A PRESENTATION

BY
ANURAG BAJPAI
VIJAY SHARMA
ASHUTOSH PANDEY
AGNIVESH TIWARI
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 Gst is destination based tax on
consumption.
 Tax would accurse to the taxing authority
which has jurisdiction over the place of
consumption which is also termed as place
of supply

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Constitution amended to provide concurrent powers to both Centre & States to levy
GST (Centre to tax sale of goods and States to tax provision of services) 4
 Definition of GST

“GOODS AND SERVICES TAX” MEANS ANY TAX ON SUPPLY OF GOODS, OR

Article 366(12A) SERVICES OR
BOTH EXCEPT TAXES ON THE SUPPLY OF THE ALCOHOLIC LIQUOR FOR
HUMAN
CONSUMPTION

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 CGST-Central goods and services tax
 SGST-State goods and services tax
 UTGST- Union territory goods and services tax
 IGST- Integrated goods and services tax

IGST rate= CGST rate + SGST rate

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 0%  Open foods, fruits, vegetable

 5%  Restaurant, Eatable oil, Sugar, Tea, passenger

transportation, garment, coffee, Sweets, spices .
 12%  Khand, Seeds, Toothpaste, Processed food, Essential
medicine , All industrial and agriculture input.
 Electric Good’s, computer, sport’s good’s, bike , gold,
 18%
small cards.
 Luxury products, chocolate, pan masala, aerated
 28% water, hair shampoo, dye, sunscreen, paint, water
heater, dishwasher, vacuum cleaner, automobiles .

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  Part of GST but power
Tobacco
to levy additional
excise duty with
Five petroleum
Central Government
products – crude oil  GST Council to
, diesel, petrol,
natural gas and ATF decide the date from
which GST will be
applicable
Alcohol for human
consumption
 Power to tax remains
with the State
Entertainment tax  Power to tax remains
levied by local with local bodies
bodies
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 Chairperson – Union FM
 Vice Chairperson - to be chosen amongst the Ministers of
State Government
 Members - MOS (Finance) and all Ministers of Finance /
Taxation of each State
 Quorum is 50% of total members
 States - 2/3 weightage and Centre - 1/3 weightage
 Decision by 75% majority
 Council to make recommendations on everything related
to GST including laws, rules and rates etc.

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 Concurrent jurisdiction for levy & collection of GST by
the Centre (CGST) and the States (SGST)
 Centre to levy and collect IGST on supplies in the course
of inter-State supplies & imports
 Compensation for loss of revenue to States for five years
 All transactions and processes only through electronic
mode – Nonintrusive administration
 PAN Based Registration
 Registration only if turnover more than Rs. 20 lac (Rs. 10
lacs for special category States except J&K)
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 Option of Voluntary Registration
 Composition threshold shall be Rs. 100 lakh
 Composition scheme shall not be available to inter-State
suppliers, service providers (except restaurant service)
and specified category of manufacturers
 Deemed Registration in three working days
 Input Tax Credit available on taxes paid on all
procurements (except few specified items)

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 Set of auto-populated Monthly returns and Annual
Return
 Composition taxpayers to file Quarterly returns
 Automatic generation of returns
 GST Practitioners for assisting filing of returns
 GSTN and GST Suvidha Providers (GSPs) to provide
technology based assistance

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 Tax can be deposited by internet banking, NEFT / RTGS,
Debit / credit card and over the counter
 Concept of TDS for certain specified categories (to be brought
in force w.e.f. 01/04/18)
 Concept of TCS for E-Commerce Companies (to be brought in
force w.e.f. 01/04/18)
 Nation-wide introduction of E-way bill for all inter-state
supplies with effect from 01.02.2018 and for all intra-state
supplies with effect from 01.06.2018
 Refund to be granted within 60 days
 Provisional release of 90% refund to exporters within 7 days
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 Interest payable if refund not sanctioned in time
 Refund to be directly credited to bank accounts
 Comprehensive transitional provisions for smooth
transition of existing tax payers to GST regime
 Special procedures for job work
 System of GST Compliance Rating
 Anti-Profiteering provision – National Anti-Profiteering
Authority being set up
 Standing Committee on Anti-Profiteering to be set up
 State level Screening Committee to be set up
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 1 Reduction in Cascading of Taxes
Decrease in
2 Overall Reduction in Prices Inflation

3 Common National Market

Ease of Doing
4 Benefits to Small Taxpayers Business

5 Self-Regulating Tax System

Decrease in “Black”
Non-Intrusive Electronic Tax Syste m
Transactions
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 7 Simplified Tax Regime
More informed
8 Reduction in Multiplicity of Taxes consumer

9 Consumption Based Tax

Poorer States
10 Abolition of CST to Gain

11 Exports to be Zero Rated

Make in India
12 Protection of Domestic Ind. - IGST

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 Incorporated in March 2013 as Section 25 private limited company
with paid up capital of Rs. 10 crore
 Equity Holders
o Central Government - 24.5%
o EC and all States together - 24.5%
o Financial Institutions – 51%
 To function as a Common Pass-through portal for taxpayers
o submit registration application
o file returns
o make tax payments
 To develop back end modules for 28 States (MODEL –II)
 Infosys appointed as Managed Service Provider (MSP)
 Appointed multiple GST Suvidha Providers (GSPs)

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Revenue of all taxes subsumed in GST by the
State for 2015-16 as the base
Assumption of 14% Annual Growth Rate
Compensation to be provided through Cess
Cess only on few specified luxury and demerit
Goods

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 Dispute between state and centre will be handled by the
DSA.
 Appeal from dsa would be dealt with supreme court.
 Example: if a state receives less revenue in comparison
with its previous one than it can appeal this case to the
dsa.

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 More than 140 countries have already introduced
GST/National VAT.
 France was the first country to introduce GST system in
1954.
 Typically it is a single rate system but two/three rate
systems are also prevalent. Canada and Brazil alone
have a dual VAT.
 Standard GST rate in most countries ranges between 15-
20%.

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 The dealer’s Registered under GST (Manufacturer’s,
Whole seller's, and Retailer’s and service provider’s )
will charge GST on the price of good’s and service from
their customer’s.
 They will claim credit for the GST includes in the price of
their own purchase of good’s and services used by them.
 The seller’s or service provider’s collect the tax from
their customer’s .

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THANK YOU

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