Professional Documents
Culture Documents
First Edition,
Copyright 2016 Jayaram Hiregange & Deepak Rao
GST may be a new concept for India, but has its presence
in various developed as well as developing countries.
GST has helped those countries in streamlining the
indirect taxes. It has also provided businesses an
opportunity to efficiently manage their indirect taxes. For
the record, GST is already implemented in many countries
across the world.
Jayaram Hiregange
Deepak Rao
Chapter 1
Overview of Indirect taxes
Export Incentives
Export of goods and services from India are
incentivised under the existing indirect tax regime. The
twin objectives of the central government and state
governments were to remove the burden of taxes from
the goods and services exported from India in order to
make them competitive in the overseas market and to
earn foreign exchange. Some of the existing export
incentives are; Export Promotion Capital Goods
Scheme (EPCG), Advance Authorization Scheme,
Duty Drawback Scheme, Merchandise Exports from
India Scheme (MEIS), Service Exports from India
Scheme (SEIS), Refund of Input service tax, Rebate of
output tax etc. In all the above schemes, either the
input or the output taxes on the goods and services are
eliminated or refunded to make it tax free.
Departmental Framework
Under the existing indirect tax regime, the Central
Board of Excise & Customs (CBEC) acts as the
mother organisation for all the central legislations
(excise duty, service tax and customs). The
departments formed under the respective state
governments regulate the state level indirect taxes of
VAT, CST and Entry tax.
Benefits to Governments
Benefits to Consumers
Benefits to Governments
Expansion of Tax Base
Increase in Revenue
Streamlining of Administration
Reduction in Litigation
Self-Assessment
- The indirect tax compliances under the existing
indirect tax regime has gradually shifted from
departmental assessment to self-assessment. The
indirect tax payments and tax returns filed by the
businesses are no longer required to be scrutinised and
authorised by the department prior to payment of
taxes or filing of returns. However, businesses are
subject to audits and investigations by the department
to flush out tax evasions.
Benefits of GST
Benefits to Consumers
Possible cheaper goods and services
Conceptualisation Stage
Implementation Stage
Administration and Management Stage
Conceptualisation Stage
Types and Number of GST
Rate of Tax
Threshold
Inter-State Transactions
GST Legislations
GST Challenges
Implementation Stage
Transitional Provisions
IT Infrastructure
Information Technology (IT) infrastructure setup by
governments for administration of GST would play a
crucial role in the success of GST implementation in
India.
Business Structuring
GST Council
Exceptions
Technology Based
Self-Assessment Mode
Reduction in Corruption
But both the CENVAT and the State VAT have certain
incompleteness. The incompleteness in CENVAT is that
it has yet not been extended to include chain of value
addition in the distributive trade below the stage of
production. It has also not included several Central
taxes, such as Additional Excise Duties, Additional
Customs Duty, Surcharges etc. in the overall
framework of CENVAT, and thus kept the benefits of
comprehensive input tax and service tax set-off out of
the reach of manufacturers/ dealers. The introduction
of GST will not only include comprehensively more
indirect Central taxes and integrate goods and services
taxes for set-off relief, but also capture certain value
addition in the distributive trade.
BILL
"246A.
in clause (1 ).
petroleum crude;
natural gas;
WT = WC+WS
Where.
Wherein
New Delhi;
CONSTITUTION OF INDIA
Source Credit