Public Economics PPT (GST)
Public Economics PPT (GST)
Public Economics PPT (GST)
By:
Ipsa Khanna
Rashi Sachan
Shipra Barua
Vaishnavi Shekhawat
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INTRODUCTION
Goods and Services Tax or GST was
introduced in India in 2017 with the idea of
one tax for the whole nation.
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HISTORY:
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TYPES OF GST
• GST has four different kind of taxes namely:
CGST,SGST, IGST and UGST
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IMPACT OF GST ON
DIFFERENT SECTORS
Impact of GST on:
1.Banking Sector
2.Export-Import Sector
3.Education Sector
4.Energy Sector
5.Service Sector
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4 YEARS OF GST
• Previously, input credits from VAT could not be set off against Service Tax and
so on.
• We then benefit from a higher threshold limit for registration under GST.
• Introducing GST has also helped regulate the unorganized sector in India.
• Also curtailed the number of fraudulent transactions.
• GST has also reduced the burden on small businesses to a large extent.
• Introducing new reforms under common tax law is a massive benefit as well.
• While this tax system has done a lot to benefit the country, it is still in its
nascent stages and continues to face several challenges.
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NIL Input
NIL GST
• It means the manufacturer of fertilizers and otherCredit
farm inputs can claim ITC,
but the farmer cannot. That makes farmers the businessmen in India for whom
the biggest bonus of the GST mechanism is out of bounds.
• The inability of farmers to claim input credit tax paid on farm inputs violates
the spirit and foundational principles of the GST system in India.
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• As per agriculture department officials, nearly 7.5 lakh tones of DAP, 30 lakh tones
urea and 5,500 tones of pesticides and insecticides are consumed in Punjab every year.
• By factoring in the new tax, it would add a burden of Rs. 500 crore on the farmers
Meanwhile, Bhartiya Kisan Union’s general secretary Sukhdev Singh Kokri said:
• “The farmers, who are already reeling under severe economic hardships and
committing suicides, will be hit hardest due to the imposition of GST.”
=> The GST Council gave relief to farmers by lowering tax rates on fertilizers and tractor
parts hours before the country placed GST law. The GST Council reduced the GST rate on
fertilizers from 12% to 5%, while that on tractor parts was reduced from 28% to 18%.
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• Industry players said pulses are an essential commodity and should be keep
free from the tax bracket. They said taxing branded packaged pulses at a time
when farmers do not get proper remuneration will hit industries and farmers.
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1) Small scale dal mills engaged in dal processing business sell pulses as small
registered brands into the regional markets.
2) Dal mills purchase raw pulses from the market
3) Then process it into dal of various grades
4) Sixty per cent comes out as dal while 25 per cent goes as cattle feed and the
rest is waste.
Members of All India Dal Mills Association gave a memorandum to the union
minister of state for finance and corporate affairs Arjun Ram Meghwal to reconsider
the decision and exempt packaged branded pulses from the tax bracket.
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CONCLUSION
• India’s consolidated indirect tax reform is going in the right
direction. It would be great if the government gave a little
more importance to simplifying current compliances rather
than introducing a new scheme each time.
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