SlideShare a Scribd company logo
A Presentation on
Goods &
Services Tax
Presented By:-
Sachin Chauhan
Contents
 What is Tax?
History of Taxation in India
Current Tax System
Goods And Service Tax
Comparison between CST and GST
Pros and Cons of GST
Conclusion
What is Tax?
A fee charged by the
government on a product,
income, or activity.
Goods and Services Tax(GST) vs Simple Tax System
History Of Taxation
"It was only for the good of his
subjects that he collected taxes
from them, just as the Sun
draws moisture from the Earth
to give it back a thousand fold”
-Kalidas
The detailed analysis given by Manu Smriti and
Arthashastra on the subject clearly shows the existence of a
well-planned taxation system, even in ancient times.
Establishment of Taxation in
Modern India
The history of Income-Tax in modern India dates back to 1860 when the first
Income Tax Act was introduced by James Wilson who became (British) India’s
first finance member.
Goods and Services Tax(GST) vs Simple Tax System
After Independence
Central Board of Revenue was replaced with two
different Boards viz. Central Board of Direct Taxes
(CBDT) and Central Board of Excise and Customs
(CBEC) for administering direct and indirect
taxes respectively
The Permanent Account Number (PAN), a 10 digit
alphanumeric number was launched in 1994. It acts as a
unique identifier and enables the Department to link all
transactions like tax payment, Income Tax Returns,
High Value Transactions etc. to individual taxpayers.
Current Tax
System
Two Major Types of Taxes
Direct Tax Indirect Tax
Goods and Services Tax(GST) vs Simple Tax System
Direct Taxes
• Levied on income and
wealth and is paid
directly to the
government.
• Helps in reducing
inflation
Income Tax
Wealth Tax
This is in addition to the income tax and is levied if your net wealth exceeds
Rs 30 Lakh at the rate of 1% on the amount exceeding Rs 30 Lakh.
Capital Gain Tax
This is levied on the capital gains arrived by selling property and stocks.
Tax rates are different for long term and short term capital gains.
Gift Tax
The gift tax is a tax on the transfer of property by one individual to another
while receiving nothing, or less than full value, in return. The tax applies
whether the donor intends the transfer to be a gift or not. The gift
tax applies to the transfer by gift of any property.
Corporate Tax
Companies operating in India are taxed as per the corporate tax rate on
their income. This tax is one of the major sources of revenue for
government
Indirect Taxes
• Levied on a person who
consumes the goods
and services and is paid
indirectly to the
government.
• It promotes inflation
• Service providers in India are subject
to service tax, which is charged on
the aggregate amount received by
the service provider. Services like
leasing, internet/voice, transport,
etc. are subject to service tax.
• The effective service tax rate at
present is 15%
Goods and Services Tax(GST) vs Simple Tax System
Custom Duty
Excise Duty
Custom duties are indirect taxes which are levied on goods imported
to/exported from India
Excise duties are indirect taxes which are levied on goods manufactured
in India for domestic consumption
Value Added Tax
A value-added tax (VAT) is a consumption tax levied
on products at every point of sale where value has
been added, starting from raw materials and going
all the way to final retail purchase by a consumer.
VAT is not the same as Sales Tax
VAT is levied from both producers of goods and
services as well as consumers while sales tax is
entirely levied from customers
Goods and Services Tax(GST) vs Simple Tax System
Goods and Services Tax(GST) vs Simple Tax System
GST is being glorified as a system of
taxation by which economy will take an
upward swing.
‘Only one’ indirect tax has to be paid by
the trade and industry. Rest all indirect
taxes will be subsumed in GST.
GST Around The World
France was the first country to introduce GST in 1954. Most of
the countries have a unified GST. Brazil and Canada follow a dual
GST.
The Goods and Services Tax Bill or GST
Bill, officially known as The Constitution
(One Hundred and Twenty-Second
Amendment) Bill, 2014, proposes a
national Value added Tax to be implemented
in India from 1 April 2017.
 An empowered committee was set up by the Atal Bihari Vajpayee government in
2000 to streamline The GST model to be adopted.
 In his budget speech on 28 February 2006, P. Chidambaram, announced the target
date for implementation of GST to be 1 April 2010 and formed another empowered
committee of State Finance Ministers to design the roadmap.
 The Constitution (122nd Amendment) Bill, 2014 was introduced in the Lok Sabha by
Finance Minister Arun Jaitley on 19 December 2014, and passed by the House on 6
May 2015.
 The bill was passed by the Rajya Sabha on 3 August 2016, and the amended bill was
passed by the Lok Sabha on 8 August 2016.
Understanding GST
GST, or Goods and Services Tax, will subsume central
indirect taxes like excise duty, countervailing duty and
service tax, and also state levies like value added tax,
entry tax, luxury tax.
Taxes which GST will End
Central Taxes to Go
• Central Excise Duty
• Service Tax
• Duties of Excise
• Additional Duties of Excise
• Additional Duties of Custom
• Special Additional Duty of Customs
States Taxes to Go
• State VAT
• Central Sales Tax
• Purchase Tax
• Luxury Tax
• Entry Tax
• Entertainment Tax
• Taxes on Advertisements and lotteries
Taxes which will not be affected by GST
• Exports and Direct Tax
• Taxes on Good like
 Crude Petroleum
 Motor spirit
 Diesel
 Aviation turbine fuel
 Natural Gas
CGST SGST IGST
What will be Cheaper ?
What will be Costlier?
Advantages
of GST
Goods and Services Tax(GST) vs Simple Tax System
Goods and Services Tax(GST) vs Simple Tax System
Disadvantages
Of GST
 GST would impact negatively
on the real estate market.
 GST might have nothing new
to offer
Challenges for
GST
• RNR and Threshold Limit
• Robust IT backbone
• Trained and skilled Staff
• The 1% Non - vatable tax
on interstate supply of
goods.
Conclusion
• GST will be a welcome change for the
economy
• Roll out of GST would boost the India’s
GDP growth by 1 percent to 2 percent
• GST has been commonly accepted by
more than 140 countries in the world.
GST is going to impact all sections of the
society – from small time businessmen to
huge conglomerates and from a
developing state to a developed state in
this country

