What is GST?

One Tax For

Manufacturing

Trading

ServicesONE NATION: ONE TAX

Existing Tax structure in India

Tax Structure

Direct Tax

Income Tax Wealth Tax

Indirect Tax

Central Tax

Excise Service Tax Customs

State Tax

VATEntry Tax, luxury

tax, Entertainment Tax, etc.

Proposed Tax Structure in India

Tax Structure

Direct TaxIndirect Tax = GST (Except

customs)

Intra- state

CGST (Central) SGST (State)

Inter State

IGST(CGST+SGST)

BENEFITS OF GST

• Reduction in Cascading of Taxes

• Overall Reduction in Prices

• Common National Market

• Benefits to Taxpayers

• Self-Regulating Tax System

• Non-Intrusive Tax System

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Decrease in

Inflation

Ease of Doing

Business

Decrease in “Black”

Transactions

BENEFITS OF GST

• Simplified Tax Regime

• Reduction in Multiplicity of Taxes

• Consumption Based Tax

• Abolition of CST

• Exports to become competitive

• Protection of Domestic Industry–

IGST on Imports5

Reduction in

Compliance Costs

Consuming

States

to Gain

Make in India

BENEFITS OF GST TO STAKEHOLDERS

Benefits for Trade & Industry‣ Ease of Compliance

‣ Removal of Cascading

‣ Uniformity of Tax Rates and Structure

‣ Improved Competitiveness

‣ Gain to Exporters and Manufacturers

Benefits for Governments‣ Simple and easy to administer

‣ Better control on leakages

‣ Higher Revenue efficiency

‣ Boost to Make in India Campaign

Benefits for Consumers‣ Simpler and transparent Tax System

‣ Relief in overall tax burden

TAXES TO BE SUBSUMED IN GST

STATE TAXES CENTRAL TAXES

•VAT/ Sales Tax

•Entertainment Tax (except for

those levied by the local

bodies)

•Luxury Tax

•Tax on Betting, Gambling,

Lottery

•Entry Tax

•Central Sales Tax

•Cesses and Surcharges to be

levied on State Taxes

•Central Excise Duty

•Additional duties of Excise

•Service Tax

•Duties levied under the

Medicinal and Toiletries

Preparation Act

•Countervailing Duty (CVD)

• Special Additional Duty

(SAD)

•Cesses and Surcharges to be

levied on Central Taxes

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The GST is a destination based consumption tax, which would

be applicable on the supply of goods or services.

It would be a dual GST with the Centre (CGST) and States

(SGST) simultaneously levying it on a common tax base.

The GST would apply to all goods other than following:

• Alcoholic liquor for human consumption and

• Five petroleum products (Petrol, Diesel, Crude Oil, Natural Gas and

ATF) in initial years of implementation of GST.

The GST would apply to all services barring a few specified

services.

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Tobacco and tobacco products would be subjected to GST.

In addition, the Centre could levy excise duty on these

products.

The CGST and SGST would be levied at rates jointly

decided by the GST Council, and notified buy

Government.

The GST Council has decided to fix the rate of tax in

such manner to maintain the present tax burden on

goods and services.

The exemption list is common for the Centre and the

States.

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SALIENT FEATURES OF GST

CGST and SGST would be applicable on Intra

State supplies.

CGST and SGST rate and amount would

be separately displayed in the invoice of

the dealer.

IGST would be applicable on Inter State

supplies including exports and imports.

IGST rate and amount would be separately

displayed in the invoice of the dealer in case

of inter State transactions.

SALIENT FEATURES OF GST

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CGST portion of the IGST levied on inter

state supplies would belong to Central

Government.

After reduction of the amount of CGST

portion from the IGST, the balance SGST

amount would be credited to the destination

State.

GST journey so far

YEAR MILESTONES ACHIEVED

6th May 2015 Lok-sabha passed 122nd Constitutional amendment Bill

3rd August 2016 Rajya-sabha passed the bill with Amendments

8th August 2016 Lok-sabha approved Amendments made in the Bill

2nd Sept. 2016 Bill ratified by more than half States including

Rajasthan.

