Goods and Services Tax 

(GST)

Trade Analytics Presentation by :

• Abhishek Yadav 500080301

• Darpan Chauhan 500086055
• Riya Rana 500085485
• Pushpkant 500086747
 Introduction
•  Former Prime Minister Late Shri Atal Bihari Vajpayee introduced “one nation one tax” in 2000 .
• “Kelkar Task Force” in the year 2004
• Empower Committee constituted finalized the system of Dual GST structure in 2008
• Passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. 
 
Why GST was needed ?

• To simplify the tax structure

• To eradicate the complexities
• To stop multiplicity of taxation
• To stop the people suffering under the old tax regime
 Tax Laws before GST
In the earlier indirect tax regime, there were many indirect taxes levied by both the state and the center.
States mainly collected taxes in the form of Value Added Tax (VAT).
Every state had a different set of rules and regulations.
Inter-state sale of goods was taxed by the center. CST (Central State Tax) was applicable in case of inter-state sale of goods.
The indirect taxes such as the entertainment tax, octroi and local tax were levied together by state and center.

These led to a lot of overlapping of taxes levied by both the state and the center.
For example, when goods were manufactured and sold, excise duty was charged by the center. Over and above the excise
duty, VAT was also charged by the state. It led to a tax on tax effect, also known as the cascading effect of taxes.

The following is the list of indirect taxes in the pre-GST regime:

1. Central Excise Duty

2. Duties of Excise
3. Additional Duties of Excise
4. Additional Duties of Customs
5. Special Additional Duty of Customs
6. Cess
7. Taxes on lotteries, betting, and gambling
8. State VAT
9. Central Sales Tax
10. Purchase Tax
11. Luxury Tax
12 .Entertainment Tax
13. Entry Tax
14. Taxes on advertisements
15. CGST, SGST, and IGST have replaced all the above taxes.

Exception

Certain non gst goods are

1. Petroleum crude;
2. High-speed diesel
3. Motor spirit (commonly known as petrol);
4. Natural gas;
5. Aviation turbine fuel; and
6. Alcoholic liquor for human consumption.
Analyzing
 Impact of GST on Foreign Trade
 Before GST was launched exports made by the country was 437 billion USD and Imports made were 480 billion
USD which resulted in a trade deficit of 43 billion USD.

 After the launch of GST, exports made by the country was 478 billion USD and the imports made were 565 billion
USD which resulted in a trade deficit of 87 billion USD.

 So, after the launch of GST there was an increase in the exports made by the country as well as the imports made
by the country.
 
 Trade deficit became double in just one year.
 
 In long term, GST will yield success to the country.
 Foreign Trade in 2016-17
Merchandise Services Merchandise + Services

Exports 275.86 149.03 424.89

Imports 384.37 88.23 472.6

Trade Balance -108.51 60.8 -47.71

Foreign Trade in 2017-18

Merchandise Services Merchandise + Services

Reasons for the Value in % Value in % Growth Value in USD

USD Growth USD Billions

• Impact
Billions Billions
Increase in the exports Exports 302.84 9.78 175.31 17.63 478.15
• Increase in the imports
• Increase in trade deficit Imports 459.67 19.59 105.65 19.74 565.32

Trade -156.83 44.54 69.66 14.56 -87.17

Balance
 What have we understood till now ?

• Basic structure for both the tax regimes were totally different.

• Procedure of registration

• Tax Rate and State Laws under these regimes

• Tax Collection
 Conclusion

• has reduced the unnecessary tax

• corruption free taxation system

• Inclusion of SMEs (Small and Medium Enterprises)

• Still some loopholes needs to be addressed under GST