More Related Content

What's hot

Goods and Service Tax (GST) in India
Goods and Service Tax (GST) in IndiaGoods and Service Tax (GST) in India
Goods and Service Tax (GST) in India
CA Pankaj Kumar
 
GST in India
GST in India GST in India
GST in India
Neeraj Sindhu
 
All about goods and service tax(gst) by additional secretary gst council
All about goods and service tax(gst) by additional secretary gst council All about goods and service tax(gst) by additional secretary gst council
All about goods and service tax(gst) by additional secretary gst council
sunil gaur
 
GST PRESENTATION
GST PRESENTATIONGST PRESENTATION
GST PRESENTATION
CA Gaurav Mishra
 
All about GST
All about GSTAll about GST
All about GST
amplusfiling
 
GOODS & SERVICE TAX
GOODS & SERVICE TAXGOODS & SERVICE TAX
GOODS & SERVICE TAX
Shikhar Maheshwari
 
Gst
GstGst
Gst (2017)
Gst (2017)Gst (2017)
Gst (2017)
Tanveer Ahmed
 
GST : Benefits and challanges in indian context ( By Prachi and Group)
GST : Benefits and challanges in indian context ( By Prachi and Group)GST : Benefits and challanges in indian context ( By Prachi and Group)
GST : Benefits and challanges in indian context ( By Prachi and Group)
MD SALMAN ANJUM
 
Goods and Services Tax (GST)
Goods and Services Tax (GST)Goods and Services Tax (GST)
Goods and Services Tax (GST)
Supriya Mahajan
 
goods and service tax
goods and service taxgoods and service tax
goods and service tax
DEEPAK KUMAR GUPTA
 
