Basics of (Goods and Service Tax) or GST

Basics of (Goods and Service Tax) or GST

1. BASICS OF GOODS AND SERVICE TAX Presented By: Dr. Manjula Shukla Assistant Professor SSSVS GPGC, Chunar, Mirzapur

2. Introduction to GST Definition: What is GST? The Goods and Services Tax is a successor to VAT used in India on the supply of goods and service. Purpose: Simplifying the taxation system, eliminating cascading taxes Introduction Date: Implemented on July 1, 2017, in India

3. Objectives of GST Unified Tax System: Replace multiple indirect taxes Efficiency: Improve compliance and reduce tax evasion Transparency: Create a seamless tax structure Revenue Generation: Enhance revenue collection for the government

4. Structure of GST Types of GST: Central GST (CGST) State GST (SGST) Integrated GST (IGST) Explanation of Each Type CGST: Tax collected by the central government SGST: Tax collected by state governments IGST: Tax collected on inter-state transactions

5. Filing GST Returns Types of Returns: GSTR-1: Sales details GSTR-2: Purchase details GSTR-3B: Monthly summary

6. GST Rates GST Rate Structure: Standard rates: 5%, 12%, 18%, 28% Special rates for certain goods/services

7. Impact of GST Economic Impact: Growth in tax base Facilitation of 'One Nation, One Tax' Business Impact: Simplified tax structure Reduction in logistics costs Consumer Impact: Lower prices on goods/services

8. Challenges and Criticisms Implementation Issues: Technical glitches Complexity for small businesses Criticism: Rate structure concerns Compliance burden