GST ( Goods & Service Tax )

• Indirect Taxes- A Journey of reforms•Existing Tax & Proposed•GST•Benefits •Main Issues in GST implementation•Opportunity for Professional•Subsumation of Taxes•GST The biggest Tax Reform

Indirect Taxes- A Journey of Reforms

Sales Tax & CST

Central Excise

Service taxVAT

Tax Structure

Direct

Income Tax

Wealth Tax

Indirect

Central Tax

ExciseService

taxCustom

Sales Tax

VAT Entertainment Tax,

Luxury Tax etc.

Tax Structure

Direct

Income Tax

Wealth tax

Indirect

Intra State

CGST SGST

Inter-State

IGST

G•Goods

S•Service

T•Tax

1)GST is the next Generation of reforms in the

area of Indian Indirect Tax Reform.

2)It is a comprehensive Tax which would

eliminate most of the other indirect tax

prevailing in India, like Service Tax , VAT,

CST, Excise.

3)Most probably would be effective by 1 April

2016

4)First was introduced in France in 1954 &

now prevalent iun 150 other countries world

wide.

GST can be divided into these

to parts to explain it better.

Charging Tax

Getting Credit

The dealers registered

under GST are required

to charge GST at the

specified rate of tax on

goods & services that

supply to customers

If the recipient of goods

& services is a

registered dealer, he

will normally be able to

claim a credit of the

amount of GST he paid,

provided he holds a

proper tax invoice.

The net effect is that dealers

charge GST but do not keep

it, and pay GST but get a

credit for it. This means they

act essentially as collecting

agents for Government. The

ultimate burden of tax falls on

last and final consumer of

goods & services, as this

person does not get any

credit for the GST paid by

him to sellers and service

providers.

Benefits of GST

Simpler Tax

Structure

Boosts to

Exports

Competitive Pricing

Increased Tax Revenu

es

Petrol Tax

Entry TaxCompensation

Issue

Matter Compensation Entry Tax Petrol Tax

Proposed 3 years

compensation

Not to be

subsumed

Not to be

subsumed

States Rejects Rejects Rejects

Remedy 3 full years & 2

part years

compensation

To be Subsumed Not to be

subsumed

GST(Goods & service Tax)

CGST(Central)

Central Excise Duty

Additional Excise Duty

Service tax

Special Additional

Duty

Surcharge

CESS

SGST(State)

Value Added Tax

Sales Tax

Entertainment Tax

Tax on lottery

State cess & Surcharges

India is all set to roll out the largest indirect

tax reform since Independence 1947.

Finance minister Arun Jaitley is expected to

table the Constitution Amendment Bill in the

current session of Parliament to meet the

deadline of April 1, 2016, for its introduction.

For the tax to be implemented, the

constitution has to be amended & consensus

must be reached within states.