Goods and Service Tax (GST)
Goods and Service Tax (GST)Goods and Service Tax (GST)
Goods and Service Tax (GST)
Akash Saha
 
GST - Final PPT
GST - Final PPTGST - Final PPT
GST - Final PPT
ANUP PALARAPWAR
 
goods and service tax overview
goods and service tax overviewgoods and service tax overview
goods and service tax overview
Shubham Gupta
 
Gst
GstGst
GST PPT.pptx
GST PPT.pptxGST PPT.pptx
GST PPT.pptx
MirzaAARIF1
 
GST
GSTGST
indian tax system
indian tax systemindian tax system
indian tax system
Bijon Guha
 
GST INDIA
GST INDIA GST INDIA
GST INDIA
Swapnil Borekar
 
GSTShruti
GSTShrutiGSTShruti
GSTShruti
shrutiairan
 

What's hot (20)

Goods and Service Tax (GST) in India
Goods and Service Tax (GST) in IndiaGoods and Service Tax (GST) in India
Goods and Service Tax (GST) in India
 
GST in India
GST in India GST in India
GST in India
 
All about goods and service tax(gst) by additional secretary gst council
All about goods and service tax(gst) by additional secretary gst council All about goods and service tax(gst) by additional secretary gst council
All about goods and service tax(gst) by additional secretary gst council
 
GST PRESENTATION
GST PRESENTATIONGST PRESENTATION
GST PRESENTATION
 
All about GST
All about GSTAll about GST
All about GST
 
GOODS & SERVICE TAX
GOODS & SERVICE TAXGOODS & SERVICE TAX
GOODS & SERVICE TAX
 
Gst
GstGst
Gst
 
Gst (2017)
Gst (2017)Gst (2017)
Gst (2017)
 
GST : Benefits and challanges in indian context ( By Prachi and Group)
GST : Benefits and challanges in indian context ( By Prachi and Group)GST : Benefits and challanges in indian context ( By Prachi and Group)
GST : Benefits and challanges in indian context ( By Prachi and Group)
 
Goods and Services Tax (GST)
Goods and Services Tax (GST)Goods and Services Tax (GST)
Goods and Services Tax (GST)
 
goods and service tax
goods and service taxgoods and service tax
goods and service tax
 
Goods and Service Tax (GST)
Goods and Service Tax (GST)Goods and Service Tax (GST)
Goods and Service Tax (GST)
 
GST - Final PPT
GST - Final PPTGST - Final PPT
GST - Final PPT
 
goods and service tax overview
goods and service tax overviewgoods and service tax overview
goods and service tax overview
 
Gst
GstGst
Gst
 
GST PPT.pptx
GST PPT.pptxGST PPT.pptx
GST PPT.pptx
 
GST
GSTGST
GST
 
indian tax system
indian tax systemindian tax system
indian tax system
 
GST INDIA
GST INDIA GST INDIA
GST INDIA
 
GSTShruti
GSTShrutiGSTShruti
GSTShruti
 

Similar to Goods and Services Tax(GST) vs Simple Tax System

Goods And Service Tax(GST).pptx
Goods And Service Tax(GST).pptxGoods And Service Tax(GST).pptx
Goods And Service Tax(GST).pptx
jkjklol
 
GST
GSTGST
GST
GSTGST
GST UNIT 1 learning and practice of goods and services
GST UNIT 1 learning and practice of goods and servicesGST UNIT 1 learning and practice of goods and services
GST UNIT 1 learning and practice of goods and services
hpotter46103
 
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in India
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in IndiaMacro-economic Framework in Indian Economy–Tax Structure & Tax system in India
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in India
viveksangwan007
 
Indirect tax - unit i
Indirect tax - unit iIndirect tax - unit i
Indirect tax - unit i
premarhea
 
OVERVIEW ON GST ACT .pptx
OVERVIEW ON GST ACT .pptxOVERVIEW ON GST ACT .pptx
OVERVIEW ON GST ACT .pptx
PujaKumari909610
 
