GST GOODS AND SERVICE

TAX

INTRODUCTION

GSTONE COUNTRY-INDIAONE RELIGION-CRICKET ONE NATIONALITY-IN-DIANONE TAX-GST• FIRST INTRODUCED BY FRANCE

• ABOUT 160 COUNTRIES IN THE WORLD HAVE THE SIMI-LAR SAME SYSTEM OF TAX AS GST

• THIS TAX REFORM CAN LITERALLY TRANSFORM A COUN-TRY INTO MANUFACTURING HUB FROM SERVICE SECTOR HUB

• IT WILL CAUSE AN INCREASE OF 1%-2% INCREASE IN GDP CREATING MORE JOBS,MORE OPPURTUNITIES, MORE DEVELOPMENT FOR THE COUNTRY AS A WHOLE

GST

• THE GST BILL WAS INTRODUCED BY MR ARUN JAITELY THE FINANCE MINISTER IN LOK SABHA AND PASSED THE HOUSE ON MAY 6 2015

• IN RAJYA SABHA THE BILL WAS REFERRED TO SELECT COMMITTEE ON MAY 14 2015 THE SE-LECT COMMITTEE SUBMITTED ITS REPORT ON THE BILL ON JULY 22 2015

• THE BILL WAS PASSED ON RAJYA SABHA ON AUG 3 2016 AND THE AMENDED BILL WAS PASEED BY LOKSABHA ON AUGUST 8 2016

GST

GST EFFECTS

GSTEFFECT ON COMMON PEOPLE

• PRICES OF GOODS WILL BE REDUCED • PRICES OF SERVICES WILL INCREASE• WILL HELP IN CONTROLLING CORRUPTION• EXAMPLES ON EFFECT OF COMMON PEOPLE• THE PRICES OF CARS WILL BE REDUCES AS GST RATE WILL BE LESS

THAN VAT AND EXCISE DUTY• MOBILE PHONES AND MOBILE NETWORK WORKS WILL CHARGE

MORE AS SERVICE SECTOR AND THE TAX ON MFG OF MOBILES IS SET TO INCREASE AS PART OF GST RATE

• LUXURY ITEMS LIKE LUXURY CARS,JEWELLERY WILL BECOME MORE COSTLY AS THE GST RATE IS AROUND 28%-40%

• HELPFUL IN PAYING TAX RETURNS AS ONLY 3 INDIRECT TAXES ARE LEIVED

GST

GSTADVANTAGES OF GST

• HELPFUL IN MAKE IN INDIA MFG HUB AS TAXES ON MANUFACTUR-ING AND GOODS ARE REDUCED.

• EASY FOR TAXATION FROM GOVERNMENT(CENTRAL AND STATE)• HELPFUL IN REDUCTION OF CORRUPTION AND BLACK MONEY• CAUSES 1%-2% INCREASE IN GDP CREATING ABOUT 15 MILLIONS

US DOLLARS A YEAR FOR THE OVERALL DEVELOPMENT OF ECON-OMY

• HELPFUL FOR EXPORTS AS TAXES ARE ALMOST ABOLISHED ON EX-PORTS

• HELPFUL IN TELLING THE CONSUMER ABOUT WHAT THE TAXES HE IS PAYING FR THE GOODS AND SERVICE RECEIVED

• ENTIRE INDIA WILL BECOME INTO A UNIFIED MARKET• HELPFUL IN THE OVERALL DEVELPEMENT OF THE ECONOMY RATHER

THAN JUST DEVELOPMENT OF SOME STATES

GSTDISADVANTAGES

• SERVICES WILL BECOME MORE EXPENSIVE WHICH ARE GOING TO EFFECT

BANKING MEDICAL IT AND ITES• CENTRAL GOVERNMENT HAS TOO MUCH CONTROL OVER STATES.IF

DIFFERENCES OCCUR,IT CAN BE CRITICAL FOR STATE • LOSS OF REVENUE TO STATE GOVERNEMENTS AS ALL INDIRECT

TAXESA ARE ABOLISHED AND STILL NOT CLEAR HOW REVENUE DEFICIT WILL BE GIVEN BY THE CENTRAL GOVERNMENT

GSTDISADVANTAGES

• IMPORTERS HAVE TO SPEND MORE TO INCREASE TAXES THROUGH CGST AND SGST

• IF HANDLED IMPROPERLY THE WEALTH WOULD GROW BUT THE DE-VELPEMENT WILL BE SAME

• PETROLEUM PRODUCTS ARE LEFT OUT AS OF NOW AND IT IS NOT CLEAR ABOUT THEIR FATE IF GST IS TO BECOME SUCCEFUL THEN PETROLEUM PRODUCTS HAVE TO INCLUDED IN THE UPCOMING YEARS

GST

GSTCONCLUSIONS

• THE CENTRAL GOVERNMENTS AND STAE GOVERNEMENTS HAVE TO LEAVE POL-ITICS ASIDE AND WORK TOGETHER TO MAKE GST SUCCEFUL AS POSSIBLE

• THOUGH THE SHORT TERM EFFECTS CAN CASUE A RISE IN INFLATION LONG TERM EFFECTS ARE VERY MUCH BENEFICIAL FOR THE COUNTRY

• TAX RATES OF DIFFERENT STATES HAVE TO BE MONITORED FOR THE IMPLE-MENTATION OF GST WHICH REQUIRES THE CO OPERATION OF INTER STATE GOVERNMENTS

• IT INFRASTRUCTURE OF GST HAS TO BE EXAMINED AND IMPLEMENTED WITH HIGH PRECISION AND SECURITY SO AS TO MAKE THE CITIZENS BELIEVE THAT THE TAX SYSTEM IS VERY SECURE AND EASY FOR PAYMENT OF TAXES

• PETROLEUM PRODUCTS ALSO HAVE TO BE INCLUDED FOR THE OVERALL IM-PLEMENTATION OF GST AND REVENUE SHARING HAS TO BE HANDLED VERY CAREFULLY

• MANUFACTURING HAS TO BE THE AGENDA OF THE GOVERNMENT AS WITH THE MAKE IN INDIA PROGRAM WHICH WILL BE A TURNING POINT DECIDING WHETHER INDIA REMAINS A DEVELOPING OR DEVELOPED COUNTRY

GST

GST

GST END

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