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    By Yashvardhan Saraf ROOM-26 ROLL-599

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    Yashvardhan Saraf
    This document provides an overview of indirect taxes in India and discusses the proposed Goods and Services Tax (GST). It defines indirect taxes as those levied by the government on consumption, expenditure, privilege, or right but not on income or property. Currently, the central and state governments charge various indirect taxes that result in cascading effects. GST aims to replace these with a single, comprehensive tax to avoid the cascading effect. GST will be implemented as a dual model with CGST imposed by the central government and SGST by state governments. This is suitable for federal countries like India. The key benefits of GST include a unified market, reduced compliance costs, and increased competitiveness of Indian products.

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    By Yashvardhan Saraf ROOM-26 ROLL-599

    Uploaded by

    Yashvardhan Saraf
    70 views10 pages
    This document provides an overview of indirect taxes in India and discusses the proposed Goods and Services Tax (GST). It defines indirect taxes as those levied by the government on consumption, expenditure, privilege, or right but not on income or property. Currently, the central and state governments charge various indirect taxes that result in cascading effects. GST aims to replace these with a single, comprehensive tax to avoid the cascading effect. GST will be implemented as a dual model with CGST imposed by the central government and SGST by state governments. This is suitable for federal countries like India. The key benefits of GST include a unified market, reduced compliance costs, and increased competitiveness of Indian products.

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    This document provides an overview of indirect taxes in India and discusses the proposed Goods and Services Tax (GST). It defines indirect taxes as those levied by the government on consumption, expenditure, privilege, or right but not on income or property. Currently, the central and state governments charge various indirect taxes that result in cascading effects. GST aims to replace these with a single, comprehensive tax to avoid the cascading effect. GST will be implemented as a dual model with CGST imposed by the central government and SGST by state governments. This is suitable for federal countries like India. The key benefits of GST include a unified market, reduced compliance costs, and increased competitiveness of Indian products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    70 views10 pages

    By Yashvardhan Saraf ROOM-26 ROLL-599

    Uploaded by

    Yashvardhan Saraf
    This document provides an overview of indirect taxes in India and discusses the proposed Goods and Services Tax (GST). It defines indirect taxes as those levied by the government on consumption, expenditure, privilege, or right but not on income or property. Currently, the central and state governments charge various indirect taxes that result in cascading effects. GST aims to replace these with a single, comprehensive tax to avoid the cascading effect. GST will be implemented as a dual model with CGST imposed by the central government and SGST by state governments. This is suitable for federal countries like India. The key benefits of GST include a unified market, reduced compliance costs, and increased competitiveness of Indian products.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    BY YASHVARDHAN SARAF ROOM-26 ROLL-599

    INDIRECT TAX
    Charge levied by the Government on consumption,

    expenditure, privilege, or right but not on income or property.


    Examples-Customs duties levied on imports, excise

    duties on production, sales tax or value added tax (VAT) at some stage in production-distribution process.

    The central government charges tax on goods at the

    point of import (Customs duty), manufacture (Excise duty), inter state sales (Central sales tax or CST) and on provision of services (Service tax).
    The state governments charge tax on goods sold within

    the state (Sales tax/Value Added Tax or VAT), and on the goods that enter the state (Entry tax).

    Why do we need GST ?


    Avoid cascading effect of taxation

    For Example : State VAT on CST, Entry tax on VAT etc. Now Govt has decided to abolish tax on tax effect by implementing GST.
    Shortfall of Existing VAT

    Indirect taxes like luxury tax, entertainment tax, are yet to be included in the VAT. These taxes are still existing and payable.

    GST:
    France, the first country introduced GST.
    Goods and service tax is a new version of VAT which

    gives a comprehensive setoff for input tax credit and subsuming many indirect taxes from state and national level.
    It provides a common base for taxation for an industry,

    in India.

    Benefits of GST:
    GST provide comprehensive and wider coverage of

    input credit setoff, you can use service tax credit for the payment of tax on sale of goods etc.
    CST will be removed and need not pay. Many indirect taxes in state and central level

    subsumed by GST, You need to pay a single GST instead of all.

    Continued.
    Uniformity of tax rates across the states
    Ensure better revenue collection due to aggregate tax rate

    reduces.
    By reducing the tax burden the competitiveness of Indian

    products in international market is expected to increase and there by development of the nation.
    Overall tax compliance cost will reduce for government and

    can concentrate on GST

    GST Model In India:


    Many countries are following single GST. But it is

    proposed that dual GST is suitable for federal country like India. The end user, i.e. consumer cannot recover taxes but a business can recover by claiming input tax setoff. Dual GST means, the proposed model will have two component called 1)CGST Central goods and service tax for levied by central Govt. 2)SGST State goods and service tax levied by state Govt.

    Taxable event

    Supply of goods and supply of services will be considered as taxable event under GST. Any economic activity which is not supply of goods is treated a supply of service. Tax payer identification number Each tax payer allotted a pan based identification number containing 13 or 15 digit number.

    THANKYOU..

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