INDIRECT TAXATION PRESENTATION FOR BCOM.ppt

PRESENTATION FOR BCOM STUDENTS

1. PRESENTATION BY : MS.SARANYA S
ASST.PROF
GST and Its Implications
PATRICIAN COLLEGE OF ARTS & SCIENCE
DEPARTMENT OF COMMERCE, SHIFT -II

2. What is GST?
One Tax
For
Manufacturing
Trading
Services
ONE NATION: ONE TAX

3. What is GST?
‘G’ –Goods
‘S’ –Services
‘T’ –Tax
“GoodsandServiceTax(GST)isacomprehensive
taxlevyonmanufacture,saleandconsumptionof
goodsandserviceatanationallevel.
GSTisataxongoodsandserviceswithvalue
additionateachstagehavingcomprehensiveand
continuouschainofset-ofbenefitsfromthe
producer’s/serviceprovider’spointuptothe
retailer’slevelwhereonlythefinalconsumershould
bearthetax.”

4. ROAD TO GST –
MILESTONES
4

5. Road to GST-
Milestones
2006, announcement of the intent to introduce GST by
01.04.2010
November 2009 –First Discussion Paper (FDP) released by
EC on which Comments were provided by Government of
India.
June2010-Threesub-workingGroupsconstitutedby
GovernmentofIndiaon:
BusinessProcessrelatedissues.
DraftingofCentralGSTandmodelStateGSTlegislations.
BasicdesignofITsystemsrequiredforGSTingeneraland
IGSTinparticular.

6. Road TO GST-Milestones
contd.
March2011-Constitution(115thAmendment)Bill
introducedinParliament
November2012–CommitteeonGSTDesignconstitutedby
EC
February2013-ThreeCommitteesconstitutedbyEC
oDualControl,ThresholdsandExemptionsinGSTregime
oRNRsforSGST&CGSTandPlaceofSupplyRules
oIGSTandGSTonImports
March2013-GSTNIncorporatedasSection25Company

7. Road To GST-Milestones contd.
June2013-CommitteeconstitutedbyECtodraftmodelGST
Law
August2013-StandingCommitteeonFinancesubmitted
Report
April2014-CommitteeconstitutedbyECtoexamine
businessprocessesunderGST
December2014-122
nd
ConstitutionalAmendmentbill
introducedinParliament.
.1
st
July2017GSTImplemented.

8. GSTisataxongoodsandserviceswithcomprehensiveandcontinuouschainof
setoffbenefitsfromtheProducer’spointandServiceprovider’spointuptothe
retailerlevel.
GSTisexpectedbeleviedonlyatthedestinationpoint,andnotatvariouspoints
(frommanufacturingtoretailoutlets).Itisessentiallyataxonlyonvalueadditionat
eachstageandasupplierateachstageispermittedtosetoffthroughataxcredit
mechanismwhichwouldeliminatetheburdenofallcascadingeffects,includingthe
burdenofCENVATandservicetax.
UnderGSTstructure,alldifferentstagesofproductionanddistributioncanbe
interpretedasameretaxpassthroughandthetaxessentiallysticksonfinal
consumptionwithinthetaxingjurisdiction.
Earlieramanufacturerneedstopaytaxwhenafinishedproductmovesoutfromthe
factory,anditisagaintaxedattheretailoutletwhensold.Thetaxesareleviedat
themultiplestagessuchasCENVAT,Centralsalestax,StateSalesTax,Octroi,etc.
willbereplacedbyGSTtobeintroducedatCentralandStatelevel.
Continued…….
Concept of GST

