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 willinclude many state and central level indirect taxes.

1. “GOODS & SERVICES TAX (GST) –WILL IT SIMPLIFY YOUR LIFE?”
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2. CONCEPT OF GST
• GST is a tax on goods and services with comprehensive and continuous chain of setoff benefits
from the Producer’s point and Service provider’s point up to the retailer level
• GST is levied at every step in the production process, but is refunded to all parties in the chain of
production other than the final consumer.
• GST is an indirect tax for the whole nation, which will make India one unified common market.

3. PREVIOUS TAX STRUCTURE IN INDIA
Indirect Tax
Central Tax
Excise Service Tax Custome
State Tax
VAT
Luxury tax,
Lottery Tax,
etc.

4. PRESENT TAX STRUCTURE IN INDIA
Indirect Tax
Local
CGST
SGST/UTGS
T
Outside the
state
IGST

5. Features Previous Rate GST Rate
Aluminum Foil 18.5 28
Pencil sharpeners, knives 18.5 12
Ice cream, sherbet 26 18
Led lights 26 12
Shaving cream 26 28
Pasta, corn flakes, cakes 19.5 18
Tooth powder 26 12
TAX RATE DIFFERENCES FROM VAT TO GST

6. BENEFITS OF GST
To Trade
a) Single tax
To Consumer
a) Reduction in price of goods and services
To Government
a) Boost GDP
b) Invoicing will be simpler
c) Reduced cost of compliances
d) Development of common national market
e) Easy payment on GST portal
b) Trust in Simpler Tax System
c) Due to lower burden of taxes
d) Increase in Purchasing power, savings &
investments.
b) Simple and easy to administer
c) Better control on leakage
d) Enhancement of exports.

7. DRAWBACKS OF GST FOR A COMMON MAN
❖ Increased cost of services means, add on to your monthly expenses.
❖ You will have to reschedule your budgets to bear the additional services cost.
❖ Being a new tax, it will take some time for the people to understand it completely. Its actual
implications can be seen only when the rate of tax is determined.
❖ It is easier said than done. There are always some complications attached. It is a consumption
based tax, so in case of services, the place where service is provided needs to be determined.

8. PRODUCER
WHOLESALER
RETAILER
CONSUMER
PREVIOUS
SYSTEM
GST
SYSTEM
50+ =100+12
=112+13.44
152.90+
125.44+
=162.90+19.55+1.2
=135.44+16.25+1.2
=183.65 i.e
Rs.184
=152.90
NET PRICE WITH TAX RS.184
=100+Excise duty 12 50+ 50
=112
112+
136.64+
10 =122+14.64
=146.64+17.60
=136.64
=164.24 i.e Rs.165
10
NET PRICE WITH TAX RS.165
Difference between previous system and GST system=Rs.184-Rs.165=Rs.19
Example
Tax rate 12%
=125.44
50
10
10

9. CONCLUSION
GST
Reduced
transaction
costs
Reduced tax
burden
One
Country
one tax
Reduced tax
evasion &
corruption

10. Thanks for watching…
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