Gst

The Goods and Services Tax was implemented in July 2017 in an effort to subsume multiple indirect taxes. The new tax regime has been adopted quite well by businesses across the country since its implementation. The Goods and Services Act will also have a great impact on the tax system in India by reducing the unfavorable effect of tax on the cost of goods and services. It is expected that the creation of the Goods and Services Tax Act and its implementation will have a great impact on various aspects of business in India by changing the traditional pattern of pricing the products and services.

1. Ekta Kapri [email protected] Family Resource Management BOON OR BANE FOR INDIAN CONSUMER

2. The Goods and Services Tax was implemented in July 2017 in an effort to subsume multiple indirect taxes. The new tax regime has been adopted quite well by business across the country since its implementation. The Goods and Services Act will also have a great impact on the tax system in India by reducing the unfavorable effect of tax on the cost of goods and services. It is expected that the creation of the Goods and Services Tax act and its implementation will have a great impact on various aspects of business in India by changing the traditional pattern of pricing the products and services.

3. Content TAX Taxation History of taxation in India Objective of Tax Purpose & Use of Tax 2) Type of Tax Direct Tax Indirect Tax 3) Early Taxation List of tax abolished after GST implementation 4) Journey of Taxation GST Bill Approval process 5) GST- meaning, definition Constitutional perspective GST council Type of GST GST Bill and Act Need of GST GST Model Feature of GST How GST work - How to calculate GST Categories / Rate of GST 2019 GST on loan & advance GST return Type of GST return How to fill GST return 10) Boone & Bane Challenge of GST Advantage & Disadvantage Impact of GST rate on economy and other sectors

4. A tax is a mandatory financial charge upon an individual or other legal entity by a governmental organization in order to fund various public expenditures. Taxes are levied by governments on their citizens to generate income for undertaking projects to boost the economy of the country and to raise the standard of living of its citizens . The authority of the government to levy tax in India is derived from the Constitution of India , which allocates the power to levy taxes to the Central and State governments. Tax ( Latin taxo ) https://en.wikipedia.org/wiki/Tax https://www.bankbazaar.com/tax.html

5. Taxation The act of levying taxes is called taxation. The taxes may be imposed on the income and wealth of persons or corporations and the rate of taxes may vary. An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law". Therefore, each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament or the State Legislature. https://en.wikipedia.org/wiki/Taxation_in_India

6. Sharma, P. (2018) mentioned that “The compulsory payments made to governments associated with certain activities are called Taxes.” Tayib (1998) identified that individuals’ awareness towards the tax system can increase when the individuals has knowledge about the tax . This makes tax knowledge and tax awareness has significant relationship and when the individuals or the taxpayers have knowledge about it and it will make it easier for them to study and follow the tax rules. Sharma,P.2018. A Project Report on Customers Perception Towards GST ( Goods & Service Tax) in Distt Hamirpur Himachal Pradesh ( India).Report.MBA. HP Technical University, Hamirpur:15

7. History of Taxation in India Taxation in India is rooted from the period of Manu Smriti and Arthasastra . According to Manu Smriti, the king should arrange the collection of taxes in such a manner that the tax payer did not feel the pinch of paying taxes. He laid down that traders and artisans should pay 1/5th of their profits in silver and gold, while the agriculturists were to pay 1/6th, 1/8th and 1/10th of their produce depending upon their circumstances. It was introduced for the first time in India in 1860 to overcome the finical crisis (revenue crisis) of 1857. https://www.jagranjosh.com/general-knowledge/history-of-taxation-in-india-1481028305-1

8. In India, this tax was introduced for the first time in 1860, by Sir James Wilson in order to meet the losses sustained by the government on account of the Military Mutiny of 1857. In 1918, a new income tax was passed and again it was replaced by another new act which was passed in 1922 .This Act remained in force up to the assessment year 1961-62 with numerous amendments. In consultation with the Ministry of Law finally the Income Tax Act, 1961 was passed and brought into force with 1 April 1962. Since 1962 several amendments of far-reaching nature have been made in the Income Tax Act by the Union Budget every year. http://shodhganga.inflibnet.ac.in/bitstream/10603/147895/9/09_chapter%20-i.pdf

9. Raising Revenue Encouraging Domestic Industries Stimulating Investment Promoting Economic Growth Ensuring Price Stability Regulation of Consumption and Production Development of Backward Regions Reducing Income Inequalities Objectives of Taxes T A X

10. Purposes and Use of TAX The levying of taxes aims to raise revenue, to fund government and/or to alter prices in order to affect demand. States and their functional equivalents throughout history have used money provided by taxation to carry out many functions. Some of these include expenditures on economic infrastructure ( roads , public transportation, sanitation, legal systems, public safety, education, health-care systems ), pensions for the elderly, military, scientific research, culture and the arts, Energy , water and waste management , public works , distribution, data collection and dissemination, public When expenditures exceed tax revenue, a government accumulates debt. A portion of taxes may be used to service past debts. A government's ability to raise taxes is called its fiscal capacity . https://en.wikipedia.org/wiki/Tax https://en.wikipedia.org/wiki/Tax