9. Allgoodsandservices,barringafewexceptions,willbebroughtintotheGST
base.Therewillbenodistinctionbetweengoodsandservices.
UnderGST,thetaxationburdenwillbedividedequitablybetween
manufacturingandservices,throughalowertaxratebyincreasingthetaxbase
andminimizingexemptions.
However,thebasicfeaturesoflawsuchaschargeability,definitionoftaxable
eventandtaxableperson,measureoflevyincludingvaluationprovisions,basis
ofclassificationetc.wouldbeuniformacrossthesestatutesasfaras
practicable.
TheexistingCSTwillbediscontinued.Instead,anewstatuteknownasIGST
willcomeintoplaceontheinter-statetransferoftheGoodsandServices.
Byremovingthecascadingeffectoftaxes(CST,additionalcustomsduty,
surcharges,luxuryTax,EntertainmentTax,etc.),CGST&SGSTwillbe
chargedonsameprice.
Concept of GST

10. Need for GST
IntroductionofaGSTtoreplacetheexistingmultipletax
structuresofCentreandStatetaxesisnotonlydesirable
butimperativeintheemergingeconomicenvironment.
Increasingly,servicesareusedorconsumedin
productionanddistributionofgoodsandviceversa.
Separatetaxationofgoodsandservicesoftenrequires
splittingoftransactionvaluesintovalueofgoodsand
servicesfortaxation,whichleadstogreatercomplexities,
administrationandcompliancescosts.Integrationof
varioustaxesintoaGSTsystemwouldmakeitpossible
togivefullcreditforinputstaxescollected.GST,beinga
destination-basedconsumptiontaxbasedonVAT
principle,wouldalsogreatlyhelpinremovingeconomic
distortionsandwillhelpindevelopmentofacommon
nationalmarket.

11. Limitations of old Tax regime
Credit of Excise not
allowed
Credit of CST Not Available (This
should relate to interstate
supply. An arrow can be shown
from wholesaler in Maharashtra
to retailer in Madhya Pradesh
and show that credit of CST paid
in Mah. not available to Retailer
in MP)
KARNATAKA
MADHYA
PRADESH
1. Cascading Effect of Tax

12. 2. Multiple Registrations
Limitations of current Tax regime :
Central
Excise

13. No Entry Tax
Entry
Tax
Value Added
Tax
@
4%
@ NIL
%
3.Lack of Uniformity
Limitations of current Tax regime :

14. Tax structure before GST in India
Tax Structure
Direct Tax
Income Tax Wealth Tax
Indirect Tax
Central Tax
Excise Service Tax Custome
State Tax
VAT
Entry Tax, luxury
tax, Lottery Tax,
etc.

15. Tax Structure
Direct Tax
Income Tax
Wealth Tax
Indirect Tax =
GST (Except
customs)
Intra-state
CGST
(Central)
SGST (State)
Inter State
IGST
(Central)
Tax Structure under GST in India

16. •Central Excise
•Additional duties of Custom (CVD)
•Service Tax
•Surcharges and all cesses
CGST
•VAT/sales tax
•Entertainment Tax
•Luxury Tax
•Lottery Tax
•Entry Tax
•Purchase Tax
•Goods and passenger Tax
•Tax on vehicle
•Electricity, banking, Real state
SGST
•CST
IGST
Subsuming of Existing Taxes

17. •Input Credit of Goods+ services
•After taking set off of Input credit, pay the Output Liability on value addition
•Input Credit of Goods+ services from manufacturer
•After taking set off of Input credit, pay the Output Liability on value addition
•Input Credit of Goods+ services from wholesaler
•After taking set off of Input credit, pay the Output Liability on value addition
•Ultimate Output Liability recovered from consumer
GST Set off Chain

