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A presentation by

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

Intra- State Inter- State

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

Australia New Zealand

United Kingdom Singapore

China
GST in India

 It will be levied on all goods and services produced or supplied or


imported in India.
 As is the case under existing tax regime, exports will not be
subjected to Goods and Services Tax.
 Initially, for a period of 2 years, tax will be levied by central and
state governments. The GST levied by the Central authority will
be known as CGST and by the state authority will be known as
SGST respectively.
 Starting from the third year, all forms of GST will be merged into
one single tax.
 Goods that are kept outside its purview include alcohol for
human consumption, petroleum products such as crude oil,
petrol, motor spirit, high speed diesel, natural gas, turbine fuel
and electricity
Difference between Current Tax Structure and
GST Tax
Current Tax Structure GST Tax

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.

 2009: FORST DISCUSSION PAPER FDP RELEASED BY EC.

 2011:CONSTITUTION(115 AMENDMENT) BILL INTRODUCED.

 2013: THREE COMMITTES CONSTITUTED BY EC AND GSTN SET


UP.

 2014: CONSTITUTION (122 AMENDMENT) BILL (CAB)


INTRODUCED IN LOK SABHA.

 2016 CONSITUENT AMENDMENT BILL PASSED.

 2017: 12 GST COUNCIL MEETING CGST,SGST,UTGST,IGST


COMPENSATION CESS BILLS RECOMMENDED.
THE EFFORT AND WORK DONE
 10 YEARS IN MAKING.

 30 + SUB GROUPS & COMMITTEES.

 31000+ INDUSTRY PROFESSIONALS TRAINED

 18000+ MAN HOURS OF DISCUSSION BY GST COUNCIL.

 14 EMPOWERED COMMITTEE MEETING

 175+ OFFICERS MEETING

 51000+ OFFICER TRAINED

 CONSTITUTION AMENDMENT AND 5 LAWS APPROVED BY


COLLABORATIVE EFFORT.
GST COUNCIL-CONSTITUTION
 CONSIISTS OF FINANCE MINISTER ,AND THE MINISTERS OF
FINANCE/TAXATION OF EACH STATE.

 CHAIRPERSON : UNION FM

 VICE CHAIR PERSON- TO BE CHOSEN AMONGST THE MINISTER


OF STSTE GOVT.

 QUORAM IS 50% OF TOTAL MEMBERS

 DECESION BY 75% MAJORITYC

 COUNCIL TO MAKE RECOMMENDATION ON EVERY THING


RELATED TO GST INCLUDING LAW,RULES & RATES ETC.
MAIN FEATURES OF GST ACT
 GST TO BE LEVIED ON SUPPLY OF GOODS & SERVICES.

 ONLY THROUGH ELECTRONIC MODE.

 PAN BASED REGISTRATION.

 REGISTRATION ONLY IF TRURNOVER MORE THAN RS 20 LAC.

 DEEMED REGISTRATION IN THREE DAYS.

 INPUT TAX CREDIT AVAILABLE ON TAXES PAID ON ALL PROCUREMENTS.

 CREDIT AVAILABLE TO RECIPIENT ONLY IF INVOICE IS MATCHED- IT HELP FIGHT

HUGE EVASION OF TAXES.

 SET OF AUTO POPULATED MONTHLY RETURNS & ANNUAL RETURNS.

 AUTOMATIC GENERATION OF RETURN


CONT….
 GST PRACTITIONERS FOR ASSISITING FILLING OF
RETURNS.
 GSTN AND GST SUVIDHA PROVIDERS TO PROVIDE
TECHNOLOGYBASED ASSISITANCE.
 SEPARATE ELECTRONIC LADGER FOR CASH AND CREDIT.
 TAX CAN BE DEPOSITED BY INTERNET
BANKING,NEFT,RTGS,DEBIT/CREDIT CARD AND OVER THE
COUNTER.
 CROSS UTILIZATION OF IGTS AND THEN AS CGST OR
SGST/UTGST.
 REFUND TO BE GRANTED WITHIN 60 DAYS.
 INTEREST PAYABLE IF REFUND NOT SANCTIONED IN TIME.
 REFUND TO BE DIRECTLY CREDITED TO BANK ACCOUNT.
BENEFITS OF GST
 OVERALL REDUCTION IN PRICES FOR CONSUMER.

