GOODS AND SERVICE TAX
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Transcript of GOODS AND SERVICE TAX
GST
CGST SGST
It Will Subsume the Following Taxes:
Central excise Duty
Additional Excise Duty
Service Tax
Countervailing Duty
Additional Duty Of Customers (ADC)
Surcharge, Education and secondary / Higher education Cess.
It Will subsume the following taxes:
VAT/ Sales Tax
Purchase Tax
Entertainment Tax
Luxury Tax
Lottery Tax
Sate surcharge & Cess livable on the above as of now
MEANING OF GOODS & SERVICE TAX
HISTORY OF GOODS & SERVICE TAX• Goods and service tax is a norm in more than 150 countries of the world and India is soon to join the guild.
• The start towards a true Value added regime was made with the introduction of MODVAT by the Central Government and in the state level taxation with the replacement of sales tax by state Value Added Tax
• Empowered Committee of State Finance Minister(ECSFM) has set up a joint working group which submitted its report on the proposed GST in November 2007.
• After a lot of discussion ECSFM presented its first discussion paper on GST on November 10, 2009.
• The road ahead would include discussions with various representatives of trade, industry and masses to present their views so as to give GST code its finals shape.
BENEFITS OF GOODS AND SERVICE TAX
ONE POINT TAX
REDUCE THE PRICE MORE TAX REVENUES
NO TAX ON TAX
UNIFORMITY IN TAXATION
ADD TO GDP GROWTH
LESS PAPERWORKLOWER PRICE FOR CONSUMERS
•It requires strong IT (Information Technology) infrastructure at grass-root levels. India essentially lacks this. This factor is going to be the bottleneck, if not addressed well in advance.
•Very high rates 16% compared to current 12.5 % VAT.
•Tax-sharing between states and the Centre was another bottleneck. Nice to see that there is a consensus now.
DISADVANTAGES OF GOODS & SERVICE TAX
HOW DOES GST WORK??
• Petroleum(but may be included within GST subsequently, basic recommendation by GST council)
• Alcohol for human consumption• Lottery & betting• Electricity duty and taxes• Entry tax levied by municipalities or panchayats• Stamp duties on immovable properties• Taxes on vehicles.
EXCLUSIONS OF GOODS & SERVICE TAX.
CURRENT STATUS OF GOODS & SERVICE TAXThe bill was approved in Lok
Sabha but did not pass muster in Rajya Sabha. It has now been referred to a select
committee for scrutiny
The Government proposes to roll out GST from April 1,
2016
The select committee is expected to report to the Rajya Sabha sometime in July. The house can then
approve the recommendations.
The bill has to finally be approved by the President of
India.
After both the houses of parliament ass the bill at
least 50% of India’s 29 states have to approve the
constitutional amendment.
THINGS TO BE KEPT IN MIND BEFORE IMPLEMENTING GOODS & SERVICE TAX
• What preparations are needed at the level of Central and State Governments for implementing the GST.
• Whether the Government machinery is efficient enough for such an enormous change.
• Whether the tax-payers are ready for such a change.• What will be the impact on the Government’s revenue.• How will the manufacturers, traders and ultimate consumers be
affected.• Will GST help the small entrepreneurs and small traders.
THANK YOUSHANMUKHA AKINAPELLI
VAMSI BODUDAVULASHRIYA CHOURASIYA
SOURABH MAYABHATEPRACHI PAWAIYA