18. SGSTandCGSTforintrastatetransaction:IntheGSTsystem,bothCentraland
Statetaxeswillbecollectedatthepointofsale.Bothcomponents(theCentraland
StateGST)willbechargedonthemanufacturingcost.Thiswillbenefitindividuals
aspricesarelikelytocomedown.Lowerpriceswillleadtomoreconsumption,
therebyhelpingcompanies.
IGSTforInterstatetransaction:‘IGSTModel’willbeinplacefortaxationofinter
StatetransactionofGoodsandServices.ThescopeofIGSTModelisthatcenter
wouldlevyIGSTwhichwouldbeCGSTplusSGSTonallinterStatetransactionsof
taxablegoodsandserviceswithappropriateprovisionforconsignmentorstock
transferofgoodsandservices.
TheGSTpaidonthepurchaseofgoodsandservices,tobepaidonthesupplyof
goodsandservices.
Thereshouldbenodistinctionbetweenrawmaterialsandcapitalgoodsinallowing
inputtaxcredit.Thetaxbaseshouldcomprehensivelyextendoverallgoodsand
servicesuptofinalconsumptionpointonvalueaddition.
Assessablevalueforallthetaxeswillbesame.
Model of GST

19. Set off Heads
IGST
Input
IGST
Output
CGST
Output
CGST
Input
IGST
Output
CGST
Output
SGST
Input
IGST
Output
CGST
Output

20. Salient features of GST...
Destinationbasedconsumptiontax
ThetaxwouldaccruetotheStatewhichhas
jurisdictionovertheplaceofconsumptionwhichis
alsotermedasplaceofsupply.
Leviedatallstagesrightfrommanufactureupto
finalconsumptionwithcreditoftaxespaidat
previousstagesavailableassetoff.
Inanutshell,onlyvalueadditionwillbetaxedand
burdenoftaxistobebornebythefinalconsumer.
Exportswouldbetax-freeandimportstaxedatthe
samerateasintegratedtax(IGST)leviedoninter-
Statesupplyoflikedomesticproducts
20

21. Salient features of GST... (contd.)
Taxpayerswithanaggregateturnoverinafinancialyear
uptoRs.20lakhswouldbeexemptfromtax.
ForspecialcategorystatesspecifiedinArticle279A,
thethresholdexemptionshallbeRs.10lakhs.
Taxpayersmakinginter-Statesuppliesorpayingtax
onreversechargebasisshallnotbeeligiblefor
thresholdexemption.
Smalltaxpayerswithanaggregateturnoverinafinancial
yearuptoRs.150lakhsshallbeeligiblefor
compositionlevy.
21

22. EachtaxpayerwouldbeallottedaPANlinkedtaxpayer
identificationnumberwithatotalof13/15digits.
ThiswouldbringtheGSTPAN-linkedsysteminlinewith
theprevailingPAN-basedsystemforIncometax
facilitatingdataexchangeandtaxpayercompliance.
Theexactdesignwouldbeworkedoutinconsultationwith
theIncome-TaxDepartment.
Registration under GST

23. Mandatory Registration
(irrespective of threshold)
Personsmakinginter-Statetaxablesupply
Personsrequiredtopaytaxunderreversecharge
Casualandnon-residenttaxablepersons
E-Commerceoperator/ThoserequiredtocollectTDS
Personssupplyinggoodsthroughe-commerceoperator
Personsmakingsuppliesonbehalfofaregisteredtaxable
person
InputServiceDistributer
Everypersonsupplyingonlineinformationanddatabase
accessorretrievalservicesfromaplaceoutsideIndiatoa
personinIndia,otherthanaregisteredperson

24. Justification of GST
DespitethesuccessofVAT,therearestillcertain
shortcomingsinthestructureofVAT,bothatthe
CentreandattheStatelevel.
A.JustificationattheCentralLevel
i.Excisedutypaidontherawmaterial
consumedisbeingallowedasinputcredit
only.Forothertaxesanddutiespaidforpost-
manufacturingexpenses,thereisno
mechanismforinputcreditundertheCentral
ExciseDutyAct.
Contd….

