Goods and Service Tax

Submitted to Submitted by
Aditi Gogia
DR. Gulnaz banu Anusha Joshi
Gaurav Kriplani
Naveena
Rajeswari
Sreeraj Ravindran
 Tax structure

Direct Indirect

Income Tax Wealth Tax

Central Tax State Tax

Entry
Excise Service Tax Customs VAT Luxury
Etc…
 law introduced
History of GST
Final GST
GST bill passed ●
implemented
2015
in lok sabha

July
1,2017
What is GST?
•GST is an Indirect Tax which has replaced all
Indirect Taxes levied on goods and services in India.
• GST is an indirect tax levied on the supply of
goods and services.
•GST is one indirect tax for the entire country.
•Goods and Service Tax – “GST is
a comprehensive, multi-stage, destination-based
tax that is levied on every value addition.”
• Multi-stage
There are multiple change-of-hands an item goes through along its
supply chain: from manufacture to final sale to the consumer.

• Value addition
GST is levied on these value additions i.e. the monetary value added
at each stage to achieve the final sale to the end customer.

• Destination-Based
Components of GST:
Why GST has been Implemented

• Tax cascading Effect

• Levy of excise duty on manufacturing point

• Complexity in determining the nature of

transaction

• Lack of uniformity
 GST

• How it works

• Cascading effect

• Input Tax Credit

 GST SLABS

Packaged food items, skimmed milk powder,

5% GST SLAB branded paneer, frozen vegetables, coffee, tea,
.
spices, ice, rail and economy class air tickets.

Edibles like frozen meat products, butter, cheese,

ghee, dry fruits in packaged form, ketchup & sauces,
12% GST SLAB  
ayurvedic medicines, cellphones, non-AC restaurants,
business class air ticket.

Biscuits, cakes, jams, soups, ice cream, mineral

18% GST SLAB water, footwear costing more than INR 500, camera,
speakers, monitors, printers, AC restaurants that
serve liquor, five-star and luxury hotel restaurants

Sunscreen, pan masala, dishwasher, weighing

28% GST SLAB
machine, paint, cement, vacuum cleaner. Other
items include automobiles, hair clippers,
motorcycles.
EXEMPTED GST RATE SLAB
7% goods and services fall under this category.

•Fresh fruits and vegetables, milk, butter milk, curd, natural

honey.
• Flour, besan, bread, all kinds of salt, jaggery, hulled cereal
grains, fresh meat, fish, chicken, eggs
•Even few beauty products like bindi, sindoor, kajal, bangles
are exempted of tax.4
• Drawing and coloring books, stamps, judicial papers,
printed books, newspapers
• Jute and handloom
• Hotels and lodges with tariff below INR 1000
The apex decision making body of the tax has decided to reduce
the prices of various products under higher tax slabs:

•Old and used motor vehicles to 12%, medium & large cars and
SUVs from 28% to 18%.

• LPG supply to domestic household consumers by private LPG

distributor will come down to 5% from 18% slab.

•The rate on bio fuel powered buses has also been reduced to
18% from 28%.

•The rate of diamonds and precious stones has been cut from
3% to 0.25%.

•The rates of few agricultural products have also been reduced

while keeping 29 handicraft items in 0% slab.
However, the services have also come down to 18% from 28%
of tax slab in many areas.

The Council has reduced the tax rate on :

•Tailoring service from 18% to 5%.

• In addition to this, admission to theme parks, water parks, joy

rides, merry-go-rounds.

• Go-carting

• Ballet
 COMPOSITION SCHEME

• GST designed to simplify compliance and reduce

compliance costs for small taxpayers

• Applicable to manufacturers whose taxable business

turnover is up to Rs1.5crore ( Rs75 Lakh incase of North
Eastern states)

• A service provider can opt for this scheme if his taxable

turnover is up to Rs50 Lakh

• The applicable tax rates are 1 percent of turnover incase

of manufacturers , 5 percent incase of restaurants( not
serving alcohol) and 6 percent for other service provider
• Effectively acknowledges the importance of the MSME
sector

• The taxpayer can skip monthly returns and furnish only

one return. •SREERAJ PART

• The taxpayer cannot be involved in inter-state

transactions, imports and exports.

•INCOMPLETE……
• The words “ composition taxable person , not eligible to
collect tax on supplies” should be mentioned at the top
of every bill issued.

• An attempt to make GST a Good and Simple Tax.

IMPACT OF GST
INDIAN ECONOMY

•Simplification of the tax structure

•Fostering production
•SME support
•Enhanced pan India operations
•Increase in exports
•Single national market
•Formalisation kicks off, tax base
begins to widen
GST Impact on Small and Medium Enterprises
•GST helps and ease the process of starting a business in India. Under
GST, the businesses have to only register for GST which has a centralized
process, similar to service tax.

•Earlier, for any business, it was mandatory to make a VAT payment if

the annual turnover was more than 5 lakh in few states and 10 lakhs in
few other states. Under GST a business does not have to register or
collect GST if the annual turnover is 10 lakh. This allows many small
businesses which have a turnover between 5 lakh – 10 lakh to avoid
applying for the GST return.

•GST allows small and medium business to do business with ease in

India, due to the less complexity. The distinction between the services
and goods is gone, and this makes compliance easier.
Negative GST Impacts

•Lack of centralized System of Accounting

•Public Education
•Selective tax levying
•Loss Incurred By the Manufacturing States
Source: Economic Times
Source: Economic Times
THANK YOU