BES172 P3 GST Goods Services Tax

Economy: 6 pillars + theory + current affairs
1.Banking, Fin, Insur. 2.Budget 3.BoP

V1:c3,4
V1:c2,3, 6,9,11(GST),13 V1c:5
4.Sectors 5.Infra 6.HRD

V1c:7,11(Trade) v1c:12, 14; Budget^Rail V1c:10
Budget Revenue Receipt Tax
+ Rates from TheHindu on 20th May.

Then new updates- self edit, PPT on
Mrunal.org/Powerpoint
Goods and Services TAX

Goods and services Tax (GST)
Cascading Effect, ITC, GST: IGST, Polity Angle, Benefits

MODVAT, CENVAT, VAT CGST, SGST, UTGST GST council?
Compensation Classification Challenges: GSTIN

Cess & Slabs E-way bill, Registration?
Compliance Cost?
10% Tax @ Sale of goods on every stage
Rs.10,000
+500 Value & Rs.11,500

profit added
= 12,650
1000+100+50
10% Sales Tax 10% Sales Tax Final consumer
4
Single Point Indirect Tax: Cascading Effect
Wholesaler Tax on
Retailer
Final Customer Tax
Lets sell We can

without bill! bribe him! Cheap
Black Black But consumer
money protection,
money
Inspector raj warranty
0 10% tax only on the value added @ intermediate stage..
10% tax on sale @Final customer stage.
Rs.10,000
+500 Value & Rs.10,500

profit added
11,550
1000+__+50
10% VAT 10% VAT Final consumer
Input credit comes from his tax 6
Dealers VAT / GST liability to Govt.= Tax received on Output minus Tax paid for Inputs
Rs.10,000
Rs.0 Rs.10,000 +500
Player: Vinay Jetha Mru

Tax received
on output 1000 1,050 NA
- Tax paid
invoice
on input 0 1,000 NA
invoice
Govt
receives 1,000 50 borne
Input tax credit [input minus output] Paytm wallet: mobile #
VAT: TIN Account #
GST: GST-IN Account #
Tax Paid on Tax Received

Input Credit
input on Output +6000
Jan18 10,000 4000
Rest Stock unsold
Feb18 0 5,000 1000

Dealer gets credit on taxes
No new already paid onStock
inputs.
stock Rest unsold
remain
And later, these input credits can be used to offset TAX liabilities
But invoice is must, Tax collection , inspector raj , self-
policing
But How did we reach till here!?
CENVAT
MODVAT
VAT
GST
Central Excise applies on Manufacturing
50s French implemented input credit on Excise first.
70s: LK Jha Committee -> India
MODVAT: Modified Valuecascading
Added Tax regime
cascading
Input
Excise Excise Credit
cascading
Excise Excise Excise

Why excise cascading is bad? 10
MODVAT
1. End user:provides
expensive carinput credit
[Statutory on excise
incidence-> paidincidence]
economic for raw
2. Tata would
material try tocomponents
and mfg. everything in-house
(1986)to avoid cascading=
"Ancillarisation" -> MSME
CENVAT: Modified Central Value Added Tax regime
cascading
Service tax: designer,

Consultant, Call center Input
MODVAT Credit
Excise
cascading
Excise
CENVAT provides input credit on both excise 11
and service taxes paid for manufacturing

Excise
Central Excise Act 44
MODVAT (LK Jha)
CENVAT
1986
2000
Manufacturing
Service tax Excise Duty Sales Tax
Finance Act 94 State VAT
(Raja Chelliah) (2005-08)
GST: 2017
Final consumer 12


Compliance Cost?
If weve CENVAT and State-VAT then why GST?
Service tax
SBC, KKC
Electricity Advertisement
Hoarding Cascading Effect
Continues
Fuels
CST
Even no union credit for cess

No StateVAT input credit 15
Cess, Surcharge Cess, Surcharge
CGST SGST
Central GST
Mfg-Excise, State GST Cascading
services VAT, purchase tax, Effect
Advertisement,
entertainment tax
Final consumer
16
Mfg & Trade within state
Union EXCISE
CGST
State VAT BEFORE AFTER

SGST
BEFORE: Inter-State Trade
Central Sales Tax (CST)

