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BENEFITS

GST is most revolutionary Tax reform


GST would unite India into One Country One Market as
same tax rate would prevail all over the country
Consumer would be the ultimate beneficiary
GST would help curb tax evasion
Removes Cascading effect
Transparency in taxation system.
BACKGROUNDS

Effective from 1st July 2017


A comprehensive Value Added Tax on Goods and Services
A destination based tax as against the present concept of
origin based tax.
It is collected on value added at each stage of sale or
purchase in the supply chain
GST on supply of goods or services as against manufacture
or on sale of goods or on provision of services.
Seamless input tax credit throughout the supply chain
All sectors are taxed with very few exceptions / exemptions
TAXES/DUTIES NOT TO BE SUBSUMED

Taxes/ Duties not to be subsumed in CGST


Basic Custom Duty (BCD)
Excise duty on Tobacco products
Specific cesses (As may be notified)
Taxes/ Duties not to be subsumed in SGST
Taxes on Alcoholic Liquor for human consumption
Toll Tax/ Road tax
Property Tax
Environment Tax
Stamp duty on immovable property
Tax on consumption / sale of electricity
Entertainment tax by local bodies
TAX BURDEN ON CONSUMER : NOW &
THEN..
Burden on consumer under present Indirect tax Burden on consumer under proposed GST
structure structure

Service
Tax

Sales Tax/
CST/VAT
Excise
Duty
CGST

Entertain
Customs
ment Tax

Consumer Consumer
SGST/
Luxury
Octroi
IGST
Tax UTGST
Entry Tax
Taxes/ Duties to be subsumed in GST

Central Taxes/ Duties to be State Taxes to be subsumed


subsumed under CGST under SGST
Central Excise Duty State Value Added Tax
State excise duty (except on liquor)
Additional Duties of Excise
Purchase Tax
Excise Duty under Medicinal & Toiletries
Preparation Act Entertainment Tax (unless levied by the
local body)
Countervailing Duty (CVD)
Luxury Tax
Special Additional Duty (SAD)
Entry Tax (not levied by local
Service Tax bodies)

Surcharges & Cesses Taxes on Lottery, Betting &


Gambling

Surcharges & Cesses


HOW TO IDENTIFY TYPE OF APPLICABLE TAX

In case of intra state supply CGST and SGST


In case of interstate supply --IGST
In case of import of goods and services -IGST
Supply to SEZ -- zero rate of supply
Export ---
(A)zero rate of supply and eligibility of refund of
credit
(B) avail benefit of duty draw back
GOODS AND SERVICE TAX
BUSINESS TRANSFORMATION
DRIVERS OF ECONOMIC GROWTH & ITS CHALLENGES

Presented by:
Anjali Sampat
Sweety Bajpai
Shivram Mattaparthi
BENEFITS OF REGISTRATION

Legally recognized as supplier of goods or services


Proper accounting of taxes paid on the input goods or services
which can be utilized for payment of GST due on supply of
goods or services or both by the business.
Pass on the credit of the taxes paid on the goods or services
supplied to purchasers or recipients.
BUSINESS TRANSFORMATION

Main objective is to minimize the complexity of indirect taxes


GST will impact organizations and business ecosystem beyond
taxation, financial planning and reporting
Organisation to elevate the transformation from finance, accounting,
taxation, billing & sourcing, and look at the end-to-end business
processes
To rationalize pricing across geographies and pass on the benefits to
end-consumers
GST as a potent catalyst for competitive threat
GST is not only a tax reform, it is also a business reform as a whole
DRIVERS OF ECONOMIC GROWTH

GST can be a game-changer for the Indian economy as it


would lead to simplified indirect taxes with easier
compliance norms for business.
Independent studies indicate that a full implementation of
GST would lead to additional 0.9-1.7% annual growth in
Indias GDP.
With the new tax regime, tax revenues are expected to rise
by 0.2% while tax liabilities would come down, which can
result in 20% lower logistics costs for non-bulk goods
Domestic products and services would become cost-
effective and contribute to 3.2-6.3% increase in exports of
the Indian economy.
CHALLENGES

Initial hiccups in implementing it


Robust IT Network
Extensive Training to Tax Administration Staff
Many types of GST as compared to Global GST
THANK YOU

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