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Introduction To GST in India

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4 views

Introduction To GST in India

Uploaded by

mayankyadav9008
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to

GST in India
The Goods and Services Tax (GST) is a comprehensive, multi-stage
tax levied on goods and services in India. It replaced numerous
indirect taxes that existed previously, creating a unified system for
taxation across the country.

TY
by Tashu Yadav
What is GST?
GST is a value-added tax imposed on the supply of goods and
services at each stage of the production and distribution chain. It is
a destination-based tax, meaning that it is levied at the point of
consumption, not at the point of origin.

1 Unified Tax System 2 Destination-Based


Consolidates multiple Tax is levied at the point
indirect taxes into a of consumption, not
single system. origin.

3 Value-Added Tax 4 Digitalized Processes


Only the value added at Facilitates online
each stage of the supply registration, filing, and
chain is taxed. payments.
Objectives of GST
The main objectives of GST were to simplify the tax system, boost economic growth, and promote national
integration. It aimed to eliminate cascading effects of taxes, reduce compliance costs, and facilitate seamless inter-
state trade.

Simplification Economic Growth National Integration

Reduced complexity of multiple taxes. Boosting trade and investment. Harmonizing taxation across states.
GST Rates and Slabs
GST rates are divided into different slabs, ranging from 0% to 28%.
The rate applicable to a particular good or service depends on its
nature and category. Certain essential items have a lower GST rate,
while luxury items are taxed at a higher rate.

0% Essential Items

5% Certain Food Items, Medicines

12% Consumer Goods, Services

18% Most Goods and Services

28% Luxury Goods, Automobiles


GST Registration Process
GST registration is mandatory for businesses exceeding a certain
turnover threshold or dealing in specific goods and services. The
process involves online application, document verification, and
issuance of a unique GST identification number (GSTIN).

1 Online Application
Submitting application through GST portal.

2 Document Verification
Submitting required documents for verification.

3 GSTIN Issuance
Receiving unique GST identification number.
Input Tax Credit under GST
Input Tax Credit (ITC) is a mechanism where businesses can claim credit for the GST paid on their inputs (goods and services
purchased). This credit can be used to offset the GST payable on their outputs (goods and services sold).

Purchase Input Pay GST on Input Claim ITC Offset Output Tax
Business purchases goods Business pays GST to Business claims credit for ITC is used to reduce GST
or services. supplier. GST paid. liability.
Compliance Requirements
under GST
Businesses registered under GST are required to comply with
various rules and regulations, including filing returns, paying taxes,
maintaining records, and issuing invoices. Timely and accurate
compliance is essential to avoid penalties.

Filing Returns Tax Payments


Regularly filing GST returns Paying GST liabilities on time.
with details of transactions.

Record Keeping Invoice Issuance


Maintaining accurate Issuing GST-compliant
records of transactions. invoices to customers.
Impact of GST on Businesses
GST has had a significant impact on businesses in India. While it brought
initial challenges, it has resulted in increased transparency, simplified
compliance, and a level playing field for businesses.

Increased Transparency Improved Business Efficiency


Reduced tax evasion and a more Simplified tax compliance and
transparent tax system. reduced costs.

Enhanced Competitiveness Increased Revenue


Created a level playing field for Boosting economic growth and
businesses. government revenue.
Challenges and Issues in
GST Implementation
The implementation of GST in India has encountered several
challenges, including initial glitches in the IT system, complexities in
the tax structure, and concerns regarding compliance.

1 IT System Glitches 2 Tax Structure


Complexities
Initial technical issues in
the GST portal. Understanding and
navigating different GST
rates and rules.

3 Compliance Burdens 4 Lack of Awareness


Businesses struggling to Some businesses and
meet reporting and consumers unfamiliar with
compliance requirements. GST.
Conclusion and Future Outlook of GST in India
GST has revolutionized the Indian tax landscape, bringing numerous benefits. While challenges remain, continuous
improvements are being made to enhance the system, ensuring a more efficient and robust tax regime for the future.

Enhanced Tax Compliance Economic Growth and Investment


Greater compliance and a reduction in tax evasion. Boosting economic growth and attracting foreign investment.

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