Union EXCISE
Destination
State VAT
State VAT
After GST: Inter-State Trade
CGST Integrated GST (IGST)

=CGST+ (destination) SGST
Exporter State Destination

SGST SGST
Integrated-GST is not a TAX But CGST+SGST
CGST
(12%)
CGST IGST: 30% SGST
Exporter State
SGST (14%)
Destination 20
1 lakh car SGST (18%)

IGST = 30,000
GST : Input Credit on inter state trade
Within State Sales=
then also SGST credit
accumulated
CGST SGST
20,000 20,000
8,000 2,000
Demand Demand
12,000 1 lakh car 18,000
IGST = 30,000
If not understood then
Union Government will levy Integrated GST (IGST)
During interstate trade.
CGST SGST
SGST assigned to
CGST assigned to Union destination state
CGST input credit used SGST credit for paying to
for payment of CGST to State Government(s) (not
union (not state) union)
Dealer's liability: Taxes collected on output MINUS
taxes paid on input.
Dealer will get input credit on taxes already paid.
Two input tax credit (ITC) streams cant be cross
utilized.
EVEN CENVAT & VAT input credit couldnt offset each other!
Service tax
CENVAT credit StateVAT credit
Excise Because 7th Schedule VAT 23
No Concurrent powers on
taxation
What about union territories!?
Chandi2Delhi CGST SGST
Delhi2Chandi CGST UTGST
Mumbai2Diu CGST UTGST
TN2Pudu CGST SGST
Mfg= EXCISE CGST, irrespective of location.

So, state, UT, CGST will be applicable.
If not understood then
CGST SGST UTGST



Compliance Cost?
2007: Budget planned to start GST
GST from 2010.
Must amendment 7th Schedule
[union and state taxes] Amendment
2011: 115th Amendment 2011 Timeline
[Lapsed in LS]
2013: GSTN private ltd.
2014: 122nd Amendment 2014 in
LS
2015: both houses passed
2016, Aug: some amendment so
again passed
27
GST: Changes federal financial relations, 122nd
hence special majority in each house:
>50% of total membership <even if vacant, amend Bill
absent> 1. Assam
2/3rd majority of present & voting. 2. Bihar
(+) At least 50% state assemblies (15) have How to pass
3. Jharkhand
to ratify with simple majority. [Assam first, the bill?
4. Chhattisgarh
Odisha last]. 5. Himachal Pradesh
2016, sept: President signed. 6. Gujarat
122nd Amendment bill -> 101st 7. Madhya Pradesh
Amendment ACT 8. Delhi
9. Nagaland
2016, Sept. GST council notified, Project 10.Maharashtra
Saksham launched. 11.Haryana
2016, Nov: GST migration started 12.Sikkim
GST Implement from 1/__/201_. [you type 13.Mizoram
the date when its done ] 14.Telangana
15.Goa
16.Odisha
28
Tax sharing
IGST on inter-state Trade

Union----State
FC will decide how much of the unions

tax (CGST) to share with States.
GST council will decide
mechanism.
Constitution, after 101st Amendment Act 2016
States given power to tax goods and services [earlier
only union could]
246-A
But only union to tax inter-state commerce of goods
and services
Union IGST, parliament to legislate.
269-A Money distribution as per GST council
recommendations.
CGST (union portion OF INDIRECT TAXES) will be
270 distributed between Union and states.as per
Finance commission
279-A GST council by President
Finance Act 1994: Service tax.
but not applicable to J&K.
States given power to tax goods and services
246-A But only union to tax inter-state commerce of goods
and services
Union IGST, parliament to legislate.
269-A Money distribution as per GST council
recommendations.
Says Jaitley in May 2017
CGST (union portion OF INDIRECT TAXES) will be
270 distributed between Union and states.as per
Finance commission
279-A GST council by President
Non-voting bureaucrats
Article 279-A: President will setup GST council 1. Revenue
Secretary: ex-
officio Secretary of
Council
2. CBEC Chairman:
Permanent invitee
Finance Minister
Quorum: 50%
of total
membership
State Min. for
Union M.of State
Finance
Finance/
Taxation
Revenue
Other
States voting Power: 2/3rd

