GST will lead merger of various taxes
levied by Central and State
Governments.
Central Taxes
- The taxes that merged into GST are as
follow:
- Central excise duty
- Additional excise duties,
- Service tax, Excise duty under Medicinal &
- Toiletries Preparation Act
- Countervailing duties (on imports in lieu
of excise duty)
- Additional duty of Customs (levied on
imports in lieu of value added tax or
central sales tax
SURVEYS
HISTORY OF GST
1.WHAT IS GST?
ensuring a uniform tax
GST is known as the
Goods and Services Tax.
It is an indirect tax
which has replaced
many indirect taxes in
India such as the excise
duty, VAT, services tax,
etc. The Goods and
Service Tax Act was
passed in the Parliament
on 29th March 2017 and
came into effect on 1st
July 2017.
State Taxes
- Value Added Tax/ Sales tax
Entertainment tax (unless it is
- levied on local bodies) Tax on
lottery, betting and Gambling
- Luxury tax
- Entry tax not in lieu of Octroi
- State surcharges and cesses in
so far as they relate to supply
of goods andservice
- Entry tax in lieu of Octroi
(Included in revised bill)
SUGGESTIONS & RECOMMENDATIONS
Tax payers, need to be educated more about
the GST.
Standardization of systems and procedures.
Well defined procedures in case of Job works
Uniform dispute settlement machinery.
Adequate training for both tax payers and
tax enforcers.
Re-organization of administrative machinery
for GST implementation.
INDEX
- INTODUCTION
- MULTI STAGES OF GST
- OBJECTIVES
- COMPONENTS OF GST
- IMPACT ON DIFFERENT
SECTORS
- TO STUDY AND UNDERSTAND
THE CONCEPT OF GST
- ADVANTAGES OF GST
- DISADVANTAGES OF GST
- GST RATES APPLIED
- HISTORY OF GST
- SURVEYS
- ILLUSTATION
- STATE AND CENTRAL TAX
- SUGGESTIONS AND
RECOMONDATION
2.MULTI STAGE
An item goes through multiple
change-of-hands along its
supply chain: Starting from
manufacture until the final
sale to the consumer.
Let us consider the following
stages:
- Purchase of raw materials
- Production or manufacture
- Warehousing of finished
goods
- Selling to wholesalers
- Sale of the product to the
retailers
- Selling to the end
consumers
3. Objectives Of GST
To achieve the ideology of
‘One Nation, One Tax’
To subsume a majority of the
indirect taxes in India
. To eliminate the cascading
effect of taxes
To curb tax evasion
To increase the taxpayer base
Online procedures for ease of
doing business
An improved logistics and
distribution system
To promote competitive
pricing and increase
consumption
4) Components of GST?
There are three taxes applicable under this
system: CGST, SGST & IGST.
CGST: It is the tax collected by the Central
Government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
SGST: It is the tax collected by the state
government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
IGST: It is a tax collected by the Central
Government for an inter-state sale (e.g.,
Maharashtra to Tamil Nadu)
5)Impact on Different Sectors
Manufacturing: The impact of GST on the
manufacturing sector, including changes in
supply chain management, cost structures,
and market dynamics, is a crucial aspect to
consider.
Services: The implications of GST on service-
oriented industries, such as IT, healthcare,
and hospitality, require a nuanced
understanding of the tax implications and
compliance measures.
Consumer Perspective: Exploring the impact
of GST on consumer behavior, pricing of
goods and services, and the overall cost of
living provides insights into the broader
socio-economic impact of the tax reform.
ILLUSTRATION
Based on the above example of
the biscuit manufacturer, let’s
take some actual figures to see
what happens to the cost of
goods and the taxes, by
comparing the earlier GST
regimes.
Tax calculations in earlier
regime:
The tax liability was passed on at every
6. To study and understand the
concept of GST
To learn about the positive and negative
aspects of GST.
To learn about the effect of GST on different
sectors of the economy.
To gain knowledge about the effects on the
prices of different. commodities after
introduction of GST.
7.Gst advantages
* GST is a transparent tax and reduces the
number of indirect taxes.
* GST will not be a cost to registered
retailers. Therefore, there is no hidden taxes
and the cost of doing business will be lower.
* Benefit people as prices will come down
which will intern help companies as
consumption will increase.
* There is no doubt that the production and
distribution ok good services will not
increase.
8.Disadvantages
*Some economists say that GST in India
would impact negatively on the real estate
market. It would add up to 8% to the cost of
the new home and reduce demand by 12%.
* Some experts say that CGST and SGST are
nothing but new names of central excise
duty, service tax, VAT and CGST. Hence,
there is no major reduction in the number of
tax layers.
9.Gst rates applied
1. Food grains will be at 0% tax rate.
2. Eggs, butter, curd, milk etc. will be at 0%
tax rate under GST.
3. Edible oil that is currently taxed between
3 to 9% will be brought down to 5% under
GST.
4. Tea, coffee, and masala that are taxed at 3
to 9% will be at 5% under GST.
5. Coal will come down from 11.7% to GST
5%.
6.restaurant at 18
