CAIT Presentation on GST

7/23/2019 CAIT Presentation on GST

http://slidepdf.com/reader/full/cait-presentation-on-gst 1/44

GOODS & SERVICES TAX - GSTGOODS & SERVICES TAX - GST

A PRESENTATIONA PRESENTATIONBYBY

CONFEDERATION OF ALL INDIA TRADERSCONFEDERATION OF ALL INDIA TRADERS

NEW DELHINEW DELHI



TAXATION POWERSTAXATION POWERSOF CENTREOF CENTRE

• Income Tax – on income, other than aric!"t!ra" income

• Excise Duty – on oo#$ man!%act!re# or &ro#!ce# inIn#ia

• Custom Duty – on im&ort$ an# e'&ort$

• Se!ice Tax – on $&eci%ie# $er(ice$

• Centa" Sa"es Tax – on inter)State $a"e o% oo#$

• Rate$ o% Stam# Duty on *+ $&eci%ie# in$tr!ment$

CONC$RRENT %IST OF OT'CONC$RRENT %IST OF OT'• Stam& D!tie$, not inc"!#in rate$ o% $tam& #!t on *+

$&eci%ie# in$tr!ment$-



TAXATION POWERS OF STATESTAXATION POWERS OF STATES

• VAT(Sa"es Tax - on #uc)ase o sa"e o* +oo,s ot)e t)anne.s#a#es .it)in a State

• Excise ,uty - on a"co)o"ic "i/uo *o )uman consum#tion

• Rates o* Stam# Duty 0 on ot)e t)an 12 s#eci*ie, instuments

• %an, Re!enue

• Tax 0 on a+icu"tua" income

• To"" tax

• 3 Taxes on4

• %an, an, 5ui",in+s

• Enty o* +oo,s in a "oca" Aea 6Enty Tax o Octoi7

• Consum#tion o sa"e o* e"ecticity

• Goo,s an, #assen+es caie, 5y oa, o in"an, .ate.ays• Ve)ic"es

• Po*essions Ta,es Ca""in+s an, Em#"oyments

• %uxuies inc"u,in+ taxes on entetainment 5ettin+ an, +am5"in+



DRAWAC8S OFDRAWAC8S OF

C$RRENT S9STE:C$RRENT S9STE:

–Con%!$ion an# .i$tr!$t

–Com&"e' an# "ac/in in $ta0i"it–Hi##en ta' on e'&ort$, no $tate ta' on

im&ort$

–Hih tran$action co$t$–Narro1 0a$e





TAS8 FORCE FOR TAX REFOR:STAS8 FORCE FOR TAX REFOR:S

• A ;Gan, a+ain<= One VAT 0 T)e Goo,s an, Se!ices Tax6GST7

• The 2e"/ar Ta$/ Force 1a$ con$tit!te# 1ith the man#ate torecommen# mea$!re$ to ena0"e the 3o(ernment o% In#ia to

im&"ement the Fi$ca" Re$&on$i0i"it an# B!#et .anaement4FRB.5 Act, 6++7, 1hich $ee/$ to eliminate re(en!e #e%icit 0.arch 7*, 6++8-

• A$ the main &ro&o$a" %or ta' re%orm, Dr-9i:a 2e"/ar an# hi$ teamha(e recommen#e# a $in"e 3ST 43oo#$ an# Ser(ice$ Ta'5 –re&"acin the Cen(at;e'ci$e #!t, $a"e$ ta', $er(ice ta', etc- It1o!"# !$e the 9AT &rinci&"e to ta' con$!m&tion o% a"mo$t a"" oo#$an# $er(ice$ – 1ith %!"" ta'

