Goods & Service Tax

GOODS & SERVICE TAX
GST - CONTENTS
 Learn GST Structure / Design

 Understand the rates of GST on Goods and Services
 Learn GST Business Models
 Learn Exporters & GST
 Understand the Legal Aspects of GST Supply
 Understand the Role of GST Council
 Learn Tax Liability Provisions, Compliance Processes, Transitional Provisions, GST On Services, and Procedures
 Understand GST Registration Process, GST Return Process, GST Payment Process, and GST Refund Process
 Understand the Key Areas of GST Readiness
 Learn IT Infrastructure for GST Compliance and GST Credits
 Learn State wise GST Compliance
GST - INTRODUCTION
It is one indirect tax for the whole nation.

It is a single tax on supply of goods and services.
The final consumer will bear only the GST charged by the last dealer in the supply chain.
GST - BENEFITS
• For Business & Industry :

Easy compliance
Uniformity of tax rates and structures
Removal of cascading/ double taxation
Gain to manufacturers and exporters
Fewer rates and exemptions
Distinction between Goods & Services no longer required
• For Central and State Governments :

Simpler and easy to administer
Better controls on leakage
Higher revenue efficiency
• For Consumers :
Simpler Tax system
Reduction in prices of goods & services due to elimination of cascading
Uniform prices throughout the country
Transparency in taxation system
GST – EXISTING CENTRAL & STATE TAX
GST – RATES
• The GST Council finalised tax rates on 80-90 per cent of goods and services under the four-slab structure with essential
items of daily use being kept in the lowest bracket of 5 per cent.
• Official sources said that 80-90 per cent of the items have been fitted in 5, 12, 18 or 28 per cent brackets. The fitments,
they said, have been done in a way that there is no increase in tax incidence. So rates close to the present incidence
of excise duty plus VAT or service tax has been considered to be the rate under the GST. Various state finance ministers
separately sought exemption on items like silk yarn, puja material and handicraft items.
• It will replace 16 current levies — seven central taxes like excise duty and service tax and nine state taxes like VAT and
entertainment tax — thereby creating India as one market with one tax rate.
GST – MODELS [ GOODS ]
Intra-State Supply Inter-State Supply
CGST-SGST
‘From’ location ‘To’ location ‘To’ location
IGST
 Dual tax – CGST-SGST  One tax – IGST (higher rate)

 Registered office not relevant; location of  Movement for ‘delivery’ relevant; even
goods is relevant
stock-transfer taxable
 Intra-State supply, if ‘from’ and ‘to’ in one State
 Imports – basic customs + IGST
GST – MODELS [ SERVICE ]
Intra-State Supply Inter-State Supply
CGST-SGST
Supplier’s address of Place of usage of Place of usage of service or
GST registration service recipient’s address of GST
registration
IGST
 Dual tax – CGST-SGST  One tax – IGST (higher rate)

 Place of usage relevant  Imports – receiver to pay IGST
 ‘Test’ of such place listed for various  When ‘place of usage’ not fixed, use
services recipient’s address
GST - EXPORTS
1. It was noted that in the proposed GST regime, exports are proposed to be Zero rated which means
that the export goods would not suffer any actual tax liability although the inputs for them would
be tax paid which would be subsequently neutralized.
2. So there should be a mechanism whereby the GST paid on the inputs or on exported finished
goods, either through cash or by utilization of input tax credit, is refunded to the exporter. This
would serve two objectives simultaneously. On the one hand, the ITC chain through the various
dealers will not be broken and on the other hand, the exporter of the finished goods will get the
refund of the GST paid on the inputs or on finished goods thereby making the exports actually free
from the burden of taxes. The system should be simple and efficient so that exporters do not
experience any hassles while claiming refund of taxes. For this it is essential to devise a system based
verification mechanism so that human intervention is reduced to the minimum.
GST- COUNCIL & ROLE
A GST Council would comprise of :
1. The Union Finance Minister (who will be the Chairman of the Council),
2. The Minister of State (Revenue) and the State Finance/Taxation Ministers ( Members of the Council ) to make
recommendations to the Union and the States on
(i) the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed
under GST;
(ii) the goods and services that may be subjected to or exempted from the GST;
(iii) the date on which the GST shall be levied on petroleum crude, high speed diesel, motor sprit (commonly
known as petrol), natural gas and aviation turbine fuel;
(iv) model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply;
GST – COUNCIL & ROLE
(v) the threshold limit of turnover below which the goods and services may be exempted from GST;
(vi) the rates including floor rates with bands of GST;
(vii) any special rate or rates for a specified period to raise additional resources during any natural calamity or
disaster;
(viii) special provision with respect to the North-East States, J&K, Himachal Pradesh and Uttarakhand; and
(ix) any other matter relating to the GST, as the Council may decide.
GST – NOTES
Refer to the notes shared along with this presentation for rest of the topics
GST
Thank You

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GOODS & SERVICE TAX

 Learn GST Structure / Design

It is one indirect tax for the whole nation.

• For Business & Industry :

• For Central and State Governments :

Intra-State Supply Inter-State Supply

 Dual tax – CGST-SGST  One tax – IGST (higher rate)

Intra-State Supply Inter-State Supply

 Dual tax – CGST-SGST  One tax – IGST (higher rate)

A GST Council would comprise of :

(vi) the rates including floor rates with bands of GST;

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