What is GST ? Impacts of GST in different different business

3. 1. EXCISE DUTY on manufacturing : CENTRAL GOVERNMENT
2. SERVICE TAX on services : CENTRAL GOVERNMENT
3. VAT(Value Added Tax) : STATE GOVERNMENT
4. CST (Central Sales Tax) for inter state tax : STATE GOVERNMENT
TO CENTRAL GOVERTNMENT
5. CUSTOM ON IMPORTS : CENTRAL GOVERNMENT
6. SAD, CVD, STAMP DUTY, CESS SURCHARGE ON TAXES BY CENTRAL
GOVERNMENT
 AND MANY MORE………..

4. We have to get ready for TAX
Planning and Surprises
4

5. GST- Meaning and it’s Structure
‘G’ – Goods
‘S’ – Services
‘T’ – Tax
 GST is a Comprehensive tax levied on which is levied on
production, trading goods and provision of Services.
 GST is a tax on Value addition made at each stage and benefit of
setoff will be continued from manufacture / service providers up
to retailers ,So that ultimate Consumer Should bear the tax.

6. OBJECTVES OF GST
 One Country- One Tax
 Consumptions Based Tax Instead Of Manufacturing
 Uniform Registration ,Payment And Input Credit
 To Eliminate The Cascading Effect Of Indirect Taxes On Single
Transaction
 Reduce Tax Evasion And Corruption
 Increase Productivity

7. SECTORS THAT GET
EFFECTED FROM GST

8. TELECOM
• Increased in effective rate from 15% to 18%-20%
• Decentralized compliance under GST
• Multistate circles- A CHALLENGE
• Marginal increase in prices
BANKING
• Increased in effective rate from 15% to 18%-20%
• Marginal increase in prices

9. AUTOMOBILE
• Decrease in effective rate of tax from 25-40% to 18-20%
• Excise duty, VAT/CST, Octroi, Entry tax to be subsumed
under GST
• Cross utilization of credit on goods and service
• Automobiles will become cheaper
MEDIA
• Service tax(15%) and entertainment tax(7%) to be
subsumed into GST(18-20%)
• cross utilization of credit on goods and services
• Marginal decrease in prices

10. PHARMACEUTECIALS
• Excise duty(4-8%), VAT(5%)/CST(2%) other
state tax to be subsumed into GST
• Cross utilization of credits on goods and
service
• Increase in price if GST applied at normal rate
of 18-20%
REAL STATE
• Stamp duty to be continued on land and
constructed immovable property
• Cross utilization of credits on goods and
services available under GST
• Increase in price with stamp duty and GST
both being levied

11. THANK YOU