GOODS amp SERVICES TAX - GSTGOODS amp SERVICES TAX - GST

A PRESENTATIONA PRESENTATIONBYBY

CACA ANURAG JETHLIYAANURAG JETHLIYA

TAXATION POWERS TAXATION POWERS OF CENTREOF CENTRE

Income TaxIncome Tax ndash on income other than agricultural income ndash on income other than agricultural income Excise DutyExcise Duty ndash on goods manufactured or produced in India ndash on goods manufactured or produced in India Custom DutyCustom Duty ndash on imports and exports ndash on imports and exports Service TaxService Tax ndash on specified services ndash on specified services Central Sales TaxCentral Sales Tax ndash on inter-State sale of goods ndash on inter-State sale of goods Rates of Rates of Stamp DutyStamp Duty on 10 specified instruments on 10 specified instruments

CONCURRENT LIST OF BOTHCONCURRENT LIST OF BOTH Stamp Duties not including rates of stamp duty on 10 specified Stamp Duties not including rates of stamp duty on 10 specified

instrumentsinstruments

TAXATION POWERS OF STATESTAXATION POWERS OF STATES

VATSales Tax - on purchase or sale of goods other than VATSales Tax - on purchase or sale of goods other than newspapers within a Statenewspapers within a State

Excise duty - on alcoholic l iquor for human consumptionExcise duty - on alcoholic l iquor for human consumption Rates of Stamp Duty ndash on other than 10 specif ied instrumentsRates of Stamp Duty ndash on other than 10 specif ied instruments Land RevenueLand Revenue Tax ndash on agricultural incomeTax ndash on agricultural income Toll taxToll tax 1048766 1048766 Taxes onTaxes on Land and buildingsLand and buildings Entry of goods in a local Area (Entry Tax or Octroi)Entry of goods in a local Area (Entry Tax or Octroi) Consumption or sale of electricityConsumption or sale of electricity Goods and passengers carried by road or inland waterwaysGoods and passengers carried by road or inland waterways VehiclesVehicles Professions Trades Call ings and EmploymentsProfessions Trades Call ings and Employments Luxuries including taxes on entertainment bett ing and Luxuries including taxes on entertainment bett ing and

gamblinggambling

DRAWBACKS OF DRAWBACKS OF CURRENT SYSTEMCURRENT SYSTEM

Confusion and MistrustConfusion and Mistrust Complex and lacking in stabilityComplex and lacking in stability Hidden tax on exports no state tax on importsHidden tax on exports no state tax on imports High transaction costsHigh transaction costs Narrow baseNarrow base

What is GOODS AND SERVICE TAXWhat is GOODS AND SERVICE TAX

Goods and Service Tax is a tax on goods and servicesGoods and Service Tax is a tax on goods and services It is leviable at each point of sale or provision of serviceIt is leviable at each point of sale or provision of service At the time of sale of goods or providing the services the At the time of sale of goods or providing the services the

seller or service provider can claim the input credit of tax seller or service provider can claim the input credit of tax which he has paid while purchasing the goods or procuring which he has paid while purchasing the goods or procuring the servicethe service

This is simply very similar to VATThis is simply very similar to VAT It can be termed as National level VAT on Goods and It can be termed as National level VAT on Goods and

Services Services Only difference in this system is that not only goods but Only difference in this system is that not only goods but

also services are involvedalso services are involved The rate of tax on goods and services are generally the The rate of tax on goods and services are generally the

same same

Why do we need GST Why do we need GST today today

In Indian economy the service sector In Indian economy the service sector contributes over 55contributes over 55

Separate taxation of goods and Separate taxation of goods and services is neither viable nor desirableservices is neither viable nor desirable

Value added in manufacture and sale Value added in manufacture and sale of goods require inputs of both mdash of goods require inputs of both mdash goods and services and goods and services and vice versavice versa which is often not separable which is often not separable

