Professional Documents
Culture Documents
ASHISH SHARMA
What is‘G’GST?
– Goods
‘S’ – Services
‘T’ – Tax
“Goods and Service Tax (GST) is a comprehensive tax
levy on manufacture, sale and consumption of goods
and service at a national level.
GST is a tax on goods and services with value addition at
each stage having comprehensive and continuous chain
of set-of benefits from the producer’s/ service provider’s
point up to the retailer’s level where only the final
consumer should bear the tax.”
CONT…..
A tax charged on supply of Goods and Services
or both for consideration.
GST is a destination based consumption tax.
GST is a value added tax to be levied on both
goods and services, (except the exempted
goods and services).
The tax will be levied on the value of the
product or service supplied and not sold.
CONSTITUENTS OF GST
GST
IGST
CGST SGST
Revenue will be ultimately received by the state in which goods are finally consumed
ORIGIN OF GST
In 1954, France was the first country to introduce the
Goods and Services Tax (GST). As of now, it is
prevalent in more than 140 countries, including;
Canada Germany
China
GST in India
Number of Laws There are separate laws for There is only ONE law
separate taxes and respective VAT
on states
Tax Rate Existence of separate tax rates There will be one CGST rate and
uniform SGST rate across all the
states
Cascading effect (Taxes on Tax) Presence of cascading effect of Cascading effect is reduced which
taxes due to multiplicity in taxes makes it very simple
Tax Burden High tax burden on taxpayers Tax burden is much reduced
Tax Structure Presence of multiple taxes makes Subsuming or absorbing the taxes
compliance difficult into one makes compliance simple
and easy
Prices for Consumers Usually very high due to cascading Prices are expected to be reduced
effect of taxes
THE JOURNEY SO FAR
2006: ANNOUNCEMENT TO INTRODUCE GST BY 2010.
CHAIRPERSON : UNION FM
FILE RETURN
VEGETABLES,FLOUR,BESEN,BREAD,PRASAD,SALT,BINDI,SINDOOR,
STAMPS,JUDICIALPAPERS,PRINTEDBOOKS,NEWSPAPER,BANGLES,HAND
PACKAGED FOODITEMS,
COFFEE,TEA,SPICES,PIZZA
BREAD,RUSK,SABUDANA,KEROSENE,COAL,MEDICINES,STENT,LIFEBOATS,
MOLASSES,CHOCOLATE,PAN MASALA,
WATER HEATER,DISHWASHER
SHAVERS,HAIR CLIPPERS
AUTOMOBILES
Entry Tax/
Sales Tax / Customs Entertainme
Excise Duty Service Tax VAT/ CST Duty
nt Tax
Entry No. 54 of
Entry No. 84, Residuary Entry Entry No. 83, Entry No. 52
List II (VAT) and
List I, Schedule No. 97, List I, List I, Schedule &62 List II,
92A of List I
VII Schedule VII VII Schedule VII
(CST)
Taxes that it will replace Service tax, excise duty, VAT, sales tax, luxury tax, Central sales tax (CST)
countervailing duty (CVD), entry tax ,entertainment tax,
special additional duty purchase tax, Octroi, taxes
(SAD), Additional duties of on lottery
excise(ADE), and any other
indirect central levy
Applicability Supplies within a state Supplies within a state Interstate supplies and
import
Input Tax Credit Against CGST and IGST Against SGST and IGST Against CGST,SGST and
IGST
Tax Revenue Sharing Central government State government Shared between state and
central governments
Exemption Limit Rs. 20 Lakhs annual Rs. 20 Lakhs annual Exemption limit not defined
turnover turnover
Composition Scheme The dealer may use the The dealer may use the Composition Scheme is not
benefit of turnover of Rs 50 benefit of turnover of Rs 50 available in this regard
Lakh Lakh
Free Supplies CGST is applicable on free SGST is applicable on free IGST is applicable on free
supplies supplies supplies
Registration Not applicable till the Not applicable till the Registration is necessarily
turnover exceeds Rs 20 turnover exceeds Rs 20 mandatory if supply is made
Lakh Lakh outside the states
Items that got Cheaper with GST Rates
Corn flakes
Toothpaste
Soap
Hair oil
Ice cream
Cheese
Packaged tea and coffee
Atta (packed & branded)
Packed paneer
Masala
Sweets
Packed curd
Economy class air travel
Items that got expensive with GST Rates
Cold drinks
Chewing gum
Chocolate
Shampoo
Face cream
Television
Fridge
Air conditioner
Washing machine
Furniture
Watches
Banking services
Leasing of cars
Professional services
Advertising services
Telecom services
Cleaning services
Beauty parlour services
Dry cleaning services
Security services
Maintenance services
Legal services