2. Goods & Services TaxGoods
& Services Tax
ONLY TWO THINGS ARE CERTAIN IN LIFE
DEATH & TAXES
3. Tax Structure
Direct Tax
Wealth Tax
Indirect Tax
Central Tax
Excise Service Tax Custome
State Tax
VAT
Existing Tax structure in India
4. Benefits of GST
Government / Nation
• Will lead to a wider tax base & increased / improved compliance. Both will result in increase in revenue for Governments
• Hopefully will reduce Black money
• Improves international acceptance from trade point of view since many of the member countries were already onto GST
• GDP may increase by 0.9% to 1.7%
Industry
• No cascading of taxes
• Reduction in multiplicity of taxes. Industry need not deal with multiple bodies – ease of business
• Cost of compliance should also come down
• Issue of Complex transactions – whether sale or service – e.g. sale of software. Such contentious issues automatically get resolved
• Abolition of check posts – leading to faster turn around for vehicles
• Makes export more competitive
• Major beneficiary being e’commerce as allows seamless movement of goods across the country
Consumers
• Manufactured goods would become cheaper
