GST

TANVEER
Introduction :

GOODS AND SERVICE TAX (GST)

GST is comprehensive tax mechanism where in all major indirect taxes
are clubbed into one, whether they are levied on services(service tax)
or goods(excise and vat).

The goods and service tax is a Value Added Tax (VAT) to be

implemented in India, from April 2017.

One of the aims of introducing GST is to reduce the cascading effects

of taxes which is the primary focus of VAT but vat system is not
comprehensive enough to do so.
 GS
T

Central State GST

GST
1. Central excise duty 1. VAT Purchase
2. Additional excise duty 2. tax
3. Service tax 3. Entertainment tax
4. Countervailing duty(CVD) 4. Luxury tax
5. Additional duty of customs(ADC) 5. Lottery tax
6. Surcharge, Education and 6. State surcharge and cesses
Secondary/Higher secondary cess leviable on the above as of now
Advantages of GST
:
Ease of doing business
Attractive for foreign investors
FDI
No tax evasion
Inventory cost will fall
Make in India
Common market
Manufacture goods could become cheap
GDP lift
PRESENT TAX SYSTEM

Product sold from Mumbai to Nagpur VAT @ 10% = Rs 100

Price = Rs 1000

Product sold from Nagpur to

Chennai
Total Cost Price = Rs 1100
Rs -2310 CST @ 10% = Rs
210 Profit =1000
Sale Price =Rs2100
GST SYSTEM

Product sold from Mumbai to Nagpur CGST @ 5% = Rs

Price = Rs 1000 50
SGST @ 5% =Rs
50

Product sold from Nagpur to

Chennai
Total Cost Price = Rs 1100
Rs -2210 IGST @ 10% = Rs
210 Profit =1000

Less: Sale Price =Rs2100

CGST
SGST
commodities not included in GST

Alcohol
Petroleum Products
Tobacco Products
Taxes not included in GST

Stamp Duty
Property Tax
Toll Tax
Electricity Tax
Advantages

Boost Economic Growth

Streamline domestic supply chain
Reduce compliance burden
Removes contradictory tax regimes
Increase global competitiveness
Government

Increases GDP
Enhanced Revenue
Improved Ranking
Trade and Industry

Reduction in cost
Enhanced Margins
Reduction of Litigations
Consumers

Same quality and Reduced price

Slabs

5%
12%
18%
28%
Tax rates Applicable

0% Food grains

5% mass consumption like spices,

tea and mustard oil
12% washing machines, air
conditioners, refrigerators,
shampoo, shaving stuff and
soap

18% Ordinary cars and bikes.

28% Luxury Cars, Pan Masala,

Tobacco products, Aerated
drinks.
 CONCLUSION
1. PROCESS AND NOT AN EVENT.
2. IMPLEMENTATION
3. INCREASE IN GDP
4. BENEFITS AN INDIVIDUAL
5. INFLATION CAN BE SUSTAINED.
THANK YOU