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GST
GOODS AND SERVICES TAX

The biggest ever tax reforms in Indian tax system

GST IMPLEMENTED BY THE
GOVERNMENT FROM
1st JULY ,2017
 AIM
•To generate additional revenue for the
government
•To reduce tax evasion
•To create one nation, one tax and one
market
 GST
‘ONE NATION, ONE TAX AND ONE MARKET’
Features of GST
1. COMPREHENSIVE INDIRECT TAX

• IT IS THE SINGLE COMPREHENSIVE INDIRECT TAX

ON SUPPLY OF GOODS AND SERVICES.
2. GST has amalgamated( combine) a large
number of Central and State taxes and Cesses
• Major taxes levied by the Central government
which have been subsumed ( include) in GST are:
• Central excise duty
• Service tax
• Central sales tax etc.
Major State taxes and cesses which have been subsumed in GST are

• Entertainment tax
• octroi duty
• sales tax
• value added tax etc.
3. GST is applicable throughout the
country with one rate for one type o f
goods/services

Under GST there are 5 standard rates :

0%
5%
12%
18%
28%
Products kept outside the GST
Petroleum products

On Alcoholic liquor- VAT

Tobacco both GST and excise duty

4. It is a destination based consumption tax
with the facility of input tax credit(ITC) in
the supply chain.

• Under GST the tax is discharged at every stage of supply and the
credit of tax paid at the previous stage is available for set off at the
next stage of supply of goods and services.
INPUT TAX CREDIT UNDER GST
EXAMPLE
• IF TAX PAYABLE BY A MANUFACTURER ON THE
OUTPUT i.e. final product is Rs. 450 and he has
already paid tax of RS. 300 on input
i.e. purchases then he claim input credit of Rs.
300 and he needs to deposit only Rs. 150 in taxes
Benefits OF GST
• 1 Created a common market in the country
• 2. It has reduced the cost of business transactions and cascading
effect of various taxes on consumers.
• 3. Results into higher economic growth as GDP is expected to rise by
about 2%
• 4. Tax compliance will be easier as all tax payment related services are
available online.
• 5. It has expanded the tax base.
 TYPES OF TAXES UNDER GST

CGST

SGST

IGST
CGST ( CENTRAL GOODS AND
SERVICES TAX)

• IT THE GST levied on the intra- state supply

of goods or services by the Centre.
SGST( STATE GOODS AND SERVICES
TAX)

•IT is the GST levied on the intra- state

supply of goods or services by the State.
IGST ( INTEGREATED GOODS AND
SERVICES TAX)

• IT IS THE GST levied and collected on the

inter- state supply of goods or services by the
Centre.
IGST = CGST+ SGST