8th Sept. 2016 Presidential Accent received

12th Sept. 2016 GST Council Constituted by GoI

16th Sept. 2016 101th Constitutional Amendment Act Notified by GoI.

Sept.,16 to till date Twenty two meetings of GST Council have been held so

far.

26th April 2017 Rajasthan GST Act Passed by the State Legislature.12

GST COUNCIL

GST Council is the largest body to decide on any

decision related to GST.

Under the Chairmanship of the Hon’ble Finance

Minister of India, the GST Council conducts

deliberations on various important issues relating

to tax rate, law and tax administration.

Central Minister of State for Finance and Finance

Ministers of all States are or nominated ministers

are members of the GST Council.

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GST COUNCIL

GST Council takes decision on consensus,

wherever possible.

If required, the Council may opt for voting.

Decision may be taken with 3/4th majority

(present and voting).

Voting rights of the Centre in GST Council is

one third of total votes and that of the States is

two third of the total votes.

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GST COUNCIL

GST Council will decide upon following issues:

Law, rules and procedures related to GST

Taxes & cesses that will be subsumed in GST

Exemption limit and turnover threshold for

composition.

Tax rates

List of exempted services

Decision to include petroleum products under GST.

Development of Dispute resolution mechanism

between States.

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Important decisions of GST Council:

Twenty two meetings of GST Council havebeen convened till date and followingdecisions have been taken by the Council:

• The threshold exemption for registration shallbe Rs. 20 lakhs (Rs 10 lakhs for the SpecialCategory States)

• The Composition threshold shall be Rs. A crorelakhs for traders, manufacturers and restaurants.

• Service Providers except restaurant will be noteligible to opt for composition.

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Important decisions of GST Council...

Tax Rates in GST:

Tax rates of all goods and services have been finalised by the GSTC.

The Council has decided five slabs of tax rates under GST viz. exempted,

5%, 12%, 18%, 28%. These slabs have been decided with following

principles for minimizing inflation.

Cess shall be part of the Compensation Act.

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Particulars GST rates Present rate structure

merging into GST rates

Lower 5.00% >= 3.00% - < 9.00%

Standard 1 12.00% >= 9.00% - < 15.00%

Standard 2 18.00% >= 15.00% - < 21.00%

Higher 28.00% >= 21.00%

Important decisions of GST Council...

Cross Empowerment:

Following decisions have been taken in the

Ninth Meeting of the GST Council

Taxpayers having turnover below 1.5 Crore in a

financial year, would be distributed between Centre

and State in the ratio of 10: 90 respectively.

Taxpayers having turnover above1.5 Crore in a

financial year, would be distributed equally between

Centre and State in the ratio of 50: 50.

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COMPENSATION TO THE STATES

• The base year for calculation of compensation would bethe revenue of FY 2015-16 at a projected growth rate of14%.

• Revenue to be compensated shall consist of all taxeslevied by the States and which are now proposed to besubsumed in GST.

• Compensation would be released bi-monthly against thefigures given by the Central Accounting Authoritytentatively and final adjustment shall be done after gettingaudited accounts for the year.

• The Compensation Fund will be sourced by a Cess leviedon certain demerit goods.

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Pending issues

Distribution of taxpayers.

Revision of rates of goods and services

Simplification of procedures

Extension of dates of filing of various Returns/

Forms

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GST Network

Frontend

Backend

GST Eco System

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GST: Preparedness of the State

TRAINING AND OUTREACH…

State of Rajasthan has already completed training of

all tax officials on GST Law and IT processes.

Two meetings of the GST Consultation Committee at

the State Level has been organized. Next meeting of

the Committee is proposed on 10th June, 2017.

More than 700 workshops have been organized

across the State to spread awareness about GST up to

30-05-2017 with participation of over 40000 dealers.

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TRAINING AND OUTREACH…

A Helpdesk has been set up in each Zone/

Division.

A centralised Call Centre with a toll-free number

18001806127 has also been set up.

E-mail: gstquery@rajasthan.gov.in at the State

Head quarters

Migration to GST

• More than 95% of existing VAT dealers have migrated to GSTN so far.

• More than 1 lakh new registrations have taken place on the GST network in Rajasthan.