11. Raise revenue Defense Legal system Culture and art Sanitation Infrastructure Transportation Research Medical Advertisement Road Education Purposes and Use of TAX

12. Types of Taxes Taxes are of two distinct types, direct and indirect taxes. The difference comes in the way these taxes are implemented. Some are paid directly by you, such as the dreaded income tax, wealth tax, corporate tax etc. while others are indirect taxes, such as the value added tax, service tax, sales tax, etc. Direct Taxes Indirect Taxes other taxes that have been brought into effect by the Central Government to serve a particular agenda. ‘Other taxes’ are levied on both direct and indirect taxes such as the recently introduced Swachh Bharat Cess tax, Krishi Kalyan Cess tax, and Infrastructure Cess tax https://www.bankbazaar.com/tax.html

13. 1. Direct Tax Direct tax, are taxes that are paid directly by you levied directly on an entity or an individual cannot be transferred onto anyone else the body that overlooks these direct taxes is the Central Board of Direct Taxes (CBDT) which is a part of the Department of Revenue . https://www.bankbazaar.com/tax.html

14. 2. Indirect Tax Indirect taxes are those taxes that are levied on goods or services . They differ from direct taxes because they are not levied on a person who pays them directly to the government, they are instead levied on products and are collected by an intermediary , the person selling the product. The most common examples of indirect tax can be VAT (Value Added Tax), Taxes on Imported Goods, Sales Tax, etc . These taxes are levied by adding them to the price of the service or product which tends to push the cost of the product up. https://www.bankbazaar.com/tax.html Indirect tax

15. Direct Taxes Indirect Taxes 1 2 3 4 5 1 2 3 4 5 Income Tax Sales Tax Capital Gain Tax Service Tax Security Transaction Tax Value Added Tax Perquisite Tax Custom Duty & Octroi Corporate Tax Excise Duty https://www.bankbazaar.com/tax.html

16. https://www.bankbazaar.com/tax.html Other Taxes Professional Tax Entertainment Tax Education Cess Wealth Tax Swachh Bharat Cess Infrastructure Cess Municipal Tax Registration Fees Transfer Tax Gift Tax Toll Tax Krishi Kalyan cess

17. Early Taxation System Central Taxes State Taxes • Central Excise duty • Additional duties of excise • Excise duty levied under Medicinal & Toilet Preparation Act • Additional duties of customs (CVD & S AD) • Service Tax • Surcharges & Cesses • State VAT / Sales Tax • Central Sales Tax • Purchase Tax • Entertainment Tax (other than those levied by local bodies) • Luxury Tax • Entry Tax (All forms) • Taxes on lottery, betting & gambling • Surcharges & Cesses Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre to tax sale of goods and States to tax provision of services) 6 GST

18. Before goods and service tax Buying Raw Material Manufacture Final Sale to Consumer Sale to Wholesaler/Warehousing Sale to Retailer VAT VAT+Excise Duty VAT VAT https://cleartax.in/s/gst-law-goods-and-services-tax

19. List of Taxes abolished after GST implementation Government List of Taxes Central Government Taxes Central Excise Duty Service Tax Additional Custom Duty Surcharges and all Cess State Government Taxes VAT/Sales Tax Entertainment Tax Entry tax not in lieu of Octroi Other taxes and Duties (Luxury Tax, Taxes on lottery etc.) Taxes imposed by State Governments on Goods on Services Stamp Duty Vehicle Tax Tax on Goods and Passengers Taxes and duties on Electricity Nayyar.A and Singh,I .2018. A Comprehensive Analysis of Goods and Services Tax (GST) in India. Indian Journal of Finance:58-73

20. The journey to G S T

21. 2 006 20 11 2 009 2 014 Announcement of GST for the first time was made by the then Union Finance Minister, during budget of 2006- 07 that it would introduced from 1 April 2010 First Discussion Paper was released by the Empowered Committee The Constitution ( 122nd Amendment) Bill was introduced in the Lok Sabha Constitution (115 th Amendment) Bill introduced and subsequently lapsed Aug 2 016 The Constitution (One Hundred and First Amendment) Act was e nacted May 2017 April 2017 March 2017 Sept 2 016 30 June 2017 All States except J&K passed their SGST ACT GST Council rec ommends all the rules CGST, IGST, UTGST and Compensation Cess Acts p assed GST Council Recommends the CGST, SGST, IGST, UTGST and Compensation Cess Act 1 st GST Council Meeti ng 1 st July 2017 GST Launched Journey Continues… 8 th July 2017 SGST Act passed by J&K; CGST and IGST Ordinances promulgated to extend GST to J&K True Economic Integration of India • Notifying and amending rules • Dealing with IT related issues • Revision of Rates • Clarification and communication with taxpayers

22. Bill introduced in the Lok Sabha (March 2011) 2014 the Bill lapsed Bill was passed by the Lok Sabha (May 6, 2015) Lok Sabha will ratify the Bill again President will constitute a GST Council Draft of the Bill make available in the public domain Amendments made The President approves the bill The Parliament pass legislation Goods and Services Tax officially active GST Bill Approval Process

