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GST Presentation - 2010 Final

The document discusses the implementation and benefits of the Goods and Services Tax (GST) in India, highlighting its structure and the transition from the old tax regime. It outlines the taxes subsumed under GST, its features, and the advantages such as reduced cascading of taxes and a unified national market. Additionally, it addresses limitations of GST and concludes that it is a significant step towards comprehensive indirect tax reforms in India.

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kalluprasad406
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2 views29 pages

GST Presentation - 2010 Final

The document discusses the implementation and benefits of the Goods and Services Tax (GST) in India, highlighting its structure and the transition from the old tax regime. It outlines the taxes subsumed under GST, its features, and the advantages such as reduced cascading of taxes and a unified national market. Additionally, it addresses limitations of GST and concludes that it is a significant step towards comprehensive indirect tax reforms in India.

Uploaded by

kalluprasad406
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BENEFITS OF

EARLIER
REGIME IN
INDIA

Old Tax
Structure

Indirect
Direct Tax
Tax

Income Wealth Central


State Tax
Tax Tax Tax

Entry Tax,
Service
Excise Custom VAT Lottery Tax,
Tax
Luxury Tax
GST was first implemented in France in 1954 .
India’s GST based on Canadian model .
GST in India was made on recommendation of Vijay Kelkar
Committee .
First state to implement GST was Assam .
Amitabh Bachchan is the Brand Ambassador of GST .
GST has been implemented under Article 279 of Indian
Constitution .
GST Council was formed by President of india in Sept. , 2016 .
At present Finance Minister Arun Jaitely is the Chairman of GST
Council.
GST council has 31 member at present .
GST implemented by 101 Constitution Amendment Act,2016 .
TAXES AND DUTIES NOT SUBSUMED IN GST

State excise duty on alcoholic liquor for human


consumption;
Taxes on entertainments and amusements to the
extent levied and collected by a Panchayat or a
Municipality or a Regional Council or a District
Council;
Specific cesses (other than relatable to supply of
goods and services);
Stamp duty on transfer of immovable property;
Tax on consumption or sale of electricity;
TAXES SUBSUMED IN

CENTRAL LEVIES SUBSUMED STATE LEVIES SUBSUMED


1. Central Excise Duty and 1. State Surcharges as Cesses in
Additional Excise Duty so far as they relate to supply
of goods and services
2. Service Tax
2. Entertainment tax (except
3. Excise Duty under
those levied by local bodies)
medicinal and Toilet
Preparation Act 3. Tax on lottery , betting and
gambling
4. CVD and Special CVD
4. Entry Tax (All Forms) and
5. Central Sales Tax
Purchase Tax
6. Central Surcharges and
5. VAT/ Sales Tax
Cesses in so far as they
relate to supply of goods 6. Luxury Tax
and services
7. Taxes on advertisements
What is GST ?

Goods and services tax is a indirect tax. It is


destination based tax on consumption of goods
and services.it levied on all stages from
manufacturing to final consumption with credit
of taxes ( ITC) paid at previous stages available
as setoff. The whole burden of tax is borne by
consumer.
FEATURES OF
One indirect tax system
Comprehensive value added tax on goods and
services
Destination based consumption tax
Multi - point taxation along the supply chain of goods
and services
Dual tax structure
Integrated GST on inter - state supplies
Supply without consideration
Imports/ Exports
Exemptions / Concessions
Compliance /Tax Administration
CONCEPT OF GST
REMOVES
CASCADING
EFFECT
CREATION OF UNIFIED
NATIONAL MARKET
EARLIER TAX REGIME

MAHARASHTRA : GUJRAT:
VAT@Nil On Sugar VAT@4% On Sugar

GST SYSTEM

GST@5% ON SUGAR in INDIA


ELIMINATION OF MULTIPLE
TAXES

Central Excise Service Tax VAT


(On Manufacturing) (On provision of (On sale of
Service) Goods)
REDUCTION IN
ADMINISTRATION
COST &
COMPLIANCES
Elimination of Multiple
Registrations

Central
Excise
REDUCTION OF PAPER USE

As every
process in
GST involve
online
procedure it
helps in
reduction of
paper
wastage.
BOOST TO MAKE IN INDIA
INITIATIVE
❑ Exports to be zero
rated.
❑ Increase Foreign
investment.
❑ Protection to
domestic
industries-IGST.
BENEFITS OF GST

➢ Reduction in cascading of taxes


➢ Overall reduction in prices
➢ Common national market
➢ Benefits to small taxpayers
➢ Self-regulating tax system
➢ Non-intrusive electronic tax system
BENEFITS OF GST

➢ Simplified tax regime


➢ Reduction in multiplicity of taxes
➢ Consumption based tax
➢ Abolition of CST
➢ Exports to be zero rated
➢ Protection of domestic industries-
IGST
BENEFITS OF GST

➢ DECREASE IN INFLATION
➢ EASE OF DOING BUSINESS
➢ DECREASE IN BLACK
TRANSACTION
➢ MORE INFORMED CONSUMER
➢ POORER STATES TO GAIN
➢ MAKE IN INDIA
OTHER BENEFITS
❑ Reduces number of floor rates.
❑ Reduces corruption.
❑ Promotes neutrality in taxation.
❑ Transactions can be tracked from
origin to consumption.
LIMITATIONS OF GST

➢ Increase cost due to software


purchase
➢ Hardship in GST compliance
➢ Increase in operational cost
➢ Effective in the middle of the
financial year
➢ An online taxation system
➢ SME’s will have higher tax burden
LIMITATIONS OF GST

➢ Petroleum & liquor are not at tax


regime
➢ No anti inflationary
➢ Costlier services
➢ Administration complexities
➢ Registration in each state
➢ Stamp duty is also out of tax regime
CONCLUSION:
GST is the most logical steps towards the
comprehensive indirect tax reforms in our country.
GST is levied on all supply of goods & services, it is
destination based taxation system.
GST is all set to integrate state economies and
boost Overall growth. GST will create a single,
unified Indian market to make the economy
stronger.
TOPIC-

✓ STRUCTURE OF GST
 SGST
 UTGST
 CGST
 IGST
✓ BENEFITS OF GST
✓ LIMITATIONS OF GST
Structure of GST:

STATE STATE

SGST+CGST IGST SGST+CGS


T

INTRA- STATE INTER-STATE SUPPLY INTRA-STATE


SUPPLY SUPPLY

IGST IGST INTER-STATE SUPPLY

UTGST+CGST

FOREIGN TRADERS
IGST INTRA-STATE SUPPLY
IMPORT-EXPORT
UNION TERRITORY
GST STRUCTURE IN INDIA

GST
SGST/UT
IGST GST CGST
PRE-GST INDIRECT TAX STRUCTURE IN INDIA

CENTRAL TAXEX STATE TAXEX


➢ Central excise duty ➢ State VAT / sales tax
➢ Additional duties of excise ➢ Central sales tax
➢ Excise duty levied under medicinal ➢ Purchase tax
& toiletries preparation act ➢ Entertainment tax
➢ Additional duties of customs(SAD & ➢ Luxury tax
CVD) ➢ Entry tax
➢ Service tax ➢ Taxes on lottery, betting &
➢ Surcharges & cesses gambling
➢ Surcharges and cesses
GS
T

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