3/4th majority for decision = union + min. 20 states must agree on anything.
32
GSM2: Write structure functions of GSTC
Intro Body Conclusion

GSM2: Write structure functions of GSTC
1. Decide which union and state taxes, Cess,
surcharge to subsume
2. Exempted goods-services
3. Registration threshold limit for
suppliers.<income tax :assessee>
4. Interstate commerce- principles on sharing
taxes with states (IGST system)
5. Special rates during calamity
6. Special category states (FC: 8 NE+ 3 hill=11)
7. Dispute settlement: modalities

GST council decides 3 GST Components
Central GST (max-20%) Ceiling not in
amendment but
Central indirect taxes* in individual acts
Integrated GST Max 40%

(IGST: NOT A Tax, but SYSTEM) 5%
Central Sales Tax 12%
State GST (max-20%) 18%
State indirect taxes* 28%
35
Unlike VAT, all have
Polity: How does GST rollout work in real life? to pass at once,
else IGST credit
wont work
IGST Law GST
State Central Max40% Compen SGST Law
(SGST) (CGST) UTGST Law
[on without CGST Law -sation Max20%
UT without
Legislature]
Max20% Law
Legislature
Simple majority; money bill! Dont need special
majority & 50% state consent every time.
Vidhan
122nd bill | Parliament Bill Sabha
101st
Amendment Only on their recommendation!!
Act
GST Council (279-A)
GST will not subsume DIRECT TAXES of Union and States
, GST is an
indirect tax on
consumption!
Indirect Taxes -> Union + Cess
Surcharge on
these things
To counter balance foreign

products vs. deshi
products (VAT, excise)
Red matlab REMOVED UNDER GST

Indirect Taxes -> STATE
Electricity (?) Transmission, Distribution, Sale
Petroleum When GST council decides

Selling= VAT
-NOT Newspaper UNION
DESHI
Excise on Liquor, -NOT medicinal,
UNION
Narcotics toiletry prep.
State
-NOT TV, Radio,

Advertisement UNION
Newspaper
Vehicle, Animal,
PURCHASE Tax Road Tax (?)
boats
IF taken by Local
Tolls, Transport, Entry Tax /Octroi + Cess
Bodies
Surcharge on
Luxury Betting-gambling these things
IF taken by Local
Entertainment
Bodies Red matlab REMOVED UNDER GST
Taxes: GST will subsume everything EXCEPT Direct Tax+ what Devgan touches
Bike import Custom Duty
Crude oil-import (Custom)
Petrol: Excise-VAT GST+ Central Excise
STATE EXCISE
local bodies assigned + electricity duty (?)+ road tax(?)
When its clarified, you edit this slide.


Compliance Cost?
GST Benefits: Generic
Inspector Raj Prices

GSTN portal Ordinary states: !Retailers 20
Less human interface lakh|< [Cant demand GST from
Compliance Cost people]
Ease of Doing->FDI Big malls: Cascading: 25-30%
burden [hoarding, Cess]
'' !
, Specific .
Demand
More production
Make In India-> Jobs, CAD, GDP
Consumption + production +
Jobs = Tax Base, Fiscal Deficit

(in theory) Rate Arbitrage = balanced regional growth
VAT 14.5%
VAT 12.5%
1 crore ki LUXURY car
= Rs.2 lakh saved by MH
VAT: Destination based tax purchase.
but rates not uniform
But sGST uniform
(in real life) Rate Arbitrage: may still continue
Union States
Excise: 8-24% VAT: SGST
12.5-14.5%
CGST
Infra Cess 1-4% Road Tax: 3-24%
BEFORE: VAT/CST system: Warehousing () obsession
Warehouse in
CST only on interstate each state!
Commerce not
transport
CST
But credit
only for CST
Excise
CGST+SGST VAT 45
Even within state trade- still credits

can be used IGST
Excise-Vat structure, Cascading effects- companies tried inhouse production
CGST
Excise duty
CST VAT
SGST
GST Credit on input so.
CGST Ancillarisation Direct + indirect
Service Tax Outsourcing Tax base
(SBC+KKC) Division of Labour increased
Subcontracting
MSME + jobs
CGST SGST
46
GST: SAME Base computation
present GST computation