25. i. adfl
ii.Creditforservicetaxpaidisbeingallowed
manufacturer/serviceprovidertoalimited
extent.Inordertogivethecreditofservice
taxpaidinrespectofservicesconsumed,it
isnecessarythatthereshouldbea
comprehensivesystemunderwhichboth
thegoodsandservicesarecovered.
iii.Theservicetaxisleviedonrestricteditems
only.Manyotherlargenumberofservices
couldnotbetaxed.Itistoreducetheeffect
ofcascadingoftaxes,whichmeanslevying
taxontaxes.
Contd…

26. B.JustificationattheStateLevel
i.AmajordefectundertheStateVATisthattheState
ischargingVATontheexcisedutypaidtothe
CentralGovernment,whichgoesagainstthe
principleofnotlevyingtaxontaxes.
ii.InthepresentStatelevelVATscheme,Cenvat
allowedonthegoodsremainsincludedinthevalue
ofgoodstobetaxedwhichisacascadingeffecton
accountofCenvatelement.
iii.ManyoftheStateswerecontinuingwithvarious
typesofindirecttaxes,suchasluxurytax,
entertainmenttax,etc.
iv.Astaxisbeingleviedoninter-statetransferof
goods,therewasnoprovisionfortakinginputcredit
onCSTleadingtoadditionalburdenonthedealers.

27. GST Rates
Rates: 0%( on essential items, rice/wheat)
5%: ( on items of mass consumption )
12%/18%:(standard rates covering most
manufactured items and Services)
28% : ( on Consumer Durable Goods, Pan masala,
tobacco and aerated drinks etc)
Basic philosophy behind these rates are that, to the
extent possible, the current combined rate of tax
levied on individual goods by the Central and the
State Governments should be maintained in GST
Uniform GST rate not possible at this stage as luxury
goods and goods consumed by poorer sections of
society cannot be taxed at the same rate
Rates will be notified by Government on
recommendations of GST Council.

28. Implications of GST –A Study
1. To study the need of Goods and
Service Tax (GST) in India.
2. To study the advantages of Goods
and Service Tax (GST) to the
Manufactures, traders and society.
3. To study the outcomes of GST in
India.
4. To Study on Implications on
Implementation of GST in India.

29. Salient features of GST
TheGSTwouldbeapplicableonthesupplyof
goodsorservices.
ItwouldbeasingleGSTonanyitemoutofwhich
50%willgotoCentralGovtand50%willgotoState
Govt/UnionTerritory.
Centraltax(CGST)andStatetax(SGST)/Unionterritory
tax(UTGST).
TheGSTwouldapplyonallgoodsorservicesor
bothotherthanalcoholicliquorforhuman
consumptionandfivepetroleumproducts.

30. Research Methodology
TheResearchersusedanexploratory
researchtechniquebasedonpastliterature
fromrespectivejournals,annualreports,
newspapersandmagazinescoveringwide
collectionofacademicliteratureonGoods
andServiceTax.Accordingtotheobjectives
ofthestudy,theresearchdesignisof
descriptiveinnature.Availablesecondary
datawasextensivelyusedforthestudy.

31. NEED FOR GST IN INDIA
UnderVATsystem,aninputtaxset-offisgivenfor
purchasesmadeonlywithintheState.For
exampleunderGoaVATAct,thedealercanclaim
theInputTaxCreditstowardsOutPuttaxifthe
goodsarepurchasedonlyfromthestate.Ifthe
goodspurchasedfromoutsidestatethedealer
cannotclaimtheInputTaxCredit.UndertheState
levelVATscheme,CENVATloadongoodshas
notbeenremovedandcascadingeffectofthat
partoftaxburdenstillremains.Furtherthe
burdenofCSTonpurchaseofinter-stategoods
whichhasbeenreducedfromfourpercenttotwo
percenthasnotbeenfullyphasedout.

