OBJECTIVE Goods and Services Tax (GST) is the Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. GST subsumed various indirect laws in the country and the led to the formation of a common national market. In this webinar, we shall understand the background and rationale for the introduction of GST in India. We shall understand the overview of the law behind GST.

1. Understanding the Goods and
Service Tax (GST) Law
CA Divakar Vijayasarathy

2. Credits and Acknowledgments
Harish Kumar R
Thirumal V
CA Jugal Narendra Gala

3. Legends used in the Presentation
CGST Central Goods and Services Tax
CENVAT Central Value Added Tax
GST Goods and Service Tax
GSTN Goods and Services Network
HSN Harmonised System of Nomenclature
IGST Integrated Goods and Services Tax
SGST State Goods and Services Tax
UTGST Union Territory Goods and Services Tax
VAT Value Added Tax

4. Presentation Schema
Introduction
Central Board of
Indirect Taxes and
Customs
Roadmap to “Goods
and Service Tax
(GST)”
Pre GST Indirect Tax
Structure
Concept of GST
Benefits of GST
Need for GST in
India
Dual GST Structure
Legislative
Framework
Goods and Service
Tax Council
GST Common Portal
Contents of CGST
Act
Contents of IGST Act Statistics

5. Introduction
Goods and Services Tax (GST) is the Indirect Tax levied in India introduced in July 2017 which was one
of the most important reforms in the Indian Economy
GST subsumed various indirect laws in the country and the led to the formation of a common
national market
The rationale for introduction GST was to eliminate cascading effect of taxes and to reduce
complexities in indirect tax regime of the country
Central Board of Indirect Taxes and Customs governs the functioning and administration of GST in
India

6. Central Board of Indirect Taxes and Customs (CBIC)
Ministry of Finance
Department of Revenue
CBIC
Chairperson 4 Members
Tax Policy, Indirect Tax Customs Admin & Vigilance Investigation
+

7. Roadmap to “Goods and Service Tax (GST)”
In 2000, the then Honourable Prime
Minister Shri Atal Bihari Vajpayee
introduced the concept of GST and set up a
committee to design a GST Model
Announcement by the Union
Finance Minister that GST would be
introduced from 1st April, 2010
The Constitution (122nd Amendment)
Bill was introduced in the Lok Sabha
The Constitution
(101st Amendment)
Act was enacted
1st GST
Meeting
GST Council Recommends
CGST, SGST, IGST, UTGST
and compensation Bill
CGST, IGST, UTGST and
Compensation Cess Acts passed
GST Council recommends
all the rules.
All states except J & K
passed their SGST Act
GST Launched SGST Act passed by J&K; CGST and
IGST Ordinances promulgated to
extend GST to J&K.
2000 2006 2014
September,2016
August,2016
2017
April 2017May 2017
1st July, 2017 8th July, 201730th June,2017

8. Pre GST Indirect Tax Structure
Central Taxes State Taxes
Central Excise duty
Additional duties of excise
Excise duty levied under
Medicinal & Toilet Preparation Act
Additional duties of customs
Service Tax
Surcharges & Cesses
State VAT / Sales Tax
Central Sales Tax
Purchase Tax
Entertainment Tax (other than those levied by local bodies)
Luxury Tax (tax primarily on services offered at hotel, spas
and resorts
Entry Tax (All forms)
Taxes on lottery, betting & gambling
Surcharges & Cesses

9. Concept of GST
GST is a value added tax levied on manufacture, sale and
consumption of goods and services
GST offers comprehensive and continuous chain of tax credits
The final consumer bears the GST charged by the last supplier in
the supply chain, with set-off benefits at all the previous stages
No cascading of taxes under GST system
GST means any tax on supply of goods, or services or both except taxes on the
supply of the alcoholic liquor for human consumption

10. Benefits of GST
Win-win situation for the entire country
Brings benefits to all the stakeholders of industry – Government, Businesses and Consumers
Creation of
unified
national
market
Boost to
‘Make in India’
initiative
Enhanced
investment
and
employment
Simplified tax
structure
Easy tax
compliance
Mitigation of
ill effects of
cascading
Benefits derived are

11. Need for GST in India
Double taxation of a transaction as both goods and services
Presence of cascading of taxes
CENVAT and State-Level VAT were essentially value added taxes, set
off of one against the credit of another was not possible as CENVAT
was a central levy and State-Level VAT was a State levy
Several taxes in the States, such as, Luxury Tax, Entertainment Tax,
etc. were not subsumed in the erstwhile VAT regime

12. Dual GST
Model of Dual GST:
GST extends to whole of India including the State of Jammu and Kashmir
Centre and States simultaneously levy GST on taxable supply of goods or services or
both which, takes place within a State or Union Territory
India has adopted a Dual GST model in view of the federal structure of the country

13. Structure
GST is a destination based tax
GST in India comprises of
Central Goods and Services Tax
(CGST) - levied and collected
by Central Government
State Goods and Services Tax
(SGST) - levied and collected
by State Governments/Union
Territories with Legislatures
Union Territory Goods and
Services Tax (UTGST) - levied and
collected by Union Territories
without Legislatures
Integrated Goods and Services Tax
(IGST) - the sum total of CGST
and SGST/UTGST and is levied by
Centre on all inter-State supplies

