Gst one nation one tax

1. Indian
Economy
Benefits Imacts&
GST
Jyoti Kumari Mishra(NRO03484411)Prepared By

2. GST is one indirect tax for
the whole nation, which
will make India one unified
common market.

3. VAT
Excise
etc.
Service tax

4. Non harmonization
of tax laws, rules &
rates
Lack of automation
Delayed assessment
Lack of cross verification
Problems in Pre-GST regime

6. Taxes still
continue
Custom
duty
Stamp duty
Property
tax
Old tax on
Alcohol,
Petrol, &
Natural
gases
Old Tax +
GST on
Tobacco

7. How GST will be charged in India

9. 1. For Business & Industries
For
Business &
Industries
Easy
Compliance
Uniformity
of tax
rates
Improved
competitiveness
Removal of
cascading
effect

10. 2. For Central & State Govt.
Simpler tax
administration
Higher tax
revenue
Less evasion

11. 3. For Consumers
Trust in
simpler tax
system
Uniform
prices
throughou
the
Reduction
in price of
goods or
services

15. Impact of GST on Manufacturer
 Simplification of taxes levied through removal of
differential valuations.
 Small manufacturing businesses can now opt for
Composition Scheme.
 No assessment by multiple tax authorities.
However;
 Owing to GST will increase in working capital
requirements
 RCM that was earlier confined to specified services
only, shall now be applicable to goods as well.
 Input Tax credit, shall be available only on goods
purchased from registered dealers

16. Impact of GST on service providers
As of March 2014, there were 12, 76,861 service tax
assessees in the country out of which only the top 50
paid more than 50% of the tax collected nationwide.
• Elimination of double taxation in works contract
• Option to opt for composition scheme
• High rate of taxes
• Returns Burden
• No centralized registration

17. E-
commerce
Logistic Telecom Agriculture Textile
Sector wise impact analysis

18. Logistic sector and e-commerce sector
As an outcome of GST, warehouse operators and e-commerce players have already shown interest in
setting up their warehouses at strategic locations such as Nagpur, which is the zero mile city of India and is
well connected throughout.
But, GST law imposes TCS mechanism specifically for e-commerce, due to which e-com companies not to
too happy with GST.

19. Agricultural Sector
 Dairy farming, poultry farming and stock breeding are specifically kept out of the definition of
Agriculture; hence it seems that these will be taxable under GST regime.
 The mere cutting of wood or grass, gathering of fruit and raising of man-made forest or
rearing of seedlings or plants have also been specifically kept out of the definition of Agriculture, hence
it seems that these will be taxable under GST regime.
 Agriculture by persons other than Individual and HUF seems also kept out of the definition of
agriculturist; hence it seems that these will be taxable under GST regime.
However, as an outcome of GST time taken for inter-state transportation will reduce now.
Telecom Sector
Now, Govt. has charged 18 % tax on telecom services under the (GST) regime. "Telecom operators has previously
required to pay15% tax under Service tax. There is difference of 3 % .

20. Textile Industries
• Break in input credit chain
• Reduction in manufacturing costs
• Input credit allowed on capital
goods