GST Basies and Introduction Concept of GST GST is @ value added tax levied on manufacture, sale and consumption of goods and GST Provides comprehensive and continuous chain of tax credits from the producer/Service provider up to retail level {Consumer level. Each person will get credit for the taxes paid at earlier stage. The consumer will bear the final tax. Since, only the value added at each stage is taxed under GST, there is na tax on tax or cascading of taxes under GST system GST does not differentiate between goods and services and thus, the two are taxed at asingle: rate. Need for GST in india oe eo Concept of one nation, one tax, and one market. Compete with global market as many nations are following GST regime Deficiency in earlier indirect tax system: Cenvat credit of excise and serviee tax is not available to retailer and vat dealers Central excise is includible in value for vat calculation resulting double tax. CST credit is nat vatable for dealers. Difficulty in distinguish between goods and services especially in case of intellectual properties, drawings and designs, Restaurant services, software and work contract, ‘GSTCommonPortal Common 657 Electronic Portal ~ www.gst.gov.in~ a website managed by Goods and Services Network (GSTN) [ 4 GSTN isa company incorporated under the provisions of section 8 of the Companies Act, 2013. It has been set by the Government to establish a uniform interface for the tax payer and 3 common and shared IT infrastructure between the Centre and States, ‘The GST portal is accessible over internet (by taxpayers and their CAs/Tax Advocates etc.) and Intranet by Tax Officials etc. 4% Theportal isone single common portal for all GST related services. © Acommon GST system provides linkage to all State/ UT Commercial Tax Departments, * ° ° SoHo eee Central Tax authorities, Taxpayers, Banks and other stakeholders. ‘The eco-system consists of all stakeholders starting from taxpayer to tax professional to tax officials to GST portal to Banks to accounting authorities. Primarily, GSTN provides three front end services to the taxpayers namely registration, payment and return through GST Common Portal. ‘The functions of the GSTN include: © facilitating registration; forwarding the returns to Central and State authorities; computation and settlement of IGST; ‘Matching of tax payment details with banking network; Providing various MIS reperts to the Central and the State Governments based on the taxpayer return information; Providing analysis of taxpayer's profile; and running the matching engine for matching, reversal and reelsim of input tax eredit oo000 °“Taxes subsumed in GST ae Central anes a Tate mes a _| Centrale 1 | Sales tat 2 | Additional excise duties 2 | Lumury tax 3 | Excise duty on medical and toilet 3) | Taxon Advertisement preparations Act Service tax Purchase tax ‘Counter vaiing duty Entry tavoctol ‘Special counter vailing duty (SAD 4%) ‘Central sales tax Tax on lottery, betting and gambling ‘Surcharge and cess relating to goods and Services TEP @ _| Surcharge and cess relating to goods and | Services ‘Taxes continue to remain after GST Central excise on petroleum products 4 State Central excise duty on alcoholic iquar for human consumption ‘State vat on petroleum products Custom duty on imparts (BCD and safe guard duties) BENEFITS OF GST © GST brings benefits to all the stakeholders of industry, Government and the consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive. & Creation of unified national market: © STaimsto make india a common market with cemman tax rates and procedures and remove the economic barriers thus paving the way for an integrated economy at the national level. ‘Mitigation of ill effects of cascading: (© By subsuming most of the Central and State taxes into a single tax and by allowing a set-off of prior-stage taxes for the transactions across the entire value chain, it would mitigate the ill effects of cascading, improve competitiveness and improve liquidity of the businesses. Elimination of multiple taxes and double taxation: © 6SThas subsumed majority of existing indirect tax levies both at Central and State level into one tax i.e, GST which is leviable uniformly on goods and services. This will make doing business easier and will also tackle the highly disputed issues relating to double taxation of a transaction as both goods and serviees. 4 Boost to ‘Make in India’ initiative: ‘© GST will give a major boost to the ‘Make in India’ initiative of the Government. of India by making goods and services produced in India competitive in the national as well as international market 4 Buoyancy to the Government Revenue: © GSTis expected to bring buoyancy to the Government Revenue by widening the tax base and improving the taxpayer compliance.GST basic provisions = ‘+ Introduction of GST is biggest indirect tax reform since independence. ‘There is no provision far lew of GSTin the Constitution and hence Lewy of GST need Constitutional amendment ‘+ The Constitution amendment Bill 2014 was passed in Lok Sabha on 6! May 205 and on the Rajya Sabha on 3 ‘August 2016. The bill was subsequently ratified by more than SO% of State legislatures. Finally, Constitution| 101"(Amendment] Act, 2016 received the president assent on 08.09.2016. ‘The central legalisations of GST were passed in parliament and finally received the assent of President on 12 April 2017. State GST ws are also pasted by the state legislatures passed and pave way for levy of GST. Centre and States has power tolevy Goods and services tax © Levy of GST.on petroleum preduets will be applicable fram the date notified by GST Council ‘On Tater State FUDD Will Be Tevied ar Central government. 1GST will be shared between state and central in a manner pravided by parliament on the recommendation of GST council. import of goods or services or both into India will also be deemed to be supply of goods and/ or services in the course of Inter-State trade or Commerce. Goods and services tax means any tax on supply of goods, or services or both except taxes on the supply of thealcoholic liquor for human consumption. GST can be levied on supply of all eaods and services except alcoholic liquor for human consumption Power to Bae were Lew est are | [Power to Fe] 2608 PH] Lew 1csr P| Constitutio nal Providons Meaning (OfGST Article + Meaning Lasaizsay PPT] or service Atle 27a }e4 GST Council «Services means anything ather than goods. T_ | President to constitute a joint forum of the Centre and States namely, Goods @ Services Tax Ceuneil (GST Council), 2 | The pro ions relating to GST Council came into force on 42 th September2016. President constituted the GST Council an 15th September, 2016. 3__| The Union Finance Minister is the Chairman of this Counciland Ministers in charge of Finance/Taxation or any ather Minister nominated by each of the States & UTs with Legislatures are Its members. @ |The Union Minister_af_State_in charge of Revenue or Financeis also ts member. 3 _ | The function of the Councilis to-make recommendations to the Union and the States on important issues like tax rates, exemptions, threshold limits, dspute resolution etc. 6 _| itshallalso recommend the date on which GST be levied on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel 7 _ | Every decision of the GST Councils taken by a majority of not less than three-fourths of the weighted vates of the members prasent and voting, Vote of the Centre has a weightage of one. third of total votes cast and votes of all the State Governments taken together has a weightage tivo-thirds of the total votes east, in that meeting