GOODS AND SERVICE TAX

WHAT IS GST? It is an indirect tax for the whole

nation. GST is the single tax on the supply of

goods and service right from the manufacturer to the consumer.

The final consumer will thus bear only the GST charged by the last dealer in the supply chain.

WHICH OTHER TAXES AT THE CENTRAL AND STATE LEVEL ARE BEING INCLUDED IN GST?

At CENTRAL level. Central Excise Duty. Additional Excise

Duty. Service Tax. Additional custom

Duty commonly known as Countervailing Duty.

Additional duties on customs.

At STATE level. Includes state value

added tax. Entertainment Tax. Octroi. Purchase Tax. Luxury Tax. Taxes on lottery.

RATIFICATION States and union territories of India that

have ratified the Goods and Services Tax Bill.

Assam (12 August) Bihar (16 August)[

Jharkhand (17 August) Himachal Pradesh (22 August) Chhattisgarh (22 August) Gujarat (23 August) Madhya Pradesh (24 August) Delhi (24 August) Nagaland (26 August) Maharashtra (29 August)]

Haryana (29 August) Telangana (30 August) Sikkim (30 August) Mizoram (30 August) Goa (31 August) Odisha (1 September) Puducherry (2 September) Rajasthan (2 September) Andhra Pradesh (8 September) Arunachal Pradesh (8 September) Meghalaya (9 September) Punjab (12 September) Tripura (26 September)

Did not ratify:

Jammu and Kashmir Karnataka Kerala Manipur Tamil Nadu Uttar Pradesh Uttarakhand West Bengal

OBJECTIVES OF GST The main objective of GST would be to eliminate

the DOUBLY TAXATION i.e. cascading effects of taxes on production and distribution cost of goods and services.

The exclusion of cascading effects i.e. tax on tax till the level of final consumers will significantly improve the competitiveness of the original goods and services in market.

Introduction of GST to replace the existing multiple tax structures of centre and state taxes is not only desirable but imperative.

G ST, being a destination-based consumption tax based on VAT principle.

BENEFITS.

RATES OF GST AUSTRALIA - 10% FRANCE - 19.6% CANADA - 5% GERMANY - 19% JAPAN - 5% SINGAPORE - 7% NEW ZEALAND - 15%

There would be two rate structure– a lower rate fir necessary items and items of basic importance & a standard rate for goods in general. A special rate for precious metals

ADVANTAGES AND BENEFITS Advantages of GST Bill*Introduction of a GST is very much essential in the emerging environment of

the Indian economy.

There is no doubt that in production and distribution of goods, services are increasingly used or consumed and vice versa. 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 co mpliances costs. 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.

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.

It will also help to build a transparent and corruption-free tax administration. 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.

Benefits of GST Bill*According to experts, by implementing the GST, India will gain $15 billion a

year. This is because, it will promote more exports, create more employment opportunities and boost growth. It will divide the burden of tax between manufacturing and services.

DISADVANTAGES

CONSEQUENCES.

THANK YOU.