Same BASE
=overall tax
Rs.10,000 Rs.11,000 Rs.10,000 On customer
10% Excise 12% VAT 10% CGST 12% SGST
1,000 1,320 1,000 1,200
BEFORE AFTER
Custom
Import will be considered
interstate trade, so IGST
IGST Central State
Processing CGST
(Excise type)
Domestic SGST
IGST
(within
Sale (Inter state)
state)
EXPORT Custom 0% GST
input credit +++

Exports will be zero rated, but need INVOICE
Tax Paid on Tax Received

Input Credit
input on Output +6000
Import &
10,000 (GST) 4000 [GST]
domestic sale
Import,
00
process & 10,000 (GST)
[Export 0%]
EXPORT
+10000
remain
Before: Cess, surcharge, excise-CST cascading effect etc.
After: gone = cheaper prices in international market. Export
Specific BENEFITs of GST: for mains, essay & interview
Chaalu nhi, give
specific points, how
GST will help!


Compliance Cost?
GST: Benefit, now Short term Challenges (NOT negative points)
Even USA doesnt

have GST despite
GST is bad for being federal country
the country
Itll ruin small Itll bring inflation

business RBI only short term
If you want to copy USA taxation system, then copy it entirely!
Gross income MINUS Taxable
1 lakh Agri. Income.
6 lakh
States dont tax. 3.5 lakh
US states have
1.5 lakh (LIC, PPF etc) 2.5 lakh= 0%
USA: Exemptions USA flat 10%
deductions Very 1st slab: 5%
less USA federal slabs
10%
15%
..39.5%
+ State & local income
taxes separately.
Challenges: Revenue Neutral Rate (RNR)?
Tax BEFORE After

Depending on engine
Union
8%-24%
Excise on CGST?
+infra. Cess
cars How much it should be so
that there is no deficit?
Same Q for states?
14% +
Union
0.5% KKC + CGST?
Service Tax
0.5% SBC
Complex rates,
settlement system
5 12 18 28
IGST:
Ceiling 40%
CGST: 20% SGST: 20%

Cascading effect continues: Petroleum products
kept outside until GST council notifies date. =Excise,
CST and VAT applicable. Crude oil = Excise
raised to increase revenue collection.
GST: Destination based tax- industrialized states: unhappy
CGST
IGST
SGST credits transferred to

Destination (importer state)
In CST- could keep
But GST Exporter
State Gets Nothing 56
Union: max. revenue from direct taxes
NA
KEPT
Outside GST OUT
But for states, highest comes from

VAT. But thatll be abolished!!
So @ mercy of FC
for compensation
122nd Amendment bill provides for Tapering
compensation for five years.
14th FC: Autonomous GST compensation fund
through law with tapering effect Reduce
compensation
over the years
100 100 100

75
50
Year1 Year2 Year3 Year4 Year5

58
Base year: 2015-16:
VAT, other indirect taxes
(absorbed in GST)
GST Compensation Fund Pay Each two months

(Annual-CAG )
@end of 5yr (remaining amt)

5% 50% to states proportion of
12% their revenue
Most products in 12-18% slab 50% in Unions divisible pool of
X 15% CESS = 13-20% real tax! 18% taxes [FC]
= INFLATION
28%
GST state compensation Cess (May 2017)
Tobbacco,
Aerated Coal lignite
Cigar, Pan Motor Vehicles Air Craft, Yacht
Softdrinks Peat
Masala
Full list on http://www.thehindubusinessline.com/multimedia/archive/03166/GST-compensation-

c_3166108a.pdf


Compliance Cost?
GST Slabs and Classification notified on May 2017
Goods Services
0% fresh meat, fish Hotels and lodges with
chicken, eggs, milk, tariff below Rs 1,000
5% butter milk, curd, Grandfathering i.e.
natural honey, fresh whatever was in
12% fruits and vegetables, "Exempt" or "Negative
flour, besan, bread, List" in Service tax,
prasad, salt,
18% stamps, judicial
here also continues.
papers,
28% printed books,
newspapers,
Sindoor, bindi,
bangles, handloom,
Grandfathering= services in negative / exempt list=
!(service tax) same way !GST.
Agri, Edu *, Services by govt, local

