Gst

A Short description about goods and services tax india, how it is going to impact our economy.

1. PRESENTATION ON SUBMITTED BY: B.Lokesh. REGD NO. :-1401210044

2. INTRODUCTION. WHY INDIA NEED GST ? HISTORY OF GST. COMPONENTS OF GST. TAX LEVIED BEFORE GST. TAX LEVIED AFTER GST. ADVANTAGES. DISADVANTAGES. CONCLUSION. CONTENTS

3. GST ‘G’ –Goods ‘S’ –Services ‘T’ –Tax Goods and Service Tax(GST) is a comprehensive tax levy on manufacture , sale and consumption of goods and service at a national level. GST is a tax on goods and services with value addition at each stage. GST will include many state and central level indirect taxes. It overcomes drawback present tax system. INTRODUCTION:-

4. Purpose- GST is introduced majorly due to two reasons: The current indirect tax structure is full of uncertainties due to multiple taxes and multiple rates. Due to multiple rates, there are multiple forms and intern cumbersome compliances. This will improve Tax compliances. Because of above transparency, Taxation would increase and lead to reduced tax evasion. It would also reduce cascading effect(tax on tax) up to much extent. Why India need GST?

5. The Goods and Services Tax has revolutionized the Indian taxation system. The GST Act was passed in the Lok Shaba on 29th March, 2017. The Goods and Services Tax has came into effect from 1st July, 2017.

6. COMPONENTS OF GST :- There are 3 applicable taxes under GST:  CGST, SGST & IGST . CGST:  Collected by the Central Government on an intra-state sale (Eg: Within Odisha) SGST:  Collected by the State Government on an intra-state sale (Eg: Within Odisha) IGST:  Collected by the Central Government for inter-state sale (Eg: Odisha to Andhra pradesh)

7. Action Cost 10% Tax Total Buys Raw Material @ 100 100 10 110 Manufactures @ 40 150 15 165 Adds value @ 30 195 19.5 214.5 Total 170 44.5 214.5 TAX LEVIED BEFORE GST

8. Action Cost 10% Tax Actual Liability Total Buys Raw Material 100 10 10 110 Manufactures @ 40 140 14 4 154 Adds Value @ 30 170 17 3 187 Total 170 17 187 TAX LEVIED AFTER GST

9. ADVANTAGES OF GST

10. Petroleum products:  The government has left petroleum out of GST for now until all states are agreed to it. Industries that require petroleum products for manufacturing cannot input for tax credits which will increase the final price. Multiple State registration : Businesses are required to register for GST in each state they operate in. Professional assistance : New startups or small businesses who lack knowledge of GST may require hiring professionals for managing their taxes. Luxury items to get costly : Drinking tea/coffee at branded cafes, staying in hotels with tariff above 7500rs, electronic devices like TV, washing machine, bikes with engine capacity more than 350cc, Movie tickets above 100. etc. will be costlier with GST bill. Unstable economy : Right after implementation  demonetization bill  and now GST bill India’s economy will take approximately 1-2 years to become stable. DISADVANTAGES OF GST

11. COUNTRIES IMPLEMENTED GST BEFORE INDIA AND THEIR TAX SLABS

12. India is a collective economy where each state has its own set of rules for them. This makes the growth of the country slow, causes difficulties to the businesses and higher possibilities of corruption. To make the tax payment process simpler and create a win-win environment for both, government as well as businesses, and to reduce the corruption GST is implemented. GST is a simple, sophisticated and consumer-friendly way how the Government of India will collect the tax from the businesses and individual citizens. GST is implemented in India to replace the previous indirect tax systems which were very complex system, with a simpler and uniform tax system. Indian tax slabs are divided into least as 0% slab and highest as 28%. Intermediate slabs as 5%,12%,18%. CONCLUSION:-

13. THANK YOU