Overview of GST (goods and services tax)

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GST (Goods and Services Tax)
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What is GST in India

• GST describe for Good and Services Tax that is an
  essential regime of India.
• It is the biggest indirect tax reform since
  independence.
• It would be levied when a consumer will purchase
  a good and service.
• GST is a single indirect tax that combines many
  indirect taxes as Service tax, Central Excise
  tax, customs tax, VAT tax etc.
• The GST Bill will create a single market for more
  than a dozen state levies.?

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Indian Economy An overview

• Indias economy is the 11th largest economy
  across the globe and the third largest in terms
  of purchasing power parity (PPP)
• G-20 major economies and a member of BRICS
• Agriculture, services and industry are the most
  important sector of India an economy.
  Contribution of different sectors in March, 2012
  was
• Agriculture 19
• Services 59
• Industry 22

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Tax Structure in India

• Direct Tax
• e.g. Income Tax, Corporate Tax, Wealth Tax.
• Indirect Tax
• e.g. Excise duty, custom duty, Service Tax,
  Octroi Tax, VAT.

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VAT(Value Added Tax)

• Implemented in April-1/2005
• It is substitution to complex Sales Tax
• It overcomes a Cascading Effect of Tax
• It applied on " Value Added Portion" in sales
  price

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Power to Tax

• India has a two tier federated power to collect
  tax
• The Union Government
• The State Governments including urban/rural
  local bodies
• Presently goods are responsible to Vat / Excise /
  Customs duty while taxable services attract
  service tax.
• Certain transactions subject to dual - Vat and
  Service tax
• Efforts to bring on a single indirect tax GST
  proposed

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GST(Good and
Services Tax) A Common Tax on
Goods
Services
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How will GST Bill Work?

• GST will work in a very easy process as it is an
  indirect tax of nation, that merged several
  indirect taxes including vat tax, services tax,
  central Excise tax, customs tax etc.
• It means that removing other indirect taxes the
  government will gather only one tax on the sale
  of all goods and services.

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What is the Deadline of GST Panel?

• The Present government has fixed the time limit
  for rolling out the GST Bill on April 1 2016.
• But by some cause, GST bill could miss out its
  deadline.
• Main opposition party, Congress wants to lessen
  the GST rate by 18 percent and also wants to
  remove the additional tax of 1 levy for
  manufacturing states.

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Structure of GST

• The important reform of India will have two
  parts-the Central GST and the State.
• CGST will be applicable in the case of
  Inter-State sale of Goods and Services.
• The CGST will cover many taxes including central
  excise duty, service tax, CVD, excise duty on
  MTP etc. Beside this, SGST will be applicable in
  a case of Intra-state sale of goods and services.
  
• Many indirect taxes come under the SGST such as
  entry tax, entertainment tax, vat/sales tax and
  luxury tax etc.

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The Advantages of GST
1. It removes various different taxations. 2. It
produces India as the only one market. 3. It
taxes goods and services at the same rates so
several debates are eliminated on the tax
matter. 4. It reduce taxes on manufacturers.
Hence it increases their business and makes them
more competitive at across the globe.
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The Disadvantages of GST
1. The Tax on services would go up greatly from
14 to 20 2. Tax on retails Market would be
nearly double. 3. Imported goods would be taxed
at high rate of around 6 4. There are some
retail items where the Tax rate is only consider
4 percent but with GST it will be costlier like
Garments and clothes.
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GST Impact on Several Sectors

• GST Impact on Gross Domestic Product (GDP) in
  India
• GST Impact on Real Estate Sector in India.
• GST Impact on E-commerce Sector in India.
• GST Impact on Hotel and Tourism Industry in
  India.
• GST Impact on Electronics Sector in India.
• Know More _at_ What is GST in India

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