 REDUCTION IN MULTIPLICITY OF TAXES.

 UNIFORM RATE OF TAX AND COMMON NATIONAL


MARKET.

 BROADER TAX BASE AND DECREASE IN BLACK


TRANSATIONS.

 FREE FLOW OF GOODS AND SERVICES –NO CHECKPOINTS.

 NON INTRUSIVE ELECTRONIC TAX COMPLIANCE SYSYTEM.


CONT…
For Manufacturers and Traders
 Easy compliance
 Uniformity in tax rates and structure
 Removal of cascading or compounding effect of tax
 Enhance the competitiveness
 Move towards development of a common national market
For Central and State government
 Simple and easy administration
 Improved compliance and revenue collections
 Better revenue effectiveness
For Consumers
 Payment of the single and transparent tax
 Reduction of burden of the tax payers
GSTN (NETWORK)
 A SECTION 25 PRIVATE LIMITED COMPANY WITH STRATEGIC
CONTROL WITH THE GOVERNMENT.
 TO FUNCTION AS A COMMON PASS THROUGH PORTAL FOR TAX
PAYERS:
 SUBMIT REGISTRATION APPLICATION

 FILE RETURN

 MAKE TAX PAYMENT

 TO DEVELOP BACK END MODULES FOR 25 STATES(MODEL II).

 INFOSYS APPOINTED AS MANAGED SERVICE PROVIDER.

 34 GST SUVIDHA PROVIDER APPOINTED.


NO TAX 0%
 NO TAX WILL BE IMPOSED ON ITEMS LIKE:

 JUTE, FRESH MEAT, FRESH FRUITS

 FISHCHICKEN,EGGS,MILK,BUTTER MILK,CURD,NATURAL HONEY,

 VEGETABLES,FLOUR,BESEN,BREAD,PRASAD,SALT,BINDI,SINDOOR,

 STAMPS,JUDICIALPAPERS,PRINTEDBOOKS,NEWSPAPER,BANGLES,HAND

LOOMS,BONES,AND HORN CORES,BONE GRIST ,BONE MEAL ,SALT ALL

TYPES,KAJAL ,DRAWING AND COLOURING BOOKS ETC.


CONT…

 Essential farm produced mass consumption items like


milk, cereals, fruits, vegetable, jaggery (gur), food
grains, rice and wheat
 Common use and mass consumption food items such
as spices, tea, coffee, sugar, vegetable/ mustard oil;
newsprint, coal and Indian sweets
 Silk and jute fibre
GST @5%
 FISH FIILET,

