taxes,
Tax Levy under GST,
Input Tax Credit (ITC),
Payment of Taxes
gst 2017 ppt,
goods and service tax,
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.
The document discusses the proposed introduction of Goods and Services Tax (GST) in India, which would replace multiple indirect taxes with a single, comprehensive tax. Key points:
1. GST is proposed as a single, indirect tax on the supply of goods and services, with taxation levied at the place of consumption. It aims to remove cascading effects of taxes and create a unified national market.
2. GST will have two components - Central GST and State GST. Taxes will be applicable on all transactions of goods and services within a state. Inter-state transactions will be taxed by Integrated GST.
3. GST is expected to simplify and harmonize the
This document provides an overview of the Goods and Services Tax (GST) system that is being implemented in India, including:
- The benefits of GST for trade and consumers through simplification and harmonization of taxes.
- The existing complex indirect tax structure that GST intends to replace.
- The Constitutional amendment that was passed to allow for GST and the powers it assigns.
- The role and decisions of the GST Council in determining features of the law and tax rates.
- The main features of the GST laws, including the four-tier tax rate structure, input tax credit system, and registration requirements.
- The roles of the GST Network and Central
Impact of GST on entertainment industry and media sector Shashwat Tulsian
India's media and entertainment market which is the 5th largest in the world .GST will do more good than harm for the entertainment industry on the whole prots for multiplexes are likely to go up
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.
Oil & gas sector gst impact analysisshwetika12
The document provides an analysis of the impact of GST on India's oil sector. It discusses the current tax structure and rates applied at each stage of the oil value chain from upstream exploration to downstream refining and distribution. Under GST, it is proposed that petroleum products like crude oil, natural gas, gasoline and diesel be initially excluded due to their large tax contribution. This would lead to input tax credit stranding for the oil industry and downstream industries using petroleum products as inputs. The oil industry is requesting alternatives like classifying petroleum outputs as zero-rated or minimum taxation to allow full input credits. The document also analyzes other GST provisions and their potential impacts such as tax treatment of offshore supplies, inter-
GST is a proposed system that will replace existing indirect taxes in India. It will be implemented as both central GST and state GST. Under GST, tax will be charged on value addition at each stage of production and distribution. Input tax credits can be claimed at each stage, eliminating cascading of taxes. For inter-state transactions, an integrated GST will apply. This will simplify and harmonize the indirect tax system in India while reducing costs for businesses through seamless credits.
GST (Goods and Services Tax) is a comprehensive indirect tax that will combine multiple taxes and levies into a single tax to be applied at every stage of supply of goods and services in India. It aims to overcome the cascading effect of taxes and provide seamless tax credits across the entire supply chain. The GST model proposed for India is a dual GST where both the central and state governments will simultaneously levy GST across the country.
The document provides an overview of the key aspects of the Goods and Services Tax (GST) implemented in India including:
1) It describes the features and fundamentals of GST including how it is a dual tax system levied by both central and state governments.
2) It outlines the registration process and requirements to register under GST.
3) It explains the various GST returns required to be filed including monthly, annual, and other periodic returns along with due dates.
4) It provides answers to common questions about GST such as who needs to register, what the tax rates are, and how GST benefits consumers.
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 provides guidance on key actions companies need to take to prepare for GST implementation on July 1st, 2017. It outlines steps to obtain GST registration details from customers and suppliers to ensure seamless input tax credit flow. Companies must circulate product lists with HSN codes to customers and fix their own HSN and SAC codes. They are advised to close June 2017 sales by the 25th and ensure all stock is delivered by the 28th-29th to allow stockists to claim input tax credit. Companies should also reconcile any inventory or purchase mismatches by the 28th.
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 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
GST aims to simplify India's indirect tax system by introducing one indirect tax to replace multiple taxes. It faces challenges in balancing revenue sharing between the central and state governments. The new system introduces IGST to address inter-state transactions. It reduces compliance burdens by providing a single registration and return filing point. However, input tax credit claims are only allowed if matching invoices show the seller paid taxes, which may require contract modifications. Dual empowerment of central and state authorities to audit returns could lead to conflicting assessments.