• Cre#it$ %or ta' &ai# on &!rcha$e o% a"" oo#$ an# $er(ice$ 1i"" 0ea(ai"a0"e-



W)at is GOODS AND SERVICE TAXW)at is GOODS AND SERVICE TAX

• Goo,s an, Se!ice Tax is a tax on +oo,s an, se!ices=

• It is "e!ia5"e at eac) #oint o* sa"e o #o!ision o*se!ice=

• At t)e time o* sa"e o* +oo,s o #o!i,in+ t)e se!icest)e se""e o se!ice #o!i,e can c"aim t)e in#ut

ce,it o* tax .)ic) )e )as #ai, .)i"e #uc)asin+ t)e+oo,s o #ocuin+ t)e se!ice

• T)is is sim#"y !ey simi"a to VAT=

• It can 5e teme, as Nationa" "e!e" VAT on Goo,s an,Se!ices=

• On"y ,i**eence in t)is system is t)at not on"y +oo,s5ut a"so se!ices ae in!o"!e,=

• T)e ate o* tax on +oo,s an, se!ices ae +enea""y t)esame=



GST-AT A G%ANCEGST-AT A G%ANCE



GST4 A $NIFICATION OF TAXESGST4 A $NIFICATION OF TAXES

• A GST c"assica""y entai"s uni*ication o* a"" "e!ies on+oo,s an, se!ices= In t)e In,ian context t)is .ou",

mean me+in+ t)e *o""o.in+4

• Tax on manu*actue o* +oo,s 6excise ,uty "e!ie, 5y t)e

Cente7=• Tax on sa"e o* +oo,s 6CST ( VAT "e!ie, 5y 5ot) Cente

an, states7=

• Tax on se!ices 6"e!ie, 5y Cente an, to some extent 5y

states suc) as Entetainment tax e"ecticity cess etc7=



GST WOR%D WIDEGST WOR%D WIDE

• In mo$t co!ntrie$ o% the 1or"#, a $in"e 9AT e'i$t1hich co(er$ 0oth oo#$ an# $er(ice$

• A"" $ector$ are ta'e# 1ith (er %e1 e'ce&tion$;

e'em&tion$-

• F!"" ta' cre#it$ on in&!t$ –*++< $et o%%

• Cana#a an# Bra=i" a"one ha(e a #!a" 9AT

• In#ia a"$o "i/e" to a#o&t #!a" 3ST .o#e" 0a$e#on 3ST mo#e" o% Cana#a 1-e-%- *$t A&ri" 6+*+-



GST-8NOW TAXES PAID 9 9O$GST-8NOW TAXES PAID 9 9O$

• We a"" 1i"" &a 3ST on e(er &ro#!ct or $er(ice 1e 0!-

• Since a"" in#irect ta'e$ "e(ie# 0 the State$ an# the Centre 1i"" 0emere# into one 3ST, 1e 1o!"# e'act" /no1 ho1 m!ch ta' 1e &a1hich at &re$ent i$ #i%%ic!"t to !n#er$tan#-

• No #i$tinction 1o!"# 0e ma#e 0et1een im&orte# or In#ian oo#$an# the 1o!"# 0e ta'e# at the $ame rate-

•

• The $e""er$ or $er(ice &ro(i#er$ co""ect the ta' %rom their c!$tomer-

• Be%ore #e&o$itin the $ame to the e'che>!er, the #e#!ct the ta'the ha(e a"rea# &ai#-

• The $!cce$$ o% 3ST 1o!"# re$t !&on e%%icienc, e>!it an# $im&"icit-



W)y ,o .e nee,W)y ,o .e nee,

GST to,ayGST to,ay• In In#ian econom the $er(ice $ector

contri0!te$ o(er ??<-

• Se&arate ta'ation o% oo#$ an# $er(ice$i$ neither (ia0"e nor #e$ira0"e

• 9a"!e a##e# in man!%act!re an# $a"e o%oo#$ re>!ire in&!t$ o% 0oth @ oo#$

an# $er(ice$ an# vice versa, 1hich i$o%ten not $e&ara0"e



GST In In,ia 0 A REA%IT9GST In In,ia 0 A REA%IT9

• The $tae "oo/$ a"" $et %or theintro#!ction o% !ni%ie# 3oo#$ an#

Ser(ice$ Ta' 43ST5 %rom 6+*+-

• The Em&o1ere# Committee o% State

Finance .ini$ter$ ha$ &ro&o$e# a#!a" 3ST @ 0oth at Centra" an#State "e(e"-



GST- 'OW IT WOR8SGST- 'OW IT WOR8S

• T)e ,ea"es e+istee, un,e GST 6:anu*actuesW)o"esa"es an, etai"es an, se!ice #o!i,es7 .i""c)a+e GST on t)e #ice o* +oo,s an, se!ices *omt)ei customes=