GST- HOW IT WORKSGST- HOW IT WORKS

The dealers registered under GST (Manufacturers The dealers registered under GST (Manufacturers Wholesalers and retailers and service providers) wil l Wholesalers and retailers and service providers) wil l charge GST on the price of goods and services from their charge GST on the price of goods and services from their customerscustomers

They wil l claim credits for the GST included in the price They wil l claim credits for the GST included in the price of their own purchases of goods and services used by of their own purchases of goods and services used by themthem

The sellers or service providers collect the tax from their The sellers or service providers collect the tax from their customer who may or may not be the ult imate customer customer who may or may not be the ult imate customer and before deposit ing the same to the exchequer they and before deposit ing the same to the exchequer they deduct the tax they have already paid deduct the tax they have already paid

GST- WHAT ALL IT GST- WHAT ALL IT INCLUDESINCLUDES

11 A sale or supply includes a sale of goodsA sale or supply includes a sale of goods22 Lease of premisesLease of premises33 Hire of equipmentHire of equipment44 Giving adviceGiving advice55 Export of goods and supply of other things Export of goods and supply of other things 66 A purchase includes an acquisition of goods or A purchase includes an acquisition of goods or

services such as trading stock a lease consumables services such as trading stock a lease consumables and other thingsand other things

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

TAXATION POWERS TAXATION POWERS OF CENTREOF CENTRE

Income TaxIncome Tax ndash on income other than agricultural income ndash on income other than agricultural income Excise DutyExcise Duty ndash on goods manufactured or produced in India ndash on goods manufactured or produced in India Custom DutyCustom Duty ndash on imports and exports ndash on imports and exports Service TaxService Tax ndash on specified services ndash on specified services Central Sales TaxCentral Sales Tax ndash on inter-State sale of goods ndash on inter-State sale of goods Rates of Rates of Stamp DutyStamp Duty on 10 specified instruments on 10 specified instruments

CONCURRENT LIST OF BOTHCONCURRENT LIST OF BOTH Stamp Duties not including rates of stamp duty on 10 specified Stamp Duties not including rates of stamp duty on 10 specified

instrumentsinstruments

TAXATION POWERS OF STATESTAXATION POWERS OF STATES

VATSales Tax - on purchase or sale of goods other than VATSales Tax - on purchase or sale of goods other than newspapers within a Statenewspapers within a State

Excise duty - on alcoholic l iquor for human consumptionExcise duty - on alcoholic l iquor for human consumption Rates of Stamp Duty ndash on other than 10 specif ied instrumentsRates of Stamp Duty ndash on other than 10 specif ied instruments Land RevenueLand Revenue Tax ndash on agricultural incomeTax ndash on agricultural income Toll taxToll tax 1048766 1048766 Taxes onTaxes on Land and buildingsLand and buildings Entry of goods in a local Area (Entry Tax or Octroi)Entry of goods in a local Area (Entry Tax or Octroi) Consumption or sale of electricityConsumption or sale of electricity Goods and passengers carried by road or inland waterwaysGoods and passengers carried by road or inland waterways VehiclesVehicles Professions Trades Call ings and EmploymentsProfessions Trades Call ings and Employments Luxuries including taxes on entertainment bett ing and Luxuries including taxes on entertainment bett ing and

gamblinggambling

DRAWBACKS OF DRAWBACKS OF CURRENT SYSTEMCURRENT SYSTEM

Confusion and MistrustConfusion and Mistrust Complex and lacking in stabilityComplex and lacking in stability Hidden tax on exports no state tax on importsHidden tax on exports no state tax on imports High transaction costsHigh transaction costs Narrow baseNarrow base

What is GOODS AND SERVICE TAXWhat is GOODS AND SERVICE TAX

Goods and Service Tax is a tax on goods and servicesGoods and Service Tax is a tax on goods and services It is leviable at each point of sale or provision of serviceIt is leviable at each point of sale or provision of service At the time of sale of goods or providing the services the At the time of sale of goods or providing the services the

seller or service provider can claim the input credit of tax seller or service provider can claim the input credit of tax which he has paid while purchasing the goods or procuring which he has paid while purchasing the goods or procuring the servicethe service

