Presentation on GST (goods and service tax) and facts ,challenges , benefits , process , effects on market and common man's life and structure of GST

1. GOODS AND SERVICE TAX
(GST)
By…. Naresh Biloniya

2. PRESENTATION PLAN
 What is GST ?
 Why GST ?
 Structure of GST
 Effects of GST
 Is it universal ?

3. GST: ‘G’ –Goods
‘S’ –Services
‘T’ –Tax
Goods and Service Tax(GST) is a comprehensive tax levy on manufacture ,
sale and consumption of goods and service at a national level.
GST is a tax on goods and services with value addition at each stage.
GST will include many state and central level indirect taxes
 It overcomes drawback present tax system.

4. CONTINUE...
The Constitution (122nd Amendment) Bill, which was passed by the Lok Sabha(lower
house) in May 2015.
GST has been passed in rajya sabha(upper house) in august 2016.
But it will not come in process until it passes in more than half state’s assembly.
After GST tax rate will be 18%.

5. REGISTRATION UNDER
GST
Under GST registration, it is likely to be linked with the existing PAN.
13 digit PAN based common TIN Registration
The new business identification number was likely to be the 10-digit alphanumeric PAN,
in addition to two digits for state code and one or two check numbers for disallowing
fake numbers. The total number of digits in the new number was likely to be 13-14.
Whole process will be online.

6. EXISTING TAX STRUCTURE IN
INDIA
.
Tax Structure
Direct Tax
Income Tax Wealth Tax
Indirect Tax
Central Tax
Excise Service Tax Customer
State Tax
VAT
Entry Tax, luxury
tax, Lottery Tax,
etc.

7. SHORT COMINGS IN
CURRENT TAX SYSTEM
Tax Cascading (Tax on Tax)
Complexity
Taxation at Manufacturing Level
Exclusion of Services
Tax Evasion
Corruption

8. PROPOSED TAX STRUCTURE
Tax Structure
Direct Tax
Income Tax Wealth Tax
Indirect Tax =
GST (Except
customs)
CGST
(Central)
SGST (State)
IGST
(Central)

9.  ONE NATION ONE TAX
 Reduction in multiplicity of taxes.
 Mitigation of cascading/ double taxation.
 More efficient neutralization of taxes especially for exports.
 Development of common national market.
 Simpler tax regime
 Simpler Tax system.
 Improved compliance & revenue collections (tax booster).
 According to some economist after GST India’s GDP will increase 1-2%.
 Export of goods and services – Zero rated
Benefits to GST

10. EFFECT ON THE PRICE OF
THE PRODUCT
Products at higher price
Eg. mobile phones, garments , jewellery ,packaging food etc.
 Products at lower price
Eg. House , car , eating out in restaurant etc.
What will be out of GST?
 Petroleum products
 Alcoholic products, Tobacco products
 Taxes on lottery and betting
 Electricity duties/ taxes

11.  Non Harmonization of Tax rates
 Lack of automation
 Lack of Procedural Manuals
 Lack of Skilled officials
 Double Registration- Handling old Registration
 Poor Quality of tax Returns
 No System for 100% Scrutiny of Tax Returns and Tax Audit
 Lack of Cross Verifications with other tax administrations
 Lack of mechanism to control Evasion
 Impact on Prices
 Coordination between state & central departments
CHALLENGES IN GST

12.  China -17%
 UK -17.5%
 Australia -10%
 France -19.6%
 Germany -16%
 Denmark -25%
 Pakistan -18%
GST- RATES WORLD
WIDE
No. of Countries : 165

13. THANKS