TAX

India tax system.

TAX :-
A COMPULSORY CONTRIBUTION TO GOVERNMENT FOR
FUNCTION OF GOVERNMENT ACTIVITIES AND DISTRIBUTION
OF MONEY.
Types of tax in India
1) DIRECT TAX:-
* DIRECTLY PAID BY INDIVIDUAL OR COMPANY.
* DEPEND ON INCOME OF INDIVIDUAL
* HELP IN REDUCING INFLATION.
 2) Indirect Tax

₹ Applied to goods and services we purchase.

₹ Same for everybody.
₹ Both state and government.
₹ Paid by goods and services providers.
 Before GST

Types of indirect tax.

₹ Excise tax paid by manufacture. Passed to Customers.
₹ Sales tax paid by shopkeepers. Passed to customers.
₹ Custom duty tax on imports. Passed to customers.
₹ Entertainment tax paid by cinema owners. Passed to customers.
₹ Service tax paid by the service provider, passed to customers.
₹ Luxury tax paid by hotels, hospitals, spas, swimming pools etc. passed to customers.
₹ Entry tax paid by the goods from one to another state. Passed to customers.
 Every indirect tax as certain eligible criteria. If a product or
service is eligible for a certain indirect tax that tax is going to be
added to the product.
For example:-
any country product to India custom duty tax
one state to another state Entry tax
……etc.
The sum of the tax for which a product is eligible in the process
of reaching the customers is going to pay by the manufacture
and passes on like
Manufacture whole seller retailer customer
 Is GST needed?

₹ Overlap of Taxes between state and central.

₹ A manufacture/ individuals should pay combination
of Indirect taxes.
₹ Confuse of taxes.
₹ Increase in price of manufacturing.
₹ VAT, Entry tax differences from states.
₹ Time taking for transport of goods
 GST introduced.
GST IS INTRODUCED ON 1 S T JULY 2017
 GST’S DNA

₹ NO over lap of Taxes.

₹ GST is Combination of most of the Indirect taxes.
₹ Less manufacture cost.
₹ One GST all over India
₹ Tax based on product.
₹ Destination based tax.
₹ Value added tax system in every step.
₹ Tax rates depends on necessity of product.
₹ Fast transport of goods
Types of GST
1) CGST HALF OF THE GST RATE TO CENTRAL IN CONSUMED STATE

2) SGST HALF OF THE GST RATE TO THE CONSUMED STATE.

3) IGST FULL OF GST RATE TO THE CENTRAL. IF THE PRODUCT GOING

TO SELL IN ANOTHER STATE. BY MANUFACTURE.
 In UP

if company A manufactures a product in UP.

Cost of raw material:-100 product cost:-200

Tax of raw material:-10 rupees GST rate of product:-25%
Tax of product:- 50 rupees.
Tax paid by company is “40” because they already paid raw material tax:- Rs10

Tax:-40 rupees it sold in Punjab

If sold in UP IGST:-40(for central )
CGST:-20 SGST:-20
 In Punjab
Whole seller 60 already paid as tax so,62-60=2
Product cost:-200 CGST:-1 SGST:-1
Value added:-40 Customers
Product cost:-240 Product cost:- 312.
GST Rate:-25% GST value:-25%
tax:- 60 Tax:-62
40 already paid as tax so,60-40=20 CGST:-31 SGST:-31
CGST:-10 SGST:-10
Retailer
Product cost:- 240
Value added:-10
Product cost:-250
GST Rate:-25%
tax:- 62
 Things need to know about GST

Tax Rates Products

Household necessities such as edible oil, sugar, spices, tea, and coffee
5% (except instant) are included. Coal , Mishti/Mithai (Indian Sweets) and
Life-saving drugs are also covered under this GST slab
This includes computers and processed food
12%

Hair oil, toothpaste and soaps, capital goods and industrial

18% intermediaries are covered in this slab

Luxury items such as small cars , consumer durables like AC and

24% Refrigerators, premium cars, cigarettes and aerated drinks , High-end
motorcycles are included here.
 Objective:-
1)Simply and unify the indirect tax
regime in the country.
2)Increase the GDP of India.
GST excludes:-
Customs
Stamp Duty
Petroleum
Electricity Tax
Alcohol
 Government gives compensation for five years
to some states like:-
Tamil Nadu
Maharashtra
Gujarat
Utter Pradesh
Andhra Pradesh
Because, this states will get lose state taxes with
GST.
 GST council
is the managing/ handling GST rates in India.
Members as :-
1)The Union Finance Minister (as Chairman)
2) The finance Minister of every state is
member of this council.
https://www.gst.gov.in/
Website for GST.
Goods and Services Tax Network (GSTN)
Developed by Infosys Technologies.
1) Used by Tax authorities for tracking down every
transaction
2) used by the taxpayers to connect for their tax
returns.
 E-Way Bill
This is electronic permit for shipping
goods. This is same as waybill
 GST was proposed by Prime
Minister Atal Bihari Vajpayee and
introdused in 2017 in India.
GST was first introduced in France
in 1954.
More than 140 + countries is using
GST taxation system.
 https://www.gst.gov.in/

https://www.indiafilings.com/learn/what-is-gst-council/

https://www.quora.com/How-is-GST-going-to-increase-real-GDP-if-more-production-or-more-goods-and-services-are-being-produced-provided-Or-is-it-just-going-to-increas
e-collection-and-compliance

https://www.quora.com/In-the-GST-bill-what-is-the-meaning-of-SGST-IGST-and-CGST-when-there-should-be-just-one-kind-of-tax-to-be-levied-How-is-it-different-from-the-
current-system-with-VAT-for-states-and-CST-for-the-central-government-How-will-GST-decrease-prices

https://timesofindia.indiatimes.com/business/india-business/centre-states-apportion-rs-12k-cr-igst-in-aug/articleshow/65609293.cms

https://www.gstindia.com/gst-with-examples/

https://www.quora.com/What-is-IGST-Integrated-GST

https://shahdoshi.com/blog/

https://www.paisabazaar.com/tax/gst-rates/

https://blog.mygov.in/editorial/who-is-liable-to-pay-gst/

https://www.quora.com/Who-is-supposed-to-pay-the-GST-the-retailer-seller-or-the-customer-buyer

https://www.indiafilings.com/learn/how-gst-works-in-india/

https://www.quora.com/What-is-GST-and-its-function

https://www.bankbazaar.com/tax/difference-between-direct-tax-and-indirect-tax.html?ck=Y%2BziX71XnZjIM9ZwEflsyDYlRL7gaN4W0xhuJSr9Iq7aMYwRm2IPACTQB2XBBtGG
&rc=1

https://www.quora.com/What-is-the-tax-system-before-GST

https://en.wikipedia.org/wiki/Goods_and_Services_Tax_(India)#Intra-State_e-Way_Bill

https://cleartax.in/s/luxury-tax-in-india

https://www.quora.com/What-is-the-GST-and-why-is-it-necessary-for-a-country

https://www.business-standard.com/article/news-ians/gst-to-reduce-cost-of-manufacturing-of-domestic-electronic-components-117070300722_1.html
THANK YOU