This is simply very similar to VATThis is simply very similar to VAT It can be termed as National level VAT on Goods and It can be termed as National level VAT on Goods and

Services Services Only difference in this system is that not only goods but Only difference in this system is that not only goods but

also services are involvedalso services are involved The rate of tax on goods and services are generally the The rate of tax on goods and services are generally the

same same

Why do we need GST Why do we need GST today today

In Indian economy the service sector In Indian economy the service sector contributes over 55contributes over 55

Separate taxation of goods and Separate taxation of goods and services is neither viable nor desirableservices is neither viable nor desirable

Value added in manufacture and sale Value added in manufacture and sale of goods require inputs of both mdash of goods require inputs of both mdash goods and services and goods and services and vice versavice versa which is often not separable which is often not separable

GST- HOW IT WORKSGST- HOW IT WORKS

The dealers registered under GST (Manufacturers The dealers registered under GST (Manufacturers Wholesalers and retailers and service providers) wil l Wholesalers and retailers and service providers) wil l charge GST on the price of goods and services from their charge GST on the price of goods and services from their customerscustomers

They wil l claim credits for the GST included in the price They wil l claim credits for the GST included in the price of their own purchases of goods and services used by of their own purchases of goods and services used by themthem

The sellers or service providers collect the tax from their The sellers or service providers collect the tax from their customer who may or may not be the ult imate customer customer who may or may not be the ult imate customer and before deposit ing the same to the exchequer they and before deposit ing the same to the exchequer they deduct the tax they have already paid deduct the tax they have already paid

GST- WHAT ALL IT GST- WHAT ALL IT INCLUDESINCLUDES

11 A sale or supply includes a sale of goodsA sale or supply includes a sale of goods22 Lease of premisesLease of premises33 Hire of equipmentHire of equipment44 Giving adviceGiving advice55 Export of goods and supply of other things Export of goods and supply of other things 66 A purchase includes an acquisition of goods or A purchase includes an acquisition of goods or

services such as trading stock a lease consumables services such as trading stock a lease consumables and other thingsand other things

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

TAXATION POWERS OF STATESTAXATION POWERS OF STATES

VATSales Tax - on purchase or sale of goods other than VATSales Tax - on purchase or sale of goods other than newspapers within a Statenewspapers within a State

Excise duty - on alcoholic l iquor for human consumptionExcise duty - on alcoholic l iquor for human consumption Rates of Stamp Duty ndash on other than 10 specif ied instrumentsRates of Stamp Duty ndash on other than 10 specif ied instruments Land RevenueLand Revenue Tax ndash on agricultural incomeTax ndash on agricultural income Toll taxToll tax 1048766 1048766 Taxes onTaxes on Land and buildingsLand and buildings Entry of goods in a local Area (Entry Tax or Octroi)Entry of goods in a local Area (Entry Tax or Octroi) Consumption or sale of electricityConsumption or sale of electricity Goods and passengers carried by road or inland waterwaysGoods and passengers carried by road or inland waterways VehiclesVehicles Professions Trades Call ings and EmploymentsProfessions Trades Call ings and Employments Luxuries including taxes on entertainment bett ing and Luxuries including taxes on entertainment bett ing and

gamblinggambling

DRAWBACKS OF DRAWBACKS OF CURRENT SYSTEMCURRENT SYSTEM

Confusion and MistrustConfusion and Mistrust Complex and lacking in stabilityComplex and lacking in stability Hidden tax on exports no state tax on importsHidden tax on exports no state tax on imports High transaction costsHigh transaction costs Narrow baseNarrow base

