Professional Documents
Culture Documents
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´A government should tax its
people like a shepherd shears his
flock or a bee gets nectar from a
flower µ
««.. Chanakya
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GST-Global Scenario
Present Structure
Rate of GST
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The following indirect taxes apply
Manufacturing units need to pay an on goods produced in India. The duty varies between products and the unit is
required to periodically deposit the duty on removal of products. Furthermore, these units are to maintain detailed stock records
and accounts in respect of duty payable on final goods, credit claimed on inputs etc and submit annual returns. Submission
dates are linked to level of operations.
Movement of goods across borders would need compliance to
regulations. This duty varies between products. The
compliance requirement includes determination and deposit of duty prior to clearance of goods by the customs authority.
6usinesses rendering specified services are liable to a
at 12 percent plus on the billable value. They
are required to monthly deposit the tax collected.
6esides, certain states of India levy on movement of goods.
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%
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VAT on tea is 4% in Assam, West 6engal and Delhi but 12.5% elsewhere.
VAT on capital goods figuring in 4% list, but taxed at 12.5% in Mah and AP.
LPG - 9% in Assam
- 12.5% in Delhi
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Manufacturer ! ! ! ! ! !)!(
Typically it is a single rate system but two/three rate systems are also
prevalent depending upon the requirement of the implementing nation
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Only by the States; Centre has no role To be imposed by the Centre and the
States in coordination
Replaces only the State sales tax; Will replace central excise and service
central excise and other taxes are tax etc. imposed by the Centre, and
unaffected VAT, entry tax etc. imposed by the
States
No input tax credit for inter-State Tax paid in exporting State would be
transactions available as credit against inter-State
transactions
# $ * +
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The JWG had been entrusted with the task of studying global GST
models and identify alternate models for introduction in India
6asic Structure
Central GST and State GST to operate throughout the supply / value
chain
(VAT)
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Rates
- uniform rates for services
- multiple rates for goods
Imports to be charged to both Central and State GST
Excise Free Zones could continue for their life spans
# $ |
Input tax Credits ( ITC)
- full credits under the Central and the State GST that will operate in
parallel
- cross utilization of credits between Central GST and State GST not
permitted
- refund of unutilized accumulated ITC
Inter-State transactions
- goods to be taxed in the destination/importing State
- services to be taxed in the State of consumption
- zero rating in the originating State
# $ |
6asic Structure
- stamp duty, toll tax, passenger tax and road tax not subsumed in GST
Treatment of services
border services
# $ |
services
Exemptions
- common lists for Centre and States with little flexibility for States to
deviate
refund schemes
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EU
- UK ± 17.5%
- Germany ± 19%
- France ± 19.6%
- 6elgium ± 21%
Australia ± 10%
New Zealand ± 12.5%
China ± 17%
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Rates
- integration of a large number of Central & State Taxes and obtaining of
consensus amongst States to abolish multiple local taxes
- multiplicity of taxes and tax rates
Thresholds
- rationalization under Central & State GST
Integrating the origin based tax with the destination based GST
Training
Protecting and balancing the present and future revenues of the Centre and
the States
- commission on Centre-State Relations (CCSR)
- views from Trade & Industry
Thank you.