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
Presentation on Model GST Law by CA. Juhin Ajmera CA Juhin Ajmera
With the ratification of the GST Bill by more than half of the State Legislatures, it is now certain that GST is round the corner with even the Prime Misnister Modi endorsing April 1, 2017 as its go live date. Whether it will go live by then or will need couple of months more is a matter of time and depends on the outcome of the GST council meets. However, it is about time what we start educating ourselves about the Biggest Tax Reform of our times.
In this presentation, I have tried to present the basic idea, framework and advantages of GST regime over the present Indirect Tax Structure.
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) in India. It provides an overview of the current taxation system and its drawbacks. It describes the proposal for GST, which would combine multiple taxes into a single tax applied to goods and services. Key points include a dual GST model at the central and state levels, common tax base and forms, and input tax credits to reduce cascading effects. Concerns from traders are also summarized.
How will be the impact of GST on manufacturing industry?
“The government also realizes that becoming a manufacturing hub will need several strategic reforms to simplify manufacturing in India. One of the proposed reforms, in line with Make in India, is the implementation of the Goods and Services Tax (GST). “
- Income from other sources is a residual head of income that covers any income that does not fall under the other four heads of income (salary, house property, business/profession, capital gains).
- Some examples included under this head are dividend income, interest income, rental income from machinery/furniture, winnings from lotteries, gifts received without consideration.
- Standard deductions are available for repairs, insurance, depreciation of assets let out on rent. Interest received on securities and specific exempt categories are not taxed under this head.
Central excise duty is payable on goods before they are removed from the place of manufacture based on the assessable value determined by a central excise officer. The central excise act of 1944 and tariff act of 1985 along with rules issued by the central government and its notifications are the sources of central excise law. Goods covered under central excise include alcoholic liquors, opium, narcotic drugs, and other manufactured or produced goods except those exempted. There are two schedules under central excise - Schedule I covers duties determined on an ad valorem basis according to the tariff, while Schedule II covers specific uniform rates of 8% and 16%.
This document discusses various indirect taxes in India including central sales tax, value added tax, central excise duty, and customs duty. It defines key terms related to these taxes such as incidence and impact of direct vs indirect taxes. It also covers the classification of taxes, authorities that levy different taxes, taxable events, and calculation of taxes. The key highlights are that indirect taxes are imposed on goods and services while direct taxes are imposed on individuals, and indirect tax burden can be shifted to consumers.
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.
It is worth mentioning here that the levy of Excise or Service Tax was not dependent on the levy of VAT/CST, as they were governed by different laws.
These are the taxes that shall be levied under the new system of GST. How this shall operate, and how can we have cross utilisation of credits can be seen in this Document.
GST in India - Impact Assessment & ImplementationNimish Goel
GST is proposed to be implemented in India from April 1, 2017 and it is important for companies to get an impact assessment done and understand the implications on their margins, cash flows, business processes and tax obligations. International Business Advisors (www.ibadvisors.co) is working with its clients to help transition to this new legislation.
4 Key impact area on gst implementation synergytas
GST Malaysia is coming for real. With 4 key impact areas on implementation. Join us for the action plan on GST conducted by Dr Choong Kwai Fatt. Visit website www.synegytas.com/gstkls2 for more information.
This document provides an overview of warehousing concepts including:
1) The need for warehouses to balance supply and demand and facilitate distribution.
2) Key considerations for warehouse setup such as site selection, management processes, and typical material flow.
3) The general workflow within warehouses including receipt of goods, putaway, storage, order picking, packing and dispatch.
4) Different types of material flows like "U flow" where receipt and dispatch are located at the same end to optimize dock resources.
The document discusses India's taxation system and the proposed Goods and Services Tax (GST). It describes the key features of direct and indirect taxes such as income tax, sales tax, and VAT. It then explains the proposed GST system, which will combine multiple indirect taxes into a single tax applicable to both goods and services. The GST is proposed as a dual GST with both central and state-level components. The complex structure and need for coordination between levels of government poses administrative challenges but is aimed at improving compliance and growth.
