GST- an indirect tax revolution

Introduction of GST, Problem in Previous Tax Structure, Feature and Functions, Tax under and Outside the GST, Types of GST returns, Benefit and Impact of GST on Indian Economy

1. GST
AN INDIRECT TAX REVOLUTION
Presented By-Jitendrakumar N. Suthar
PROF.RAMKRISHNA MORE ARTS ,COMMERCE & SCIENCE COLLEGE

2. 1.INTRODUCTION:GST
•Goods and Service Tax is an Value Based Indirect tax
which Replaced So many Complicated tax and Previous
State VAT system. Which is applicable across India.
•It is a biggest indirect tax reform in the indian history.
•GST applied in india on 1
st
july 2017.
•India has accepted Dual GST model inspired by
Canada,Australia,UK,& Singapore.
•Chelliah Committee (1991) & Vijay Kelkar Committee
(2002) Were also Recommend a Fully and Well
Prepared VAT system.

3. 2.PROBLEMS IN PREVIOUS TAX STRUCTURE
1.Cascading effect (tax on tax).
2.Lack of Uniformity in term of Laws and Tax Rate. (eg.
MahaVAT -13.5% ,Karnataka VAT-14.5%).
3.High Compaxity in Indirect Tax Structure.
4.Manual Tax Filing & Online Portal wasn’t Technologicaly
advance.

4. 3. EVOLUTION OF GST
0504030201
1999
2006
2010
2014
2017Shri. Atal Bihari Vajpayee
Former PM Setup a
Committee for a
Structure Of GST Model.
P. Chidambaram
Former Finance
Minister announced a
committee for GST
Model
Committee Relesed First
Discussion Paper for The
objective of GST model.
Shri Arun Jaitly
Former Finance
Minister introduced
122
nd
Amedment Bill
2014 in Loksabha
GST applied on
1july 2017

5. 4.WHEN PARLIAMENT MET AT MIDNIGHT .
Former President ShriPranabMukharjee& Prime Minister NarendraModi
Launched GST in Special Midnight Session of Parliament on 30 June 2017 at 12.00
am

6. 5.1. FETURE OF GST
ONENATIONONETAXONEMARKET
We had a
multiple taxes across the
Country.Now There is
one tax rate in the entire
Country.The whole
Country has turned into
a market.

7. 5.2. FETURE OF GST
DUAL GST MODEL
•Central GST
•Half share of Tax Collected by Central
Govt.
CGST
•State GST
•Half share of Tax Collected by State
Govt.
SGST
•Integrated GST
•Tax Collected By Central Govt. on
Interstate Supply
IGST
UTGST
•Union Territory GST
•Tax Collected By Central Govt.

8. 5.3. FETURE OF GST
ONE NATION ONE LAW OF TAX-(GST COUNCIL)
•GST Council is an apex member
Committee to Amendments, or
Make a New Law and Regulation of
Goods and Service Tax.
•The Council is headed by union
finance Minister assisted with the
Finance Minister of all the State of
India.

9. 5.3A. STRUCTURE OF GST COUNCIL MEMBERS.
CHAIRPERSON
Union Finance Minister
MEMBERS
Union Minister of States
Finance / Revenue
MEMBERS
Other Minister
appointed by CM
MEMBERS
Chairman of CBIT &
Other Invitee
VICE CHAIPERSON
Appointed by Finance
Minister
SECRETARY
Union Revenue Secretary

10. 5.4. FETURE OF GST
GOODS AND SERVICE TAX NETWORK. (GSTN)
•The GSTN is a non-profit , non-
government organization.
•It Manage the entire IT system of
GST Portal and Database of GST
related Data.
•It is Providing all services, Return
Filing , Registration to Taxpayers.

11. 5.4A. STRUCTURE AND ROLE OF GSTN.

12. 5.5. FETURE OF GST
DESTINATION BASED TAX.
•GST is based on principle of Destination based
Consumption Taxation. As against the Previous
Origin Based Taxation.
•Destination Based Tax are Levied whare Goods and
Services are consumed.

13. 6 .TAXES UNDER GST
GST
CGST SGST
1.Service Tax
2.CENVAT & MODVAT
3.Central Excise Duty
4.Central Sales Tax
5.Additional Excise Duty
6.Central Cessand Surcharge
1.State VAT
2.Entertainment Tax
3.Lottery Tax
4.Luxury Tax
5.Entry Tax
6.State Cessand Surcharge

14. 7. TAXES NOT UNDER GST
1.Petroleum Products-5 Petroleum Product are
under Sales Tax .Others Under GST.
2.Alcohol for Human Consumption-Under
State Excise.
3.Electricity-State Electricity Duty.
4.Real Estate-Statmp Duty and Property Tax.

