GST chapter 1_ PPT (1).pdf law and practice

Gst chapter 2

1. GST LAW AND
PRACTICES
U N I T-1 : I N T R O D U C T I O N T O G S T

2. CONTENTS
•Meaning and definition
•Features
•Objective
•Advantages and Disadvantages of GST
•Subsuming of Taxes
•Structure of GST
•GST Tax Rates
•Scope of GST
•GST Council –Composition, Power and Functions
•Types of GST
•Electronic cash and credit ledger
•Agent, Business, place of business
•Goods –Import, export & Capital goods
•Services , person and taxable person

3. MEANING AND DEFINITION
The goods and services tax (GST)
isa tax on goods and services
sold domestically for
consumption.
The Article 366(12A) of the
constitutional Act 2016 defines
“Goods and Services tax” as any
tax on supply of goods or services
or both, except for taxes on the
supply of the alcoholic liquor for
human consumption.

4. GOODS
•Goods means every kind of movable property other
than money and securities but includes actionable
claim, growing crops, grass and things attached to or
forming part of the land which are agreed to be
severed before supply or under a contract of supply

5. SERVICES
•“Services” means anything other than goods, money
and securities but includes activities relating to the use
of money or its conversion by cash or by any other
mode, from one form, currency or denomination, to
another form, currency or denomination for which a
separate consideration is charged.

6. SUPPLY
Supply includes
•Sale
•Transfer
•Exchange
•Barter
•License
•Rental,
•Lease and disposal.
If a person undertakes either of these transactions during
the course or furtherance of business for consideration.

7. FEATURES OF
GST
•One nation-one tax
•Dual Structure
•Destination based tax
•Input tax credit
•Anti-Profiteering Measures
•Online Compliance

8. OBJECTIVES OF
GST
•Building a Common Market with Uniform Taxation
•Eliminating the Cascading Effect of Taxes
•Simplifying the Taxation System
•Combining Many Indirect Taxes into One
•Widening the Tax Base
•Reducing Tax Evasion

9. LIMITATIONS
•Complicated for Small Businesses
•Costs More for Some Services
•Starting Troubles
•Tech Problems
•Increased Compliance & Complexity

10. SUBSUMING OF TAXES

11. STRUCTURE OF GST

12. GST TAX RATES

13. SCOPE OF GST
•All goods and services are covered under GST regime except
Alcoholic liquor for Human Consumption and petroleum
products.
•Tobacco products are subjected to levy of GST and Centre
will also levy excise duty
•GST council yet to decide the incidence and levy of GST on
following

14. GST COUNCIL
•The Goods and Services Tax Council is a constitutional
body that is responsible for managing all aspect of the
Goods and Services tax in India. This includes
decisions on tax rates, administration and other
related matters.

15. ROLE OF GST COUNCIL

16. STRUCTURE

17. ELECTRONIC
CASH AND
CREDIT LEDGER
•Electronic Cash Ledger isa cash ledger that contains
deposits that a taxpayer has made and any GST payments
made through cash and in any other mode
•Electronic Credit Ledger in which all credits accrued on
account of inward supplies made by a taxpayer within a tax
period are accumulated.

18. AGENT
•“Agent” means a person, including a factor, broker,
commission agent, del credere agent, an auctioneer or
any other mercantile agent, by whatever name called,
who carries on the. business of supply or receipt of
goods or services or both on behalf of another.

19. BUSINESS

20. PLACE OF
BUSINESS
•(a) a place from where the business is ordinarily
carried on, and includes a warehouse, a godown or any
other place where a taxable person stores his goods,
supplies or receives goods or services or both; or
•(b) a place where a taxable person maintains his books
of account; or
•(c) a place where a taxable person is engaged in
business through an agent, by whatever name called

21. PERSON
Person here includes
•Individuals
•HUF
•Company
•Firm
•LLP
•AOP
•BOI
•Any corporation or Government company, body corporate
incorporated under laws of foreign country, co-operative society,
local authority, government, trust, artificial juridical person.

22. TAXABLE
PERSON
•A ‘taxable person’ underGST, is a person who carries
on any business at any place in India and who is
registered or required to be registered under the GST
Act. Any person who engages in economic activity
including trade and commerce is treated as a taxable
person.

23. THRESHOLD
LIMIT
•Companies with a yearly turnover of more thanRs.40
Lakhs (for goods) and Rs.20 lakhs (for services)are
required to register for GST and pay taxes on their
taxable goods and services.