32. Model of GST
ThedualGSTmodelproposedbytheEmpowered
CommitteeandacceptedbytheCentrewillhavedual
systemforimposingthetax.GSTshallhavetwo
componentsi.e.
(i)CentralGST
(ii)StateGST
CentralExciseduty,additionalexciseduty,services
taxandadditionaldutyofcustoms(equivalentto
excise),stateVATentertainmenttax,taxeson
lotteries,bettingandgamblingandentrytax(not
leviedbylocalbodies)wouldbesubsumedwithin
GST

33. GST -Salient Features
Itwouldbeapplicabletoalltransactionsofgoodsandservice.
IttobepaidtotheaccountsoftheCentreandtheStates
separately.
TherulesfortakingandutilizationofcreditfortheCentralGSTand
theStateGSTwouldbealigned.
Cross utilizationofITC between theCentral
GSTandtheStateGSTwouldnotbeallowedexceptinthecaseof
inter-Statesupplyofgoods.
TheCentreandtheStateswouldhaveconcurrentjurisdictionfor
theentirevaluechainandforalltaxpayersonthebasisof
thresholdsforgoodsandservicesprescribedfortheStatesand
theCentre.
Thetaxpayerwouldneedtosubmitcommonformatforperiodical
returns,toboththeCentralandtotheconcernedStateGST
authorities.
EachtaxpayerwouldbeallottedaPAN-linkedtaxpayer

34. Chargeability of Tax under GST
ItwillbereplacementofEDandothertaxes.
TherewillbetwoparallelStatutes–oneattheCentreand
otherundertherespectiveStateGSTAct–governingthetax
liabilityofthesametransaction.
Alltheitemsofgoodsandservicesareproposedtobe
coveredandexemptionswillbegrantedtofewselected
items.
AfterintroductionofGST,allthetraderswillbepayingboth
thetypesoftaxesi.e.CGSTandSGST.

35. Taxable Event
Followingquestionsarises:
Atwhatpointoftime,thetaxwillbelevied?
WillTEcoversbothi.e.supplyofgoodsandrenderingof
services?
WhatwillbethenatureofTE?
Willitnotinvolvenewlanguageandterminology?
WhatimpactthechangeinTEcanhave?
GSTisproposedtobeleviedbyboththeCGandSGs.How
willitbedefinedunderCGSTandSGST?

36. Taxable Person
Itwillcoveralltypesofpersoncarryingonbusinessactivities,
i.e.manufacturer,job-worker,trader,importer,exporter,all
typesofserviceproviders,etc.
Ifacompanyishavingfourbranchesinfourdifferentstates,
allthefourbrancheswillbeconsideredasTPundereach
jurisdictionofSGs.
Allthedealers/businessentitieswillhavetopayboththe
typesoftaxesonallthetransactions.
AdealermustgetregisteredunderCGSTasitwillmakehim
entitletoclaimITCofCGSTtherebyattractingbuyersunder
B2Btransactions.
ImportershavetoregisterunderbothCGSTandSGSTas
well.

37. Subsumed of IndirectTaxes
Thesub-sumationshouldresultinfreeflowoftax
creditinintraandinter-Statelevelssothatunrelated
taxes,leviesandfeesarenotbesubsumedunder
GST.
Sl.
No.
Subsumed under CGST Subsumed under SGST
1 Central Excise Duty VAT / Sales tax
2 Additional Excise Duties Entertainment tax (unless it is levied by the local bodies).
3 Excise Duty-Medicinal and Toiletries Preparation ActLuxury tax
4 Service Tax Taxes on lottery, betting and gambling.
5 Additional CVD State Cesses and Surcharges (supply of goods and
services)
6 Special Additional Duty of Customs -4% (SAD) Entry tax not in lieu of Octroi
7 Surcharges
8 Ceses

