goods and service tax-constitution (122nd amendment) bill,2014
TRANSCRIPT
Goods and Services Tax
Constitution (122nd Amendment) Bill,2014
Goods and Service Tax
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Contents
Current Indirect Tax System
Introduction to GST
Comparison
Impact
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Goods and Service Tax (GST) is a comprehensive tax levy on
manufacture, sale and consumption of goods and service, under which no
distinction is made between goods and services for levying of tax.
What is GST ?
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Our Current Indirect Tax System
Central Taxes
State Level Taxes
Excise Duty
Service Tax
Custom Duty
Entry tax / Octroi
VAT Entertainment Tax
Goods and Service Tax
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As per Mr. Narendra Modi GST- Great Step towards Transformation
Introduction of GST
GST will be a game changing reform for Indian economy
Eliminating the Cascading Effect of Tax
Complete Overhaul of the current indirect tax system.
Far reaching impact on almost all the aspects of the business operations
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France was the first country to introduce GST in 1954.
History
Worldwide, almost 160 countries have introduced GST in one or the other form since now.
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The idea of moving towards the GST was first mooted by the then Union Finance Minister Shri P. Chidambaram in his Budget for 2006-07
The Empowered Committee of State Finance Ministers (EC) was formulated Come up with a roadmap and structure for the GST.
The EC released its First Discussion Paper (FDP) on the GST in November, 2009. The basis for discussion between the Centre and the
States so far.
Model of GST law has been formulated on 14 June 2016 as Goods and Services Tax Act, 2016.
Genesis
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Implication of GSTGST would be a destination based tax as against the present concept of origin based tax.
Free movement of goods and services and no Cascading effect
GST would apply to all goods and services except Alcohol for human consumption, Electricity and Real Estate.
GST on petroleum products would be applicable from a date to be recommended by the GSTC.
Compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period of five years
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GST Model Total 117 GST @18% 21.06 S.B.C @0.20% 0.230 K.K.C @0.20% 0.230 Total (incl all taxes) 138.52
Comparison
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NOInitially, GST was a single centralized indirect tax in which tax is to be collected by center and then distributed between
center and state government.It was rejected at the initially stage only.
Both the state and central government will impose and collect
tax on single transaction
State Goods and Service Tax(SGST)
Central Goods and Service Tax(CGST)
GST
Is GST a single tax?
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Impact of GST across Sectors
MEDIA
DTH, film producers and
multiplex players levy
service tax as well as
entertainment tax.
Impact:-Taxes would go down by 2-4%
TELECOM
Positive:-Handset prices
would come down.
Negative:-Call charges
data rates will go up, if GST rate exceeds 15% and the
proposed rate is 18%
E-commerce
Positive:-Single unified
market with free movements of
goods
Negative:-GST regime will
increase administration, documentation workload for
ecommerce firms and push up
costs.
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Thank You
Made by:- Rishabh Aggarwal (301)Epsilon