 APPAREL BELOW RS 1000,

 PACKAGED FOODITEMS,

 FOOTWEAR BELOW RS 500,

 CREAM, SKIMMED MILK POWDER ,PACKAGED PANEER, FROZEN VEGETABLES,

 COFFEE,TEA,SPICES,PIZZA

 BREAD,RUSK,SABUDANA,KEROSENE,COAL,MEDICINES,STENT,LIFEBOATS,

 CAHSEW NUT,CASHEW NUT IN SHELL,

 ICE AND SNOW,BIO GAS INSULIN,AGARBATTI,KITES,,POSTAGE OR REVENUE


STAMPS.
GST @12%
 APPERAL ABOVE RS 1000,
 FROZEN MEAT PRODUCTS,
 BUTTER GHEE,CHEESE,
 DRY FRUITS IN PACKAGED FORM,
 ANIMAL FAT,SAUSAGE,FRUIT
 JUICES,BHUJIA,NAMKEEN,
 AYURVEDIC MEDICINES,TOOTH POWDER,
 UMBRELLA, SEWIN MACHINE,CELLPHONES,
 KETCHUP SAUCES,
 ALL DIAGNOSTIC KITS,SPOONS,
 PLAYING CARDS,CHESS BOARD,CAROM BOARD AND OTHER BOARD GAMES ETC
 BRANDED GARMENTS
GST 18%
 FOOTWEAR COSTING MORE THAN RS 500,
 TRADEMARK,GOODWILL,SOFTWARE,
 BISCUITS,FALVOURED REFINED SUGAR,
 PASTA, CORNFLAKES,PASTRIES AND CAKES,JAMS,
 ICECREAM,MINERAL WATER
 ENVELOPS,TISSUES,ALUMINIUM FOIL,
 CCTV,CAMERA,SPEAKERS,MONITORS,
 KAJAL PENCIL STICK,
 ELECTRICAL TRANSFORMER,OPTICAL FIBER,BAMBOO FURNITURE
 LPG STOVES, MILITARY WEAPONS,ELECTRONIC TOYS.
CONT…
 AC HOTELS THAT SERVE LIQUOR,
 TELECOM SERVICES
 IT SERVICES
 FINANCIAL SERVICES
 ROOM TARIFS BETWEEN RS 2500 TO RS 7500
 RESTAURANTS INSIDE FIVE STAR HOTELS.
GST@28%
 CHEWING GUM

 MOLASSES,CHOCOLATE,PAN MASALA,

 HAIR SHAMPOO,DYE,SUN SCREEN,

 WASHING MACHINE,WEIGHING MACHINE

 WATER HEATER,DISHWASHER

 ATM,VENDING MACHINE,VACAUM CLENER

 SHAVERS,HAIR CLIPPERS

 AUTOMOBILES

 AIRCRAFT FOR PERSONEL USE

 HOTELS WITH ROOM TARIFFS ABOVE RS 7500

 FIVE STAR HOTELS


TAXES TAXES Not
SUBSUMED SUBSUMED
 Central Excise Duty o Basic Customs Duty
 Additional Excise duties
 Excise duty levied under the o Excise Duty/VAT on Petroleum
Medicinal and Toiletries GST Products for initial years(In addition to
Preparation Act GST at Nil rate)
 Service Tax
 Additional Customs Duty o Excise Duty on Tobacco Products(in
 Special Additional Duty addition to GST)
 Surcharges and cesses relating to
supply of goods and services o Electricity Duty by state (in addition to
GST)
 VAT/ Sales Tax o Entertainment Tax levied by local
 Central Sales Tax bodies
 Entertainment Tax(other than
levied by local bodies) o State excise on Alcoholic
 Purchase Tax Beverages(No GST)
 Luxury Tax
 Taxes on lottery, betting and o Tolls, passengers and Goods tax on
gambling carriage by road/ railway
 State surcharges and cesses relating o Property Tax, stamp duty and taxes on
to supply of goods and services immovable properties
o Royalty on minerals ,
Environmental/regulatory taxes- e.g.
Central levies vehicles tax
State levies
Taxes Subsumed in GST

Central Taxes State Taxes

Excise duty Value added tax (VAT)

Service tax Entry tax and octroi

Additional customs duty or Countervailing Duty Luxury tax


(CVD)

Special additional custom duty Purchase tax

Central surcharges and cesses Taxes on lottery, gambling etc.State surcharges


and cesses
Taxable Event

Existing Practice GST

Taxable event is “Supply “ of Goods &


Excise Duty-Manufacturing, service

The location of the supplier and the


recipient within the country is immaterial
Sales Tax/VAT- Sale of Goods for the purpose of CGST.

SGST would be chargeable only when the


Service Tax- Realization of Service supplier and the recipient are both located
within the State.

