@Simaces International Interdisciplinary Learning Centre,Pune by Nikhil Rajendra More-2017-18 Batch.

1. GST
(Goods & Service Tax)
PRESENTED BY :
Nikhil More
SIILC
Pune

2. Indian economy overview
 11th largest economy in the world & 3rd largest by purchasing power
parity(PPP).
19%
22%59%
0
% contribution to GDP
Agriculture Industry Service

3. Tax Structure in India
 Income tax – on income, other than agricultural income.
 Excise duty- on goods manufactured or produced in India.
 Custom duty – on import and export .
 Service tax – on specified services.
 Central sales tax – on inter-State sale of goods.
 Stamp duty – VAT or sales tax on purchase or sale of goods, other than
newspaper, within a state.
 Land revenue.
 Toll tax , entry of goods in a local area(Octroi), vehicles, etc.
 Profession , trades, callings & employment.
 Luxuries, including taxes on entertainment.

4. Drawbacks of previous taxation
system
 Confusion & mistrust.
 Complex & lacking in stability.
 Hidden tax on exports, no state tax on imports.
 High transaction costs.
 Narrow base.

5. GST
 GST is comprehensive tax levy on manufacture, sale & consumption of
goods & services at a national level.
 It is leviable at each point of sale or provision of service, basically it
includes value addition at each stage.
 At the entire of sale of goods or providiry services the seller or service
provider can claim input credit of tax which he has paid while purchasing of
goods and procuring the service.
 It can be termed as National level VAT.
 The only difference is that it is for both goods and services.
 We all will pay GST on every product or service we buy.

6. All taxes under one roof
Services Tax-both Centre
& state
(Electricity , entertainment, etc)
CST/VAT-State
(Sales of goods)
Excise Duty-Centre
(Manufacture of goods)
Unification of
all taxes

7. How it works ?
 Seller or service providers collect the tax from customers, who may or may
not be the ultimate customers.
 Before depositing the same to the exchequer, they deduct the tax they
have already paid.
 They will claim credits for GST included in the price of their own purchases
of goods and services used by them – GST credit.
 All indirect taxes levied by state and center are merged into one GST.
 We would know exactly how much tax we pay which at present is difficult
to understand.
 No distinction in imported and Indian goods taxed at same rate.

8. Exemptions
 Exempted products :
-food grains, Milk, Salt, Vegetables, Meat , Fish.
 Goods at lower rates :
-Tea, Milk powder, Coffee beans, Toy, Beedi, bicycles.
 Petroleum product, alcohol, tobacco product.
 Purchase tax
 Govt. aided public health & education services.
 Zero ratings for exports.

9. Benefits of GST
 Abolition of other taxes.
 Minimizing differential tax rates.
 Transparent tax system .
 Uniform tax system across India.
 Export will be more competitive.
 Simple & easy online procedure.
 GST eliminates the cascading effect of tax.
 Improved efficiency of logistics.
 Unorganized sector is regulated under GST.

10. Elimination of cascading effect
Previous Taxation GST
Action Cost 10 %
Tax
Total Cost GST-10 %
on Value
Addition
Total
Producer 50+50) 10 110 50+50 100+5 105
Wholesaler 100+10 12 132 105+10 115+1 116
Retailer 132+10 14.2 156.2 116+10 126+1 116
Consumer 156.2 56.2 156.2 127 27 127

11. Hurdles of GST
 Dispute between Centre & state over tax sharing.
 Highly sophisticated IT infrastructure required.
 Issue of taxing e-economics is to appropriately addressed & integrated.
 Political imbalance.
 Increased cost due to software purchase.
 GST came into effect in the middle of the financial year.
 GST is an online taxation system.

12. Conclusion
 Reshapes indirect tax structure by unification of all taxes.
 Will do away with complex indirect structure .
 Ease of doing business in the country.
 Qualitative change in the tax system by redistributing the burden of
taxation equitably between manufacturing & services.
 Inflation- Consumer Price Index decreased by elimination of cascading
effect.
 Increase in Foreign Direct Investment.
 Helps to establish true common market.
 Hassle free supply by reduced cost of production.
 Resource & revenue gain for both Centre & States.
 It can be concluded that GST have a positive impact on Indian sectors &
economy.

13. THANK YOU