Project 3 :- GST

Presented by
HEMANT ASHOK MANDAL
 India adopted a dual GST structure when it introduced the Goods and Services Tax (GST)
on July 1, 2017. This structure involves two components:
Central Goods and Services Tax (CGST): CGST is a tax levied by the central government
of India on the supply of goods and services within a state. The revenue collected through
CGST goes to the central government.
State Goods and Services Tax (SGST): SGST is a tax levied by the state governments on the
supply of goods and services within a state. The revenue collected through SGST goes to
the respective state government.
Both CGST and SGST are applicable on intra-state transactions, i.e., transactions within
the boundaries of a single state.
In addition to CGST and SGST, there is also an Integrated Goods and Services Tax (IGST)
that is applicable to inter-state transactions, i.e., transactions between different states. The
IGST is collected by the central government and is distributed between the central and
state governments based on a pre-defined formula.

Meaning & Definition of Dual GST

Types of
GST
CGST &SGST

Central Goods and Services Tax (CGST)

 This is the component of GST levied by the
central government on intra-state supplies of
goods and services.

State Goods and Services Tax (SGST)

 This is the component of GST levied by the

state governments on intra-state supplies of
goods and services.
IGST & UTGST

Integrated Goods and Services Tax

(IGST)
 This is the component of GST applicable to
inter-state supplies of goods and services. It
is levied by the central government and
facilitates the seamless movement of goods
and services between states.
Union Territory Goods and Services Tax
(UTGST)

 For Union Territories without a legislative

assembly
EXAMPLE
 GST SLABS & SLAB RATE

As of September 2021, the GST slabs in India were as follows:

1. 0% (Exempt): Certain essential goods and services, such as fresh fruits, vegetables, milk, basic
healthcare services, and educational services, were exempt from GST.
2. 5%: This slab covered goods and services considered of modest importance. Items like household
necessities, textiles, small restaurants, and transportation services had a 5% GST rate.
3. 12%: Goods and services falling under this slab included processed food items, computers, and
various utility services.
4. 18%: A wide range of goods and services fell under this slab, including most consumer goods,
electronic items, processed foods, and more.
5. 28%: This was the highest GST slab and included luxury items, consumer durables, automobiles, and
other goods and services deemed non-essential or luxurious.
DIFERENCE BETWEEN GST & VAT
Difference Between VAT and GST:
Value Added Tax (VAT) and Goods and Services Tax (GST) are both consumption-based taxes,
but they have some key differences:
Scope and Implementation: VAT is a consumption tax levied on the value added at each stage
of the production and distribution chain. It is typically applied at different stages of production,
and businesses along the supply chain collect and remit the tax. GST, on the other hand, is a
comprehensive tax that subsumes various indirect taxes and is levied on the supply of goods and
services. It aims to create a unified tax system by integrating different types of taxes.
Number of Taxes: VAT often replaces existing sales taxes and excise duties, while GST goes a
step further by integrating multiple indirect taxes, such as VAT, service tax, excise duty, etc., into a
single tax.
Tax Credit: Under GST, the tax credit mechanism is designed to allow businesses to claim input
tax credit (ITC) for taxes paid on inputs. This reduces the cascading effect of taxes and ensures
that taxes are levied only on the value added at each stage. VAT also allows for input tax credits,
but the GST credit mechanism is generally more comprehensive.
Rates and Slabs: Both VAT and GST can have multiple tax rates for different categories of goods
and services. However, the specific rates and slabs can vary based on the country's tax policy.
International Perspective: VAT is more common in Europe and is adopted by many countries
around the world. GST, inspired by VAT principles, is implemented by several countries, including
India, Canada, Australia, and Singapore.
EXAMPLE