GST
Following Points are going to cover in this :-
History
The Day when GST was Launch.
Detail of Goods and service tax
Benefits of GST
Negative of GST
GST Rates
Voting For GST
Framework (Model ) Of GST
GST Separation
GST IMPLEMENTION CHANGES
Summary

History Of GST

GST is not a new phenomenon. It was first implemented in france in 1954, and
since then many countries have implemented this unified taxation system to
become part of a global whole. Now that India is adopting this new tax regime,
let us look back at the how and when of the goods and services tax and its
history in the nation.
France was the world’s first country to implement GST law in the year 1954.
Since then, 159 other countries have adopted the GST law in some form or
other. In many countries, VAT is the substitute for GST, but unlike the Indian VAT
system, these countries have a single VAT tax which fulfills the same purpose as
GST.
In India, the discussion on GST law was flagged off in the year 2000, when the
then prime minister atal bihari Vajpayee brought the issue to the table.
The GST bill, known as the Goods and Services Tax, was
introduced in Lok Sabha in December of 2014 and will be
implemented from July 1st, 2017.

The Day When
The GST Was
Launched

The Goods and Services Tax (GST), was launched
on the midnight of 30 June 2017 by the Prime
Minister of India Narendra Modi. The launch
was marked by a historic midnight (June 30-July
1, 2017) session of both the houses of
parliament convened at the Central Hall of the
Parliament. Though the session was attended
by high-profile guests from the business and the
entertainment industry including Ratan Tata.

Voting For GST

1/3rd voting
power 2/3rd voting
power
MIN
QUORUM-50%
MEMBERS
GST Council
Chairman
Union Min. of
State for
Finance/Revenue
Min. of Finance or
any other Min.
nominated by each
State Govt.
Each decision must have
approval of 3/4th members of
the council.

GST Rates

When Goods and Services Tax is implemented, there will be 3 kinds of applicable Goods and
ServiceTaxes:CGST,SGST&IGST.
CGST:wheretherevenuewillbecollectedbythecentralgovernment
SGST:wheretherevenuewillbecollectedbythestategovernmentsforintra-statesales
IGST:wheretherevenuewillbecollectedbythecentralgovernmentforinter-statesales
,thetaxstructureunderthenewregimewillbeasfollows:
Salewithinthestate
CGST+SGST
VAT+CentralExcise/Servicetax
RevenuewillnowbesharedbetweentheCentreandtheState
SaletoanotherState
IGST
CentralSalesTax+Excise/ServiceTax
Therewillonlybeonetypeoftax(central)nowincaseofinter-statesales.

Detail Of Goods And
Service Tax

The Goods and Services Tax or GST is scheduled that has been
launched on the 1st of July, and it is set to revolutionize the
way we do our taxes.
are clubbed into one, whether they are levied on services(service tax)
or goods(excise and vat).
Touted by the government to be India's biggest tax reform in
70 years of independence, the Goods and Services Tax (GST)
was finally launched on the midnight of 30 June 2017.
The launch was marked by a historic midnight (30 June - 1 July
2017) session of both the houses of parliament convened at
the Central Hall of the Parliament,
The rate of GST in India is between double to four times that
levied in other countries like Singapore.

Framework(Model) of GST
 India will have Concurrent Dual GST comprising of Central GST and State GST
levied on the same base.
 GST rate= CGST rate + SGST rate
 Total tax collected in GST will be distributed to centre and state as per CGST , SGST
rate
 Central GST(or CGST) would be administered by Central Govt.
 State GST(or SGST) would be administered by State Govt.
 Integrated GST(or IGST) administered by central Govt. on inter state transfer of
goods and services.
 In this model, all the goods and services would be subject to concurrent taxation
by the state and the centre.
 For example, if a product have levy at base price of Rs. 10000 and rate of GST are
8% , CGST is 3% and SGST is 5% ,then tax collected during transaction is 800 , 300
goes to central govt as CGST tax, 500 goes to the state govt. as SGST tax.
Central GST
(CGST)
• No Service
Tax
• No Excise
• No Cess,
Surcharges
, etc.
State GST
(SGST)
• No VAT
• No Cess,
Surcharges
, entry
taxes, etc.

Benefits & Negative of GST
•Improved Logistics/Seamless movement of goods across the country as
entry check points(for entry tax)won’t be there. It will end the
warehousing obsession of large companies.
•It will convert India into a uniform market.
•Better compliance and tax buoyancy.
•A lower GST rate and removal of Cascading effect will bring down the
prices.
•GST will be levied only at destination point and not at various
points(from manufacturing to retail outputs).
•Expected to build a transparent and corruption-free tax administration.
•Both CGST and SGST will be charged at same floor(manufacturing cost).
This will benefit the consumers as the cost will go down.
•No distinction b/w imported goods and Indigenous goods. Same
rate(CGST/SGST) on both.
•Exports would however will be zero rated i.e. exporters of
goods/services need not pay the GST. GST paid by them on the
procurement of goods/services will be refunded to them.

GST Sepration
GST
Central GST State GST
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
1. VAT
2. Purchase tax
3. Entertainment tax
4. Luxury tax
5. Lottery tax
6. State surcharge and cesses
leviable

GST IMPLEMENTATION CHALLENGES
Robust IT (Information technology) Network:
• Success of GST depends on robust IT network connecting central
govt., every state govt. , all Banks, public/private companies,
manufacturers, dealers etc.
• Centre has already Incorporated an SPV- GSTN. But real challenge is
in some of the states which lack IT infrastructure.
• A very large database needed for registrations, tax return filing,
IGST, CGST, SGST settlements all over the country.
Extensive Training to tax administration staff for better GST
implementation.
Dispute Settlement Authority: Decision making problems in GST council
due to the democratic structure of the council. So, an independent
authority must be set up to settle disputes between Centre and States.

Summary
The idea behind having one consolidated indirect tax to subsume multiple
currently existing indirect taxes is to benefit the Indian economy in a number of
ways:
•It will help the country’s businesses gain a level playing field
•It will put us on par with foreign nations who have a more structured tax
system
•It will also translate into gains for the end consumer who not have to pay
cascading taxes any more
•There will now be a single tax on goods and services
In addition to the above,
•The Goods and Services Tax Law aims at streamlining the indirect taxation
regime. As mentioned above, GST will subsume all indirect taxes levied on
goods and service, including State and Central level taxes. The GST mechanism
is an advancement on the VAT system, the idea being that a unified GST Law
will create a seamless nationwide market.
•It is also expected that Goods and Services Tax will improve the collection of
taxes as well as boost the development of Indian economy by removing the
indirect tax barriers between states and integrating the country through a
uniform tax rate.