GST is one of the hottest topic nowadays, Let us learn something about GST.

1. Goods and Services
Tax (GST)
-Rahul Ranjan (161570)
Civil Engineering (CTM)
NIT Warangal
Presented By:

2. Presentation Plan
Introduction of GST
Why GST?
History of GST
Tax structure
Benefits and flaws of GST
Conclusion

3. Introduction of GST
1. What is GST?
‘G’ – Goods
‘S’ – Services
‘T’ – Tax
• GST is one indirect tax for the whole nation, which
will make India one unified common market.
• GST is a single tax on the supply of goods and
services, right from the manufacturer to the
consumer.

4. 2. Why GST?
• For Central and State Governments
- Simple and easy to administer
- Better controls on leakage
• For the consumer
- Single and transparent tax
- Relief in overall tax burden

5. 3. History of GST
Past
Concept was introduced in 2000 by Atal Bihari Vajpayee
government. ( did not make consensus )
Budget speech of 28 February 2006, P. Chidambaram, the
Finance Minister at that time, announced the target date
for implementation of GST to be 1 April 2010.
Present
The Constitution (122nd Amendment) Bill, 2014 was
introduced in the Lok Sabha, by Finance Minister Arun
Jaitley, 19 December 2014.
Passed by Lok Sabha on 6 May 2015.
Passed by Rajya Sabha on 6 August 2016
Amended bill was passed by the Lok Sabha on 8 August
2016

6. Ratification
After passing a bill from Lok Sabha and Rajya Sabha,
and before it is signed in to law by President, it should be
ratified by half of the State Legislature.
GST bill ratified by the more than half of the State
Legislature except:

7. President Assent
Received assent from President Pranab Mukherjee on 8
September 2016.
Government wants to implement GST from 1 April 2017
and tax could be 18-20%.

8. Tax Structure
- ExistingTax Structure
Tax Structure
Direct Tax
Income Tax Wealth Tax
Indirect Tax
Central Tax
Excise Service Tax Customs
State Tax
VAT
Entry Tax,
Entertainment,
Lottery Tax, etc.

9. - ProposedTax Structure
Tax Structure
Direct Tax
Income Tax Wealth Tax
Indirect Tax =
GST (Except
customs)
Intra- state
CGST (Central) SGST (State)
Inter State
IGST (Central)

10. Benefits and Flaws of GST
Benefits:
 Same Price of any product throughout the
country
 Cascading effect will be avoided
 Decrease the price of product
 Increase in GDP
 Relaxation in some taxes
 Transparent taxation system and tax invasion will
be stop

11. Product And
Services
Existing Tax or
System
Car, SUV 30% - 44%
Buy a House VAT + Service tax
Restaurants VAT + Service tax
Home appliances
( Microwave oven,
AC, Washing
Machine, etc.)
Excise tax 12.5% +
VAT 14.5%
Industries 18 different type of
taxes
Indirect tax to
customers
20 different types
Only
GST
(18%)

12. Flaws:
 Not implemented on Petrol, Diesel, Kerosene,
LPG, etc. to take care of state revenue
 We will have to pay 18% tax on that product also
which is having no tax or very less tax

13. Product And
Services
Existing Tax or
System
Packaged food
Products
4% - 6%
Jewellery 3%
Textiles 4% - 5% (as state
VAT)
Mobile & Credit
card
15%
Discount Tax on discounted
price
GST
(18%)
Tax
on
MRP

14. Conclusion
165 countries already implemented this “One Nation One Tax”
plan including
New Zealand 15%
Australia 10%
France 19.6%
Germany 19%
Sweden and Denmark 25%
So India should also implement “GST” to increase it’s economic
and financial growth.

15. References
http://taxguru.in/
http://zeenews.india.com/tags/dna.html
https://en.wikipedia.org/wiki/Goods_and_Services_Tax_Bill
https://www.youtube.com/
http://www.cbec.gov.in/htdocs-servicetax/service-tax