23. GST - Goods and Service Tax The Goods and Services Tax was implemented in 8 July 2017. It is a kind of tax imposed on sale , manufacturing and usage of goods and services . Goods and Services Tax is applied on services and goods at a national level with a purpose of achieving overall economic growth . GST is particularly designed to replace the indirect taxes imposed on goods and services by the Centre and States. Sale Manufacturing Usage or consumption

24. “ Goods and Services Tax can be defined as a kind of Value Added Tax imposed by on various goods and services by different countries .” The tax charged on goods and services may differ from country to country. Goods and services tax is imposed to collect revenues for the government. This tax is paid by the consumers of goods and services and collected and forwarded to the government by the business entities. Goods & Service Tax Definition

25. Kumar,N. (2014) studied, “Goods and Service Tax- A Way Forward” and concluded that implementation of GST in India help in removing economic distortion by current indirect tax system and expected to encourage unbiased tax structure which is indifferent to geographical locations. Rani,S. (2017) mentioned GST is essentially a consumption tax and is levied at the final consumption point. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. Rani,S.2017.A research paper on goods and service tax (GST) and its impact on Indian economy . International Journal of Advanced Research and Development .2(5):209-212 Sehrawat,M. and Dhanda ,U.2015.GST IN INDIA: A KEY TAX REFORM . International Journal of Research – Granthaalayah.Vol. 3(12) 133-141

26. GST Law from a Constitutional Perspective Article 366 (12A) “Goods and services tax” means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human co nsumption. S. No. Defin ition Ar ticle Defin ition 1. Goo ds 366( 12) Includes all materials, commodities, and articles 2. Serv ice 366 (26A) Anything other than goods 3. Goods & Services 366 (12A) any tax on supply of goods or services or both except taxes on the supply of the alcoholic liquor for human consumption

27. It was set up by president under article 279-A . It is chaired by union finance minister . It will constitute union minister of state , in charge of revenue and minister , in charge of finance or taxation or of any other field nominated by state governments. The 2/3rd representatives in council are from states and 1/3rd from UT. The decision of council is made by 3/4th majority of the votes cast and quorum of council is 50%. It will make recommendations on Taxes, surcharge, cess of central and states which will be integrated in GST. Goods and services which may be exempted from GST Interstate commerce – IGST- proportion of distribution between state and center Registration threshold limit for GST GST floor rates Special rates during calamities Provision with respect to special category states specially north east states It may also work as Dispute Settlement Authority for GST.

28. GST IGST SGST CGST Inter-State GST Intra-State GST Under GST, CGST is a tax levied on Intra State supplies of both goods and services by the Central Government and will be governed by the CGST Act. Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the State Government and will be governed by the SGST Act. Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or services and will be governed by the IGST Act. . Type of GST

29. Examples Haryana Haryana Rs.10,000 GST rate = 18% (of Rs.10,000) = ‎Rs.1800 CGST 9% SGST 9% CGST 900 SGST 900 Total amount = Rs.11,800 Punjab Haryana Rs.10,000 GST rate = 18% (of ₹10,000)= ‎Rs.1800 Collected by Center Total amount = Rs. 11,800

30. Goods and Services Tax Bill The Goods and Services Tax Bill is officially known as the Constitution (122 Amendment) Bill, 2014 which is formulated to create a pan-India tax system and end the number of multiple taxes charged by the Centre and the States on various goods and services. The key points of the GST bill are given below: It is an indirect , uniform tax that is levied on the goods and services. Surcharge on supply of goods, cesses , special ad-on duty of customs, and excise and central excise duty replaced by Central Taxes GST. Entertainment tax, entry tax, purchase tax, central sales tax, VAT, etc. replaced by State Tax GST. The primary objectives of GST is eliminating the excessive taxation. The 2014 bill deleted the 2011 bill provision that imposed certain restrictions on the states on taxation of the products that are important for inter-state commerce and trade.

31. Goods and Services Tax Act The GST act, which is also known as The Constitution (101 Amendment) Act, 2016 , mainly focuses on changing the Constitution of India to simplify the process taxation on goods and services in India. The act bestows power on the parliament/center and the state legislatures to make laws for imposing taxes on goods and services at the national level.

32. Ahmed, E. and Poddar, P. (2009) studied “Goods and service tax reforms and intergovernmental consideration in India ” and found that GST introduction will provide implies and transparent tax system with increase in output and productivity of economy in India. But the benefits of GST are critically dependent on rational design of GST. Vasanthagopal, R. (2011) Conducted a study on , “ GST in India : A big leap in the Indirect Taxation System” and concluded that switching to seamless GST from current complicated indirect tax system in India will be positive step in becoming Indian economy . Sehrawat,M. and Dhanda ,U.2015.GST IN INDIA: A KEY TAX REFORM . International Journal of Research – Granthaalayah.Vol. 3(12) 133-141

33. Need of GST As per the reports of Task Force on Goods and Services Tax (2009), the Indian taxation system led to misallocation of resources and lower productivity in terms of economic growth, international trade, and overall development of the Indian economy. Therefore, there was an emergent need to replace the existing tax system with a new engine of taxation of goods and services to attain the following objectives ( Roychowdhury , 2012) : The tax incidence fell primarily on domestic consumption. The optimization of efficiency and equity of the Indian system is desired. There should be no export of taxes across the taxing jurisdiction. The Indian market should be brought under a single umbrella of common market. Enhancement to the cause of cooperative federalism.

