Indirect Tax System GST

1. GST
(Goods and Services Tax)
By Sushil Bansode

2. MEANING
 GST is an indirect, comprehensive, multistage,
destination-based tax that is levied on every value
addition.
 Goods and Service Tax (GST) is an indirect tax levied
on the supply of goods and services.

3. INTRODUCTION
 one nation, one tax
 GST has replaced many Indirect Taxes in India.
 Act was passed in the Parliament on 29th March 2017
 This law came into force on 1st July,2017
 Tax is levied at every point of sale

4. GST REPLACE FOLLOWING INDIRECT
TAXES
 Central Excise Duty
 Additional duties of Excise
 Additional duties of Custom
 Service Tax
 Countervailing Duty
 Special Countervailing Duty
 Value Added Tax (VAT)
 Central Sales Tax (CST)
 Cess
 Octroi
 Entertainment Tax
 Entry Tax
 Purchase Tax
 Luxury Tax
 Advertisement taxes
 Taxes applicable on lotteries & gambling

5. NEED OF GST IN INDIA
 Tax Structure will be Simple
 Tax revenue will increase
 Competitive pricing
 Boost to exports

6. ADVANTAGES OF GST
 GST eliminates the cascading effect of tax
 Higher threshold for registration
 Composition scheme for small businesses
 Simple and easy online procedure
 The number of compliances is lesser
 Defined treatment for E-commerce operators
 Improved efficiency of logistics
 Unorganized sector is regulated under GST
 Mitigation of Cascading effect
 Tackling Corruption and Tax Leakages

7. DISADVANTAGES OF GST
 Increased costs due to software purchase
 Being GST-compliant
 GST will mean an increase in operational costs
 GST came into effect in the middle of the financial year
 GST is an online taxation system
 SMEs will have a higher tax burden
 IT Infrastructure
 Petroleum Products don’t fall under the GST Slab
 Coaching of Tax Officers

8. COMPONENTS OR TYPES OF GST
 CGST
Collected by the Central Government on an intra-state sale
(Eg: Transaction happening within Maharashtra state).
 SGST
Collected by the State Government on an intra-state sale
(Eg: Transaction happening within Maharashtra state).
 IGST
Collected by the Central Government for inter-state sale
(Eg: Maharashtra state to Karnataka state).
 UTGST/UGST
Collected by the Union Territory (UT) Government for Intra-UT
sales. (Eg: Transaction Happening within Andaman and Nicobar
islands)

9. TAX STRUCTURE
Transaction type Old Regime New Regime Revenues Share
Sales within the
state (Intra State)
VAT + Central
Excise/services tax.
CGST+SGST The revenue will be
shared equally
between the center
and the state.
Sales to another
state (Inter State)
Central Sales
Tax+Excise/Service
Tax
IGST There will only be
one type of tax
(central) in case of
inter-state sales. The
Centre will then
share the IGST
revenue based on the
destination of goods.

10. GST SLABS IN INDIA
--NIL–
Goods included Services included
Fresh Meat, Fish, Chicken, Eggs, Milk,
Curd, Butter Milk, Jaggery (Gur),
Lassi, unpacked Paneer, Fresh Fruits
& Vegetables, Natural Honey, Flour
(Atta & Maida), Pulses, Basmati Rice,
Gram Flour (Besan), Bread, Vegetable
Oil, Religious Sweets (Prasad),
Common Salt, Bindi, Vermillion
(Sindoor), Bangles, Stamps, Judicial
Papers, Printed Books, Newspapers.
Handloom Products, Textile – Jute,
Silk.
Hotel Services priced at
less than INR 1000
Education (exemption
continued from before)
Healthcare (exemption
continued from before)