An overview of Goods and Services tax in India
An overview of Goods and Services tax in IndiaAn overview of Goods and Services tax in India
An overview of Goods and Services tax in India
Kushal Setty
 
GST Economic Project.pptx 1.pptx
GST Economic Project.pptx 1.pptxGST Economic Project.pptx 1.pptx
GST Economic Project.pptx 1.pptx
Vishnu15600
 
GST in India
GST in India GST in India
GST in India
Dr. Mohmed Amin Mir
 
Gst
GstGst
GST in India
GST in IndiaGST in India
GST in India
Syed Abrar Ahamed
 
Amendments in taxation system of india
Amendments in taxation system of indiaAmendments in taxation system of india
Amendments in taxation system of india
Kapil Agarwal
 
GST-PPT.pdf
GST-PPT.pdfGST-PPT.pdf
GST-PPT.pdf
kepilin229
 
Gst Some Important Topic.
Gst Some Important Topic.Gst Some Important Topic.
Gst Some Important Topic.
Siddharth Shah
 
GST A Journey to Make India a Single Tax Economy
GST A Journey to Make India a Single Tax EconomyGST A Journey to Make India a Single Tax Economy
GST A Journey to Make India a Single Tax Economy
ijtsrd
 
Understand taxation system of india choksi tax
Understand taxation system of india choksi taxUnderstand taxation system of india choksi tax
Understand taxation system of india choksi tax
Choksitax
 
Gst
GstGst
Goods & Service Tax (GST)
Goods & Service Tax (GST)Goods & Service Tax (GST)
Goods & Service Tax (GST)
Anmol Garg
 
GST
GST GST

Similar to Goods and Services Tax(GST) vs Simple Tax System (20)

Goods And Service Tax(GST).pptx
Goods And Service Tax(GST).pptxGoods And Service Tax(GST).pptx
Goods And Service Tax(GST).pptx
 
GST
GSTGST
GST
 
GST
GSTGST
GST
 
GST UNIT 1 learning and practice of goods and services
GST UNIT 1 learning and practice of goods and servicesGST UNIT 1 learning and practice of goods and services
GST UNIT 1 learning and practice of goods and services
 
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in India
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in IndiaMacro-economic Framework in Indian Economy–Tax Structure & Tax system in India
Macro-economic Framework in Indian Economy–Tax Structure & Tax system in India
 
Indirect tax - unit i
Indirect tax - unit iIndirect tax - unit i
Indirect tax - unit i
 
OVERVIEW ON GST ACT .pptx
OVERVIEW ON GST ACT .pptxOVERVIEW ON GST ACT .pptx
OVERVIEW ON GST ACT .pptx
 
An overview of Goods and Services tax in India
An overview of Goods and Services tax in IndiaAn overview of Goods and Services tax in India
An overview of Goods and Services tax in India
 
GST Economic Project.pptx 1.pptx
GST Economic Project.pptx 1.pptxGST Economic Project.pptx 1.pptx
GST Economic Project.pptx 1.pptx
 
GST in India
GST in India GST in India
GST in India
 
Gst
GstGst
Gst
 
GST in India
GST in IndiaGST in India
GST in India
 
Amendments in taxation system of india
Amendments in taxation system of indiaAmendments in taxation system of india
Amendments in taxation system of india
 
GST-PPT.pdf
GST-PPT.pdfGST-PPT.pdf
GST-PPT.pdf
 
Gst Some Important Topic.
Gst Some Important Topic.Gst Some Important Topic.
Gst Some Important Topic.
 