34. The GST is dual between the Centre and the States : Federal GST and provincial retail sales taxes (RST) administered Joint federal and provincial VATs administered federally (Harmonious Sales Tax - HST), Separate federal and provincial VAT administered provincially (QST) S imilar to the Kelkar - Shah Model collection at Central levels only Based on “Grand Bargain” To merge taxes like Central Excise, Service Tax, & VAT. Similar to the Canadian Model collection at Central and State levels The Kelkar - Shah Model The Bagchi - Poddar Model Canadian Model

35. List of GST Rates Applicable in Various Countries Note : Ranking as per Descending Order . Source: Central Board of Excise and Customs (2017)

36. Key Features of Goods and Services Tax The Goods and Services Tax will include Central Indirect taxes. It will also include State Value Added Tax or Sales Tax. Inclusion of the concept of ‘declared goods of special importance’ as per the Indian constitution. It has levied integrated Goods and Services Tax on inter-State transactions of goods and services. It has levied additional tax of 1% on supply of goods in inter-State trade which will be collected by the Government of India for a period of two years and will be allocated to the states from where the supply comes. It has levied at every stage of the production distribution chain by giving the benefit of Input Tax Credit (ITC) of the tax remitted in the previous stages, but is meant to be refunded to all parties in the various stages of production other than the final consumer.

37. The GST that a merchant pays to procure goods or services can be set off later against the tax applicable on supply of goods and services. Therefore, manufactures, wholesalers and retail merchants can avail tax credit mechanism under GST regime. Petroleum and petroleum products and alcohol have been kept out of the reach of GST. The act will have two constituents - Central GST charged by the Centre and State GST charged by the states. But, in case of inter-state trade or commerce, only the Centre will levy tax and collect Goods and Services Tax, and the tax collected would be divided between the Centre and the State as per the provision made in the parliament. A Goods and Services Tax Council will be created to address the issues relating to goods and services tax and give recommendations to the Union and the States on areas such as rates, exemption list and threshold limits. The GST Council will constitute of the Union Finance Minister as chairman followed by the Minister –in-charge of Finance or Taxation or any other Minister nominated by each State Government. The GST Council will function under the Chairmanship of the Union Finance Minister and it will be a joint forum of the Centre and the States. Rani,S.2017.A research paper on goods and service tax (GST) and its impact on Indian economy. International Journal of Advanced Research and Development .2(5):209-212 STATE CENTER

38. N=20 N=20

39. How GST Works All the sundry taxes will be clubbed into just 2 levels – Central GST and State GST. The consumer who buys the product will have to pay only the GST charged by the last dealer in the supply chain. GST will also prevent the multiple taxation occurring on certain goods, and ensure transparency with regards to the rate of taxation and the total amount that goes to the government as taxes on a product.

40. How to calculate GST In order to add GST to base amount: Add GST GST Amount = ( Original Cost * GST% ) / 100 Net Price = Original Cost + GST Amount In order to remove GST from base amount, Remove GST GST Amount = Original Cost – (Original Cost * (100 / (100 + GST%) Net Price = Original Cost – GST Amount How to use our GST Calculation Tool? Step 1 : Select GST Inclusive/GST Exclusive as per the requirement Step 2 : Enter the original amount Step 3 : Select the GST rate from the drop down menu list Step 4 : Click on Calculate to check the result. The result will show the total GST amount and Pre-GST/Post-GST amount as per your original requirement. * https://www.paisabazaar.com/tax/gst-calculation-tool/ https://www.paisabazaar.com/tax/gst-calculation-tool/

41. Working of Goods and Services Tax (GST) ( i ) Manufacturer Before GST: Cost of Production = Rs. 200 + Excise Duty@ 10% = Rs. 20 + VAT @ 5% = Rs. 10 Total Cost = Rs. 230 (ii) Distributor Before GST: Cost of Good Received = Rs. 230 + Profit @ 20% = Rs. 46 + VAT @ 5% = Rs. 11.5 Service Tax@ 15% = Rs. 34.5 Total Price = Rs. 322 (iii) Retailer Before GST: Cost of Goods Received = Rs. 322 Profit Margin @ 20% = Rs. 64 VAT @ 5% = Rs. Rs. 16 Service Tax@ 15% = Rs. 48 Total Price = Rs. 448