• T)ey .i"" c"aim ce,its *o t)e GST inc"u,e, in t)e #iceo* t)ei o.n #uc)ases o* +oo,s an, se!ices use, 5yt)em=

• T)e se""es o se!ice #o!i,es co""ect t)e tax *omt)ei custome .)o may o may not 5e t)e u"timatecustome an, 5e*oe ,e#ositin+ t)e same to t)eexc)e/ue t)ey ,e,uct t)e tax t)ey )a!e a"ea,y #ai,=



GST- W'AT A%% ITGST- W'AT A%% ITINC%$DESINC%$DES

*- A $a"e or $!&&" inc"!#e$ a $a"e o% oo#$

6- Lea$e o% &remi$e$

7- Hire o% e>!i&ment

- 3i(in a#(ice?- E'&ort o% oo#$ an# $!&&" o% other thin$-

- A &!rcha$e inc"!#e$ an ac>!i$ition o% oo#$ or$er(ice$ $!ch a$ tra#in $toc/ a "ea$e,

con$!ma0"e$ an# other thin$-



GST- 'OW IT WOR8SGST- 'OW IT WOR8S• I* a 5usiness is e+istee, *o GST it must inc"u,e GST in t)e

#ice o* +oo,s se!ices an, ot)e t)in+s t)ey se"" to ot)esin t)e couse o* 5usiness= T)ese ae ca""e, ;taxa5"e sa"es<=

• T)ee ae ot)e ty#es o* sa"es .)ee GST is not inc"u,e, int)e #ice=

• T)ese ae eit)e ;in#ut taxe,< sa"es o ;GST-*ee< sa"es=

• GST may 5e inc"u,e, in t)e #ice o* #uc)ases 6inc"u,in+im#otations7 ma,e 5y a 5usiness an, it<s a +oo, i,ea toa""o. *o it .)en settin+ #ices=

• • W)en a 5usiness is e+istee, *o GST t)ey can +enea""y

c"aim a ce,it *o any GST inc"u,e, in t)e #ice t)ey #ay *ot)in+s #uc)ase, 5y t)e 5usiness= T)is is ca""e, a GSTce,it=



• C)ina - 1>?

• In,onesia - 12?

• P)i"i##ines -12?

• Tai.an 6C)inese Tai#ei7 - @?

• $8 -1>=@?

• Austa"ia -12?

• Fance -1=B?• Gemany -1B?

• Denma -@?

GST- RATES WOR%D WIDEGST- RATES WOR%D WIDE

No- o% Co!ntrie$ *+No- o% Co!ntrie$ *+



• Centa" TaxesE'ci$e D!t

A##itiona" E'ci$e #!t

Ser(ice Ta'

C9D, SADS!rchare

• State Taxes

9AT

Entertainment ta' "e(ie# 0 $tate$

L!'!r Ta'

Ta' on Lotter

Entr ta' other than %or "oca" 0o#ie$

TAES Pro&o$e# TO BETAES Pro&o$e# TO BESBS.ED IN 3STSBS.ED IN 3ST



• Centa" TaxesS&eci%ic Ce$$

E'ci$e #!t on to0acco &ro#!ct$

• State TaxesItem$ containin a"coho"

