Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.

1. Overview on
GST Act

2. TAX
A tax is a mandatory fee or financial charge
levied by any government on an individual or an
organization to collect revenue for public works
providing the best facilities and infrastructure.

3. TYPE OF TAXATION
DIRECT TAX INDIRECT TAX
Burden of Tax
borne by person
himself
Burden of Tax
shifted to another
person

4. What is GST ?
Definition
“GST is a comprehensive,
multi stage, destination based
tax that will be levied on every
value addition”.
▪ Goods and Services Tax (GST) is an Indirect
Tax levied in India on the supply of goods and
services
▪ GST replaced many Indirect Tax law that
previously existed in India
▪ GST is one Indirect Tax for the entire country

5. France was the first
country to implement
the GST in 1954
since then, an estimated
160 countries have
adopted this tax system
in some form or another.

6. Journey of
GST in India
2000
PM Shri Atal Bihari Vajpayee set up a committee to
draft GST model for the country.
2004
The Kelkar task force concludes GST must be
implemented to improve current tax structure.
2006
Announcement by Union Finance Minister Shri
P. Chidambaran during budget of 2006-2007 that GST
would introduced from 1 April 2010
2014
Constitution (122nd Amendment) Bill was introduced in
Lok Sabha (It Passed)
2015
GST Bill was passed in Lok Sabha but not passed in
Rajya Sabha

7. Journey of
GST in India
2016
August 2016
The Amendment Bill was passed in Rajya Sabha.
The Constitution (101st Amendment) Act was
enacted.
September 2016
I st GST Council Meeting.
2017
March 2017
GST council recommends CGST, SGST, IGST,
UTGST, and Compensation Bill, and above 4.
Central GST legislature were passed in Lok Sabha.
April 2017
The above 4 Central GST legislature received
assent of President and Bill turned into Act
July 2017
Finally on 1st July 2017, GST came into effect

8. What are the Indirect Taxes that GST has replaced ?
Tax levied and collected by Central
• Service Tax
• Central Excise Duty
• Additional Duties of Customs
• Special Additional Duty of Customs
Tax levied and collected by State
• State VAT
• Central Sales Tax
• Entertainment and Amusement Tax
• Taxes on lotteries, betting and gambling

9. Components of GST
There are 3 Taxes applicable under
this system
IGST SGST/UTGST
CGST
INTEGRATED GOODS AND
SERVICES TAX
CENTRAL GOODS AND
SERVICES TAX
STATE GOODS AND SERVICES TAX /
UNION TERRITORY GOODS AND
SERVICES TAX
Collected by the Central
Government for inter state
Collected by the Central
Government on an intra
state sales
Collected by the State
Government/ Union Territory on
an intra state sales

10. What are the framework that
the GST follows?
• India practices dual GST framework
• CGST (Central Goods & Services Tax) &
SGST (State Goods & Services Tax) would
be levied at intra-state level transactions
• Only IGST (Integrated Goods & Services
Tax) would be levied inter-state level
transactions
• Exports & SEZ supplies would be zero-rated
• Imports would be processed as inter-state
supply

11. What are
the
advantages
of GST ?
• Eliminates multiple
layers of taxation
• Removes cascading
effects
• Higher threshold for
registration
• Ease of doing business
• Regulates unorganized
sector under GST
• Tackles corruption and
tax leakages

12. Who are the Taxable persons
under GST ?
A ‘taxable person’ under GST, is a person who carries on any business
at any place in India and who is registered or required to be registered
under the GST Act. Any person who engages in economic activity
including trade and commerce is treated as a taxable person.
The term “person” has been defined in Section 2(73) of the GST Act as
follows:
• An Individual
• A Hindu Undivided Family
• A Company
• A Partnership Firm
• A Limited Liability Partnership
• An Association of Persons or a Body of Individuals, whether incorporated or not, in India or
outside India
• Any Corporation Established by or under any Central, State or Provincial Act, or a Government
Company
• Any body corporate incorporated by or under the laws of a country outside India
• A co-operative society registered under any law relating to cooperative societies
• A local authority
• Government
• Society as defined under the Societies Act, 1860
• Trusts Artificial judicial person, not falling within any of the above categories

13. GST Slabs
• Goods and Services are divided
into five tax slabs for collection of
tax – 0%, 5%, 12%,18% and 28%.
• The GST council has fitted over
1300 goods and 500 services
under four tax slab of 5%, 12%,
18% and 28% under GST

14. GST : A Multi-
Tired System
50% of the consumer price basket,
including
food grains
Mass Consumption Items like
spices and mustard oil
Processed foods
Luxury Cars, pan
masala, tobacco,
aerated drinks
Soap, oil, toothpaste,
refrigerator, smartphones
White goods , car
0%
5%
12%
18%
28%
28%
Plus cess

15. What is
GSTIN ?
GSTIN, short for Goods and Services Tax
Identification Number is a unique 15 digit identification
number assigned to every taxpayer ( primarily dealer
or supplier or any business entity) registered under
the GST regime.
Structure of GSTIN
Here is the breakdown of the GSTIN format:
• The first 2 digits of the 15 digit GSTIN represents the state code.
• The next 10 digits are the PAN Number of the person or the
business entity.
• The thirteenth digit is based on the number of registrations done
by the firm within a state under the same PAN.
• The fourteenth digit will be the alphabet “Z” by default
• The last digit is called the check code to detect errors and can be
denoted by either a number of an alphabet

16. Challenges In the
Current GST
Structure
▪ Numerous offences and
penalties under GST
▪ Reconciliation in GST
▪ Refunds are time taking in
GST regime
▪ Lack of an efficient Helpline
▪ Accounting Software
▪ Government Role

17. Conclusion
GST is a positive step towards shifting Indian
economy from the informal to formal economy. It
is important to utilize experiences from global
economies that have implemented GST before
us, to overcome the impending challenges.

18. Thank You