15. 8. SLAB OF GST RATE
•Foods
•Utility
items
•Computer
Parts
•Luxury
Items
•Expensive
Car
•AC and
Fridge

16. 9.TYPES OF GST RETURN
NAME OF
RETURN (OLD)
NAME OF RETURN
(NEW)
ROLE OF
RETURN
DUE DATE TYPE OF
TAXPAYER
GSTR 1 ANX 1 Outword Supply 11
th
of Every
Month
REGULAR
GSTR 2 ANX 2 Inward Supply 15
th
of Every
Month
REGULAR
GSTR 3B PMT 08 Claim ITC and Tax
Payment
20
th
of Every
Month/ Quarterly
REGULAR
GSTR 4 CMP 08 Disclose Turnover
and Tax Payment
18
th
of Every
Quarterly Month
COMPOSITION
GSTR 9A / 9B /9CGSTR 9A/9B/9C Annual Return 31th December of
Next FY
ALL

17. 10.1 .BENEFITS OF GST: FOR GOVERMENT
1.Increased Tax Efficiency
39.56 Lac Taxpayers Registered after
GST implementation

18. 10.1A .BENEFITS OF GST: FOR GOVERMENT
2.Promote Make in India
3.Encourage Ease of Doing Business
4.Regulation of Unorganized Sector ( Textile and Construction
Sector))
5.Boost For Export
6.Movement of Goods and Service Become Easy (Provision
of E-Way Bill)
7.Helping to tackle Corruption and Tax Leakage

19. 10.2 .BENEFITS OF GST: FOR TAXPAYER
1.Reduced Cascading Effect
2.Highly Developed Portal and IT system.
3.Simplification of GST returns
4.Free flow of Input Tax Credit
5.High Threshold Limit
6.Provision of Composition Scheme

20. 10.3 .BENEFITS OF GST: FOR CONSUMER
1.50% of the Consumer price basket Goods
are at 0% Tax Slab.
2.Uniform Price across India
3.Reduction in Prices of Goods and Services

21. 11. PROBLEMS & CHALLENGES FOR GOVERMENT
1.Low GST Collection
FY TOTALANNUAL COLLECTIONSHORTFALL
2017-1810,69,050 ₹Crore -3,10,950 ₹ Crore
2018-1911,77,368 ₹ Crore -2,02,632 ₹ Crore
2019-2012,22,131 ₹ Crore -1,57,869 ₹ Crore
Target Of Gst Collection (Annual)
13,80,000 ₹Crore
Source: pib.gov.in

22. 11A . PROBLEMS & CHALLENGES FOR GOVERMENT
2. GST Evasion-
3. GST distribution to the states-
•Central Government has not transfer the share
of GST to the States.
•Maharashtra awaiting of 15,558 ₹Crore
including GST compensation.
•FakeInvoicingthroughFakeCompany.
•BuyingandSellingofInvoiceby
Trader/RetailerToobtainITC.

23. 12. STRUCTURAL ISSUES IN GST
1.Issues in GST Network.
2.Large Numbers of Exemption.
•GST return related Problems
•Delay in refunds
•Mismatch in ITC, Invoices and Returns
•50% of the Consumer price basket Goods are at 0% Tax
Slab and Remaining Goods are facing a burden of GST.
•High threshold Limits of GST registration (40 Lac).
•Only 1% GST under Composition Scheme.

24. 13. WHY TAXPAYERS ARE NOT HAPPY ?
1.Petroleum Products are not under GST.
2.Cement industry is under 28% tax Slab.
3.So many Tax Slabs.
4.Burden of GST Returns.
5.Compulsory Book Keeping and Maintain.
•ITC is not passing to industry and Transport related Industry.
•Cascading effect is not end yet.
•Grey market activity has been incresed.
•Construction industry is facing Slow down.
•Government should merge 12% & 18% Slabs into
15% to Reduce Complexity.

25. THANK YOU
Refrences:
1.Public Econmics ll-Success Publication.
2.Cleartax.in
3.Wikipedia.org
4.Economicstimes.indiatimes.com
5.cbic-gst.gov.in-Ministry of Finance
6.Pib.gov.in