2. India is all set to roll out the largest indirect
tax reform since Independence 1947.
Finance minister Arun Jaitley is expected to
table the Constitution Amendment Bill in the
current session of Parliament to meet the
deadline of 2016, for its introduction.
For the tax to be implemented, the
constitution has to be amended & consensus
must be reached within states.
3. SIMPLIFYING GST
Goods and service tax(GST) is a single
tax rate levied on the manufacture, sale
and consumption of goods and services
at a national level.
In this system, GST is levied only on
the value-added at every stage of
production. This will ensure that there is
no cascading effect of taxes(tax on tax)
on inputs that are used in manufacturing
of goods.
4. How to calculate
For example – if a tax of 15% is levied on
base price of product which is 2 lakh Rs, then
GST will be 30000 Rs. At next stage when
same goods are sold for base price of 250000
Rs then GST will be 37500 Rs but since
there is set off( input tax credit) of 30000 Rs is
available, the actual Tax at this stage will be
7500 Rs( 37500 – 30000)
5. Existing tax V. GST
Tax
Structure
Direct
Income
Tax
Wealth
Tax
Indirect
Central
Tax
Excise
Service
tax
Custom
Sales Tax
VAT Entertainm
ent Tax,
Luxury Tax
etc.
7. BENEFITS OF GST
Benefits of
GST
Simpler
Tax
Structur
e
Boosts
to
Exports
Competiti
ve Pricing
Increas
ed Tax
Revenu
es
8. GST
(Goods & service Tax)
CGST
(Central)
Central
Excise Duty
Additional
Excise Duty
Service tax
Special
Additional
Duty
Surcharge
CESS
SGST
(State)
Value
Added Tax
Sales Tax
Entertainm
ent Tax
Tax on
lottery
State cess &
Surcharges
9. Model GST bill,2016
It has 162 sections divided into 25
chapters and 4 schedules along with 1
evaluation rules is given.
Applicability of GST - on “SUPPLY”
goods and services as defined under
section 2 Definition which is applicable
throughout India.
10. Chargeability of GST
Is at 3 levels – CGST, SGST, IGST
TAX SLABS still not decided by legislature
To discuss chargeability, levy and exemption I would
like to refer chapter 3 of this Bill which will give us
brief idea on
Levy and collection of centre/ state GST
COMPOSITION LEVY
TAXABLE PERSON
EXEMPTION LIST
11. Point of taxation
Refers to chapter 4 of this Bill “time and
value of supply”
This chapter give us brief idea on issues
like in whose hand the GST will be
chargeable, reverse charge, forward
charge mechanism.
12. REGISTRATION
CHAPTER 6 gives reference on registration
and who has to compulsorily get registered
and where all to be registered .
Special provision relating to casual taxable
person and non- resident taxable person.
Provision regarding cancellation and
revocation of registration.
13. Ask your concerns, if any in relation to
Chapter 7 – tax invoice, credit and debit
notes
Chapter 8- RETURNS
Chapter 9- payment of tax
Chapter 12- Assesment
Chapter 16- offences and penalties
Chapter 18 – Appeals
Chapter 24- repeal and savings