This document provides an overview of taxation in India. It defines taxation and its objectives, such as raising revenue. It describes different types of taxes like direct and indirect taxes. It outlines principles of a good tax system according to Adam Smith's canons of taxation. It also details India's individual income tax rates, exemptions, and deductions from taxable income. The document concludes that taxation helps increase economic activity and promote growth through mobilizing funds.
The document appears to contain information about various Indian taxes including income tax, sales tax, wealth tax, and service tax. It provides definitions and key details about the different types of taxes such as the tax rates, applicable entities, exemptions, and controversies in certain areas. It also summarizes the objectives and issues with some of these taxes in India.
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.
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.
GST (Goods and Services Tax) is proposed as India's biggest tax reform. It will replace existing indirect taxes and provide a comprehensive indirect tax levy. GST is proposed as a dual GST with the center and states concurrently levying it. There are many advantages like removing cascading of taxes and creating a unified market. However, its complex design involving both center and states coordinating poses administrative challenges. Overall, GST has the potential to simplify taxation and boost growth if its implementation addresses all stakeholders' concerns.
Logistic route rationalization and optimizationPuneet Mishra
Logistic Route Rationalization and Optimization discusses rationalizing logistic routes through:
1) Surveying existing routes to collect distance, road, and timing data.
2) Scheduling routes based on average speed limits, branch times, and rest periods for drivers.
3) Planning routing between hubs while considering transshipment possibilities.
4) Determining vehicle needs based on loading patterns along routes.
It also introduces a visual decision support system to analyze and optimize 3PL operations through trade lane analysis, load consolidation, route optimization, and exception handling.
A supply chain is the network of organizations involved in producing and delivering a product, from raw materials to the end customer. It includes upstream suppliers, internal production and packaging, and downstream distribution centers and retailers. Effective supply chain management coordinates activities across this network to optimize material, information and financial flows. Key goals are reducing costs and uncertainties while improving customer service. Modern supply chains leverage information technology to facilitate coordination and information sharing among partners.
The discussion paper outlines India's proposed Goods and Services Tax (GST) framework with a dual GST structure comprising of Central GST and State GST. It proposes subsuming various central and state levies within GST and a threshold for basic exemption. Inter-state supplies will be taxed under Integrated GST while ensuring seamless input tax credit across states. Compliance procedures around registrations, returns and refunds are also covered along with special provisions for imports, exports and inter-state movement of goods. Key aspects like tax rates and transitional mechanisms require further clarity.
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.
This document provides an overview of India's legal requirements for localization, including excise (CENVAT), VAT/LST/CST, service tax, and CENVAT credit. It discusses key aspects of each tax type such as applicable rates, payment due dates, eligibility criteria, and credit mechanisms. The document also compares CENVAT and VAT systems and outlines considerations for various tax compliance areas like duty calculation, export/import of services, and CENVAT credit on input services.
The document discusses Goods and Services Tax (GST) in India. It provides details about the current indirect tax structure and lists the taxes to be subsumed under GST. A dual GST model is proposed where both central and state governments will simultaneously levy GST across the country. This will help integrate taxes, remove cascading effect of taxes, and create a common national market. However, there are still challenges around revenue loss for some states, designing an optimal tax rate, and ensuring a conducive business environment under GST.
GST has been heralded as the next generation of reforms in the area of Indian Indirect taxes. The government intends to implement the new regime by April 1st, 2011. The attached PPT have tried to bring together some building blocks (whether it is the discussion paper, objective which the new framework intends to achieve, issues, concerns or challenges), which the stakeholders would find useful.
The document provides an overview of the Goods and Services Tax (GST) system that is being implemented in India. It discusses the existing tax system with separate taxes for central and state governments, and describes GST as a comprehensive indirect tax on the supply of goods and services that will replace many existing taxes. GST will be levied concurrently by the central and state governments and will help create a common national market.