42. After GST Manufacturer wholesaler Retailer Ist stage IInd stage IIIrd stage Raw material = Rs. 200 Profit add = Rs. 60 = Rs. 260 (10% of Rs. 200 = Rs. 20) Tax impose Total Tax (10% of Rs. 260 = Rs. 26) Rs. 20 Rs. 26 ITC = Rs. 26 - Rs. 20 = Rs. 6 Material = Rs. 260 Profit add = Rs. 40 = Rs. 300 (10% of Rs. 300 = Rs. 30) Rs. 30 ITC = Rs. 30- Rs. 26 = Rs. 4 Material = Rs. 300 Profit add = Rs. 20 = Rs. 320 (10% of Rs. 320 = Rs. 32) Rs. 32 ITC = Rs. 32- Rs. 30 = Rs. 2 Final Price = Rs. 320 Total GST impose : Rs. 20+ Rs. 6+ Rs. 4+ Rs. 2= Rs. 32

43. GST has increased the tax burden on businessman. GST has increased the tax burden on common man

44. Types Of Categories under GST rate 0% 5% 12% 18% 28% Exempted categories Commonly used Goods and Services Standard Goods and Services fall under 1st Slab Standard Goods and Services fall under 2nd Slab Special category of Goods and Services including Luxury Goods

45. 5% 12% 18% 28% GST Rates 2019 GST Rates on Goods and services The government has proposed a 4-tier tax structure Note : *Only those commodities are included in this list whose rates have been revised in various council meetings. *Government has exempted healthcare and educational services from the purview of the GST.

46. No Tax for Goods Hulled cereal grains like barley, wheat, oat, rye, etc. Bones and horn-cores unworked and waste of these products. Jaggery All types of salt Kajal [other than kajal pencil sticks] Picture books, coloring books or drawing books for children Human hair – dressed, thinned, bleached Sanitary Napkins Unit container-packed frozen branded vegetables (uncooked/steamed) Vegetables preservatives  Music Books/manuscripts Chargeable services offered on Basic Savings Bank Deposit (BSBD) account opened under the PMJDY (Pradhan Mantri Jan Dhan Yojana) etc. No Tax for Services

47. 5% Tax Slab for Goods Cashew nuts/cashew nuts in shell Ice and snow Bio gas Insulin Aggarbatti Kites Coir mats, matting and floor covering Pawan Chakki that is Wind-based Atta Chakki Postage or revenue stamps, stamp-postmarks, first-day covers, etc. Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability Fly-ash blocks Walking sticks Accessories/parts for carriages designed for differently-abled individuals 5% Tax Slab for Service Railways-Transportation of goods, passengers Goods transported in a vessel from outside India Renting a motor cab without fuel cost Transport services in AC contract/stage or radio taxi Transport by air (scheduled)/air travel for purpose of pilgrimage via chartered/non-scheduled flights Tour operator services Leasing of aircrafts Print media Working for printing of newspapers

48. 12% Tax Slab for Goods Pickle, murabba, chutney, jam, jelly, Ketchups, sauces and mustard sauce Bari made of pulses including mungodi Menthol and menthol crystals, peppermint, fterpenated mentha oil, dementholised oil, Mentha piperita oil and spearmint oil All diagnostic kits and reagents Plastic beads Exercise books and note books Glasses for corrective spectacles and flint buttons Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc. Intraocular lens Corrective spectacles Playing cards, chess board, carom board and other board games, like ludo, etc. Debagged/roughly squared cork Items manufactured from natural cork 12% Tax Slab for Services Rail transportation of goods in containers from a third party other than Indian Railways Air travel excluding economy Food /drinks at restaurants without AC/heating or liquor license Renting of accommodation for more than Rs.1000 and less than Rs.2500 per day Chit fund services by foremen Construction of building for the purpose of sale IP rights on a temporary basis Movie Tickets less than or equal to Rs. 100

49. 18% Tax Slab for Goods Kajal pencil sticks Dental wax Plastic Tarpaulin School bags ,Hand bags and shopping bags Toilet cases Precast Concrete Pipes Salt Glazed Stone Ware Pipes Aluminium foil Rear Tractor tyres and rear tractor tyre tubes Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle Weighing Machinery other than electric or electronic weighing machinery Printers other than multifunction printers Ball bearing, Roller Bearings, Parts & related accessories Transformers Industrial Electronics Electrical Transformer Static Converters (UPS) CCTV including CCTV with video recorders Set top Box for TV Computer monitors not exceeding 17 inches Electrical Filaments or discharge lamps Winding Wires, Coaxial cables and Optical Fiber Perforating or stapling machines (staplers), pencil sharpening machines Baby carriages Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, callipers ) Bamboo furniture Swimming pools and paddling pools Televisions/Monitors ( upto 32 inches) Power banks powered by Lithium-ion batteries Sports goods, games consoles and related items with HS code 9504 All items with HS code 8483 including gear boxes, transmission cranks and pulleys Used or retreaded pneumatic rubber tires

50. 18% Tax Slab for Service Food/drinks at restaurants with liquor license Food /drinks at restaurants with AC/heating Outdoor catering Renting for accommodation for more than Rs.2500 but less than Rs.7000 per day Supply of food, shamiyana , and party arrangement Circus, Indian classical, folk, theatre, drama Supply of works contract Movie Tickets over Rs. 100