14. Legislative Framework
Single legislation - CGST Act, 2017 for levying CGST
Single legislation - IGST Act, 2017 for levying IGST
GST Legislation by each state for levy of SGST
Union Territories without Legislatures [Andaman and Nicobar Islands,
Lakshadweep, Dadra and Nagar Haveli, Daman and Diu and
Chandigarh] are governed by UTGST Act, 2017 for levying UTGST
States and Union territories with their own legislatures [Delhi and
Puducherry] have their own GST legislation for levying SGST
Though there are multiple SGST legislations, the basic features of law, such as chargeability, definition
of taxable event and taxable person, classification and valuation of goods and services, procedure for
collection and levy of tax and similar provisions are uniform in all the SGST legislations

15. Goods and Service Tax Council
The Council is comprised of the Union Finance Minister (who will be the Chairman of the Council), the
Minister of State (Revenue) and the State Finance/Taxation Ministers as members
It shall make recommendations to the Union and the States on the following issues:
The taxes, cesses and surcharges levied by the Centre, the States and the local
bodies which may be subsumed under GST
The goods and services that may be subjected to or exempted from the GST
Model GST laws, principles of levy, apportionment of IGST and the principles
that govern the place of supply

16. GST Common Portal
Pre-GST Era
Before GST, several indirect law prevailed over the country and consequently diverse
IT infrastructure and systems were existed
Upon Introduction of GST
A Common Portal was needed which could act as a clearing house and verify the
claims and inform the respective Governments to transfer the funds
The GST portal is accessible over Internet (by taxpayers and their CAs/Tax Advocates
etc.) and Intranet by Tax Officials etc.
It was managed by Goods and Services Network (GSTN)
Functions
Facilitating registration
Forwarding the returns to Central and State authorities
Computation and settlement of IGST
Matching of tax payment details with banking network
Providing various MIS reports to the Central and the State Governments based on the taxpayer
return information; providing analysis of taxpayers' profile, etc.

17. Contents of CGST Act
Preliminary & Charging
Chapter I Preliminary
Chapter II Administration
Chapter III Levy And Collection Of Tax
Chapter IV Time And Value Of Supply
Chapter V Input Tax Credit
Administrative & Compliance
Chapter VI Registration
Chapter VII Tax Invoice, Credit And Debit Notes
Chapter VIII Accounts And Records
Chapter IX Returns
Chapter X Payment Of Tax
Chapter XI Refunds

18. Contd.
Assessment & Powers
Chapter XII Assessment
Chapter XIII Audit
Chapter XIV Inspection, Search, Seizure And Arrest
Chapter XV Demands And Recovery
Chapter XVI Liability To Pay In Certain Cases
Appeals & Miscellaneous
Chapter XVII Advance Ruling
Chapter XVIII Appeals And Revision
Chapter XIX Offences And Penalties
Chapter XX Transitional Provisions
Chapter XXI Miscellaneous
• Separate SGST and UTGST Acts are enacted for each jurisdiction
• However the legislations are similar to CGST

19. Contents of IGST Act
Chapter I Preliminary
Chapter II Administration
Chapter III Levy and Collection of Tax
Chapter IV Determination of Nature of Supply
Chapter V Place of Supply of Goods or Services or Both
Chapter VI Refund of Integrated Tax to International Tourist
Chapter VII Zero rated supply
Chapter VIII Apportionment of Tax and Settlement of Funds
Chapter IX Miscellaneous

20. Statistics

21. GST Revenue in FY19-20 [₹ in Crore]
113,865.00
100,289.00 99,939.00 102,083.00
98,202.00
91,916.00
95,380.00
103,492.00 103,184.00
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
Apr 2019 May 2019 Jun 2019 Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019

22. GST Revenue since Introduction [₹ in Crore]
0
20000
40000
60000
80000
100000
120000
1,03,184

23. Indirect Tax Revenue [₹ in Crores]
459,496.05 476,492.65
518,064.85
683,313.83
768,126.53
107,520.62
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
(upto June)
740,650.00
1,177,370.0
0
908,350.00
2017-18
(from July)
2018-19 2019-20
(upto Dec)
Revenue from Central Excise and Other State Taxes^
^ revenue for some states not included due to non-availability of data
Revenue from GST

24. GSTN Statistics

25. GST Registrations – Region-wise
State Total Registrations
Maharashtra 15,58,678
Uttar Pradesh 14,85,975
Gujrat 9,94,384
Tamil Nadu 9,76,040
Karnataka 8,43,210
Delhi 7,69,931
Rajasthan 7,06,682
West Bengal 6,99,262
Haryana 4,49,368
Bihar 4,33,678
Madhya Pradesh 4,19,267
Telangana 4,17,133
Andhra Pradesh 4,00,115
Kerala 3,58,546
Punjab 3,54,076
Odisha 2,54,372
Assam 1,86,902
Jharkhand 1,71,701
Uttarakhand 1,64,597
State Total Registrations
Chhattisgarh 1,41,759
Himachal Pradesh 1,11,168
Jammu and Kashmir 1,03,781
Goa 40,682
Chandigarh 29,794
Meghalaya 29,449
Tripura 28,450
Puducherry 23,330
Arunachal Pradesh 15,957
Manipur 12,312
Nagaland 9,219
Sikkim 8,598
Dadra and Nagar Haveli 8,479
Mizoram 6,407
Daman and Diu 6,263
Andaman and Nicobar Island 5,299
Lakshadweep 322
Other Territory 77
As on 30th November 2019

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