Gst and its implications on supply chainVishal Gupta
GST unified India's indirect tax system and improved supply chain efficiencies by eliminating cascading taxes and inter-state tax barriers. It allowed companies to consolidate warehouses, rationalize transportation networks, and optimize inventory management. By introducing input tax credits and removing tax incentives for maintaining multiple depots, GST facilitated more efficient supply chain planning based on demand rather than tax considerations.
This document discusses India's indirect tax system pre-GST. It notes that previously, the central government levied excise duties on manufacturing while states levied VAT on sales. Taxation of inter-state sales was complex. There were multiple taxes like excise duty, VAT, CST, octroi, with different taxable events and authorities. This led to challenges like tax cascading, complex compliance, lack of transparency, and litigation around classifications and exemptions. The goal of GST was to integrate India's indirect tax system and address these pre-existing challenges.
This presentation is made to give a brief of changes that are likely to happen in GST and impact of such changes on some of the sectors. It contains a compairison of present and proposed structure of taxation. We have aslo added place of supply rules, treatment of composite supplies, transitional issues and global experience for GST.
GST Simplified Series#1: Concept, Scope, Levy & ApplicabilityCA Nikhil M Jhanwar
We are pleased to share that we have launched Series ‘GST Simplified’ wherein we would attempt to explain nitty-gritty of GST in most lucid manner through write-ups, presentations and videos.
Series#1 explains ‘Concept, levy, scope & applicability of GST.
This document provides an overview of indirect taxes in India. It discusses key concepts like VAT and GST. Some main points:
1. It defines indirect taxes like excise duty, customs duty, sales tax, and service tax. It also explains the difference between direct and indirect taxes.
2. VAT is described as a multi-point tax system with tax credits that prevents cascading. GST is proposed to integrate more indirect taxes at central and state levels.
3. The document outlines the proposed GST model with CGST, SGST and IGST components and discusses features like dual administration and restricted cross-utilization of tax credits.
4. Key central and state taxes proposed to be
The document provides an overview of the Goods and Services Tax (GST) implemented in India. It discusses that GST integrates multiple indirect taxes into a single tax applied to the manufacture, sale, and use of goods and services. GST is levied on value addition at each transaction stage. The document outlines the issues with the previous indirect tax system, benefits of GST, taxes subsumed under GST, GST rates, and key aspects of GST implementation including the GST Council, GST Network, and e-way bill system.
GST implementation will be challenging but can be turned into an opportunity with proper preparation. It will consolidate indirect taxes, simplify compliance, and eliminate tax cascading. Businesses need to assess how GST may impact their costs, cash flow, margins, and compliance processes and make necessary changes to contracts and IT systems. Proper planning is required to take advantage of GST.
The document discusses the proposed Goods and Services Tax (GST) model for India. It provides context on the current indirect tax system and its challenges. A dual GST model is proposed where tax would be levied concurrently by the central and state governments. The central GST and state GST would replace existing taxes levied on goods and services. An integrated GST would apply to inter-state transactions and is expected to be an aggregate of the central and state portions. The model aims to simplify taxation and reduce compliance costs through a unified system.
1. The document provides an overview of key aspects of the Goods and Services Tax (GST) regime in India such as the basic GST model, taxes subsumed under GST, timelines for implementation, meaning of supply, time and place of supply, valuation of supply, and impact on key areas like imports, job works, stock transfers etc. compared to the current indirect tax regime.
2. It outlines the proposed dual GST structure of Central GST and State GST, applicable rates, and input tax credit mechanics. Transition roadmap, registration requirements, return filing, and refund process under GST are also summarized.
3. Key scenarios involving local and inter-state supplies to related
This document discusses India's transition to a Goods and Services Tax (GST) system. It provides an overview of India's existing tax system and its issues, including cascading taxes and lack of cross-state credits. The document then outlines key aspects of the proposed GST system, including a dual GST structure with Central and State taxes, integrated GST for inter-state transactions, and thresholds and exemptions. Constitutional amendments would be required to implement GST. The summary highlights that GST is intended to replace existing taxes, address issues like cascading taxes, and provide a unified market across India.