What is GOODS AND SERVICE TAXWhat is GOODS AND SERVICE TAX

Goods and Service Tax is a tax on goods and servicesGoods and Service Tax is a tax on goods and services It is leviable at each point of sale or provision of serviceIt is leviable at each point of sale or provision of service At the time of sale of goods or providing the services the At the time of sale of goods or providing the services the

seller or service provider can claim the input credit of tax seller or service provider can claim the input credit of tax which he has paid while purchasing the goods or procuring which he has paid while purchasing the goods or procuring the servicethe service

This is simply very similar to VATThis is simply very similar to VAT It can be termed as National level VAT on Goods and It can be termed as National level VAT on Goods and

Services Services Only difference in this system is that not only goods but Only difference in this system is that not only goods but

also services are involvedalso services are involved The rate of tax on goods and services are generally the The rate of tax on goods and services are generally the

same same

Why do we need GST Why do we need GST today today

In Indian economy the service sector In Indian economy the service sector contributes over 55contributes over 55

Separate taxation of goods and Separate taxation of goods and services is neither viable nor desirableservices is neither viable nor desirable

Value added in manufacture and sale Value added in manufacture and sale of goods require inputs of both mdash of goods require inputs of both mdash goods and services and goods and services and vice versavice versa which is often not separable which is often not separable

GST- HOW IT WORKSGST- HOW IT WORKS

The dealers registered under GST (Manufacturers The dealers registered under GST (Manufacturers Wholesalers and retailers and service providers) wil l Wholesalers and retailers and service providers) wil l charge GST on the price of goods and services from their charge GST on the price of goods and services from their customerscustomers

They wil l claim credits for the GST included in the price They wil l claim credits for the GST included in the price of their own purchases of goods and services used by of their own purchases of goods and services used by themthem

The sellers or service providers collect the tax from their The sellers or service providers collect the tax from their customer who may or may not be the ult imate customer customer who may or may not be the ult imate customer and before deposit ing the same to the exchequer they and before deposit ing the same to the exchequer they deduct the tax they have already paid deduct the tax they have already paid

GST- WHAT ALL IT GST- WHAT ALL IT INCLUDESINCLUDES

11 A sale or supply includes a sale of goodsA sale or supply includes a sale of goods22 Lease of premisesLease of premises33 Hire of equipmentHire of equipment44 Giving adviceGiving advice55 Export of goods and supply of other things Export of goods and supply of other things 66 A purchase includes an acquisition of goods or A purchase includes an acquisition of goods or

services such as trading stock a lease consumables services such as trading stock a lease consumables and other thingsand other things

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

DRAWBACKS OF DRAWBACKS OF CURRENT SYSTEMCURRENT SYSTEM

Confusion and MistrustConfusion and Mistrust Complex and lacking in stabilityComplex and lacking in stability Hidden tax on exports no state tax on importsHidden tax on exports no state tax on imports High transaction costsHigh transaction costs Narrow baseNarrow base

What is GOODS AND SERVICE TAXWhat is GOODS AND SERVICE TAX

Goods and Service Tax is a tax on goods and servicesGoods and Service Tax is a tax on goods and services It is leviable at each point of sale or provision of serviceIt is leviable at each point of sale or provision of service At the time of sale of goods or providing the services the At the time of sale of goods or providing the services the

seller or service provider can claim the input credit of tax seller or service provider can claim the input credit of tax which he has paid while purchasing the goods or procuring which he has paid while purchasing the goods or procuring the servicethe service

This is simply very similar to VATThis is simply very similar to VAT It can be termed as National level VAT on Goods and It can be termed as National level VAT on Goods and

Services Services Only difference in this system is that not only goods but Only difference in this system is that not only goods but

also services are involvedalso services are involved The rate of tax on goods and services are generally the The rate of tax on goods and services are generally the

same same

Why do we need GST Why do we need GST today today

In Indian economy the service sector In Indian economy the service sector contributes over 55contributes over 55

Separate taxation of goods and Separate taxation of goods and services is neither viable nor desirableservices is neither viable nor desirable

Value added in manufacture and sale Value added in manufacture and sale of goods require inputs of both mdash of goods require inputs of both mdash goods and services and goods and services and vice versavice versa which is often not separable which is often not separable

