GOODS AND SERVICE TAX CONTENT What is GST

GOODS AND SERVICE TAX

CONTENT �What is GST? �Whar are the taxes that GST will replace? �Taxes in india. �How will GST function? �Benefits of GST. �Short Term impacts of GST in INDIA. �GST rates for different products.

What is GST? �GST is an indirect tax which will implied on manufacture, sale and consumption of goods. This has been introduced as The constitution act 2016 (101 st constitutional amendment). �GST is an act in which vat are levied at all point of the supply chain. �This will rollout from 1 st july. �This is a decision which has taken 13 years long. �Introduction of GST is going to increase GDP by 2% in the long run

What are the taxes that GST replaces? �The GST replaces different indirect taxes. These are: � 1) Service tax � 2)Central excise duty � 3)Central sale tax � 4)Value added tax � 5)countervailing tax � 6)Entertainment tax � 7)Advertisement tax � 8)Entry tax � 9)Purchase tax etc.

Taxex in INDIA TAXES IN INDIA INDIRECT TAXES CENTER Services. STATE tax VAT Excise duty Entry tax CST Octroi Custom duty Luxury tax DIRECT TAXES INCOME TAX Replaced by GST

How will GST function? � When GST is implemented, there would be three types of Taxes applicable these are: Ø CGST: - Revenue will be collected by the central government. Ø SGST : - Revenue wiil be collected by the state governments for intra-state sales. Ø IGST : - Revenue will be collected by the central government for inter- state sale(outside the state) � Implications of GST on imports and exports: Ø Imports would be subject to GST. Ø Exports will be zero rated.

Benefits of GST �Taxes become easier �Revenue will get a boost �A common market �Helpful for make in India �GDP lift �Removing cascading tax effect: - Cascading effect is tax on tax. GST will be helpful for removal of cascading tax effect. �Regulating the unorganized sector �Increased effiency in logistic

Short term impact of GST in India �The GST will fuel inflation for the short term. �Tax payers with an aggregate turnover in a financial year up to Rs. 10 lakh would be exempt from tax. �The GST rate starts at 5% and 18%taxation service such as restaurants movies etc are bound to increase prices. �A major problem with GST is that the GST doesn’t include liquor and petroleum. Economic expert feel that it is a major revenue source for the government and it will be a place for the capitalist stash their black money.

GST rate for different product �Astold about earlier the luxury goods and demerit goods will be having higher tax rates in comparison to other. �All rates haven’t fixed yet, many will be decided before 1 st july. �The GST council finalised a four-tier structure for taxation of both goods and services at 5, 12, 18, 28 percent. �GST is touted as the single largest tax reform since India’s independence in 1947.