Power point presentation on gst[goods and service tax ]vishalgoyal1234
The document provides an overview of the Goods and Services Tax (GST) that is proposed to be implemented in India. It discusses that GST will replace existing indirect taxes and be levied as a single tax on the supply of goods and services. GST is expected to simplify and harmonize the indirect tax regime in India and reduce the cascading burden of taxes. The document also outlines some of the challenges around the implementation of GST in India, such as the complex federal structure requiring coordination between the central and state governments.
The pharmaceutical supply chain involves both primary and secondary manufacturing processes. Primary manufacturing produces semi-finished goods based on forecasts, while secondary manufacturing produces finished goods based on customer orders. Production scheduling is complex due to the large product mix and batch processes. Implementing an integrated production planning and scheduling solution can increase throughput, lower costs, and improve transparency and tracking across the supply chain.
This document discusses cargo load planning and freight optimization. It notes the need to determine optimal product mixes and dispatch priorities to maximize utilization of containers and vehicles. The solution framework involves inputs like available SKUs and vehicles, constraints around dispatching, stuffing and logistics, and outputs like packing arrangements and weight load profiles. Tangible benefits include cost savings and improved turnaround times.
Shipping industry planning, optimization & schedulingPuneet Mishra
The document discusses shipping industry operations and challenges. It provides an overview of bulk and liner shipping sectors. It then outlines key challenges, including fluctuating freight rates, demand forecasting, repositioning empty containers, vessel capacity scheduling and routing, load imbalance, and hub location selection. Finally, it presents a framework for liner planning, optimization, and scheduling that involves data input, decision variables, and optimization under operational constraints.
The document discusses railroad planning and optimization for freight operations in India. It notes the large scale of freight transportation by rail and the need to maximize efficiency given high capital costs. The solution framework involves collecting static and dynamic data on nodes, routes, rakes, and containers then using an optimization engine to allocate routes, rakes, and volumes monthly to maximize capacity utilization and minimize empty runs while meeting business rules. It provides an example network flow illustration to explain modeling transportation flows between nodes.
This document describes challenges with cable packaging and proposes a solution called the Cable Packaging Optimizer. It notes that cable drums come in many variations due to different cable types and specifications. This leads to higher costs, inefficient procurement, and lower drum utilization. The optimizer is a web-based application that selects optimal drum dimensions and allocation to match customer demand while reducing costs up to 15% and logistics costs up to 10%. It provides metrics to analyze packaging requirements and utilization and recommends standardized drum sizes.
The document discusses inventory management and outlines several key points. It describes the need for inventory to address supply chain uncertainties and ensure customer demand is met. It also discusses underlying principles of inventory management, current philosophies like multi-echelon systems, and pros and cons of different approaches. The document then covers theories like Theory of Constraints and metrics like inventory turnover. It emphasizes the need for effective inventory management systems to integrate planning factors and provide real-time visibility.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
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Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
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Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
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IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
2. Overview
• Taxation Authority in India
• A Typical Tax Case in Manufacturing Scenario
• Taxes on Goods - Summary
• Tax Impact on SCM and Strategic Trade-off
• Case Study – Tax Planning
• GST
– Introduction
– GST Implication for Supply Chain
– GST – Proposed Tax Model
– Price Impact of GST