GST- HOW IT WORKSGST- HOW IT WORKS

The dealers registered under GST (Manufacturers The dealers registered under GST (Manufacturers Wholesalers and retailers and service providers) wil l Wholesalers and retailers and service providers) wil l charge GST on the price of goods and services from their charge GST on the price of goods and services from their customerscustomers

They wil l claim credits for the GST included in the price They wil l claim credits for the GST included in the price of their own purchases of goods and services used by of their own purchases of goods and services used by themthem

The sellers or service providers collect the tax from their The sellers or service providers collect the tax from their customer who may or may not be the ult imate customer customer who may or may not be the ult imate customer and before deposit ing the same to the exchequer they and before deposit ing the same to the exchequer they deduct the tax they have already paid deduct the tax they have already paid

GST- WHAT ALL IT GST- WHAT ALL IT INCLUDESINCLUDES

11 A sale or supply includes a sale of goodsA sale or supply includes a sale of goods22 Lease of premisesLease of premises33 Hire of equipmentHire of equipment44 Giving adviceGiving advice55 Export of goods and supply of other things Export of goods and supply of other things 66 A purchase includes an acquisition of goods or A purchase includes an acquisition of goods or

services such as trading stock a lease consumables services such as trading stock a lease consumables and other thingsand other things

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

What is GOODS AND SERVICE TAXWhat is GOODS AND SERVICE TAX

Goods and Service Tax is a tax on goods and servicesGoods and Service Tax is a tax on goods and services It is leviable at each point of sale or provision of serviceIt is leviable at each point of sale or provision of service At the time of sale of goods or providing the services the At the time of sale of goods or providing the services the

seller or service provider can claim the input credit of tax seller or service provider can claim the input credit of tax which he has paid while purchasing the goods or procuring which he has paid while purchasing the goods or procuring the servicethe service

This is simply very similar to VATThis is simply very similar to VAT It can be termed as National level VAT on Goods and It can be termed as National level VAT on Goods and

Services Services Only difference in this system is that not only goods but Only difference in this system is that not only goods but

also services are involvedalso services are involved The rate of tax on goods and services are generally the The rate of tax on goods and services are generally the

same same

Why do we need GST Why do we need GST today today

In Indian economy the service sector In Indian economy the service sector contributes over 55contributes over 55

Separate taxation of goods and Separate taxation of goods and services is neither viable nor desirableservices is neither viable nor desirable

Value added in manufacture and sale Value added in manufacture and sale of goods require inputs of both mdash of goods require inputs of both mdash goods and services and goods and services and vice versavice versa which is often not separable which is often not separable

GST- HOW IT WORKSGST- HOW IT WORKS

The dealers registered under GST (Manufacturers The dealers registered under GST (Manufacturers Wholesalers and retailers and service providers) wil l Wholesalers and retailers and service providers) wil l charge GST on the price of goods and services from their charge GST on the price of goods and services from their customerscustomers

They wil l claim credits for the GST included in the price They wil l claim credits for the GST included in the price of their own purchases of goods and services used by of their own purchases of goods and services used by themthem

The sellers or service providers collect the tax from their The sellers or service providers collect the tax from their customer who may or may not be the ult imate customer customer who may or may not be the ult imate customer and before deposit ing the same to the exchequer they and before deposit ing the same to the exchequer they deduct the tax they have already paid deduct the tax they have already paid

GST- WHAT ALL IT GST- WHAT ALL IT INCLUDESINCLUDES

11 A sale or supply includes a sale of goodsA sale or supply includes a sale of goods22 Lease of premisesLease of premises33 Hire of equipmentHire of equipment44 Giving adviceGiving advice55 Export of goods and supply of other things Export of goods and supply of other things 66 A purchase includes an acquisition of goods or A purchase includes an acquisition of goods or

services such as trading stock a lease consumables services such as trading stock a lease consumables and other thingsand other things

