Submitted By:

Shrey Mahant (C032)

Ashleen Kaur Tuli (C065)
Avinash Vutukuru (C066)
Anindya Chattopadhyaya (E015)
Mansi Parikh (E051)
Ayush Saxena (E057)
ABOUT GST
INTRODUCTION OF GST TAXES REPLACED BY GST
Country Year Types of 1. Excise Duty
France 1954 GST 2. Custom Duty
New Zealand 1986
3. VAT
Canada 1991
4. Sales Tax
Singapore 1994 CGST SGST IGST
5. Service Tax
Australia 2000
Malaysia 2015 6. Entry Tax
India 2017 7. Entertainment Tax
GST Tax
Structure
GST Council
Exempted 5% 12% 18% 28%
Union Finance Minister

Union Minister of State in charge of Revenue or 7% 14% 17% 43% 19%

Finance

Without With
Minister in charge of Finance or Taxation or any other
Minister nominated by each State Government Cess Cess
GST TIMELINE

• 2000: Idea of GST introduced by Atal Bihari Vajpayee

Feb July • February 2006: P. Chidambaram laid long term goals of
2000 Govt
2006 2009
• July 2009: Minister Pranab Mukherjee announced basic
skeleton of GST system

Nov
2009 • November 2009: The EC put forth First Discussion Paper
(FDP)
Dec Oct • October 2013: The state of Gujarat opposes the bill
2014 2013 • December 2014: Arun Jaitley, submits the Constitution
(122nd Amendment) Bill, 2014 in the parliament

• August 2015: The Bill is not passed in the Rajya Sabha

• August 2016: The Congress led opposition finally agrees
Aug
Aug Sept to the Government’s proposal
2015 2017 • September 2016: President of India gives his consent for
2016 2016
Constitution Amendment Bill to become an Act
• 2017: Four Bills related to GST became Act
THE GST Advantage (Scenario Comparison)
Factor Pre-GST Post-GST

Each of India’s 28 states taxes goods that move across their

Not applicable. Uniform taxation and no varying tax structure
Interstate tax burden borders at different rates apart from that Corporate state tax
is allowed across states
of 2% is levied for inter-state goods transfer

Interstate taxation has resulted in a large number of With the introduction of GST, there is likely to be
Nature of the industry unorganized players in this industry. Resulting in fragmented consolidation in the industry. It could see the emergence of
industry major large players who can span the entire logistics chain

Improvement in the logistic time after phasing out the

Due to trade barriers such as entry taxes, local body taxes,
border check posts resulting in improvement in operational
Logistic time OCTROI and other hurdles, trucks lie idle for 30 to 40% as per
efficiency through quick and increased number of deliveries
industry estimates during their delivery schedule
along with reduction in logistic cost during the transit.

GST tax levied on transportation of goods and full credit will

The interstate taxation system has forced the companies to
be available on interstate transactions. Logistic costs are
create and maintain warehouse in each state. Currently,
expected to be decreased by 1.5- 2.00% of sales on account
Cost there are around 20-30 warehouses per company, one in
of optimization of warehouses leading to lower inventory
every state, in addition to this 20-30 Carry & Forwarding
costs which are set up across states to avoid paying 2%
agents per state make the supply chain long and inefficient
corporate sales tax and phasing out of interstate sales tax.
 Impact and Challenges post GST
E-way bill: The move is aimed at keeping tax evasion in check and also ensuring the smooth
m o v e m e n t o f g o o d s a c ro s s I n d i a , H o w e v e r, i t s h o u l d n o t b e c o m e a n o p e r a t i o n a l h u rd l e f o r
businesses

Advantages of E-way Bill Effect on 3PL

• 3PL’s would have to restructure its assets and
Less documentation
Cost reduction: E-way bill would reinforce proper realign its operations.
invoicing and along these lines would reduce tax
avoidance. 3PL’s are expected to build integrated
Efficient transportation: No waiting time warehouses
User friendly e-way bill system • at logistic suitable locations.
• Post
Disadvantages of E-way Bill
Poor Internet facility: Poor internet Small Fleet Operators
connectivity or not availability in most of • The fortunes of road transporters with
location can be big concern. less than five trucks apiece, termed small
Difference in opinion of states fleet operators (SFOs). Enforcement of the
Glitches in generating e-way bills new axle-load norms and northward run-up
in fuel prices hurts their margins
GST-THE PATH FORWARD

Problems Recommendation
• Low Revenue Collection – States are the victims
• Delay in refunds
• Input tax credit • Real Estate must be brought under GST. At present,
only the construction segment is subject to it. To
cover the entire value chain, GST needs to cover land,
Real Estate construction of buildings and sale of completed
Name of Duty Rate of Tax constructions.
VAT 1 to 4%
Service Tax 4.5%
• Electricity is another area that should be brought
under GST to boost the manufacturing sector.
Registration Charges 0.5 to 1%
Stamp Duty Charges 5 to 7% • Invoice matching is utmost important, without which
ITC cannot be disbursed to the receiver. Thus, there’s
a need for uniform and standard portal for generating
Automobile invoices.
Nccd and Earlier Total
Segment Excise VAT CGST SGST
auto cess Total Now
• There are as many as six slabs, excluding exempt
Small cars
< 1200cc
13% 1% 14% 28% 9% 9% 18% goods. Though most goods fall in the 12%, 18% and
Mid size Cars 28% brackets, there is a case for merging slabs to
24% 1% 14% 39% 9% 9% 18%
1200cc - 1500cc reduce complexity and classification disputes.
Luxury Cars
27% 1% 14% 42% 14% 14% 28%
> 1500cc • A new institution to address the institutional void at
SUV’s
> 1500cc
30% 1% 14% 45% 14% 14% 28% the state level must be created for resolving conflicts.