1.
A Presentation on
Goods &
Services Tax
Presented By:-
Sachin Chauhan

2.
Contents
 What is Tax?
History of Taxation in India
Current Tax System
Goods And Service Tax
Comparison between CST and GST
Pros and Cons of GST
Conclusion

3.
What is Tax?
A fee charged by the
government on a product,
income, or activity.

4.
History Of Taxation
"It was only for the good of his
subjects that he collected taxes
from them, just as the Sun
draws moisture from the Earth
to give it back a thousand fold”
-Kalidas

5.
The detailed analysis given by Manu Smriti and
Arthashastra on the subject clearly shows the existence of a
well-planned taxation system, even in ancient times.

6.
Establishment of Taxation in
Modern India
The history of Income-Tax in modern India dates back to 1860 when the first
Income Tax Act was introduced by James Wilson who became (British) India’s
first finance member.

7.
After Independence
Central Board of Revenue was replaced with two
different Boards viz. Central Board of Direct Taxes
(CBDT) and Central Board of Excise and Customs
(CBEC) for administering direct and indirect
taxes respectively
The Permanent Account Number (PAN), a 10 digit
alphanumeric number was launched in 1994. It acts as a
unique identifier and enables the Department to link all
transactions like tax payment, Income Tax Returns,
High Value Transactions etc. to individual taxpayers.

8.
Current Tax
System

9.
Two Major Types of Taxes
Direct Tax Indirect Tax

10.
Direct Taxes
• Levied on income and
wealth and is paid
directly to the
government.
• Helps in reducing
inflation

11.
Income Tax

12.
Wealth Tax
This is in addition to the income tax and is levied if your net wealth exceeds
Rs 30 Lakh at the rate of 1% on the amount exceeding Rs 30 Lakh.
Capital Gain Tax
This is levied on the capital gains arrived by selling property and stocks.
Tax rates are different for long term and short term capital gains.

13.
Gift Tax
The gift tax is a tax on the transfer of property by one individual to another
while receiving nothing, or less than full value, in return. The tax applies
whether the donor intends the transfer to be a gift or not. The gift
tax applies to the transfer by gift of any property.
Corporate Tax
Companies operating in India are taxed as per the corporate tax rate on
their income. This tax is one of the major sources of revenue for
government

14.
Indirect Taxes
• Levied on a person who
consumes the goods
and services and is paid
indirectly to the
government.
• It promotes inflation

15.
• Service providers in India are subject
to service tax, which is charged on
the aggregate amount received by
the service provider. Services like
leasing, internet/voice, transport,
etc. are subject to service tax.
• The effective service tax rate at
present is 15%

16.
Custom Duty
Excise Duty
Custom duties are indirect taxes which are levied on goods imported
to/exported from India
Excise duties are indirect taxes which are levied on goods manufactured
in India for domestic consumption

17.
Value Added Tax
A value-added tax (VAT) is a consumption tax levied
on products at every point of sale where value has
been added, starting from raw materials and going
all the way to final retail purchase by a consumer.
VAT is not the same as Sales Tax
VAT is levied from both producers of goods and
services as well as consumers while sales tax is
entirely levied from customers

18.
GST is being glorified as a system of
taxation by which economy will take an
upward swing.
‘Only one’ indirect tax has to be paid by
the trade and industry. Rest all indirect
taxes will be subsumed in GST.

19.
GST Around The World
France was the first country to introduce GST in 1954. Most of
the countries have a unified GST. Brazil and Canada follow a dual
GST.

20.
The Goods and Services Tax Bill or GST
Bill, officially known as The Constitution
(One Hundred and Twenty-Second
Amendment) Bill, 2014, proposes a
national Value added Tax to be implemented
in India from 1 April 2017.

21.
 An empowered committee was set up by the Atal Bihari Vajpayee government in
2000 to streamline The GST model to be adopted.
 In his budget speech on 28 February 2006, P. Chidambaram, announced the target
date for implementation of GST to be 1 April 2010 and formed another empowered
committee of State Finance Ministers to design the roadmap.
 The Constitution (122nd Amendment) Bill, 2014 was introduced in the Lok Sabha by
Finance Minister Arun Jaitley on 19 December 2014, and passed by the House on 6
May 2015.
 The bill was passed by the Rajya Sabha on 3 August 2016, and the amended bill was
passed by the Lok Sabha on 8 August 2016.

22.
Understanding GST
GST, or Goods and Services Tax, will subsume central
indirect taxes like excise duty, countervailing duty and
service tax, and also state levies like value added tax,
entry tax, luxury tax.

23.
Taxes which GST will End
Central Taxes to Go
• Central Excise Duty
• Service Tax
• Duties of Excise
• Additional Duties of Excise
• Additional Duties of Custom
• Special Additional Duty of Customs
States Taxes to Go
• State VAT
• Central Sales Tax
• Purchase Tax
• Luxury Tax
• Entry Tax
• Entertainment Tax
• Taxes on Advertisements and lotteries

24.
Taxes which will not be affected by GST
• Exports and Direct Tax
• Taxes on Good like
 Crude Petroleum
 Motor spirit
 Diesel
 Aviation turbine fuel
 Natural Gas

25.
CGST SGST IGST

26.
What will be Cheaper ?

27.
What will be Costlier?

28.
Advantages
of GST

29.
Disadvantages
Of GST

30.
 GST would impact negatively
on the real estate market.
 GST might have nothing new
to offer

31.
Challenges for
GST

32.
• RNR and Threshold Limit
• Robust IT backbone
• Trained and skilled Staff
• The 1% Non - vatable tax
on interstate supply of
goods.

33.
Conclusion
• GST will be a welcome change for the
economy
• Roll out of GST would boost the India’s
GDP growth by 1 percent to 2 percent
• GST has been commonly accepted by
more than 140 countries in the world.
GST is going to impact all sections of the
society – from small time businessmen to
huge conglomerates and from a
developing state to a developed state in
this country