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

Why do we need GST Why do we need GST today today

In Indian economy the service sector In Indian economy the service sector contributes over 55contributes over 55

Separate taxation of goods and Separate taxation of goods and services is neither viable nor desirableservices is neither viable nor desirable

Value added in manufacture and sale Value added in manufacture and sale of goods require inputs of both mdash of goods require inputs of both mdash goods and services and goods and services and vice versavice versa which is often not separable which is often not separable

GST- HOW IT WORKSGST- HOW IT WORKS

The dealers registered under GST (Manufacturers The dealers registered under GST (Manufacturers Wholesalers and retailers and service providers) wil l Wholesalers and retailers and service providers) wil l charge GST on the price of goods and services from their charge GST on the price of goods and services from their customerscustomers

They wil l claim credits for the GST included in the price They wil l claim credits for the GST included in the price of their own purchases of goods and services used by of their own purchases of goods and services used by themthem

The sellers or service providers collect the tax from their The sellers or service providers collect the tax from their customer who may or may not be the ult imate customer customer who may or may not be the ult imate customer and before deposit ing the same to the exchequer they and before deposit ing the same to the exchequer they deduct the tax they have already paid deduct the tax they have already paid

GST- WHAT ALL IT GST- WHAT ALL IT INCLUDESINCLUDES

11 A sale or supply includes a sale of goodsA sale or supply includes a sale of goods22 Lease of premisesLease of premises33 Hire of equipmentHire of equipment44 Giving adviceGiving advice55 Export of goods and supply of other things Export of goods and supply of other things 66 A purchase includes an acquisition of goods or A purchase includes an acquisition of goods or

services such as trading stock a lease consumables services such as trading stock a lease consumables and other thingsand other things

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

GST- HOW IT WORKSGST- HOW IT WORKS

The dealers registered under GST (Manufacturers The dealers registered under GST (Manufacturers Wholesalers and retailers and service providers) wil l Wholesalers and retailers and service providers) wil l charge GST on the price of goods and services from their charge GST on the price of goods and services from their customerscustomers

They wil l claim credits for the GST included in the price They wil l claim credits for the GST included in the price of their own purchases of goods and services used by of their own purchases of goods and services used by themthem

The sellers or service providers collect the tax from their The sellers or service providers collect the tax from their customer who may or may not be the ult imate customer customer who may or may not be the ult imate customer and before deposit ing the same to the exchequer they and before deposit ing the same to the exchequer they deduct the tax they have already paid deduct the tax they have already paid

GST- WHAT ALL IT GST- WHAT ALL IT INCLUDESINCLUDES

11 A sale or supply includes a sale of goodsA sale or supply includes a sale of goods22 Lease of premisesLease of premises33 Hire of equipmentHire of equipment44 Giving adviceGiving advice55 Export of goods and supply of other things Export of goods and supply of other things 66 A purchase includes an acquisition of goods or A purchase includes an acquisition of goods or

services such as trading stock a lease consumables services such as trading stock a lease consumables and other thingsand other things

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

GST- WHAT ALL IT GST- WHAT ALL IT INCLUDESINCLUDES

11 A sale or supply includes a sale of goodsA sale or supply includes a sale of goods22 Lease of premisesLease of premises33 Hire of equipmentHire of equipment44 Giving adviceGiving advice55 Export of goods and supply of other things Export of goods and supply of other things 66 A purchase includes an acquisition of goods or A purchase includes an acquisition of goods or

services such as trading stock a lease consumables services such as trading stock a lease consumables and other thingsand other things

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

China - 17China - 17 Indonesia - 10Indonesia - 10 Phil ippines -10Phil ippines -10 Taiwan (Chinese Taipei) - 5Taiwan (Chinese Taipei) - 5 UK -175UK -175 Australia -10Australia -10 France -196France -196 Germany -16Germany -16 Denmark -25Denmark -25