51. The council meeting was held to ‘reduce’ the tax rates on certain items based on customer preferences. Hence, no additional items were added to the highest GST rates slab of 28%. NOTE: *The GST rates for various products are subject to change from time to time without prior information. Entertainment events-amusement facility, water parks, theme parks, joy rides, merry-go-round, race course, go-carting, casinos, ballet, sporting events like IPL Race club services Gambling Food/drinks at AC 5-star hotels Accommodation in 5-star hotels or above 28% Tax Slab for Goods 28% Tax Slab for Services

52. Times of India dated (2017) stated that the GST implication across different places for the same product has wider differences which the consumers are unaware, resulting them in surprise. Ex. a Rasamalai sold in counter at a shop is taxed with 5% but if it is served in the hotel it is taxed with 18% this has resulted in difference of consumers shopping to purchase the similar product.

53. GST on Loans and Advances The rate of Service Tax was 15% whereas the rate of GST is 18%. A lot of people are of the opinion that the effective cost of having a loan would increase as the rate of GST is 3% higher than the rate of Service Tax. Several people said that their EMI’s has been increased by 3%. However, GST is not levied on repayment of loan or on payment of interest on Loan . GST is only levied on the processing charges and any other charges paid to the bank excluding the principal repayment and interest payment. These other charges include the Loan Processing Fees, Loan Prepayment Charges and other charges, if any. As a major chunk of the loan repayment comprises of principal repayment and interest payment, the impact of GST on Loans would be very negligible.

54. GST rate on cars has been fixed at 28% for all personal use vehicles featuring a petrol or diesel driven engine. However, in addition to GST, a composition cess is also applicable to cars over and above the GST Rate. Thus the overall tax rate applicable to vehicles under GST ranges from 29% to 50%. GST rate on gold is 3%. 10% Customs Duty on gold being imported from overseas 3% GST on the value of gold in the jewelry 5% GST on making charges of the gold jewelry GST on Cars GST on Gold

55. GST is applicable to real estate purchases only if you are purchasing an under construction property. Builders can opt for existing 12% tax rate for under construction homes or choose new rate of 5%. In case of under- construction affordable homes, builders can choose between the existing 8% tax rate or GST rate of 1%. No GST is applicable in case you are purchasing a ready to move in property. Different GST rates are applicable to various building materials used in the construction of houses/flats. This can range from 5% (sand, marble rubble, etc.) to 28% (cement, etc.). GST on Real Estate

56. GST on transport Ranging from nil to 18%. Transport of Passengers by Air 5% GST on economy class air tickets 5% GST on tickets of chartered flights for the purpose of pilgrimage 12% GST on business class air tickets 18% GST on rental services of aircraft (with or without operator)/chartered flights Transport of Passengers by Rail 18% GST on AC and First Class train tickets Nil GST on sleeper and general class tickets Nil GST on metro tickets/tokens Transport of Passengers by Road Nil GST on passengers travelling by road on public transport Nil GST on transport by road of passengers by metered taxi/auto rickshaw/e-rickshaw Nil GST on transport by non-A/C contract carriage/stagecoach 5% GST on transport by A/C contract carriage/stagecoach (no Input Tax Credit) 5% GST on transport by radio taxi and similar services 18% GST on rental services of road vehicles including cars, buses, coaches (with or without operator)

57. GST on Medicines and Medical Supplies Nil GST on medicines is currently only applicable to human blood Nil all types of contraceptive products 5% -Human/animal blood vaccines, Diagnostic kits for hepatitis, Oral rehydration salts, Insulin, Ayurvedic, Siddha, Unani, Homeopathic, Artificial kidneys, Artificial limbs, wheel chairs, crutches 12%- Animal blood prepared for diagnostic, therapeutic, Toothpowder, Bandage, wadding, gauge, Diabetic foods, glucometer and test strips , Photographic film, Medical grade oxygen 18%- Nicotine polacrilex gum, dental/oral hygiene, various hair care products, dental, surgical, medical, operating tables, examination tables,

58. Under GST, a registered dealer has to file GST returns that include: Purchases Sales Output GST (On sales) Input tax credit (GST paid on purchases) GST Return

59. Return Particulars GSTR-1 Details of outward supplies of taxable goods or services or both effected GSTR-2 Details of inward supplies of taxable goods or services or both claiming input tax credit GSTR-3 Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax GSTR-4 Quarterly Return for compounding taxable persons GSTR-5 Return for Non-Resident foreign taxable persons GSTR-6 Input Service Distributor return GSTR-7 Return for authorities deducting tax at source GSTR-8 Details of supplies effected through e-commerce operator GSTR-9 Annual Return GSTR-9A Simplified Annual return by Compounding taxable persons https://www.taxmann.com/blogpost/2000000043/gst-returns-types-forms-due-dates-of-gst-returns-2017.aspx Type of GST Return