Entertainment ta' 4Loca" Bo#ie$5

Entr ta' %or "oca" 0o#ie$

E"ectricit #!t

TAXES NOT E INC%$DEDTAXES NOT E INC%$DED IN GSTIN GST



• Dua" GST 4 Centa" GST & State GST

• Destination 5ase, State GST

• Common ase

• $ni*om C"assi*ication

• $ni*om Foms 0 Retuns C)a""ans etc

• No casca,in+ o* Centa" an, State taxes

• Coss ce,it 5et.een Cente an, State not a""o.e,

• Tax "e!ie, *om #o,uction to consum#tion

GST 4 8E9 FEAT$RESGST 4 8E9 FEAT$RES



• Rate Stuctue 4 %o.e an, Stan,a, Rate

• Pecious meta"s an, stones !ey "o. ate

• GST Exem#tion *o some times

• Some Goo,s at "o.e ate 6exc"u,es In,= In#uts7

• Peto"eum #o,ucts "i/uo an, nacotics exc"u,e,

*om GST e+ime

PROPOSED GST RATESPROPOSED GST RATES



• Exem#te, #o,ucts 4

– Foo# 3rain$, Brea#, Sa"t, .i"/, 9eeta0"e, .eat,

Fi$h

• Goo,s at %o.e Rate 4

– Tea, .i"/ Po1#er, Co%%ee 0ean$, To, Bee#i,

Bicc"e$

• Go!t= ai,e, #u5"ic )ea"t) an, e,ucation

exem#te,

INDICATIVE GST RATESINDICATIVE GST RATES



$se C)a+es "ie"y to$se C)a+es "ie"y to5e out o* GST5e out o* GST

It ha$ a"$o $!e$te# /ee&in "e(ie$ "i/e the to"" ta',en(ironment ta' an# roa# ta' o!t$i#e the 3ST am0it, a$ the$e

are !$er chare$

%ie"y Rate 0 1B #ecent Tota"%ie"y Rate 0 1B #ecent Tota"

• It i$ en(i$ae# that the %rame1or/ o% #!a" 3ST 1o!"#

em0o# m!"ti&"e rate o% ta'e$ %or oo#$ , 0!t a $in"erate %or $er(ice$ 1ithin a $tate - There are in#ication$that the rate co!"# 0e in the rane o% *)6+ &er cent- Theo(ernment i$ e'&ecte# to come o!t 1ith a 1hite &a&eron the tran$ition to 3ST $hort" -



GST 4 8E9 FEAT$RESGST 4 8E9 FEAT$RES

• HSN to 0e a&&"ie# %or oo#$

• ni%orm ret!rn co""ection &roce#!re %or

centra" an# $tate 3ST

• *7 #iit PAN 0a$e# common TINRei$tration

• TINSYS to trac/ tran$action$



GST 4 A$T'ORITIESGST 4 A$T'ORITIES

• C3ST – To 0e a#mini$tere# 0 Centra"3o(ernment-

• S3ST – To 0e a#mini$tere# 0 State9AT De&artment

• Inter State Tran$action – To 0ea#mini$tere# 0 A common Centra"i=e#A!thorit



GST- AS WE %OO8 ATGST- AS WE %OO8 AT

• In,ia to )a!e on"y t.o in,iect taxes name"y GST 5ot)

Centa" GST & State GST an, Customs ,uty=

• Centa" GST to inc"u,e centa" excise se!ice tax an,

e,ucation cess=

• State GST to inc"u,e a com5ination o* a"" taxes #esent"y"e!ie, 5y t)e state an, octoi 5y munici#a"ities= CSTnee,s to 5e #)ase, out 5e*oe into,uction o* GST=

• ot) Centa" GST an, State GST to 5e "e!ie, on t)ecommon 5ase #ice *om manu*actuin+ sta+e to etai"sta+e on +oo,s an, simi"a"y on se!ices=

• Tax on sa"e o* #o#ety to 5e "e!ie, on t)e !a"uea,,ition un,e state GST an, not on t)e tota" amount as

a##"ica5"e #esent"y



GST- AS WE %OO8 ATGST- AS WE %OO8 AT

• In#ut tax ce,it to 5e a!ai"a5"e *o Centa" GST as .e"" asState GST #ai, ies#ecti!e o* t)e co""ectin+ a+ency=

• Se"ection o* se!ices *o im#osin+ GST s)ou", continue .it)t)e Centa" Go!enment= States can 5e a""o.e, to co""ect ,ua"

