GOODS AND SERVICES TAX

(GST)

Biggest Tax Reform Since Independence.

By :
1 1. Rojita Chingakham(17-23-106)
2. Divya Rashmi(17-23-119)
3. Manoj(17-23-101)
4. Sophia Debarrma(17-23-105)
5. Pritam Das(17-23-102)
2 Content:
What is Tax and GST?
GST in Global Scenario
What are the taxes that GST replaces
Types of GST
Comparison of Old system and GST(with example)
Supply chain
Slab of GST
Impact of GST
Advantages of GST
Key features
Hurdles of Implementation
3
What is Goods and Service Tax(GST)?

TAX - a liability charge from the Taxpayer during the each

financial year from a person in direct or indirect way.
- paid directly or indirectly.
- use for public interest and to pay off National Debt.

GST - i) one indirect tax for the whole nation, makes India one
unified common market.
- ii) single tax on the supply of goods and services, right from
the manufacturer to the consumer.
4 Contd
Introduced to curb the black money in the market.
Introduction of GST is going to increase the GDP by 2% in the long
run.
Lauched in India in order to:
1)To reduce the complications of Taxes
2)To improve the system of indirect taxes and as well as the
problems like double taxation.
GST would combined several central and state taxes into one tax.
5 GST Global Scenario:

More than 140 countries have already introduced GST/National

VAT.

France was the first country to introduce GST system in 1954.

Typically it is a single rate system but two/three rate systems are

also prevalent. Canada and Brazil alone have a dual VAT.

Standard GST rate in most countries ranges between 15-

20%.
 What are the Taxes that GST replaces?
6
Direct Taxes
e.g. Income tax, Corporate tax,
Wealth Tax etc.
Central
Replaced by GST
*Service Tax
Taxes in India
*Excise Duty
*CST
*Custom etc.
Indirect Taxes

State
*VAT
*Entry Tax
*Luxury Tax etc.
7 Types of GST:

When goods and services tax is implemented, there would be three

types of taxes applicable which are :
Cgst: revenue will be collected by the central government.

Sgst: revenue will be collected by the state government for intra-
state sales(inside the state itself).

Igst: revenue will be collected by the central government for inter-
state sales (outside the state).
8 Transaction New regime Old regime Comments

Sale within the state Cgst+sgst Vat+central Revenue will now be

excise/service tax shared between the
central and the state

Sale to the another state igst Central sale There will only be one
tax+excise/services type of tax (central)
tax now in case of inter-
state sale.
9
How will gst function?

Cgst
Cgst stands for central gst
This is applicable on supplies wihtin the state
Tax collected will be shared to central

Sgst
Sgst stands for state gst
This is applicable on supplies wihtin the state
Tax collected will be shared to state

Igst
Igst stands for integrated gst
This is applicable on inter-state and import
transaction
Tax collected is shared between central and the
state
10
Benefits of GST:

Removing cascading tax effect.

Higher threshold for registration.
Composition scheme for small business.
Online simpler procedure under gst.
Lesser compliances
Defined treatment for e-commerce.
Increased efficiency in logistics.
Regulating the un-organised sector
 Supply Chain
11
 Slab of GST
12
13
14 Impact of GST

Impact on SMEs
Impact on Economy
Impact on Consumers
Impact on readymade garments
Impact on manufacture
15
GST Advantages

1. GST is a transparent tax and also reduce number of indirect taxes.

2. GST will not be a cost to registered retailers therefore there will be no hidden taxes
and and the cost of doing business will be lower.
3. Benefit people as prices will come down which in turn will help companies as
consumption will increase.
4. There is no doubt that in production and distribution of goods, services are
increasingly used or consumed and vice versa.
5. Separate taxes for goods and services, which is the present taxation system, requires
division of transaction values into value of goods and services for taxation, leading to
greater complications, administration, including compliances costs.
16
6. In the GST system, when all the taxes are integrated, it would make
possible the taxation burden to be split equitably between manufacturing and
services.
7. GST will be levied only at the final destination of consumption based on
VAT principle and not at various points (from manufacturing to retail outlets).
This will help in removing economic distortions and bring about development
of a common national market.
8. GST will also help to build a transparent and corruption free tax
administration.
9. Presently, a tax is levied on when a finished product moves out from a
factory, which is paid by the manufacturer, and it is again levied at the retail
outlet when sold.
10. GST is backed by the GSTN, which is a fully integrated tax platform to
deal with all aspects of GST.
17
GST : Key Features

HSN to be applied for goods.

Uniform return & collection procedure for

central and state GST.

13 digit PAN based common TIN Registration.

TINXSYS to track transactions

 Product Excluded from
18
GST

Petroleum Product
Alcohol
Tobacco Product
19 Hurdles in Implementation

Dispute between centre and Tax over Tax

Sharing.
Highly sophisticated IT infrastructure
required .
Issue of taxing e-commerce is to be
appropriately addressed and integrated.
Political Imbalace.
20

Thank You