ppt

1. GST
(Goods and Services Tax)
Biggest Tax Reform Since Independence…..

2. ‘G’ – Goods ‘S’ –
Services ‘T’ – Tax
 Goods and Service Tax (GST) is a comprehensive tax
levy on manufacture, sale and consumption of goods
and service at a national level.
 GST is a tax on goods and services with value addition
at each stage.
 GST will include many state and central level indirect
taxes
 It overcomes drawback previous tax system

3. Tax Structure in India
 Direct Tax :
Incident and Impact at same point
e.g.: Income Tax, Corporate Tax,
Wealth Tax
 Indirect Tax :
Incident Impact are at different point.
e.g.: Excise duty, custom duty, Service Tax,
Octrai Tax, VAT, CENVAT.

4. Method Of Taxation
 Progressive Tax :
Increasing rate of tax for Increasing Value or
Volume.
 Regressive Tax :
Decreasing rate tax for Increasing Value or
Volume
 Proportional Tax :
Fixed rate of tax for every level of income or
production

5. Short comings in Previous
Tax System
 Tax Cascading (Tax on Tax)
 Complexity
 Taxation at Manufacturing Level
 Exclusion of Services
 Tax Evasion
 Corruption

6. Cascading Effect

7. Reform In Tax System

8. What is GST ?
 GST is a comprehensive value added tax on goods and
services
 It is collected on value added at each stage of sale or
purchase in the supply chain
 No differentiation between Goods and Services as GST is
levied at each stage in the supply chain
 At all stages of production and distribution, taxes are a
pass through and tax is borne by the final consumer
 All sectors are taxed with very few exceptions /
exemptions

9. History
 Feb, 2006 : First time introduced concept of GST and
announced the date of its implementation in 2010
 Jan. 2007: First GST study by ASSOCHAM released
by Dr. Shome
 Feb.2007: F.M.Announced introduction
of GST from 1 April 2010 in Budget
 The Government came out with a First Discussion
Paper on GST in November, 2009
 Introduced the 115th Constitution
Amendment (GST) Bill in the year 2011.

10. The Journey to GST
Announcement of GST for the first
time was made by the then Union
Finance Minister, during budget of
2006-07 that it would introduced from
1 April 2010
2006
First Discussion
Paper was released
by the Empowered
Committee
2009
Constitution (115th Amendment)
Bill introduced and
subsequentlylapsed
2011
The Constitution
(122nd
Amendment) Bill was introduced
in the Lok Sabha
2014
Aug
2016
March
2017
GST Council
Recommends the
CGST, SGST, IGST,
UTGST and
Compensation Cess
Act
April
2017
CGST, IGST, UTGST
and
Compensation Cess
Acts passed
All
except
passed
States
J&K
their
SGST ACT
May
2017
GST
Launched
1st July
2017
1st GST
Council
Meeting
Sep
2016
30th June
2017
GSTCouncil
recommends
all the rules
SGST Act passed by J&K; C
GST and IGS
T
Ordinancespromulgated to extend GSTtoJ&K
8th July
2017
TrueEconomicIntegration of India
Journey
Continues…
• Notifying and amending
rules
• Dealing with IT related
issues
• Revision of Rates
• Clarification and
communication with
taxpayers
The constitution (one
hundred and first
Amendment )Act
was enacted

11. Model Of GST
GST Structure
CGST
by the
Centre
SGST
GST to be levied
GST to be levied
by the
State
IGST
GST to be levied by the Centre and the
States concurrently

12. Illustration Of GST
Product A VAT System GST System
Base Price 100 100
+ 12% Excise duty 12 NA
+12.5% VAT 14 NA
State GST NA 8
centre GST NA 12
Total Tax Burden 26 20
Value Of Product to Consumer 126 120

13. Benefits of GST
 Transparent Tax System
 Uniform Tax system Across India
 Reduce Tax Evasion
 Export will more competitive

14. Hurdles in Implementation
 Dispute between centre and Tax over Tax
Sharing
 Highly sophisticated IT infrastructure required .
 Issue of taxing financial services and e-
commerce is to be appropriately addressed
and integrated.
 Political Imbalance

15. To be Contd....