GST A Journey to Make India a Single Tax Economy
GST A Journey to Make India a Single Tax EconomyGST A Journey to Make India a Single Tax Economy
GST A Journey to Make India a Single Tax Economy
 
Understand taxation system of india choksi tax
Understand taxation system of india choksi taxUnderstand taxation system of india choksi tax
Understand taxation system of india choksi tax
 
Gst
GstGst
Gst
 
Goods & Service Tax (GST)
Goods & Service Tax (GST)Goods & Service Tax (GST)
Goods & Service Tax (GST)
 
GST
GST GST
GST
 

Recently uploaded

Exclusive Girls Call Mumbai 9833325238 Unlimited Short Providing Girls Servic...
Exclusive Girls Call Mumbai 9833325238 Unlimited Short Providing Girls Servic...Exclusive Girls Call Mumbai 9833325238 Unlimited Short Providing Girls Servic...
Exclusive Girls Call Mumbai 9833325238 Unlimited Short Providing Girls Servic...
simran aarya
 
Girls Call Marine lines 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Marine lines 9910780858 Provide Best And Top Girl Service And No1 ...Girls Call Marine lines 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Marine lines 9910780858 Provide Best And Top Girl Service And No1 ...
maigasapphire
 
Introduction to Islamic Banking and Finance.Part4
Introduction to Islamic Banking and Finance.Part4Introduction to Islamic Banking and Finance.Part4
Introduction to Islamic Banking and Finance.Part4
NasrudinMohamedAhmed
 
Lucknow Girls Call Kesar Bagh 08630512678 Provide Best And Top Girl Service A...
Lucknow Girls Call Kesar Bagh 08630512678 Provide Best And Top Girl Service A...Lucknow Girls Call Kesar Bagh 08630512678 Provide Best And Top Girl Service A...
Lucknow Girls Call Kesar Bagh 08630512678 Provide Best And Top Girl Service A...
eshikajshani
 
Hamster kombat - A simple and effective method to withdraw mined tokens.
Hamster kombat - A simple and effective method to withdraw mined tokens.Hamster kombat - A simple and effective method to withdraw mined tokens.
Hamster kombat - A simple and effective method to withdraw mined tokens.
CRYPTO SPACE 🪙
 
Bangalore Girls Call Bangalore 0X0000000X Payment On Delevery Cash Hot Premiu...
Bangalore Girls Call Bangalore 0X0000000X Payment On Delevery Cash Hot Premiu...Bangalore Girls Call Bangalore 0X0000000X Payment On Delevery Cash Hot Premiu...
Bangalore Girls Call Bangalore 0X0000000X Payment On Delevery Cash Hot Premiu...
seenaoberoi
 
Introduction to trading Solana Memecoins.docx
Introduction to trading Solana Memecoins.docxIntroduction to trading Solana Memecoins.docx
Introduction to trading Solana Memecoins.docx
Raul Canessa
 
Sustainable-Development-Goals-presentation-by-Office-of-National-Statistics.ppt
Sustainable-Development-Goals-presentation-by-Office-of-National-Statistics.pptSustainable-Development-Goals-presentation-by-Office-of-National-Statistics.ppt
Sustainable-Development-Goals-presentation-by-Office-of-National-Statistics.ppt
JayanthAdithya1
 
Lucknow Girls Call Adil Nagar 08630512678 Available full Day
Lucknow Girls Call Adil Nagar 08630512678 Available full DayLucknow Girls Call Adil Nagar 08630512678 Available full Day
Lucknow Girls Call Adil Nagar 08630512678 Available full Day
annarivihqrika
 
Northeastern University degree offer diploma Transcript
Northeastern University degree offer diploma TranscriptNortheastern University degree offer diploma Transcript
Northeastern University degree offer diploma Transcript
oywfdy
 
‘Not afraid to die’ Kenya tax protests inspire broader demand for change.pdf
‘Not afraid to die’ Kenya tax protests inspire broader demand for change.pdf‘Not afraid to die’ Kenya tax protests inspire broader demand for change.pdf
‘Not afraid to die’ Kenya tax protests inspire broader demand for change.pdf
John Leonardo
 
ppt on Review of literature 1720335948098.pptx
ppt on Review of literature 1720335948098.pptxppt on Review of literature 1720335948098.pptx
ppt on Review of literature 1720335948098.pptx
coolpool363
 
Is it possible to sell hamster kombat tokens?
Is it possible to sell hamster kombat tokens?Is it possible to sell hamster kombat tokens?
Is it possible to sell hamster kombat tokens?
CRYPTO SPACE 🪙
 