– Present Tax vs. GST
• Appendix
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3. Taxation Authority in India
Taxes in India are administered and imposed at three level
1 Union Government – CENVAT, CVD, SAD, Service Tax
2 State Government – VAT (Sales Tax), CST, Entertainment Tax, Works
Contract Tax
3 Local Administration – Octroi, Entry Tax
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4. A Typical Tax Scenario in Manufacturing Sector
• A manufacturing company sources raw material from intra-state, inter-state and
overseas suppliers
• While manufacturing the company takes professional services in the technical,
maintenance, consulting, etc. domain
• This company sells products directly (through it warehouse) as well as through its
distributors, located both within and outside state
Let’s take a look at the type of taxes applicable at each transaction point of supply
chain
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6. Major Taxes on Goods – Summary
CENVAT CST VAT
Erstwhile name Central Value Added Tax, Commonly
Definition Excise Duty, MODVAT Central Sales Tax known as Sales Tax
Imposed by Central Government, Central Government State Government
Collected by Central Government, Origin State Government State Government
At every Production/ Value
Tax event Factory Dispatch Cross State Sales addition stage
Refer to relevant central excise Refer to relevant state VAT Act
Rate tariff Act ( Range 0- 10 % ) 2% ( Range 0- 20 % )
Paid By Manufacturer Manufacturer/Goods Owner Seller
Filing up Time-Line With in 15-days, for SMEs 30 Before Crossing State Border Post Sales
days post dispatch
Yes, for Intra state sale & inter
Offset Yes, Against Input tax paid No state stock transfer against
Input tax paid
Exemption Agriculture products, Exports
Lot of goods, details refer to
products, Advolrem basis for
few manufactured goods
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7. Tax Impact on Supply Chain
• Presently Companies handling manufacturing and distribution, design their supply
chain to take benefit/reduce operational cost, based on the prevailing tax
structure. In fact the cost and time matrix optimization is also from the perspective
of reducing the tax liability, as one important parameter
• Area based tax incentive (SEZ), non-refundable input taxes, are huge roadblocks to
reach optimum operational efficiency
• Slew of taxes add to the burden of book keeping leading to high overhead costs
• Check-Naka at state/city border considerably increases truck transit time leading
to low Truck Turnaround Time and high transit inventories
• Service tax payable to Goods and Transporter Agency (GTA) on outbound
distribution cannot be adjusted against output service tax liability. This has
prevented companies from realizing the complete benefits of 3PL outsourcing
Some of the Strategic trade offs companies consider while designing their supply
chain network are detailed in the following section
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8. Strategic Trade-offs
SCM Strategy Cost Service Benefit
Save on CST
1. Open warehouses in every
Agility
state
Warehousing &
Handling Cost
2. Factories in Excise Free Save CENVAT
Agility
Zones (SEZ)
Distribution Cost
Input VAT Credit
3. Suppliers within state
Agility
More no of
Suppliers
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9. Strategic Trade-offs
• Companies open warehouses in every state and do stock transfers to avoid paying
CST. This adds to the burden of creating extra handling needs and reduces the
advantage of “economies of scale” in warehousing operations. Though this
strategy helps in making companies more agile due to wider inventory foot print,
across the country, yet the inventory carrying costs go up
• Companies set up factories in excise free zones to avoid paying CENVAT. At times
this strategy increase the transportation cost of goods. Increased transportation
and hence the lead time of delivery, negatively affects the agility of the supply
chain
• Since input VAT paid in one state cannot be recovered in another state,
companies are better off in choosing their suppliers within state, at times
overlooking quality of delivery. Vicinity of suppliers might increase the agility of
supply chain
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10. Input Credit – Applicability and Example
As per VAT/CENVAT rules related to Input Tax Credit ( ITC) full credit is available if
following conditions are fulfilled:
1. TAX INVOICE is printed on purchase invoice
2. VAT amount is shown separately
3. VAT TIN of supplier is mentioned
