GST

Introduction :

GOODS AND SERVICETAX(GST)

• GST is comprehensive tax mechanism where in all major indirect taxes
are clubbed into one, whether they are levied on services(service tax)
or goods(excise and vat).

• The goods and service tax is a Value Added Tax (VAT) to be

implemented in India, from April 2017.

• One of the aims of introducing GST is to reduce the cascading effects

of taxes which is the primary focus of VATbut vat system is not
comprehensive enough to do so.
 GST

Central GST State GST

1. Central excise duty 1. VAT
2. Additional excise duty 2. Purchase tax
3. Service tax 3. Entertainment tax
4. Countervailing duty(CVD) 4. Luxury tax
5. Additional duty of customs(ADC) 5. Lottery tax
6. Surcharge, Education and 6. State surcharge and cesses
Secondary/Higher secondary cess leviable on the above as of now
Advantages of GST:

 Ease of doing business

 Attractive for foreign investors
 FDI
 No tax evasion
 Inventory cost will fall
 Make in India
 Common market
 Manufacture goods could become cheap
 GDP lift
PRESENT TAX SYSTEM

Product sold from Mumbai to Nagpur VAT@ 10% = Rs100

Price = Rs 1000

• Product sold from Nagpur to

Chennai
Total Cost • Price = Rs1100
Rs -2310 CST @ 10% = Rs210
• Profit =1000
• Sale Price =Rs2100
GST SYSTEM

Product sold from Mumbai to Nagpur CGST @ 5% = Rs50

Price = Rs 1000 SGST @ 5% =Rs 50

• Product sold from Nagpur to

Chennai
Total Cost • Price = Rs1100
Rs -2210 IGST @ 10% = Rs 210
• Profit =1000
• Sale Price =Rs2100
Less:
CGST
SGST
commodities not included in GST

• Alcohol
• Petroleum Products
• Tobacco Products
Taxes not included in GST

• Stamp Duty
• Property Tax
• Toll Tax
• Electricity Tax
Advantages

• Boost Economic Growth

• Streamline domestic supply chain
• Reduce compliance burden
• Removes contradictory tax regimes
• Increase global competitiveness
Government

• Increases GDP
• Enhanced Revenue
• Improved Ranking
Trade and Industry

• Reduction in cost
• Enhanced Margins
• Reduction of Litigations
Consumers

• Same quality and Reduced price

Tax rates Applicable

0% Food grains

5% mass consumption like spices,

tea and mustard oil
12% washing machines, air
conditioners, refrigerators,
shampoo, shaving stuff and
soap

18% Ordinary cars and bikes.

28% Luxury Cars, Pan Masala,

Tobacco products, Aerated
drinks.
 CONCLUSION
1. PROCESS AND NOT AN EVENT.
2. IMPLEMENTATION
3. INCREASE IN GDP
4. INFLATION CAN BE SUSTAINED.
THANK YOU