Scam 1992 Harshad mehta scam pdf download
Scam 1992 Harshad mehta scam pdf downloadScam 1992 Harshad mehta scam pdf download
Scam 1992 Harshad mehta scam pdf download
bharatbharatjangid46
 
How do I cash out hamster kombat tokens?
How do I cash out hamster kombat tokens?How do I cash out hamster kombat tokens?
How do I cash out hamster kombat tokens?
CRYPTO SPACE 🪙
 
Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]
Commonwealth
 
Introduction to Islamic Banking and Finance
Introduction to Islamic Banking and FinanceIntroduction to Islamic Banking and Finance
Introduction to Islamic Banking and Finance
NasrudinMohamedAhmed
 
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Ak47
 
Top Five High Growth Mutual Funds in India.pptx
Top Five High Growth Mutual Funds in India.pptxTop Five High Growth Mutual Funds in India.pptx
Top Five High Growth Mutual Funds in India.pptx
MyAssignmentPartner
 
Solution Manual For Fundamentals of Financial Accounting, 8th Edition 2024 by...
Solution Manual For Fundamentals of Financial Accounting, 8th Edition 2024 by...Solution Manual For Fundamentals of Financial Accounting, 8th Edition 2024 by...
Solution Manual For Fundamentals of Financial Accounting, 8th Edition 2024 by...
rightmanforbloodline
 

Recently uploaded (20)

Exclusive Girls Call Mumbai 9833325238 Unlimited Short Providing Girls Servic...
Exclusive Girls Call Mumbai 9833325238 Unlimited Short Providing Girls Servic...Exclusive Girls Call Mumbai 9833325238 Unlimited Short Providing Girls Servic...
Exclusive Girls Call Mumbai 9833325238 Unlimited Short Providing Girls Servic...
 
Girls Call Marine lines 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Marine lines 9910780858 Provide Best And Top Girl Service And No1 ...Girls Call Marine lines 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Marine lines 9910780858 Provide Best And Top Girl Service And No1 ...
 
Introduction to Islamic Banking and Finance.Part4
Introduction to Islamic Banking and Finance.Part4Introduction to Islamic Banking and Finance.Part4
Introduction to Islamic Banking and Finance.Part4
 
Lucknow Girls Call Kesar Bagh 08630512678 Provide Best And Top Girl Service A...
Lucknow Girls Call Kesar Bagh 08630512678 Provide Best And Top Girl Service A...Lucknow Girls Call Kesar Bagh 08630512678 Provide Best And Top Girl Service A...
Lucknow Girls Call Kesar Bagh 08630512678 Provide Best And Top Girl Service A...
 
Hamster kombat - A simple and effective method to withdraw mined tokens.
Hamster kombat - A simple and effective method to withdraw mined tokens.Hamster kombat - A simple and effective method to withdraw mined tokens.
Hamster kombat - A simple and effective method to withdraw mined tokens.
 
Bangalore Girls Call Bangalore 0X0000000X Payment On Delevery Cash Hot Premiu...
Bangalore Girls Call Bangalore 0X0000000X Payment On Delevery Cash Hot Premiu...Bangalore Girls Call Bangalore 0X0000000X Payment On Delevery Cash Hot Premiu...
Bangalore Girls Call Bangalore 0X0000000X Payment On Delevery Cash Hot Premiu...
 