It needs to be verified that the purchase transaction is not covered in the negative list &
there is no provision related to reduction of VAT credit
Supplier Manufacturer Distributor Retailer Customer
• Price = 100 • Price = 200 • Price = 300 • Price = 400 • Final price to
• VAT paid = 4 • Gross VAT = 8 • Gross VAT = 12 • ITC = 12 customer is =
• ITC = 4 • ITC = 8 • Net VAT paid = 400 + 16 (@ 4%
• Net VAT paid = • Net VAT paid = (12 - (16-12) = 4 VAT in chain)
(8-4) = 4 8) = 4
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11. Tax Planning: Cases Study -1
Consider a Company A having two identical assembly lines in Gujarat and Maharashtra
where a sub-assembly is sourced from a Vendor B in Maharashtra. Vendor is supplying
the sub-assemblies to both lines at same ex-works price. Company A can affect its tax
liability for Gujarat line by following either of the mentioned provisions:
a) Simplest way to show this transaction is to show it as inter-state purchase from
Vendor B. In this case Company will be charged a 2 % CST on inter-state sale but
company A can not avail the Input Tax Credit on this purchase
b) Second way of doing the operation is for the Gujarat Plant to develop a local
vendor C, at Gujarat. This ensures that:
a) The 2% CST is not applicable any more to Gujarat Plant and
b) It can avail of Input Tax Credit (ITC) on VAT
c) The only study that needs to be done is to check that the cost of development of the
new Vendor is less than the 2% VAT that the company is paying and ITC it will be able to
avails of. If it is not, then it is better to carry on the operations the way it is being done
and paying 2% Tax
c) Third way of carrying out this transaction is to show it as a purchase for
Maharashtra assembly line and then do a stock transfer order to Gujarat. In this
case company can avoid CST and also avail input VAT credit paid in Maharashtra
state
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12. Tax Planning: Cases Study -1
Supplier Ex-works price (Including CENVAT Credit) = 2000 Rs
Supplier Input VAT credit= 20 Rs
Supplier Output Tax liability = 30 Rs
• Option 1:
Effective price to company A = Ex-work price + CST@2%= 2000 + 2000*.02 = 2040
• Option 3:
Effective price to company A = Ex-work Price + VAT Paid to supplier – Input VAT
credit for output liability = 2000 + 30 - 30 = 2000
In the option-2 buyers net effective price is less provided he is making VAT able goods
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13. GST
• GST – Goods and Services Tax aim is to reduce the overall tax burden and
associated administrative complexity. Industry is expecting that roll-out of GST will
make Supply Chain decisions tax neutral
• Under the proposed GST regime, all taxes will be bundled under two heads Central
GST (CGST) and State GST (SGST)
• CGST will subsume all taxes imposed by Central Government and SGST will
subsume all taxes imposed by State Government
• In proposed GST model State Government will also be able to impose tax on
services
• In the proposed framework CSGT will be covering entire value chain up to retail
level. This will help in widening the Tax Net
• In the GST model for interstate sales Integrated-GST (IGST) has been proposed
which can be offset against the output liability. This will effectively reduce the CST
rate to zero.
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14. GST Implication for Supply chain
Abolition of CST will eliminate tax barrier between States. Companies can consolidate their
warehouses to reduce overheads and improve operational efficiency
A: Existing Tax Scenario B: Abolition of CST
Handling Charges = 1
Handling Charges = 1 Tax = 0
Freight = 8
Tax = 0
Freight = 8
VAT= 6
CST = 12 CST = 0 VAT= 6
Freight = 2
Freight = 6 Freight = 6 Freight = 2
Gujarat Gujarat
MP MP
Cost on stock transfer = 17 Cost on stock transfer = 17
Cost on direct dispatch = 18 Cost on direct dispatch = 6
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16. Integrated GST (IGST) Working Mechanism
Take a case where seller in State A is making a sale to a buyer in State B
• IGST = CGST + SGST
• Seller in State A will have to pay IGST to Center Government after adjusting ITC
• State government of A will have to compensate center the amount of SGST offset
claimed by supplier as ITC
• Center Government has to compensate the State B the amount of SGST charged
on goods
• Buyer in State B can offset IGST while discharging his output tax liability
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17. Price Impact of GST
Explanation Cost Head Present GST
A Material Consumed 80000 80000
