4. GST is tax on goods and services
With value addition at each stage
Comprehensive and continous chain of set of benefits
from the producer’s/service provider’s point up to the
retailers level
Only the final consumer should bear the tax
5. Firstly recommended by kelkar task force but the first discussion
paper on GST in india was presented by the Empowered committee
of state finance minister dated Nov 10th , 2009
In 2011 , the constitution ( 115th amendment) bill , 2011 introduced
which lapsed with the dissolution of the 15th lok sabha
Subsequently , in dec 2014 , the constitution ( 122nd amendment)
bill , 2014 was introduced in lok sabha. The bill was passed in
loksabha in may 2015 as well as in rajya sabha on 3rd aug 2016
6. One country – One tax
Consumption based tax instead of manufacturing
Uniform registration, payment and input credit
Eliminating cascading effect
Subsume all indirect taxes at centre and state level
Reduce tax evasion and corruption
Increase productivity
Increase tax to GDP ratio and revenue surplus
Increase compliance
Reducing economic distortions
7. GST COUNCIL
(a) The union finance minister
(as chairman)
(b) The union minister of state in charge of
revenue or finance
The minister in charge of finance or taxation or
any other minister , nominated by each state
government
8. List number of taxes , cesses , and surcharges to be
subsumed under GST
Preparation of list of goods and services subject to or
exempt from GST
Determination of threshold limit of turnover for
application of GST
Fixation of rates
Preparation of GST laws , principles of levy ,
apportionment of tax benefits
Recommend on compensation to states losing on revenue
post implementation of GST , subject to maximum limit of
5 years
9. CGST
• Replace central excise
and service tax
• Cover sale transaction
• Administered by CG
• Levied on all intrastate
sale of goods and
services
• Credit of only CGST can
be adjusted
SGST
• Replace sales tax , Entry
tax , entertainment tax ,
Luxury tax
• Administered by SG
• Levied on all intrastate
sale of goods and
services
• credit of only SGST can
be adjusted
IGST
• Levied on all inter-state
suplies of goods or
services which are sold
or transfered
• Credit of CGST SGST ,
IGST can be adjusted
11. Passing of bill in rajya sabha
Consent of states
Revenue neutral rate( RNR )
Threshold limit in GST
Robust IT network
Extensive training to tax administration staff
12. -Dual goods and servive tax
-Inter-state transaction and IGST mechanism
-Destination-based consumption tax
-Invoice credit method of computation
-Payment of GST
-Goods and service tax network( GSTN )
-Input tax credit ( ITC ) set off
-GST on imports
-Maintenance of record
-Administration
-GST council
13. -Dual goods and servive tax
-Inter-state transaction and IGST mechanism
-Destination-based consumption tax
-Invoice credit method of computation
-Payment of GST
-Goods and service tax network( GSTN )
-Input tax credit ( ITC ) set off
-GST on imports
-Maintenance of record
-Administration
-GST council
14. -Dual goods and servive tax
-Inter-state transaction and IGST mechanism
-Destination-based consumption tax
-Invoice credit method of computation
-Payment of GST
-Goods and service tax network( GSTN )
-Input tax credit ( ITC ) set off
-GST on imports
-Maintenance of record
-Administration
-GST council
15. Increase in cost of compliance
Understanding the state and centre
relationship
Increase of inflation in initial years
Unification of goods and services and
removal of distinction between them
17. -Complying the law
-Should be independent
-Should be helping govt in implementing good
policies
-Should be more of business consultants and not
merely as a tax consultant
-Should have proper and complete knowledge of
GST
-As GST would be fully automated and on
softwares CA should be having proper knowledge
of how the system works
18. “Its not the end ,
but the start of the journey”
- Arun jaitley
19. Thank You
BY PRATHAMESH MUNDHADA
CA-IPC , MAY 2016
WRO0570283