Introduction to trading Solana Memecoins.docx
Introduction to trading Solana Memecoins.docxIntroduction to trading Solana Memecoins.docx
Introduction to trading Solana Memecoins.docx
 
Sustainable-Development-Goals-presentation-by-Office-of-National-Statistics.ppt
Sustainable-Development-Goals-presentation-by-Office-of-National-Statistics.pptSustainable-Development-Goals-presentation-by-Office-of-National-Statistics.ppt
Sustainable-Development-Goals-presentation-by-Office-of-National-Statistics.ppt
 
Lucknow Girls Call Adil Nagar 08630512678 Available full Day
Lucknow Girls Call Adil Nagar 08630512678 Available full DayLucknow Girls Call Adil Nagar 08630512678 Available full Day
Lucknow Girls Call Adil Nagar 08630512678 Available full Day
 
Northeastern University degree offer diploma Transcript
Northeastern University degree offer diploma TranscriptNortheastern University degree offer diploma Transcript
Northeastern University degree offer diploma Transcript
 
‘Not afraid to die’ Kenya tax protests inspire broader demand for change.pdf
‘Not afraid to die’ Kenya tax protests inspire broader demand for change.pdf‘Not afraid to die’ Kenya tax protests inspire broader demand for change.pdf
‘Not afraid to die’ Kenya tax protests inspire broader demand for change.pdf
 
ppt on Review of literature 1720335948098.pptx
ppt on Review of literature 1720335948098.pptxppt on Review of literature 1720335948098.pptx
ppt on Review of literature 1720335948098.pptx
 
Is it possible to sell hamster kombat tokens?
Is it possible to sell hamster kombat tokens?Is it possible to sell hamster kombat tokens?
Is it possible to sell hamster kombat tokens?
 
Scam 1992 Harshad mehta scam pdf download
Scam 1992 Harshad mehta scam pdf downloadScam 1992 Harshad mehta scam pdf download
Scam 1992 Harshad mehta scam pdf download
 
How do I cash out hamster kombat tokens?
How do I cash out hamster kombat tokens?How do I cash out hamster kombat tokens?
How do I cash out hamster kombat tokens?
 
Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]Economic Risk Factor Update: July 2024 [SlideShare]
Economic Risk Factor Update: July 2024 [SlideShare]
 
Introduction to Islamic Banking and Finance
Introduction to Islamic Banking and FinanceIntroduction to Islamic Banking and Finance
Introduction to Islamic Banking and Finance
 
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
Girls Call Laxmi Nagar 9711199171 Provide Best And Top Girl Service And No1 i...
 
Top Five High Growth Mutual Funds in India.pptx
Top Five High Growth Mutual Funds in India.pptxTop Five High Growth Mutual Funds in India.pptx
Top Five High Growth Mutual Funds in India.pptx
 
Solution Manual For Fundamentals of Financial Accounting, 8th Edition 2024 by...
Solution Manual For Fundamentals of Financial Accounting, 8th Edition 2024 by...Solution Manual For Fundamentals of Financial Accounting, 8th Edition 2024 by...
Solution Manual For Fundamentals of Financial Accounting, 8th Edition 2024 by...
 

