Goods and Services Tax

Constitution (122nd Amendment) Bill,2014

Goods and Service Tax

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Contents

Current Indirect Tax System

Introduction to GST

Comparison

Impact

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Goods and Service Tax (GST) is a comprehensive tax levy on

manufacture, sale and consumption of goods and service, under which no

distinction is made between goods and services for levying of tax.

What is GST ?

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Our Current Indirect Tax System

Central Taxes

State Level Taxes

Excise Duty

Service Tax

Custom Duty

Entry tax / Octroi

VAT Entertainment Tax

Goods and Service Tax

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As per Mr. Narendra Modi GST- Great Step towards Transformation

Introduction of GST

GST will be a game changing reform for Indian economy

Eliminating the Cascading Effect of Tax

Complete Overhaul of the current indirect tax system.

Far reaching impact on almost all the aspects of the business operations

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France was the first country to introduce GST in 1954.

History

Worldwide, almost 160 countries have introduced GST in one or the other form since now.

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The idea of moving towards the GST was first mooted by the then Union Finance Minister Shri P. Chidambaram in his Budget for 2006-07

The Empowered Committee of State Finance Ministers (EC) was formulated Come up with a roadmap and structure for the GST.

The EC released its First Discussion Paper (FDP) on the GST in November, 2009. The basis for discussion between the Centre and the

States so far.

Model of GST law has been formulated on 14 June 2016 as Goods and Services Tax Act, 2016.

Genesis

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Implication of GSTGST would be a destination based tax as against the present concept of origin based tax.

Free movement of goods and services and no Cascading effect

GST would apply to all goods and services except Alcohol for human consumption, Electricity and Real Estate.

GST on petroleum products would be applicable from a date to be recommended by the GSTC.

Compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period of five years

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GST Model Total 117 GST @18% 21.06 S.B.C @0.20% 0.230 K.K.C @0.20% 0.230 Total (incl all taxes) 138.52

Comparison

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NOInitially, GST was a single centralized indirect tax in which tax is to be collected by center and then distributed between

center and state government.It was rejected at the initially stage only.

Both the state and central government will impose and collect

tax on single transaction

State Goods and Service Tax(SGST)

Central Goods and Service Tax(CGST)

GST

Is GST a single tax?

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Impact of GST across Sectors

MEDIA

DTH, film producers and

multiplex players levy

service tax as well as

entertainment tax.

Impact:-Taxes would go down by 2-4%

TELECOM

Positive:-Handset prices

would come down.

Negative:-Call charges

data rates will go up, if GST rate exceeds 15% and the

proposed rate is 18%

E-commerce

Positive:-Single unified

market with free movements of

goods

Negative:-GST regime will

increase administration, documentation workload for

ecommerce firms and push up

costs.

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Thank You

Made by:- Rishabh Aggarwal (301)Epsilon