RBI, SEBI, PFRDA,
bodies* <caveats, but
Healthcare, we are not preparing
EPFO, foreign Mission,
Sports UN etc.
for CA exam>
Electricity, News, Renting house for Insurance & skilling

Transmission* residence schemes for poor
Total 83 Services. Full LIST available on

http://www.thehindu.com/business/Economy/article18514302.ece/BI
NARY/Schedule%20of%20GST%20rates%20for%20services
Goods Services
0%
fish fillet, cream, Small restaurants
5% skimmed milk powder, Transport services
branded paneer, (Railways, air
12% frozen vegetables, transport) because
coffee, tea, spices, already petroleum
18% pizza bread, rusk, excise, VAT
sabudana,
28% medicines, stent,
lifeboats
kerosene
Coal <+compensation
cess also)
Goods Services
0% Frozen meat products, Non-AC hotels,
5% butter, cheese, ghee,
dry fruits in packaged
Fertilizers
Work Contracts
form, animal fat,
12% sausage, fruit juices,
business class air
ticket. <luxury..>
Bhutia, namkeen,
18% Ayurvedic medicines
(!), tooth powder,
28% agarbatti, colouring
books, picture books,
umbrella, sewing
machine, cellphones
Goods Services
[most items here ]
0%
flavoured refined sugar, AC hotels that serve
5% pasta, cornflakes, pastries
and cakes, preserved
liquor.
IT services, telecom
vegetables, jams, sauces,
12% soups, instant food mixes
services
branded garments and
ice cream , mineral
18% water, tissues, envelopes,
financial services
[poor-walli grand-
tampons, note books, fathered 0%]
28% steel products,
printed circuits, camera,
speakers and monitors
Goods Services
0% Chewing gum, wafers coated with

chocolate (Baba Ramdev!)
5-star hotels,
Aerated water, paint, deodorants, race club betting,
5% shaving creams, shampoo, dye,
sunscreen,
Cinema (= will
wallpaper, ceramic tiles, water
improve board exam
12% heater, dishwasher, vacuum cleaner,
washing machine.
result &
discourage
weighing/ vending machine, ATM production of high-
18% pan masala pe GST, TOBACCO
<Excise also>; +GST compensation
budget fatichar
Cess. movies. Except when
28% automobiles, motorcycles, aircraft
for personal use <+ GST
Loss is method for
turning black money
compensation CESS ALSO>
to white.)
Full list on
www.thehindubusinessline.com/multimedia/archive/03166/GST_rate_schedule__3166109a.pdf
May 2017: GST council Srinagar Meeting- couldnt decide following..
5% GST: raw hides
<paid on input>
5%* 28%
Compliance cost
Inspector-RAJ! Show Classification Dispute &
records that youre not litigation
selling cigar holders in not cigar holder but Pen
invoice of chappal! holder-Merit good(5%)
Classification Disputes = litigation
Rs.5k online fees

Advance Ruling Authority
(ARA) @Union & State
Rs.10k (Appeal)
Ayurvedic Wafer coated

Healthfood Chocolate?
12% 28% luxury


Compliance Cost?
GST compliance is expensive to MSME
although DIY automated apps, portals being designed
VAT returns each 3 months. I could do myself!
AC sold= VAT
AC service = !service tax
(turnover <10 lakh) but here
GST: thrice each month! composite cap: >20 lakh
(10, 15, 20th) = have to hire a full time turnover (ordinary state)
accountant! DBM, accounting
!
MSME: Excise: turnover upto 1.5 cr. No need;
GST turnover
>10 lakh (sp. Cat. States as Art. 279-A)
>20 lakh (ordinary states)
Synthetic
PU, MNC,
Inflation Chinese
Leather,
handicraft
GST implementation: e-Commerce
To check on Evasion, data
analytics-Wholesaler,
Suppliers PAN card
Payment to Market place model
supplier
E-way bill for all transit >Rs. 50k.[be in inter/ intra state]
Multiple cargo, Truck
replacement during
Register breakdown
Download,
Printout Hv2 generate new bill!
Validity 15 days.
Disaster..?
Inspection
Compliance cost [even

for non GST items] e.g.
fresh vegetables


Compliance Cost?
Who has to get what?
EPFO
UAN: unified account number LIN: Labour identification number
NPS
PRAN From PFRDA
Every one
Aadhar UID
Every tax payer, share market investor: individual, corporate, firm
PAN Income tax

