IBMR, IPS ACADEMY

TOPIC: GOODS & SERVICE TAX

SUBMITTED BY:
VIVEK S. RATHORE
SUDEEP JOARDAR
UDIT TIWARI
HEMANT MUNGEDIA
AKSHAY GOYAL
GAURAV DHOL
SUBMITTED TO :
DR. ANITA AHUJA
WHAT IS GST ??
 GST means Goods and Services Tax
 One Nation One Tax
 It’s a destination based Tax
 Biggest Tax Reform as well as Business
Reform
 Original Idea in 2006
 Proposed Implementation 2010
 Finally Coming in 2017
Appointed Day

 APPOINTED DAY : 1ST July 2017

 Midnight 00:00 Hours GST Launch

GST Working
Description Manufacture Distributor Wholesaler Retailer Total Consumer

Purchase
value of inputs 100 120 150 160 - 165

Supply value 120 150 160 165 - -

Value addition 20 30 10 5 65 -

*GST Rate 20% 0.2 0.2 0.2 0.2 0.2 0.2

GST Payable
(Output tax) 24 30 32 33 119 **33

Input tax credit 20 24 30 32 106 -

Net GST
(Payable) 4 6 2 1 13 ***33
Existing Law Shortcomings
Compliance Cost : High
(Many Taxes : Excise, Service Tax, VAT, CST, Entry Tax, Octroi, SAD,
CVD, Purchase Tax, Entertainment Tax, Luxury Tax etc.)
Admin Cost : High
Complexity
Interpretation Issue (Software both Good and Service)
Tax Evasion (Now Straight as well as Reverse Charge Mechanism)
Corruption (Now Online)
Benefits

Input Credit will

available : Presently CST, Excise & Service Tax
not allowed against VAT
Benefit for Citizens

 (i) Simpler tax system

 (ii) Reduction in prices of goods and services
due to elimination of cascading (Refer
Example)

 (iii) Uniform prices throughout the country

 (iv) Transparency in taxation system
 (v) Increase in employment opportunities
Benefit for Trade/Industry
 Reduction in multiplicity of taxes

 Mitigation of cascading/double taxation

 More efficient neutralization of taxes especially for exports

 Development of common national market

 Simpler tax regime-fewer rates and exemptions

 TYPES OF TAXATION IN GST

IGST : Integrated GST

(Inter-state sale & Stock Transfer, Import – SAD+CVD, Export is Zero rated)

SGST : State GST

CGST : Central GST

(Intra-State)
Rate of Tax
(Highest Can Go up to 40%)

 Exempt
 0% : Zero Rated for export
 3% : Gold
 5% : Essential Goods
 12% : Basic Necessity Products
 18% : Revenue Neutral Rate
 28% : Demerit Goods
GSTN
 GST Company Incorporated (49% Central 51%
State and Govt Companies)

 Infosys Appointed as Managed Service

Provider (MSP) Rs. 1380 Crore
 34 IT Companies Appointed as GST Suvidha
Providers (GSP)
 Saksham Project Rs. 2256 Crore for IT re-
engineering
RCM

 Reverse Charge Mechanism

 Pay Tax on Purchase from Un-registered

Persons

 Registration under RCM is mandatory if

liable for RCM
E Way Bill

 E Way Bill : Goods value Rs. 50000 or more

 Supplier, Transporter, Recipient.
 Initial Relaxation
Thank You