38. Alcohol,tobacco,petroleumproductsarelikelytobeoutoftheGSTregime.
TaxonitemscontainingAlcohol:Alcoholicbeverageswouldbekeptoutofthepurview
ofGST.SalesTax/VATcouldbecontinuedtobeleviedonalcoholicbeveragesasperthe
existingpractice.IncaseithasbeenmadeVAtablebysomeStates,thereisnoobjection
tothat.ExciseDuty,whichispresentlyleviedbytheStatesmaynotalsobeaffected.
TaxonPetroleumProducts:Petroleumandpetroleumproductshavealsobeen
constitutionallybroughtundertheGST.However,ithasalsobeenprovidedthat
petroleumandpetroleumproductsshallnotbesubjecttothelevyofGSTtillnotifiedata
futuredateontherecommendationoftheGSTCouncil.
TaxonTobaccoproducts:TobaccoproductswouldbesubjectedtoGSTwithITC.
CentremaybeallowedtolevyexcisedutyontobaccoproductsoverandaboveGSTwith
ITC.
TaxationofServices:Asindicatedearlier,boththeCentreandtheStateswillhave
concurrentpowertolevytaxongoodsandservices.InthecaseofStates,theprinciplefor
taxationofintra-Stateandinter46StatehasalreadybeenformulatedbytheWorking
GroupofPrincipalSecretaries/SecretariesofFinance/TaxationandCommissionersof
TradeTaxeswithseniorrepresentativesofDepartmentofRevenue,GovernmentofIndia.
Forinter-StatetransactionsaninnovativemodelofIntegratedGSTwillbeadoptedby
appropriatelyaligningandintegratingCGSTandIGST.
Exemption of Goods and
Services

39. Taxesthatmayormaynotbe
subsumed
Therearefewotherindirecttaxesthatmayormay
notbesubsumedundertheGSTregimeasthereis
noconsensusamongStatesandCentre&States–
Purchasetax
StampDuty
VehicleTax
ElectricityDuty
OtherEntrytaxesandOctroi

40. ADVANTAGES OF GST:
Under GST there will be input credit set-off at every
stage and this can be used to payment of service
tax.
CST will be abolished and in the absence of it there
is no need to collect it.
Many Central and State indirect taxes will be
subsumed in GST.
There will be uniformity of tax rates in all the states.
It may ensure better compliance due to aggregate
tax rate reduction.
By reducing the tax burden the competitiveness of
Indian products in international market is expected to
increase.

41. Rate of Tax
Therewithbeatwo-ratestructure–alowerratefornecessary
itemsanditemsofbasicimportanceandastandardratefor
goodsingeneral.Therewillalsobeaspecialrateforprecious
metalsandalistofexempteditems.
ForCGSTrelatingtogoods,theStatesconsideredthatthe
GovernmentofIndiamightalsohaveatwo-ratestructure,with
conformityinthelevelsofratewiththeSGST.Fortaxationof
services,theremaybeasinglerateforbothCGSTandSGST.
ItwillbetotaloftherateasapplicableunderCGST&SGST.
ItisunderstoodthattheGovernmentisconsideringpegging
therevenueneutralrateofGSTataratebetween18%to22%.
ThisrepresentstheaggregateofCGSTandSGSTpayableon
thetransaction.However,itmaybenotedthatatthisstage,the
Governmentisyettoindicatewhethertherevenueneutral
rateoftaxongoodsandserviceswouldbethesame.

42. What will be out of GST?
Leviesonpetroleumproducts
Leviesonalcoholicproducts
Taxesonlotteryandbetting
Basiccustomsdutyandsafeguarddutieson
importofgoodsintoIndia
Entrytaxesleviedbymunicipalitiesorpanchayats
EntertainmentandLuxurytaxes
Electricityduties/taxes
Stampdutiesonimmovableproperties
Taxesonvehicles

43. Inter-State Transactions of
Goods & Services
TheexistingCSTwillbediscontinued.Instead,
anewstatuteknownasIGSTwillcomeinto
place.ItwillempowertheGCtolevyand
collectthetaxontheinter-statetransferofthe
GS.
ThescopeofIGSTModelisthatCentrewould
levyIGSTwhichwouldbeCGSTplusSGSTon
allinter-Statetransactionsoftaxablegoodsand
serviceswithappropriateprovisionfor
consignmentorstocktransferofgoodsand
services.
Contd…

