“ G S T & I T S I M PA C T O N I N D I A N E C O N O M Y ”

Group – 9
Akanksha | Karan | Latika | Shardul
GOODS & SERVICES TAX

1st July Proposed

2017 1999

CGST Removes
SGST ONE NATION Tax on
IGST ONE TAX Tax

Destination
4 Tax Slabs
based Tax

2
PRE GST ERA

Cascading effect of Taxes

29 States, 29 Prices

Warehouses in every state

Tax evasion and Inspector Raj

Higher burden on common man

Different tax barriers, check posts and toll plazas

3
POST GST ERA

Removal of hidden taxes

Simplified tax policy

Lower burden on common man

Increased demand and supply

Improved logistics and warehousing

Stable, transparent & predictable tax regime

4
 FINANCIAL INTEGRATION
Financial Integration

Single
council

Domestic
Regional Better fund
allocation GST Uniform
Taxation

Global
J&K
Integration

5
INDUSTRY IN FOCUS : FMCG

After
22-24% 18-22 %
GST

• Milk, Cereal and Grains are exempted

• Sugar, Tea, Coffee attract 5% GST
• Increase in effective tax rate
Aerated beverage : 28% + 12% = 40 %

• Low prices -> growth in consumption in Rural segment

• Slashing the prices or increasing the volume of the
product -> extending the tax benefits to consumers
• Reduction in Distribution costs from 2-7 % -> 1.5 %

6
INDUSTRY IN FOCUS : AUTOMOBILE

26.50 - After 18-28

44% GST %

1% + GST 28% 3% + GST 28% 15% + GST 28%

7
SHORT TERM IMPACT

More Problems
for Informal More Jobs
economy

Transparency
Inflation will be
and lesser Tax
reduced
Evasion

8
LONG TERM IMPACT

Boost GDP by Competitiveness

2% approx. , in foreign
Easier FDI’s markets

Augment Reduce Tax

government Burden and will
revenues lead to
Sustainable
(NAA) Growth

9
INFERENCE

Export Industry Easier FDI due to

Paves the road for
will have simple and
future policy
international uniform tax
implementation
competitive prices regime

Corruption and Increased no. of

Better days for
tax evasion could people under tax
importers
be checked net

10
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