60. Visit the GST portal (www.gst.gov.in) A 15-digit GST identification number will be issued based on your state code and PAN number. Upload invoices on the GST portal or the software. An invoice reference number will be issued against each invoice. After uploading invoices, outward return, inward return, and cumulative monthly return have to be filed online. If there are any errors, you have the option to correct it and refile the returns. File the outward supply returns in GSTR form through the information section at the GST Common Portal (GSTN) on or before 10th of the following month. Details of outward supplies furnished by the supplier will be made available in GSTR to the recipient. Recipient has to verify, validate, and modify the details of outward supplies, and also file details of credit or debit notes. Recipient has to furnish the details of inward supplies of taxable goods and services in GSTR form. The supplier can either accept or reject the modifications of the details of inward supplies made available by the recipient in GSTR. How to File GST Returns Online

61. Boon or bane

62. Challenges of GST implementations With respect to tax threshold With respect to nature of taxes With respect to rates of taxation With respect to tax management and infrastructure High revenue neutral rate (RNR)

63. This is a federal law , which means that the states will no longer have the right to make new laws on taxation towards goods and services. It simplifies the tax system and makes it easier to understand as well as cheaper to implement at various levels. Tax evasion at various stages will be eliminated as tax offsets can be collected only if taxes have been paid originally. You will also be able to buy raw materials or constituent materials for production only from those who have paid taxes, in order to claim benefits. It will be cheaper to buy input goods and services for production from other states. Advantage of GST

64. The current supply and distribution chain may undergo a change with a change in taxation system that does away with excise and customs duties. The consumer will get the end-product at cheaper rates because of elimination of multiple taxes and the tax cascade. As of now, petroleum and petroleum products have been kept out of the GST regime until further notice. Sale of newspapers and advertisements are also likely to fall under the GST regime, allowing the government to increase its revenue considerably. While there will be central GST and state GST, the tax applicable on goods and services being exported and imported between states in India would fall under an Integrated GST (GST) system in order to avoid conflict of dominion.

65. Pinki , Kamma, S. and Verma, R. (2014) studied “Goods and Service Tax “ Panacea for indirect tax system in India “ and concluded that the government in India is positive towards implementation of GST and it is beneficial for central government , state government and as well as for consumers in long run if its implementation is backed by strong it infrastructure. Guptha, N. (2014) in her study stated that implementation of GST in the Indian framework will lead to commercial benefits which were untouched by the VAT system and would essentially lead to economic development.

66. Disadvantages of GST GST is not good news for all sectors. In the current system, many products are exempted from taxation. The GST proposes to have minimal exemption list. Currently, higher taxes are levied on fewer items, but with GST, lower taxes will be levied on almost all items. GST is not applicable on liquor for human consumption. So alcohol rates will not get any advantage of GST. Stamp duty will not fall under the GST regime and will continue to be imposed by states. Mawuli,A . (2014) studied , “ Goods and Service Tax An Appraisal “ and found that GST is not good that low income countries and does not provide broad based growth to poor countries. If still countries want to implement GST then the rate of GST should be less than 10 % for growth.

67. GST Rates Impact on Economy As GST has transformed the economy at its peak. It’s a game-changing reform for the Indian economy as it brings about net appropriate price for the goods and services considered under single taxation system. Mentioned below are some of the important GST rates impacts in the Indian economy : Uniformity of tax rate and structure Increase in Competition End cascading effect Easy compliance Growth in revenue in state and UT Reduce average tax burden Reduce transaction cot and unnecessary wastage Gain to manufactures & Exports Simple and easy to administration Higher revenue efficiency Relief in overall tax burden Removal of manufacturing costs Reduce corruption

68. Food Services & Restaurant Business Housing and Construction Industry Online Shopping Fast Moving Consumer Goods (FMCG) sector Financial Services Information Technology Textile Agriculture Telecom Freelancer Small Enterprises Impact of GST

69. 1. Food Services & Restaurant Business living under subsistence level drastically shrink the tax base small business registration threshold dining out more pocket-friendly helpful for restaurant owner https://www.posist.com/restaurant-times/trending/all-your-questions-about-the-gst-and-the-restaurant-business-answered.html

70. 1 Hotels, lodges with tariffs less than Rs 1,000 5% 2 Non-AC restaurants and Hotel lodges with tariffs between Rs 1,000- Rs 2,500 12% 3 AC restaurants 18% 4 Hotel lodges with tariffs between Rs 2,500- Rs 5,000 18% 5 Both AC and Non-AC (outdoor seating) 18% 6 Five-star and luxury restaurants 28% According to a report by Grant Thornton in India -  Bon Appétit – Emerging trends, opportunities and challenges in Indian restaurant industry , 70 per cent of the restaurant owners believe GST is a positive decision for the industry. The report further highlights that 68 per cent businesses believe that GST will ease compliance as it is backed by technology. https://www.grantthornton.in/press/press-releases-2018/the-impact-of-gst-on-the-restaurant-industry-is-largely-positive-finds-grant-thornton-report/

71. According to the National Restaurant Association of India’s 2013 India Food Service Report , the current size of the Indian food service industry is Rs.2,47,680 crore and is projected to grow to Rs.4,08,040 crore by 2018 at the rate of 11%. This growth is further fueled by the growth of the great Indian middle class. https://cleartax.in/s/impact-gst-food-services-restaurant-business

