AN INTRODUCTION TO GST

content• INTRODUCTION•WHAT IS GST •WHY DOES INDIA NEED GST• GST COUNCILS• ADVANTAGES OF GST• POSITIVE CHANGES ONCE GST IS IMPLEMENTED• GST- CAN WE ADOPT IT• KNOW MORE ABOUT GST

WHAT IS GST

• Goods and service tax (GST) is a comprehensive tax levy on manufacture, sales and consumption of goods and service at a national level• GST is a tax on goods and services with value addition at

each stage• GST will include many state and central level indirect taxes• It overcomes drawback present tax system • ON 3rd of august 2016 the GST bill has passed in Rajya Sabha.

though it was passed by the Lok Sabha in 2015

WHY DOES INDIA NEED GST

GST is being introduced majorly due to 2 reasonTHE current indirect tax structure is full of uncertainties due

to multiple ratesDUE to multiple rates there are multiple formsGST the tax complexity in the prevailing tax regine

GST COUNCILS

GST levy will be administered by

1. Union finance minister (chairman).

2. Union minister in charges of states revenue or finance.

3. Minister in charge of finance or taxation.

4. Any other minister ( finance minister of the state ) nominated by each state govt. would constitute the council.

ADVANTAGES OF GST•Transparent tax system.

•Uniform tax system across india.

•Reduce tax evasion.

•Export will be more competitive .

POSITIVE CHANGES ONCE GST IS IMPLEMENTED•Once GST will be passed the biggest positive change will be price decrease for several goods and services .•Two wheelers and four wheelers price, movie tickets price and finally the domestic products and sevices price are expected to go down after the bill .•The small car industry the tax rate will be 18-20% instead of 30.4% so the price will is expected to go down by 10%

GST- CAN WE ADOPT IT

An information network allowing GST councils to cross check payment information should be developed .

What is needed is an IT system like the tax information network ,where the TDS or the VAT credit is recorded in a central database .

Paper bills and fraud to be largely eliminated.

KNOWING MORE ABOUT GST

•We all will pay GST on every product or service we buy / consume.

• The sellers or service providers collect the tax from their customer.

• Before depositing the same to the exchequer ,the deduct the tax they have already paid .

• The success of GST would rest upon efficiency ,equity and simplicity.

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