GST on cetain se!ices .)ic) ae ,iect"y consume, "ie5eauty teatment )ea"t) c"u5 etc= State s)ou", C)oose an,not t)e Cente s)ou", im#ose suc) se!ices on t)em

• Dua" GST s)ou", 5e "e!ie, on im#ots a"so .it) *aci"ity o*ce,it *o t)e tax #ai,=

• =Ex#ots must 5e eo ate, i=e= t)ee s)ou", 5e no taxe"ement in t)e #ice o* +oo,s ex#ote,=



TAXING OF INTERTAXING OF INTERSTATE TRANSACTIONSTATE TRANSACTION

• Ta' &ament 0 e'&ortin #ea"er to theacco!nt o% recei(in $tate

• Cre#it a""o1e# to the 0!in #ea"er 0recei(in $tate on (eri%ication

• Retention 0 recei(in $tate on $a"e to non

#ea"er

• Dec"aration %orm to 0e #i$contin!e#



SEA:%ESS CREDITSEA:%ESS CREDIT

• It 1i"" a"$o en# the #i$tortion in

#i%%erentia" ta' treatment o% (ario!$

oo#$ an# $er(ice$- 3ST i$ oin to

0e &innac"e o% achie(in an

interation o% e'ci$e #!tie$, $er(ice

ta', State (a"!e a##e# ta' an# other

"oca" ta'e$- With 3ST, !ni%ormit o%"e( o% in#irect ta'e$ 1i"" 0e en$!re#

acro$$ the co!ntr-

SEA:%ESS CREDITSEA:%ESS CREDIT



SEA:%ESS CREDITSEA:%ESS CREDIT:EC'ANIS::EC'ANIS:

• In&!t ta' cre#it to 0e a(ai"a0"e %or

Centra" 3ST a$ 1e"" a$ State 3ST

&ai# irre$&ecti(e o% the co""ectin

aenc

• Create a nation1i#e c"earinho!$e

mechani$m to %aci"itate tran$%er o%

Centra" an# State 3ST an# a""o1

cre#it %or ta' &ai#



Im&ort$ co!"# 0e ta'e#GIm&ort$ co!"# 0e ta'e#G

• D!a" 3ST $ho!"# 0e "e(ie# on im&ort$a"$o 1ith %aci"it o% cre#it %or the ta'

&ai#

• E'&ort$ m!$t 0e =ero rate# i-e- there

$ho!"# 0e no ta' e"ement in the &riceo% oo#$ e'&orte#



TAX EXE:PTIONSTAX EXE:PTIONS

• Aea ase,

To 0e #i$contin!e# a%ter c!rrent

e"ii0i"it &erio#• Po,uct ase,

To 0e con(erte# in to re%!n# ro!te

• %imite, F"exi5i"ityTo Centre State$ 0arrin %e1 e'ce&tion$



GST- IT<S S9STE:GST- IT<S S9STE:

In!oice System4

• In thi$ $$tem, the cre#it o% 3ST &ai# i$ c"aime# on the0a$i$ o% in(oice-

• It i$ c"aime# 1hen the in(oice i$ recei(e#-

• It i$ immateria" 1hether &ament i$ ma#e or not-• The 3ST 4O!t&!t5 i$ acco!nte# %or 1hen in(oice i$ rai$e#-

• The time o% recei&t o% &ament i$ immateria"-

• The a#(antae o% in(oice $$tem i$ that the in&!t cre#itcan 0e c"aime# 1itho!t ma/in the &ament-

• The #i$a#(antae o% the in(oice $$tem i$ that the GST ha$ to 0e &ai# 1itho!t recei(in the &ament-



GST-'OW OT'ER CO$NTRIES DOGST-'OW OT'ER CO$NTRIES DO

• :oe t)an 1H2 counties )a!e into,uce, GST in some*om=

• It )as 5een a #at o* t)e tax "an,sca#e in Euo#e *o t)e#ast @2 yeas=

• It is *ast 5ecomin+ t)e #e*ee, *om o* in,iect tax int)e Asia-Paci*ic e+ion=

• It is inteestin+ to note t)at t)ee ae o!e 2 mo,e"s o*GST cuent"y in *oce eac) .it) its o.n #ecu"iaities=

