Basics of GST in short and simple words. Made by me during my MBA for presentation on GST concept.

1. GOODS AND SERVICES TAX
(GST)
PRESENTED BY:-
Priyanka Kapoor
MBA – III , ‘B’
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2. BASICS OF GST
 GST is a single tax on the supply of goods and services, right from the manufacturer
to the consumer.
 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 of present tax system.
 In other words, GST is an Indirect tax which is levy on manufacture, sale &
consumption of all goods & services.
 It substitute mostly all the indirect taxes like excise, VAT, Service Tax, Entertainment
Tax, Luxury Tax.
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3. COMPONENTS OF GST:
 CGST- Central goods and Service Tax.
 SGST- State Goods and Service Tax.
 IGST- Inter-State Goods and Service Tax.
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4. GST
C E N T R A L G S T
1.Central excise duty
2. Additional excise duty
3.Service tax
4.Countervailing duty(CVD)
5. Additional duty of
customs(ADC)
6. Surcharge, Education and
Secondary/Higher
secondary
S T AT E G S T
1. VAT
2. Purchase tax
3. Entertainment tax
4. Luxury tax
5. Lottery tax
6. State surcharge and cesses
leviable on the above as of
now
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5. SHORT COMINGS IN CURRENT
TAX SYSTEM
 Tax Cascading (Tax on Tax)
 Complexity
 Taxation at Manufacturing Level
 Exclusion of Services
 Tax Evasion
 Corruption
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6. RATES UNDER GST:
 No GST on necessities.
 5% GST on agricultural, medicines and daily needs products.
 12% GST on utility items like salt, biscuits, computer parts etc.
 18% GST on manufacturing and services like air travelling, hotel
stay, cars etc.
 28% GST on luxury items like expensive cars, expensive perfumes,
stay at 5 star hotels etc.
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7. COMMODITIES NOT INCLUDED IN GST
1. Alcohol
2 .Petroleum Products
3.Tobacco Products
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8. BENEFITS OF GST
 Reduces Transaction cost.
 Eliminates the cascading effect of taxes.
 Single taxation point.
 Reduces corruption.
 Uniform tax rate .
 Cheaper exports.
 Reduction in purchase price.
 Transparency.
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 Removing cascading tax effect
 Increased efficiency in logistics
 Regulating the unorganised sector
 Lesser compliances
 Defined treatment for e-commerce
 Boost GDP

10. CONCLUSION
 GST being a dynamic & comprehensive legislation which shall replace most
of the Indirect Taxes of our Country.
 Since it is a major indirect tax reform in India, there would be new
legislation and procedures.
 For GST to be effective there should be identical GST laws/procedures
across states as well as the centre.
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 In the mean time ,those state who are not opposing against the
implementation of GST may want assurances that their existing revenues
will be protected.
 GST is the best example of cooperative federalism.
 Together we will take India to new heights of progress.
 In Nutshell , it is a biggest tax reform till date in our country.

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