11. --5%--
Goods included Services included
Skimmed Milk Powder, Milk food for
babies, Condensed milk, Packaged
Paneer, Cream, Frozen Vegetables,
Sugar, Spices, Edible Oil, Pizza Bread,
Rusk, Sweets, Fish Fillets, Tapioca
(sabu daana), Coffee, Tea, Juices,
Apparel – below 1000 INR, Footwear
– below 500 INR, Kerosene, LPG,
Coal, Solar Panels, Common Utilities
– Broom, Medical Goods - Medicines,
Stents, Newsprint, Lifeboats, Textile –
Cotton, Natural Fibre and yarns
Incense Sticks (Agarbatti)
Railway Travel
Economy Class Air Travel
Cab Aggregators (e.g. Uber
& Ola)

12. --12%--
Goods included Services included
Butter, Cheese, Ghee, Packaged Dry
Fruits, Snacks (Namkeen & Bhujia),
Packaged Chicken, Sausages, Jams,
Sauces, Fruit Juices, Packed Coconut
Water, Apparel – above 1000 INR,
Personal Hygiene – Tooth Powder,
Stationery – Exercise Books,
Notebooks, Common Utilities –
Sewing Machine, Umbrella, Ayurvedic
Medicine, Mobile Phones
Non-AC Hotels &
Restaurants
Business Class Air Travel

13. --18%--
Goods included Services included
Ice Cream, Preserved Vegetables,
Flavoured refined sugar, Pasta, Corn
Flakes, Pastries, Cakes, Soups,
Instant Food Mixes, Processed
Foods, Mineral Water, Branded
Garments, Footwear – above 500
INR, Personal Hygiene – Tissues,
Toilet Paper, Hair Oil, Soap Bars,
Toothpaste, Envelopes, Fountain
Pens, Printed Circuits, Monitors,
Iron & Steel Products, Biri wrapper
leaves (Tendu Patta), Biscuits, Textile
– Man-made fibre and yarn
Accommodation at hotels with tariff of
more than 2500 INR but less than 7500
INR
Supply of food / drinks in AC / 5 star and
above rated restaurants
Telecom Services
IT Services
Financial Services
Works Contract
Cinema Tickets worth 100 INR or less

14. --28%--
Goods included Services included
Chocolates, Chewing Gum, Custard
Powder, Aerated Water, Deodorants,
Shaving Cream, After Shave, Hair Shampoo,
Dye, Sunscreen, Perfume, Face Creams,
Detergents, Vacuum Cleaner, Shavers, Hair
Clippers, Washing Machines, Dish Washers,
Water Heaters & other Home Appliances,
Speakers, Cameras, Automobiles & Motor
Vehicles, Paint, Wallpaper, Ceramic Tiles,
Cement
Weighing Machines, Vending Machines,
ATM, Fireworks, Luxury / Demerit Goods* -
Pan Masala, Tobacco, Bidis, Aerated Drinks
& Motor Vehicles
Accommodation at hotels
with tariff of more than
7500 INR
Race course betting
Cinema Tickets worth
more than 100 INR

15. OUTSIDE GST TAX SLABS ITEMS
 3%
Gold, gems, Jewelry
 0.25%
Rough Precious & Semi – Precious Stones .

16. TYPES OF ASSESSMENT UNDER GST
 Self Assessment
 Provisional Assessment
 Scrutiny of Returns
 Assessment of Non-Filer of Returns
 Assessment of unregistered persons
 Summary assessment in special cases

17. TYPES OF GST RETURNS
 GSTR-1:
GSTR-1 requires the taxpayer to furnish details of outward supplies or
sales.
 GSTR-2:
GSTR -2 requires furnishing details of inward supplies or purchases.
 GSTR-3:
GSTR-3 requires furnishing monthly return.
 GSTR -4:
GSTR-4 Returns to be filed by Composition Tax Payers.
 GSTR-5:
GSTR-5 Returns to be filed by Foreign Non-Resident Taxpayer.

