3. 1. EXCISE DUTY on manufacturing : CENTRAL GOVERNMENT
2. SERVICE TAX on services : CENTRAL GOVERNMENT
3. VAT(Value Added Tax) : STATE GOVERNMENT
4. CST (Central Sales Tax) for inter state tax : STATE GOVERNMENT
TO CENTRAL GOVERTNMENT
5. CUSTOM ON IMPORTS : CENTRAL GOVERNMENT
6. SAD, CVD, STAMP DUTY, CESS SURCHARGE ON TAXES BY CENTRAL
GOVERNMENT
AND MANY MORE………..
4. We have to get ready for TAX
Planning and Surprises
4
5. GST- Meaning and it’s Structure
‘G’ – Goods
‘S’ – Services
‘T’ – Tax
GST is a Comprehensive tax levied on which is levied on
production, trading goods and provision of Services.
GST is a tax on Value addition made at each stage and benefit of
setoff will be continued from manufacture / service providers up
to retailers ,So that ultimate Consumer Should bear the tax.
6. OBJECTVES OF GST
One Country- One Tax
Consumptions Based Tax Instead Of Manufacturing
Uniform Registration ,Payment And Input Credit
To Eliminate The Cascading Effect Of Indirect Taxes On Single
Transaction
Reduce Tax Evasion And Corruption
Increase Productivity
8. TELECOM
• Increased in effective rate from 15% to 18%-20%
• Decentralized compliance under GST
• Multistate circles- A CHALLENGE
• Marginal increase in prices
BANKING
• Increased in effective rate from 15% to 18%-20%
• Marginal increase in prices
9. AUTOMOBILE
• Decrease in effective rate of tax from 25-40% to 18-20%
• Excise duty, VAT/CST, Octroi, Entry tax to be subsumed
under GST
• Cross utilization of credit on goods and service
• Automobiles will become cheaper
MEDIA
• Service tax(15%) and entertainment tax(7%) to be
subsumed into GST(18-20%)
• cross utilization of credit on goods and services
• Marginal decrease in prices
10. PHARMACEUTECIALS
• Excise duty(4-8%), VAT(5%)/CST(2%) other
state tax to be subsumed into GST
• Cross utilization of credits on goods and
service
• Increase in price if GST applied at normal rate
of 18-20%
REAL STATE
• Stamp duty to be continued on land and
constructed immovable property
• Cross utilization of credits on goods and
services available under GST
• Increase in price with stamp duty and GST
both being levied