Inter state Supply of goods and services will


attract IGST.
EXISTING TAX STURUCTURE
26 Present Tax
Structure
[5 Important
Constituents]

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)

Taxable Event is Taxable Event is


Taxable Event is Taxable Event is Taxable Event is
Provision of Entertainment &
Manufacture Sale Import & Export
Service Entry of Goods
GST TAX STURUCTURE
27

Intra State Excise and Local VAT &


Service Tax will Other taxes will
Taxable be known as be known as
Supply CGST SGST

Inter State CST will be


Approx. Sum
replaced by
Taxable Integrated GST
Total of CGST
and SGST
Supply (IGST)

Import From In Place of CVD


Outside Custom Duty and SAD, IGST
will be charged
India
Will it reduce the price of Products?
Will it reduce the cost of services?
Will it increase Government revenue?
GST is applicable from 1st July 2017 so Recently GST
Rates are Decided by GST Council on various
Meetings, Now GST Rates are finalized on 19th May
2017 and amended in 11-06-2017 & 18-06-2017
meetings by CGST Council..Recently GST
Council Decide 4 GST Rates Slabs for India, i.e. GST
Rates in India is 5%, 12%, 18% & 28%. Union and state
finance officials met for two days in New Delhi to
resolve their differences over the rates as well as the
administration of the tax.
LIST OF GOODS COVERED UNDER
GST @ 3 % CHAPTER 71

CHAPTER 71 INCLUDES PEARLS, DIAMONDS,PRECIOUS STONES,


SILVER ,GOLD PLATINUM,COINS
Chapter 71 (Natural or cultured pearls, precious or semi-precious stones,
precious metals, metals clad with precious metal, and articles thereof;
imitation jewellery; coin)
ALL THE GOODS OF CHAPTER 71 (OTHER THAN ROUGH DIAMOND
WILL ATTRACT 3%
ROUGH DIAMOND WILL ATTRACT 0.25%
SOME OF THE REVISED TAX ITEMS
THERE WOULD BE TWO CATEGORIES OF GST RATES ON
CINEMA,28% IN CASSE TICKETS ABOVE Rs 100 AND 18 % IN CASE OF
TICKET UPTO Rs 100.
CASHEW REVISED FROM 12% TO 5%.
AGARWATTI REVISED FROM 12% TO 5%.
DENTAL WAX REVISED FROM 28% TO 18%.
INSULIN REVISED FROM 12% TO 5%.
SCHOOL BAGS REVISED FROM 28% TO 18%.
COLOURING BOOKS REVISED FROM 12% TO NIL.
CUTLERY REVISED FROM 18% TO 12%.
TRACTOR COMPONENTS REVISED FROM 28% TO 18%.
COMPUTER PRINTER REVISED FROM 28%TO 18%.
SOME OF THE REVISED TAX ITEMS
THERE WOULD BE TWO CATEGORIES OF GST RATES ON
CINEMA,28% IN CASSE TICKETS ABOVE Rs 100 AND 18 % IN CASE OF
TICKET UPTO Rs 100.
CASHEW REVISED FROM 12% TO 5%.
AGARWATTI REVISED FROM 12% TO 5%.
DENTAL WAX REVISED FROM 28% TO 18%.
INSULIN REVISED FROM 12% TO 5%.
SCHOOL BAGS REVISED FROM 28% TO 18%.
COLOURING BOOKS REVISED FROM 12% TO NIL.
CUTLERY REVISED FROM 18% TO 12%.
TRACTOR COMPONENTS REVISED FROM 28% TO 18%.
COMPUTER PRINTER REVISED FROM 28%TO 18%.
List of All Services Exempted in GST
SERVICES BY THE RBI.
SERVICES BY A FOREIGN DIPLOMATIC MISSION LOCATED IN INDIA.
SERVICES BY THE GVERNMENT OR A LOCAL AUTHORITY
SERVICE RELATING TO CULTIVATION OF PLANTS
SERVICE RELATED TO REARING OF ALL LIFE FORMS OF ANIMALS
AGRICULTURE OPERATIONS SUCH AS
CULTIVATION,HARVESTING,THRESHING,PLANT PROTECTION AND
SUPPLY OF FARM LABOUR ETC.
State GST - SGST Integrated GST - IGST
Central GST - CGST
Tax Levied By Central Government State Government Combined levy, collected by
Central Government

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