18.  GSTR-6:
GSTR-6 Returns to be filed by an Input Service Distributor.
 GSTR-7:
GSTR-7 Returns to be filed by a Tax Deductor.
 GSTR-8:
GSTR-8 Statement for Tax Collection at Source.
 GSTR-9:
GSTR-9 Annual Return
 GSTR-10:
GSTR-10 Final Return
 GSTR-11:
GSTR-11 Inward supplies statement for persons having Unique identification
Number (UIN).
 GST-3B:
GST-3B Summary Return for the month of July and August.

19. GST COUNCIL
 GST Council is the governing body.
 GST Council is an apex member committee to modify,
reconcile or to procure any law or regulation based on the
context of goods and services tax in India.
 The council is headed by the union finance minister
 The GST council is responsible for any revision or
enactment of rule or any rate changes of the goods and
services in India.

20. MEMBERS OF GST COUNCIL
 Total Members in council:
 33 members:- a. 2 members are of centre
b. 31 members are from 28 state & 3 Union territories
with legislation.
 The council contains the following members
 Union Finance Minister (as chairperson)
 Union Minister of States in charge of revenue or finance (as member)
 The ministers of states in charge of finance or taxation or other
ministers as nominated by each states government (as member).

21. Goods and Services Tax Network (GSTN)
 The GSTN software is developed by Infosys Technologies.
 "Goods and Services Tax Network" (GSTN) is a nonprofit
organization formed for creating a sophisticated network,
accessible to stakeholders, government and taxpayers to
access information from a single source (portal).

22. THE GSTN'S AUTHORIZED CAPITAL
(10 CRORE)
– Central Government held 24.5 percent of shares
– State government held 24.5 percent of shares
– The remaining 51 percent were held by non-
Government financial institutions, HDFC and HDFC
Bank hold 20%, ICICI Bank holds 10%, NSE Strategic
Investment holds 10% and LIC Housing Finance holds
11% .

23. GSTOFFICIALWEBSITE
https://www.gst.gov.in./

24. PROCEDURE TO COMPLETE GST
REGISTRATION

25. Types of GST Registration
 Normal Taxpayer
 Casual Taxable Person
 Composition Taxpayer
 Non-Resident Taxable Person
 Non-Resident Online Service Provider
 Special Economic Zone Developer
 GST TDS Deductor – Government Entities
 UN Embassy/ Body/ other notified individuals
 Special Economic Zone Unit
 GST TDS Collector – E-commerce Companies

26. WHO NEED TO COMPLETE REGISTRATION
OF GST
 A business that has a turnover of more than Rs. 40 lakhs to
register as a general taxable entity.
 Person supplying online information and database access or
retrieval services from a place outside India to a person who
is not a registered taxable person.
 Every e-commerce aggregator.
 Person who supplies via an e-commerce aggregator.
 Individuals registered under the pre-GST law.
 Those paying tax under the reverse charge mechanism.
 Agents of a supplier.
 Input service distributor.
 A non-resident taxable person or a casual taxable person

27. DOCUMENT REQUIRED TO COMPLETE
GST REGISTRATION
 PAN card.
 Aadhaar card.
 Business address proof.
 Bank account statement and cancelled cheque.
 Incorporation Certificate or the business registration proof.
 Digital Signature.
 Director’s or Promoter’s ID proof, address proof, and
photograph.
 Letter of Authorisation or Board Resolution from
Authorised Signatory.

28. GST CALCULATION FORMULA
Add GST:
 GST Amount = (Original Cost x GST%)/100
 Net Price = Original Cost + GST Amount
Remove GST:
 GST Amount = Original Cost - [Original Cost x
{100/(100+GST%)}]
 Net Price = Original Cost - GST Amount
Example of GST Calculation
In case a product is sold for Rs.2,000 and the GST rate
applicable to it is 12%, then net price of the product will be
Rs.2,000 + 12% of Rs.2,000 = Rs.2,000 + Rs.240 = Rs.2,240.

29. WELCOME