Who has to get what?
Every entity deducting TAX (TDS)

TAN Income Tax
VAT
TIN: Tax identification number State VAT/ commercial tax Department
GST
GSTN (goods and services tax network)
GST-IN
Private limited company
Yes, but who has to get this number? Final customer
GST-IN GST-IN GST-IN

Excise
Goods Service
|/Services SUPPLY: Annual turnover: VAT
1. Special category states: Rs. 10 lakh > [hill states, NE]
2. Ordinary states: Rs. 20 lakh > Earlier EXCISE: upto 1.5 cr exempt
(would not get input credit)
3. No input credit or compounding: Rs. 50 lakh < [flat
rate]
4. + exemptions, caveats to certain product categories.
But where to get this GST-IN number?
LIC
Private Ltd.
Housing
Fin, 11%
2-200
Union,
NSE, 24.50% Authorized capital
10%
Rs.10 cr. + Rs.315 cr Union grant
ICICI
Bank, Not for profit
10%
Section 8 (Companies Act 2013)
States,
24.50% Section 25 (Companies Act 1956)
HDFC,
20% Function
Special purpose Vehicle (SPV) IT infra to union, States for GST
2013, Chidambaram
Functions of GSTN SPV
Infosys develops
the software
DATA privacy issue.BUT
Union Excise & Service
ACES (automation of central excise

and service tax). By Wipro
Union Income Tax
Project Insight by L&T InfoTech

Big data analytics on tax evaders
GST-IN number: 15 alpha-numeric
PAN CARD is prerequisite

CENSUS 10 digit alphanumeric code
code
1-9, A-Z
Sankalp ltd. Pizza

Punjabi
Spa
..max 35
Administrative control over assesse (IT)| Supplier GST
Turnover
1.5 Cr./>
50% 50%
Turnover
<1.5 cr
10% 90%
GST framework: Administrative & Personnel challanges
, Left-right ,
. ,
. ! Broadband !
States to get 100% Personnel, Posting, Data Migration, ICT

compensation; Staff promotion, seniority connectivity with
becomes slack, & assimilation of GSTN network
Tax Evasion State VAT vs. CBEC
Tax base
FRBM in letter but Rename: CBEC-> CBIT
not in spirit
1. Project SAKSHAM: for CBEC tax GST
integration (GST+ custom), ease of
doing, online interface
2. 4 tier training program for all Inspector raj?
3. Officers would have restrictive
powers of inspection, search, seizure
and arrest.
4. Anti-profiteering clause has been
provided in order to ensure that
business passes on the benefit of
reduced tax incidence to the
consumers
GST Challenges (not negative points) baaki long term benefits
Classification Compliance
Compensation Advance ruling MSME
Administrative
Ecomm: TCS E-way Bill
Challenges
GST Introduction: Define
(Define) GST is a.
1)Destination based [excise, CST
origin]
2)Indirect tax
3)on consumption.
GST applies on SUPPLY of.

Excise = Mfg
VAT = Sale

Conclusion: summary / finding..x +ve NOTE.
1) In a federal country with a 2 trillion dollar
economy, indeed there will be challenges
during the initial rollout of GST. Realistic
2) But, by absorbing most of the indirect assessment
taxes and
3) eliminating their cascading effects,
4) it will create a national market for goods
and services. Not single uniform because 4 rates & exemptions
5) Doubtlessly, GST is a major milestone in

the indirect tax reforms in India.
MODVAT, CENVAT

Constitution: one Territorial India..
Freedom of trade and commerce..
One economic India: 1 registration, 1 Tax, 1
Rate, 1 Form ??
Current tax distortion: CST warehousing, VAT
- arbitrage
Hopefully, GST will fix all this.
<MORE under TRADE in BES17 4>
Which of the following are "source based" indirect
taxes?
1. Excise
Mock Question for Prelims
2. Central Sales Tax

3. Value Added Tax
Answer choices
A. Only 1 and 2
B. Only 2 and 3
C. Only 1 and 3
D. None of them
1. Skip 2. Attempt 3. Mark n Review

Who among the following is/are the "permanent
invitee(s)" to the GST council meetings?
1. Vice Chairman of NITI Ayog
2. Comptroller and Auditor General of India (CAG)

3. Controller General of Accounts (CGA)
4. Chairman of CBEC
Answer choices
a. Only 1
b. Only 2 and 3
c. Only 3 and 4
d. Only 4

GST will subsume which of the following taxes?
1. Tax levied on sale and purchase of securities
2. Tax levied on sale and purchase of commodities
through commodity exchange trade.

