GSTTANVEER AHMED

Introduction :

GOODS AND SERVICE TAX (GST)• GST is comprehensive tax mechanism where in all major indirect taxes are clubbed into one, whether they are levied on services(service tax) or goods(excise and vat).

• The goods and service tax is a Value Added Tax (VAT) to be implemented in India, from April 2017.

• One of the aims of introducing GST is to reduce the cascading effects of taxes which is the primary focus of VAT but vat system is not comprehensive enough to do so.

GST

Central GST State GST 1. Central excise duty2. Additional excise duty3. Service tax4. Countervailing duty(CVD)5. Additional duty of customs(ADC)6. Surcharge, Education and Secondary/Higher secondary cess

1. VAT2. Purchase tax3. Entertainment tax4. Luxury tax 5. Lottery tax6. State surcharge and cesses leviable on the above as of now

Advantages of GST :

Ease of doing business Attractive for foreign investors FDI No tax evasion Inventory cost will fall Make in India Common market Manufacture goods could become cheap GDP lift

PRESENT TAX SYSTEM

• Product sold from Nagpur to Chennai

• Price = Rs 1100• Profit =1000

• Sale Price =Rs2100

Product sold from Mumbai to NagpurPrice = Rs 1000 VAT @ 10% = Rs 100

CST @ 10% = Rs 210

Total Cost

Rs -2310

GST SYSTEM

• Product sold from Nagpur to Chennai

• Price = Rs 1100• Profit =1000

• Sale Price =Rs2100

Product sold from Mumbai to NagpurPrice = Rs 1000

CGST @ 5% = Rs 50SGST @ 5% =Rs 50

IGST @ 10% = Rs 210

Total Cost

Rs -2210

Less:CGSTSGST

commodities not included in GST

• Alcohol• Petroleum Products• Tobacco Products

Taxes not included in GST

• Stamp Duty• Property Tax• Toll Tax• Electricity Tax

Advantages

• Boost Economic Growth• Streamline domestic supply chain• Reduce compliance burden• Removes contradictory tax regimes• Increase global competitiveness

Government

• Increases GDP• Enhanced Revenue• Improved Ranking

Trade and Industry

• Reduction in cost• Enhanced Margins• Reduction of Litigations

Consumers

• Same quality and Reduced price

Slabs

• 5%

• 12%

• 18%

• 28%

Tax rates Applicable

0% Food grains

5% mass consumption like spices, tea and mustard oil

12% washing machines, air conditioners, refrigerators, shampoo, shaving stuff and soap

18% Ordinary cars and bikes.

28% Luxury Cars, Pan Masala, Tobacco products, Aerated drinks.

CONCLUSION1. PROCESS AND NOT AN EVENT.

2. IMPLEMENTATION

3. INCREASE IN GDP

4. BENEFITS AN INDIVIDUAL

5. INFLATION CAN BE SUSTAINED.

THANK YOU