GST- RATES WORLD GST- RATES WORLD WIDEWIDE

No of Countries 140No of Countries 140

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

Central TaxesCentral TaxesExcise DutyExcise DutyAdditional Excise dutyAdditional Excise dutyService TaxService TaxCVD SADCVD SADSurchargeSurcharge

State TaxesState TaxesVATVATEntertainment tax levied by statesEntertainment tax levied by statesLuxury TaxLuxury TaxTax on LotteryTax on LotteryEntry tax other than for local bodiesEntry tax other than for local bodies

TAXES Proposed TO BE TAXES Proposed TO BE SUBSUMED IN GSTSUBSUMED IN GST

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

Central TaxesCentral TaxesSpecific CessSpecific CessExcise duty on tobacco productsExcise duty on tobacco products

State TaxesState TaxesItems containing alcoholItems containing alcoholEntertainment tax (Local Bodies)Entertainment tax (Local Bodies)Entry tax for local bodiesEntry tax for local bodiesElectricity dutyElectricity duty

TAXES NOT BE INCLUDEDTAXES NOT BE INCLUDED IN GST IN GST

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

Exempted products Exempted products Food Grains Bread Salt Milk Vegetable Meat FishFood Grains Bread Salt Milk Vegetable Meat Fish

Goods at Lower Rate Goods at Lower Rate Tea Milk Powder Coffee beans Toy Beedi BicyclesTea Milk Powder Coffee beans Toy Beedi Bicycles

Govt aided public health and education exemptedGovt aided public health and education exempted

INDICATIVE GST INDICATIVE GST RATESRATES

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

User Charges l ikely to be User Charges l ikely to be out of GSTout of GST

It has also suggested keeping levies like the toll tax environment tax It has also suggested keeping levies like the toll tax environment tax and road tax outside the GST ambit as these are user chargesand road tax outside the GST ambit as these are user charges

Likely Rate ndash 16 percent TotalLikely Rate ndash 16 percent Total It is envisaged that the framework of dual GST would embody It is envisaged that the framework of dual GST would embody

multiple rate of taxes for goods but a single rate for services multiple rate of taxes for goods but a single rate for services within a state There are indications that the rate could be in the within a state There are indications that the rate could be in the range of 16-20 per cent The government is expected to come range of 16-20 per cent The government is expected to come out with a white paper on the transition to GST shortly out with a white paper on the transition to GST shortly

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

GST- ITrsquoS SYSTEMGST- ITrsquoS SYSTEM

Invoice SystemInvoice System In this system the credit of GST paid is claimed on the In this system the credit of GST paid is claimed on the

basis of invoice basis of invoice It is claimed when the invoice is receivedIt is claimed when the invoice is received It is immaterial whether payment is made or notIt is immaterial whether payment is made or not The GST (Output) is accounted for when invoice is The GST (Output) is accounted for when invoice is

raisedraised The time of receipt of payment is immaterial The time of receipt of payment is immaterial The advantage of invoice system is that the input credit The advantage of invoice system is that the input credit

can be claimed without making the paymentcan be claimed without making the payment The disadvantage of the invoice system is that the The disadvantage of the invoice system is that the GSTGST

has to be paid without receiving the payment has to be paid without receiving the payment

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

ISSUES YET TO BE ISSUES YET TO BE DECIDEDDECIDED

Constitutional amendment authorizing state to Constitutional amendment authorizing state to collect and retain tax on servicescollect and retain tax on services

Integration of certain Central amp State taxes Integration of certain Central amp State taxes (Various Cess Electricity duty Entertainment tax (Various Cess Electricity duty Entertainment tax etc)etc)

Taxation of inter state services and their method of Taxation of inter state services and their method of taxationtaxation

Stock transferStock transfer Road permits and check postsRoad permits and check posts

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

QuestionQuestion

For CA Profession this is beneficial For CA Profession this is beneficial or not or not

THANK YOUTHANK YOUYou were good audienceYou were good audience

THANK YOUTHANK YOUYou were good audienceYou were good audience