72. 2. Housing and Construction Industry Developers will have input credits on GST paid for services and goods purchased by them which will reduce the cost for them and can be passed on to the buyers. Reduced as multiple taxes are subsumed and due to the availability of input tax credit. 3. Online Shopping With the introduction of GST, various E-commerce companies will face much burden of work in rate of filling taxes and cost will be increased. https://blog.capitalfloat.com/will-gst-impact-financial-services-sector-india/

73. 4. Fast Moving Consumer Goods (FMCG) Three main segments in the sector – Food and beverages : 19 % of the sector Healthcare : 31 % Household and personal care : 50 % GST rate for this sector is around 17% As per the report of Alankit group “The leading companies manufacturing ayurvedic product had expected that the government would set such products at a lower tax slab rate (12%), given the fact that the government was heavily promoting traditional Indian medicines. Before GST, FMCG companies paid 24-25% tax including Excise Duty etc. With GST, the rate of return would be 17-19% leading to strong impact in production and consumption ( Jain, 2013). 5. Financial Services Increased GST rate on transactions Transaction charges on cash withdrawals from different bank Loan processing fee Little extra on your insurance premiums Increase in costs in the financial sector Kumar, R.(2017) revealed that increase in cost should not be considered a negative GST impact on financial services sector. In the long run, banks will be able to transfer the advantage of input tax credit – enabled under GST – to the customers. https://blog.capitalfloat.com/will-gst-impact-financial-services-sector-india/

74. 6. Information Technology Software services charge increase Place of Supply provision has been introduced National Association of Software and Services Companies ( Nasscom ) president R. Chandrashekhar mentioned that GST regime can create a difficult scenario for the industry as with GST, there are lot many complex invoicing and billing coming ahead which can further strangle the taxation of IT industry making a tough growth. GST will allow more implementation of digital systems and services. GST will increase the rate of tax from 14 -15% to 18%, which will increase the cost of electronic products like mobile phones, laptops, etc. ( Adhana , 2015). 7. Textile Tax rate under GST would be higher than the current tax rate for the textile industry. Natural fibers (cotton, wool) which are currently exempt from tax, would be taxed under GST. But , there is r eduction in manufacturing costs, input credit allowed on capital goods and break in input credit chain https://blog.saginfotech.com/gst-impact-on-indian-it-industry

75. 8. Telecom Sector With the current VAT charges of 15% being replaced by18% GST rate, the price of mobile Calling, SMS, and broadband services would be impacted. This will have a negative impact for big telecom giants like Airtel , Vodafone, Idea, etc. 9. Agriculture Agricultural sector covers around 16% of Indian GDP. Major issues faced by the agricultural sector is transportation of agri products across state lines all over India. Fertilizers has been increased to 12% Dairy farming, poultry farming, and stock breeding are kept out of the definition of agriculture. Therefore these will be taxable under the GST. Agrawal,Y.K.2017. Goods and Services Tax and Its Impact on Indian Economy . IOSR Journal of Business and Management . Vol 19 (10) :26-30

76. 10. Freelancers According to Aggrawal.Y.K .(2017) GST become much easier for freelancers to file their taxes as they can easily do it online. They will be taxed as service providers, and the new tax structure has brought coherence and accountability in this sector. 11. Small Scale Enterprises GST will help and ease the process of starting a business in India GST a business does not have to register or collect GST if the annual turnover is 10 lakh . This is applicable to every state. This will allow many small businesses which have a turnover between 5 lakh – 10 lakh to avoid applying for the GST return. Agrawal,Y.K.2017. Goods and Services Tax and Its Impact on Indian Economy . IOSR Journal of Business and Management . Vol 19 (10) :26-30 https://www.dbs.com/in/sme/businessclass/articles/economic-outlook/impact-gst

77. Parkash,J. (2014) mentioned that the GST at the Central and the State level are expected to give more relief to industry , trade , agriculture and consumers through a more comprehensive and wider coverage of input tax set-off and service tax set off, subsuming of several taxes in the GST and phasing out of CST. Ahmed,E. and Poddar, S.(2009) studied, “Goods and Service Tax Reforms and Intergovernmental Consideration in India” and found that GST introduction will provide simpler and transparent tax system with increase in output and productivity of economy in India. But the benefits of GST are critically dependent on rational design of GST. Sehrawat,M. and Dhanda ,U.2015.GST IN INDIA: A KEY TAX REFORM . International Journal of Research – Granthaalayah.Vol. 3(12) 133-141

78. The introduction of GST will be a very noteworthy step in the field of indirect tax reforms in India. By merging a large number of Central and State taxes into a single tax, GST is expected to significantly ease double taxation and make taxation overall easy for the industries. For the end customer, the most beneficial will be in terms of reduction in the overall tax burden on goods and services. Introduction to GST will also make Indian products competitive in the domestic and international markets. The GST, because of its transparent character , will be easier to administer. It will further sustaining growth for the Indian Economy. A Bright Economy

79. SYMBOL OF TRUST