• W)i"e counties suc) as Sin+a#oe an, Ne. Jea"an, tax!itua""y e!eyt)in+ at a sin+"e ate In,onesia )as *i!e#ositi!e ates a eo ate an, o!e H2 cate+oies o*exem#tions=

• In C)ina GST a##"ies on"y to +oo,s an, t)e #o!ision o*e#ais e#"acement an, #ocessin+ se!ices=

• It is on"y eco!ea5"e on +oo,s use, in t)e #o,uction#ocess an, GST on *ixe, assets is not eco!ea5"e=

• T)ee is a se#aate 5usiness tax in t)e *om o* VAT=



GST-CAN WE ADOPT ITGST-CAN WE ADOPT IT

• An in%ormation net1or/ a""o1in $tate$ to cro$$)chec/

&ament in%ormation 4TINSYS5 ha$ 0een &!t to tria" an#i$ e'&ecte# to im&ro(e com&"iance an# re#!ce e(a$ion-

• What i$ nee#e# i$ an IT $$tem "i/e the Ta' In%ormationNet1or/ 4TIN5, 1here the TDS or the 9AT cre#it i$recor#e# in a centra" #ata0a$e-

• Thro!h thi$, &a&er 0i""$ an# %ra!# are "are" e"iminate#-

• It i$ !n%air to e'&ect $!ch an initiati(e to come %rom thecommittee 1or/in on $tate 9AT, i(en the "ac/ o%$!$taine# orani$ationa" ca&acit re>!ire#-



ISS$ES FRO: TRADER<SISS$ES FRO: TRADER<SPERSPECTIVEPERSPECTIVE

• Dia"o!e 1ith Tra#e In#!$tr an# a"" other $ta/e ho"#er$

• 3ST co#e to 0e ma#e &!0"ic at"ea$t ) month$ 0e%oreim&"ementation-

• In#!$tria" in&!t$, Ca&ita" oo#$ at "o1e$t rate, $a *<

• Li$t o% e'em&te# oo#$ – $&eci%ic;common acro$$ $tate$

• Stoc/ tran$%er$ $ho!"# 0e e'em&te# monitor$ thr! $$tem 0a$e#contro"$



ISS$ES FRO: TRADER<SISS$ES FRO: TRADER<SPERSPECTIVEPERSPECTIVE

• A"" #ec"aration %orm$ 4Form F, C5 $ho!"# 0e a0o"i$he#

• .onitorin thro!h $$tem 0a$e# contro"$

• F!"" $et o% In&!t ta' cre#it to the a$$e$$e$;entit, 0a$e# on&rinci&"e o% 0!$ine$$ co$t an# e'&en#it!re-

• Imme#iate cre#it o% $toc/ tran$%er$, 1itho!t one)to)one co)re"ation

• Set)o%% $ho!"# 0e on entit;concern 0a$i$-

• Re%!n#$, i% an, $ho!"# 0e a!tomatic thro!h $$tem 0a$e#contro"$-



GST-NO TAX EVASIONGST-NO TAX EVASION

• To chec/ ta' e(a$ion, the Ta$/ Force ha$&ro&o$e# an IT)inten$i(e Ri$/ Inte""ienceNet1or/ 4RIN5-

• Thi$ 1o!"# &!t three $et$ o% #ata0a$e$toether – 1hat the %irm te""$ CBDT, 1hat

it te""$ CBEC an# 1hat it &!t$ %orth to the&!0"ic, inc"!#in $hareho"#er$-



ISS$ES 9ET TO EISS$ES 9ET TO EDECIDEDDECIDED

• Con$tit!tiona" amen#ment a!thori=in $tateto co""ect an# retain ta' on $er(ice$-

• Inte+ation o* cetain Centa" & Statetaxes 49ario!$ Ce$$, E"ectricit #!t,Entertainment ta' etc-5

