Goods and Services

Tax (GST)

-Rahul Ranjan (161570)

Civil Engineering (CTM)

NIT Warangal

Presented By:

Presentation Plan

Introduction of GST

Why GST?

History of GST

Tax structure

Benefits and flaws of GST

Conclusion

Introduction of GST

1. What is GST?

‘G’ – Goods

‘S’ – Services

‘T’ – Tax

• GST is one indirect tax for the whole nation, which

will make India one unified common market.

• GST is a single tax on the supply of goods and

services, right from the manufacturer to the

consumer.

2. Why GST?

• For Central and State Governments

- Simple and easy to administer

- Better controls on leakage

• For the consumer

- Single and transparent tax

- Relief in overall tax burden

3. History of GST

Past

Concept was introduced in 2000 by Atal Bihari Vajpayee

government. ( did not make consensus )

Budget speech of 28 February 2006, P. Chidambaram, the

Finance Minister at that time, announced the target date

for implementation of GST to be 1 April 2010.

Present

The Constitution (122nd Amendment) Bill, 2014 was

introduced in the Lok Sabha, by Finance Minister Arun

Jaitley, 19 December 2014.

Passed by Lok Sabha on 6 May 2015.

Passed by Rajya Sabha on 6 August 2016

Amended bill was passed by the Lok Sabha on 8 August

2016

Ratification

After passing a bill from Lok Sabha and Rajya Sabha,

and before it is signed in to law by President, it should be

ratified by half of the State Legislature.

GST bill ratified by the more than half of the State

Legislature except:

President Assent

Received assent from President Pranab Mukherjee on 8

September 2016.

Government wants to implement GST from 1 April 2017

and tax could be 18-20%.

Tax Structure - Existing Tax Structure

Tax Structure

Direct Tax

Income Tax Wealth Tax

Indirect Tax

Central Tax

Excise Service Tax Customs

State Tax

VAT

Entry Tax,

Entertainment,

Lottery Tax, etc.

- Proposed Tax Structure

Tax Structure

Direct Tax

Income Tax Wealth Tax

Indirect Tax =

GST (Except

customs)

Intra- state

CGST (Central) SGST (State)

Inter State

IGST (Central)

Benefits and Flaws of GST

Benefits:

Same Price of any product throughout the

country

Cascading effect will be avoided

Decrease the price of product

Increase in GDP

Relaxation in some taxes

Transparent taxation system and tax invasion will

be stop

Product And

Services Existing Tax or

System

Car, SUV 30% - 44%

Buy a House VAT + Service tax

Restaurants VAT + Service tax

Home appliances

( Microwave oven,

AC, Washing

Machine, etc.)

Excise tax 12.5% +

VAT 14.5%

Industries 18 different type of

taxes

Indirect tax to

customers

20 different types

Only

GST

(18%)

Flaws:

Not implemented on Petrol, Diesel, Kerosene,

LPG, etc. to take care of state revenue

We will have to pay 18% tax on that product also

which is having no tax or very less tax

Product And

Services

Existing Tax or

System

Packaged food

Products

4% - 6%

Jewellery 3%

Textiles 4% - 5% (as state

VAT)

Mobile & Credit

card

15%

Discount Tax on discounted

price

GST

(18%)

Tax

on

MRP

Conclusion

165 countries already implemented this “One Nation One Tax” plan including

New Zealand 15%

Australia 10%

France 19.6%

Germany 19%

Sweden and Denmark 25%

So India should also implement “GST” to increase it’s economic and financial growth.

References

http://taxguru.in/

http://zeenews.india.com/tags/dna.html

https://en.wikipedia.org/wiki/Goods_and_Services_Tax_Bill

https://www.youtube.com/

http://www.cbec.gov.in/htdocs-servicetax/service-tax