3. Basic custom duty on imports
4. Basic custom duty on exports
Answer choices
A. Only 1 and 2
B. All except 3
C. Only 1, 2 and 4
D. None of the them.
UTGST is applicable on __?
A. Mfg. of goods and services in the union territories
without legislature.
B. Sale of goods and services from union territories

without legislature to rest of India.
C. Sale of goods and services in the union territories
without legislature.
D. Only "B" and "C".

Which of the following creates an opportunity for "Rate
Arbitrage"?
A. Bread has 0% GST but Pizza-bread has 5% GST.
B. State-A levies 12.5% VAT on cars while State-B

levies 14.5% VAT on cars.
C. Restaurant-A levies 5% service charge on the bill,
while Restaurant-B levies 10% service charge on
the bill.
D. All of the above.


Compensation Classification Challenges:

+ Rates from TheHindu on 20th May. GSTIN
Cess Then new&updates-
Slabs self edit, PPT on Registration?
Mrunal.org/powerpoint
E-way bill,
Compliance Cost?
Budget Revenue Receipt Tax
UBI
Goods and Services TAX
Fiscal Deficit
Black money,
Demonetization
FRBM Panel Report

BES172 P3 GST Goods Services Tax

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BES172 P3 GST Goods Services Tax

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Economy: 6 pillars + theory + current affairs

1.Banking, Fin, Insur. 2.Budget 3.BoP

4.Sectors 5.Infra 6.HRD

+ Rates from TheHindu on 20th May.

Goods and Services TAX

Cascading Effect, ITC, GST: IGST, Polity Angle, Benefits

Compensation Classification Challenges: GSTIN

+500 Value & Rs.11,500

Lets sell We can

+500 Value & Rs.10,500

Player: Vinay Jetha Mru

Tax Paid on Tax Received

Feb18 0 5,000 1000

Excise Excise Excise

Service tax: designer,

and service taxes paid for manufacturing

Cascading Effect, ITC, GST: IGST, Polity Angle, Benefits

Compensation Classification Challenges: GSTIN

Even no union credit for cess

State VAT BEFORE AFTER

Central Sales Tax (CST)

CGST Integrated GST (IGST)

Exporter State Destination

CGST IGST: 30% SGST

1 lakh car SGST (18%)

CENVAT credit StateVAT credit

Excise Because 7th Schedule VAT 23

Delhi2Chandi CGST UTGST

Mumbai2Diu CGST UTGST

TN2Pudu CGST SGST

Mfg= EXCISE CGST, irrespective of location.

CGST SGST UTGST

Cascading Effect, ITC, GST: IGST, Polity Angle, Benefits

Compensation Classification Challenges: GSTIN

IGST on inter-state Trade

FC will decide how much of the unions

States voting Power: 2/3rd

Intro Body Conclusion

Intro Body Conclusion

Integrated GST Max 40%

To counter balance foreign

Red matlab REMOVED UNDER GST

Petroleum When GST council decides

-NOT TV, Radio,

Bike import Custom Duty

Crude oil-import (Custom)

Petrol: Excise-VAT GST+ Central Excise

Cascading Effect, ITC, GST: IGST, Polity Angle, Benefits

Compensation Classification Challenges: GSTIN

Inspector Raj Prices

Even within state trade- still credits

present GST computation

10% Excise 12% VAT 10% CGST 12% SGST

1,000 1,320 1,000 1,200

IGST Central State

EXPORT Custom 0% GST

input credit +++

Tax Paid on Tax Received

Cascading Effect, ITC, GST: IGST, Polity Angle, Benefits

Compensation Classification Challenges: GSTIN

Even USA doesnt

Itll ruin small Itll bring inflation

Tax BEFORE After

CGST: 20% SGST: 20%