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Understanding GST: Benefits and Challenges

GST stands for Goods and Services Tax and represents an indirect tax levied on the supply of goods and services. The GST Council approved three key bills - the CGST Bill, IGST Bill, and UTGST Bill. The GST Council is headed by the Union Finance Minister and includes state government ministers. GST consolidates several indirect taxes and aims to reduce the cascading effect of taxes. While GST is expected to increase efficiency, it also increases business costs initially due to software purchases and the need for skilled tax professionals.

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M.Bhaskar
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82 views9 pages

Understanding GST: Benefits and Challenges

GST stands for Goods and Services Tax and represents an indirect tax levied on the supply of goods and services. The GST Council approved three key bills - the CGST Bill, IGST Bill, and UTGST Bill. The GST Council is headed by the Union Finance Minister and includes state government ministers. GST consolidates several indirect taxes and aims to reduce the cascading effect of taxes. While GST is expected to increase efficiency, it also increases business costs initially due to software purchases and the need for skilled tax professionals.

Uploaded by

M.Bhaskar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

GST

G – GOOD
S – SERVICES
T – TAX
GST Council approved
• The Central Goods and Services Tax Bill 2017.
(The CGST Bill)
• The Integrated Goods and Services Tax Bill 2017.
(The IGST Bill)
• The Union Territory Goods and Services Tax Bill 2017.
(The UTGST Bill)
G S T Is Operated On The Recommendation
Of GST Council & Members are:

Union Finance Minister Chairperson

The Union Minister of State, in-charge of Member


Revenue, Min. of Finance

The Minister In-charge of Finance or Members


Taxation or any other Minister
nominated by each State Government
Taxes

Direct Tax Indirect Tax


• Imposed on person • Imposed on goods and services
(paid directly to the (Paid to government via
government) third party)

INCOME TAX SERVICE TAX


Indirect Tax

Central Govt State Govt


• Excise Duty (On Manufacturing) • VAT (On Sale With In State)
• Service Tax (On Service) • Entertainment Tax
• Central State Tax (On Inter State • Luxury Tax (On Luxury Hotel
Sale) Rooms and etc)
• Custom duty (On Imported) • Entry Tax (On Transfer Of Goods
Advantages Of GST
• All the major indirect taxes are converted into GST
• It will remove cascading effect
• Composition scheme for all small businesses(1% tax of business under 1-cr
turnover)
• Unorganised sector is regulated in GST
• Defined treatment for E-Commerce operation
• Simple and easy online procedure(registration and filing of taxes)
for the above efficient GSTN soft ware developed.
• Improve efficiency in logistics.
• Computer E-Way bill introduced to track all the vehicles.
• Check post system is abolished.
Disadvantage Of GST
• Increase the cost due to software purchase
• GST will mean an increase in the operation cost(skilled tax
professional )
• GST came in the middle of financial year
• Small and medium size enterprises will have to face the high tax
burdens (but GST Counsel regularly monitoring the tax burdens and
necessary changes were made)
• Petroleum products not included for GST (all the state Gove should
cooperate leaving political differences)
Conclusion
• Change is definitely never easy. The government is trying to
smoothen the road to GST. It is important to take a leaf from global
economies that have implemented GST before us, and who overcame
the teething troubles to experience the advantages of having a
unified tax system and easy input credits.
Items That Will Not Cover GST
• Petroleum products including Diesel & aviation fuel
• Alcohol
• Tobacco
• Electricity

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