Gst presentation (2)

It is the some brief explanation of GST before implementing and advantages and disadvantages of implementation

1. GST CGST SGST It Will Subsume the Following Taxes: Central excise Duty Additional Excise Duty Service Tax Countervailing Duty Additional Duty Of Customers (ADC) Surcharge, Education and secondary / Higher education Cess. It Will subsume the following taxes: VAT/ Sales Tax Purchase Tax Entertainment Tax Luxury Tax Lottery Tax Sate surcharge & Cess livable on the above as of now MEANING OF GOODS & SERVICE TAX

2. HISTORY OF GOODS & SERVICE TAX Goods and service tax is a norm in more than 150 countries of the world and India is soon to join the guild. The start towards a true Value added regime was made with the introduction of MODVAT by the Central Government and in the state level taxation with the replacement of sales tax by state Value Added Tax Empowered Committee of State Finance Minister(ECSFM) has set up a joint working group which submitted its report on the proposed GST in November 2007. After a lot of discussion ECSFM presented its first discussion paper on GST on November 10, 2009. The road ahead would include discussions with various representatives of trade, industry and masses to p resent their views so as to give GST code its finals shape.

3. BENEFITS OF GOODS AND SERVICE TAX ONE POINT TAX REDUCE THE PRICE MORE TAX REVENUES NO TAX ON TAX UNIFORMITY IN TAXATION ADD TO GDP GROWTH LESS PAPERWORK LOWER PRICE FOR CONSUMERS

4. HOW DOES GST WORK??

5. Disadvantages of GST It requires strong IT (Information Technology) infrastructure at grass-root levels. India essentially lacks this. This factor is going to be the bottleneck, if not addressed well in advance. Very high rates 16% compared to current 12.5 % VAT. Tax-sharing between states and the Centre was another bottleneck. Nice to see that there is a consensus now

6. Petroleum(but may be included within GST subsequently, basic recommendation by GST council) Alcohol for human consumption Lottery & betting Electricity duty and taxes Entry tax levied by municipalities or panchayats Stamp duties on immovable properties Taxes on vehicles. EXCLUSIONS OF GOODS & SERVICE TAX.

7. CURRENT STATUS OF GOODS & SERVICE TAX The bill was approved in Lok Sabha but did not pass muster in Rajya Sabha. It has now been referred to a select committee for scrutiny The Government proposes to roll out GST from April 1, 2016 The select committee is expected to report to the Rajya Sabha sometime in July. The house can then approve the recommendations. The bill has to finally be approved by the President of India. After both the houses of parliament ass the bill at least 50% of India’s 29 states have to approve the constitutional amendment.

8. THINGS TO BE KEPT IN MIND BEFORE IMPLEMENTING GOODS & SERVICE TAX What preparations are needed at the level of Central and State Governments for implementing the GST. Whether the Government machinery is efficient enough for such an enormous change. Whether the tax-payers are ready for such a change. What will be the impact on the Government’s revenue. How will the manufacturers, traders and ultimate consumers be affected. Will GST help the small entrepreneurs and small traders.

9. THANK YOU SHANMUKHA AKINAPELLI VAMSI BODAVULA SHRIYA CHOURASIYA SOURABH MAYABHATE PRACHI PAWAIYA