B Manufacture profit 20000 20000
C CENVAT@ 14 % 14000 Nil
D VAT@ 12.5% 14250 Nil
E CGST @ 12 % Nil 12000
F SGST @ 8 % Nil 8000
Price for Distributor ex refundable tax G Sum ( A+B+C+E+F) 114000 100000
Price for Distributor Including all tax Sum( A+ B + C + D + E + F) 128250 12000
Tax paid : Producer to government 1 Sum( C+D+ E+F) 28250 20000
H Distributor margin@5 % on G 5700 5000
I VAT@ 12.5% 712 Nil
J CGST @ 12 % Nil 600
K SGST @ 8 % Nil 400
Price for retailer ex refundable tax L Sum ( G + H ) 119700 115000
Price for retailer including all tax M Sum ( D + G + H + I + J + K ) 134662 126000
Tax paid: Distributor to government 2 Sum(I + J +K ) 712 1000
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18. Present Tax vs. GST
Explanation Cost Head Present GST
N Retailer Margin @ 10 % on L 11970 11500
O VAT@ 12.5% 1645 Nil
P CGST @ 12 % Nil 1380
Q SGST @ 8 % Nil 920
Total Price to end consumer Sum ( M+N+O+P + Q) 148277 139800
Tax Paid: Retailer to government 3 Sum(O+P+Q) 1645 2300
Total Tax on end consumer Sum ( 1+2 +3 ) 30607 23300
From the above calculation it is evident that proposed GST regime might bring down the tax
burden on end consumer to a significant level (under the assumption that all players in the
chain don’t change their margin)
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20. VAT
• VAT – Value added tax is imposed and administered by State government . It is
commonly referred as sales tax
• VAT
– Tax event – Inter state sale of goods
– Tax rate – Refer to relevant state VAT act i.e VAT on Packaged tea is 4 % in Maharashtra , and
likewise for other products
– Tax payee – Seller of goods
• VAT is applicable across the value chain till retail distribution
• VAT scope is still limited to few goods and few states
• Incase of intra state sales VAT paid on inputs can be offset against the output VAT
liability
• Incase of inter state stock transfer seller can avail VAT tax credit on his inputs
• In case of inter state purchase buyer of goods will not be eligible to offset his input tax
against his output tax liability
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21. CENVAT
• Central Excise duty, MODVAT are the erstwhile names for CENVAT. Some people still
use older names
• CENVAT is impose and administered of union government
• CENVAT –
– Tax event – Production of goods ( Except agricultural products and goods meant for
exports)
– Tax rate – Refer to relevant excise tariff act
– Tax payee – Producer/Manufacture, based on self assessment, paid at least once is 15
days , for SME this limit is one month
• CENVAT uses the framework of VAT where tax credit can be taken for the input
CENVAT paid to offset output CENVAT liability
• One to One relationship is not required to offset liability rather a pool of CENVAT
can used
• Input CENVAT tax credit cannot be passed over to next financial year
• CENVAT rules are same across the India except J&K and some UT
• Since distribution is not considered as production so no CENVAT is charged below
the stages of production
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22. Service Tax, Export Duty, and CST
• Service Tax is imposed and administered by Union Government
• Service Tax
– Tax event - Delivery of service
– Tax rate
• Service Tax - 10 % on Gross Value
• Education cess - 2% on Service Tax Value
• Higher Education Cess – 1% on Service Tax Value
– Tax Payee – Person/Company delivering services
• Tax paid on input services can be offset against the output services tax
• Export duty is imposed and administered by union government
• Under the export promotion policy of government process goods are tax is very low in
comparison to raw material like ore and agricultural products
• CST – Central sales tax is administered by union government but the amount collected goes
into the kitty of state government.
• CST
– Tax event – Inter-state sale of goods
– Tax rate – 2%
– Tax payee – Manufacture
• CST is applicable only in case of cross border sales and the amount goes to the kitty of state
from where goods originate
• CST cannot be offset against output tax liability
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23. Countervailing Duty (CVD)
• CVD – Countervailing duty is charged by Union government on specified imports.
Also known as Customs Duty
• CVD-
– Tax event – Import of goods
– Tax rate – 10 %
– Tax payee – Importer of goods
• Apart from CVD in some Special Custom duty is raised which is equivalent to
CENVAT
• Special customs duty can be offset against the out CENVAT liability
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