• Taxation o* inte state se!ices an,

t)ei met)o, o* taxation• Stoc tans*e

• Roa, #emits an, c)ec #osts



AD:INISTATIVEAD:INISTATIVEISS$ES ( ott"enecsISS$ES ( ott"enecs

• 3rant o% ITC %or inter)$tate tran$action$ 0 recei(in$tate #e&en#$ on e%%icient 0an/in an# re"ate#mechani$m

• Lac/ o% IT &re&are#ne$$ o% certain State$ i$ a /e0ott"enec/

• S!cce$$ o% the &ro&o$e# 3ST $tr!ct!re critica""

#e&en#$ on o&eration o% the e%%ecti(e IT $$tem

• 3ettin ta' re%!n#$ %or e'em&te# oo#$ 0a$e# on0!#etar a""ocation ma #e"a re%!n#$



W'AT CAIT DE:ANDSW'AT CAIT DE:ANDS

• Ta,es ae tax co""ectos & not t)e tax #ayes=T)ee*oe t)ey s)ou", 5e coect"y ,e*ine, asTax Co""ectos un,e GST Taxation System=

• Ta,es s)ou", 5e eim5use, 5y t)e Go!t= *oex#enses incue, on co""ection o* GST=

• Some sot o* e**ecti!e mec)anism )as to 5e,e!e"o#e, to ensue t)at 5ene*it o* e,uction in

cost must 5e #asse, to en, consume= T)e "a+emanu*actues & com#anies may 5e a,!ise, 5y!itue o* "a. to ,ec"ae t)ei Pe-GST & Post-GSTcost o* #o,uction to t)e es#ecti!e Statetaxation ,e#atment=




• Be$i#e centra" $tate ta'e$, the "oca" 3o(ernin 0o#ie$ "i/e.!nici&a" Cor&oration etc are a"$o "e(in $e(era" commercia"ta'e$- Either $!ch ta'e$ ma a"$o 0e ama"amate# in 3ST ora "o1e$t !ni%orm ta' $tr!ct!re ma 0e "e(ie# to a(oi# an /in#o% #i$&arit in ta'e$ rate$ 0et1een "oca" 0o#ie$ o% #i%%erent$tate$-

• The 9AT rei$tration N!m0er $ho!"# it$e"% 0e con$tr!e# a$ 3STno- tra#er$ $ho!"# not 0e a$/e# to a&&" a%re$h- F!rther, the&roce#!re o% o0tainin ne1 3ST rei$tration n!m0er$ $ho!"#0e ma#e $im&"e ea$-

• The re%!n# &roce#!re in 3ST $ho!"# 0e ma#e >!ite $im&"e iti$ to 0e en$!re# that 1ithin m!ch rea$ona0"e time, the tra#er$$ho!"# et 0ac/ their re%!n# an# in ca$e o% #e"a, the tra#er$$ho!"# 0e com&en$ate# 1ith intere$t 0 the #e&artment-




• In or#er to ma/e the $ta/eho"#er$ a1are a0o!t mo#a"itie$ o%3ST an# other re"ate# i$$!e$, an inten$i(e nation1i#e &!0"icitcam&ain inc"!$i(e o% 1or/$ho&$, $eminar$ etc ma a"$o 0e&"anne# 1ith the acti(e a$$i$tance o% tra#e a$$ociation$-

• A $&ecia" 1or/in ro!& on 3ST ma 0e %orme# 0oth at Centre $tate "e(e"$ 1ith re&re$entati(e$ o% tra#e in#!$tr %or&re&arin %ina" roa#ma& o% 3ST it$ im&"ementation-

• Since 3ST 1i"" 0e 0a$e# on com&!teri=ation $$tem, it i$$!e$te# that com&!ter ma 0e ma#e a(ai"a0"e to tra#er$ on$!0$i# to 0e &ro(i#e# 0 the 3o(ernment-

• It i$ a"$o $!e$te# that 3ST $o%t1are ma 0e ma#e a(ai"a0"eto a"" tra#er$ other$ $ection o% the $ociet %ree o% co$t-



THAN2 YOTHAN2 YOYo! 1ere oo# a!#ienceYo! 1ere oo# a!#ience

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