Goods and Services Tax(GST) vs Simple Tax System

  • 1. A Presentation on Goods & Services Tax Presented By:- Sachin Chauhan
  • 2. Contents  What is Tax? History of Taxation in India Current Tax System Goods And Service Tax Comparison between CST and GST Pros and Cons of GST Conclusion
  • 3. What is Tax? A fee charged by the government on a product, income, or activity.
  • 5. History Of Taxation "It was only for the good of his subjects that he collected taxes from them, just as the Sun draws moisture from the Earth to give it back a thousand fold” -Kalidas
  • 6. The detailed analysis given by Manu Smriti and Arthashastra on the subject clearly shows the existence of a well-planned taxation system, even in ancient times.
  • 7. Establishment of Taxation in Modern India The history of Income-Tax in modern India dates back to 1860 when the first Income Tax Act was introduced by James Wilson who became (British) India’s first finance member.
  • 9. After Independence Central Board of Revenue was replaced with two different Boards viz. Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) for administering direct and indirect taxes respectively The Permanent Account Number (PAN), a 10 digit alphanumeric number was launched in 1994. It acts as a unique identifier and enables the Department to link all transactions like tax payment, Income Tax Returns, High Value Transactions etc. to individual taxpayers.
  • 11. Two Major Types of Taxes Direct Tax Indirect Tax
  • 13. Direct Taxes • Levied on income and wealth and is paid directly to the government. • Helps in reducing inflation
  • 15. Wealth Tax This is in addition to the income tax and is levied if your net wealth exceeds Rs 30 Lakh at the rate of 1% on the amount exceeding Rs 30 Lakh. Capital Gain Tax This is levied on the capital gains arrived by selling property and stocks. Tax rates are different for long term and short term capital gains.
  • 16. Gift Tax The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether the donor intends the transfer to be a gift or not. The gift tax applies to the transfer by gift of any property. Corporate Tax Companies operating in India are taxed as per the corporate tax rate on their income. This tax is one of the major sources of revenue for government
  • 17. Indirect Taxes • Levied on a person who consumes the goods and services and is paid indirectly to the government. • It promotes inflation
  • 18. • Service providers in India are subject to service tax, which is charged on the aggregate amount received by the service provider. Services like leasing, internet/voice, transport, etc. are subject to service tax. • The effective service tax rate at present is 15%
  • 20. Custom Duty Excise Duty Custom duties are indirect taxes which are levied on goods imported to/exported from India Excise duties are indirect taxes which are levied on goods manufactured in India for domestic consumption
  • 21. Value Added Tax A value-added tax (VAT) is a consumption tax levied on products at every point of sale where value has been added, starting from raw materials and going all the way to final retail purchase by a consumer. VAT is not the same as Sales Tax VAT is levied from both producers of goods and services as well as consumers while sales tax is entirely levied from customers
  • 24. GST is being glorified as a system of taxation by which economy will take an upward swing. ‘Only one’ indirect tax has to be paid by the trade and industry. Rest all indirect taxes will be subsumed in GST.
  • 25. GST Around The World France was the first country to introduce GST in 1954. Most of the countries have a unified GST. Brazil and Canada follow a dual GST.
  • 26. The Goods and Services Tax Bill or GST Bill, officially known as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, proposes a national Value added Tax to be implemented in India from 1 April 2017.
  • 27.  An empowered committee was set up by the Atal Bihari Vajpayee government in 2000 to streamline The GST model to be adopted.  In his budget speech on 28 February 2006, P. Chidambaram, announced the target date for implementation of GST to be 1 April 2010 and formed another empowered committee of State Finance Ministers to design the roadmap.  The Constitution (122nd Amendment) Bill, 2014 was introduced in the Lok Sabha by Finance Minister Arun Jaitley on 19 December 2014, and passed by the House on 6 May 2015.  The bill was passed by the Rajya Sabha on 3 August 2016, and the amended bill was passed by the Lok Sabha on 8 August 2016.
  • 28. Understanding GST GST, or Goods and Services Tax, will subsume central indirect taxes like excise duty, countervailing duty and service tax, and also state levies like value added tax, entry tax, luxury tax.
  • 29. Taxes which GST will End Central Taxes to Go • Central Excise Duty • Service Tax • Duties of Excise • Additional Duties of Excise • Additional Duties of Custom • Special Additional Duty of Customs States Taxes to Go • State VAT • Central Sales Tax • Purchase Tax • Luxury Tax • Entry Tax • Entertainment Tax • Taxes on Advertisements and lotteries
  • 30. Taxes which will not be affected by GST • Exports and Direct Tax • Taxes on Good like  Crude Petroleum  Motor spirit  Diesel  Aviation turbine fuel  Natural Gas
  • 32. What will be Cheaper ?
  • 33. What will be Costlier?
  • 38.  GST would impact negatively on the real estate market.  GST might have nothing new to offer
  • 40. • RNR and Threshold Limit • Robust IT backbone • Trained and skilled Staff • The 1% Non - vatable tax on interstate supply of goods.
  • 41. Conclusion • GST will be a welcome change for the economy • Roll out of GST would boost the India’s GDP growth by 1 percent to 2 percent • GST has been commonly accepted by more than 140 countries in the world. GST is going to impact all sections of the society – from small time businessmen to huge conglomerates and from a developing state to a developed state in this country