Beruflich Dokumente
Kultur Dokumente
1
Overview
Present Taxation System
Old Sales Tax Regime
Introduction of VAT and CST
Value Added Tax and Input Credit System
Excise Tax, Service Tax, MODVAT, CENVAT
Why GST?
What is GST?
Which Central And States Taxes would be subsumed
Framework of GST
Integrated GST(IGST)
Benefits of GST
GST Council and its Objectives
Implementation Challenges
Tax
A fee charged ("levied") by a government on
a product, income, or activity.
If tax is levied directly on personal or corporate income,
then it is a direct tax.
If tax is levied on the price of a good or service, then it is
called an indirect tax.
The purpose of taxation is to finance government
expenditure.
One of the most important uses of taxes is to finance public
goods and services, such as street lighting and street
cleaning.
GST
Goods and service tax (GST) is a comprehensive
tax levy on manufacture, sale and consumption of
goods and service at a national level.
GST is a tax on goods and services with value
addition at each stage.
GST will include many state and
central level indirect taxes.
It overcomes drawback present tax system.
VIDEO 1
PRESENT TAX STRUCTURE IN INDIA
Tax
Wealth
Income Tax
Tax
• tax on producer B
would be only Rs.5
(i.e., 10 % of Rs. 50)
while
₹ 50
Electricity Advertisement
Hoardings
CST
Final
cost=all the
taxes
Fuel included
Goods Services
Goods And Services Act(GST)
Touted as “Single biggest Indirect Tax reform” since 1947.
GST aims to simplify the indirect tax regime with a single tax on
manufacture, sale and consumption of goods and services at national
level.
No distinction is made between between goods and services as GST is
levied at each stage in the supply chain.
A study conducted by NCAER estimated that roll out of GST would
boost the India’s GDP growth by 1% to 2%.
It is a consumption based tax.
It would subsume most of the indirect taxes of the centre and the state.
It is a tax on goods and services with value addition at each stage of
transaction(sale, manufacture and consumption).
Based on Input credit system just like VAT.
All sectors are taxed with very few exceptions / exemptions
History
Feb, 2006 : First time introduced concept of GST and
announced the date of its implementation in 2010
Jan. 2007: First GST study by ASSOCHAM released
by Dr. Shome
Feb. 2007: F.M. Announced introduction of GST from
1 April 2010 in Budget
The Government came out with a First Discussion
Paper on GST in November, 2009
Introduced the 115th Constitution Amendment (GST)
Bill in the year 2011.
Model Of GST
GST Structure
State GST NA 8
centre GST NA 12
All indirect taxes levied by the states and the centre will be merged into one
GST, we would exactly know how much tax we pay which at present is
difficult to understand.
The sellers or service providers collect the tax from their customer.
Before depositing the same to the exchequer, they deduct the tax they have
already paid.
The success of GST would rest upon efficiency, equity and Simplicity.
VIDEO 4