GST

@Simaces International Interdisciplinary Learning Centre,Pune
by Nikhil Rajendra More-2017-18 Batch.

1. GST (Goods & Service Tax) Presented By : Nikhil More SIILC Pune

2. Indian economy overview 11 th largest economy in the world & 3 rd largest by purchasing power parity(PPP).

3. Tax Structure in India Income tax – on income, other than agricultural income. Excise duty- on goods manufactured or produced in India. Custom duty – on import and export . Service tax – on specified services. Central sales tax – on inter-State sale of goods. Stamp duty – VAT or sales tax on purchase or sale of goods, other than newspaper, within a state. Land revenue. Toll tax , entry of goods in a local area( O ctroi ), vehicles, etc. Profession , trades, callings & employment. Luxuries, including taxes on entertainment.

4. Drawbacks of previous taxation system Confusion & mistrust. Complex & lacking in stability. Hidden tax on exports, no state tax on imports. High transaction costs. Narrow base.

5. GST GST is comprehensive tax levy on manufacture, sale & consumption of goods & services at a national level. It is leviable at each point of sale or provision of service, basically it includes value addition at each stage. At the entire of sale of goods or providiry services the seller or service provider can claim input credit of tax which he has paid while purchasing of goods and procuring the service. It can be termed as National level VAT. The only difference is that it is for both goods and services. We all will pay GST on every product or service we buy.

6. All taxes under one roof Unification of all taxes

7. How it works ? Seller or service providers collect the tax from customers, who may or may not be the ultimate customers. Before depositing the same to the exchequer, they deduct the tax they have already paid. They will claim credits for GST included in the price of their own purchases of goods and services used by them – GST credit. All indirect taxes levied by state and center are merged into one GST. We would know exactly how much tax we pay which at present is difficult to understand. No distinction in imported and Indian goods taxed at same rate.

8. Exemptions Exempted products : -food grains, Milk, Salt, Vegetables, Meat , Fish. Goods at lower rates : -Tea, Milk powder, Coffee beans, Toy, Beedi , bicycles. Petroleum product, alcohol, tobacco product. Purchase tax Govt. aided public health & education services . Zero ratings for exports.

9. Benefits of GST Abolition of other taxes. Minimizing differential tax rates. Transparent tax system . Uniform tax system across India. Export will be more competitive. Simple & easy online procedure. GST eliminates the cascading effect of tax. Improved efficiency of logistics. Unorganized sector is regulated under GST.

10. Elimination of cascading effect Previous Taxation GST Action Cost 10 % Tax Total Cost GST-10 % on Value Addition Total Producer 50+50) 10 110 50+50 100+5 105 Wholesaler 100+10 12 132 105+10 115+1 116 Retailer 132+10 14.2 156.2 116+10 126+1 116 Consumer 156.2 56.2 156.2 127 27 127

11. Hurdles of GST Dispute between Centre & state over tax sharing. Highly sophisticated IT infrastructure required. Issue of taxing e-economics is to appropriately addressed & integrated. Political imbalance. Increased cost due to software purchase. GST came into effect in the middle of the financial year. GST is an online taxation system.

12. Conclusion Reshapes indirect tax structure by unification of all taxes. Will do away with complex indirect structure . Ease of doing business in the country. Qualitative change in the tax system by redistributing the burden of taxation equitably between manufacturing & services. Inflation- Consumer Price Index decreased by elimination of cascading effect. Increase in Foreign Direct Investment. Helps to establish true common market. Hassle free supply by reduced cost of production. Resource & revenue gain for both C entre & States. It can be concluded that GST have a positive impact on Indian sectors & economy.

13. THANK YOU