44. Inter-State Transactions of
Goods & Services
Theinter-StatesellerwillpayIGSTonvalueaddition
afteradjustingavailablecreditofIGST,CGST,and
SGSTonhispurchases.TheExportingStatewill
transfertotheCentrethecreditofSGSTusedin
paymentofIGST.TheImportingdealerwillclaimcredit
ofIGSTwhiledischarginghisoutputtaxliabilityinhis
ownState.TheCentrewilltransfertotheimporting
StatethecreditofIGSTusedinpaymentofSGST.The
relevantinformationwillalsobesubmittedtothe
CentralAgencywhichwillactasaclearinghouse
mechanism,verifytheclaimsandinformtherespective
governmentstotransferthefunds.

45. OUTCOME OF GST
ThetaxesCentreandStatelevelarebeing
subsumedintoGSTKeepinginmindthefederal
structureofIndia,therewillbetwocomponentsof
GST–CentralGST(CGST)andStateGST(SGST).
BothCentreandStateswillsimultaneouslylevyGST
acrossthevaluechain.Taxwillbeleviedonevery
supplyofgoodsandservices.Centrewouldlevyand
collectCentralGoodsandServicesTax(CGST),and
StateswouldlevyandcollecttheStateGoodsand
ServicesTax(SGST)onalltransactionswithina
State.TheinputtaxcreditofCGSTwouldbe
availablefordischargingtheCGSTliabilityonthe
outputateachstage.Similarly,thecreditofSGST
paidoninputswouldbeallowedforpayingthe
SGSTonoutput.

46. Old Practice
Excise Duty-Manufacturing,
Sales Tax/VAT-Sale of Goods
Service Tax-Realization of Service
GST
Taxable event is “Supply “ of Goods &
service
The location of the supplier and the recipient
within the country is immaterial for the
purpose of CGST.
SGST would be chargeable only when the
supplier and the recipient are both located
within the State.
Inter state Supply of goods and services will
attract IGST.
Taxable Event

47. ADMINISTRATION OF GST
State Value Added Tax and GST
Central Excise and GST:
IMPLICATIONS OF GST ON DEALERS

48. The taxpayer would need to submit periodical returns to
both the Central GST authority and to the concerned State
GST authorities.
ITC credit can also be verified on the basis of the returns
filed and revenues reconciled against Challan data from
banks.
Common standardized return for all taxes (with different
account heads for CGST, SGST, IGST) can come into
picture.
Common standardized Challan for all taxes (with different
account heads for CGST, SGST, IGST) can come into
picture.
Returns under GST

49. IMPLICATIONS OF GST ON DEALERS
In the GST regime, any regular business has to
filethree monthly returns and one annual return.
This amounts to 37 returns in a year.
Types of GST Returns

50. Conclusion
ThetaxationofgoodsandservicesinIndiahas,hitherto,been
characterizedasacascadinganddistortionarytaxonproduction
resultinginmis-allocationofresourcesandlowerproductivityand
economicgrowth.Italsoinhibitsvoluntarycompliance.Itiswell
recognizedthatthisproblemcanbeeffectivelyaddressedby
shiftingthetaxburdenfromproductionandtradetofinal
consumption.Awelldesigneddestination-basedvalueaddedtax
onallgoodsandservicesisthemostelegantmethodof
eliminatingdistortionsandtaxingconsumption.Underthis
structure,alldifferentstagesofproductionanddistributioncanbe
interpretedasameretaxpass-through,andthetaxessentially
‘sticks’onfinalconsumptionwithinthetaxingjurisdiction.
A‘flawless’GSTinthecontextofthefederalstructurewhichwould
optimizeefficiency,equityandeffectiveness.The‘flawless’GSTis
designedasaconsumptiontypedestinationVATbasedon
invoice-creditmethod.