Gst ppt ronak
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The document provides an overview of the Goods and Services Tax (GST) in India. It discusses the need for GST, key features of GST such as the dual GST model and tax rates, issues in implementation, and recent news items about GST. The introduction of GST aims to integrate state economies through a unified tax system, replace multiple taxes, and boost overall economic growth.
Gst ppt ronak
- 1. RROOLLLLEERR CCOOAASSTTEERR OOFF GGSSTT Rishabh R. Adukia CA Final Mumbai
- 2. TTooppiiccss ttoo bbee CCoovveerreedd Introduction to GST Need for GST Global Scenario of GST Key Features of GST to India Latest Updates Conclusion Rishabh R. Adukia 2
- 3. DID YOU READ TODAYS NEWSPAPER ? Yes…. DO YOU WANT TO READ TOMORROWS NEWSPAPER ? Rishabh R. Adukia 3
- 4. IInnttrroodduuccttiioonn ttoo GGSSTT One of the biggest taxation reforms in India -- the Goods and Service Tax (GST) -- is all set to integrate State economies and boost overall growth. GST is a broad based and a single comprehensive tax levied on goods and services consumed in an economy. GST will create a single, unified Indian market to make the economy stronger. Rishabh R. Adukia 4
- 5. NNEEEEDD FFOORR GGSSTT Abolition of taxes such as ◦ Octroi, ◦ Central Sales Tax, ◦ State-level sales tax, ◦ Entry tax, ◦ Stamp duty, ◦ Telecom license fees, turnover tax, tax on IINNTTEEGGRRAATTIIOONN consumption or sale of electricity, taxes on transportation of goods and services, thus avoiding multiple layers of taxation that currently exist in India. Rishabh R. Adukia 5
- 6. GGLLOOBBAALL SSCCEENNAARRIIOO OOFF GGSSTT France was the first country to introduce GST system in 1954. Almost 150 countries have already implemented the GST. (Around 194 countries in world as per UN) Most of these have a unified GST system. Brazil and Canada follow a dual system where GST is levied by both the Union and the State governments. Rishabh R. Adukia 6
- 7. GGLLOOBBAALL SSCCEENNAARRIIOO RRAATTEESS- AAVVGG 1155-2200%% European Union Rates % United Kingdom 17.5 Germany 19 France 19.6 Belgium 21 Australia 10 New Zealand 12.5 China 17 Rishabh R. Adukia Ashay Upadhayay7
- 8. KKeeyy FFeeaattuurreess ooff GGSSTT Simple Tax Structure with Single Rate Central GST and State GST is likely to operate in a parallel fashion Alcohol, tobacco, petroleum products are likely to be out of the GST regime. Also items below threshold limits to be excluded Rishabh R. Adukia 8
- 9. IInnddiiccaattiivvee EExxeemmppttiioonnss Exempted Products: Food Grains, Bread, Salt, Milk, Vegetables, Meat and Fish Goods At Lower Rates: Tea, Milk Powder, Coffee Beans, Toys, Beedis, Bicycles Exempted Services: Govt. aided public health and education Rishabh R. Adukia 9
- 10. TTyyppee ooff GGSSTT MMooddeellss Rishabh R. Adukia 10
- 11. LLiikkeellyy DDuuaall SSttrruuccttuurree ffoorr IInnddiiaa Rishabh R. Adukia 11
- 12. IInntteeggrraatteedd GGSSTT ((IIGGSSTT)) For inter-state transactions Centre to levy IGST which would be CGST + SGST Inter-state dealer will pay IGST after adjusting IGST, CGST and SGST credit on purchase Rishabh R. Adukia 12
- 13. SSeett -- ooffff …… CGST against CGST SGST against SGST No Cross sectoral set-off between CGST & SGST IGST for CGST/SGST & vice versa Rishabh R. Adukia 13
- 14. IIGGSSTT …… The seller in State X will pay the IGST to the Centre While paying IGST, seller will adjust his lying IGST/CGST/SGST credit Suppose Seller adjusts the SGST against IGST payable,State X will have to transfer the credit of SGST used by the seller for payment of IGST to the Centre Rishabh R. Adukia 14
- 15. RRAATTEE OOFF GGSSTT Rate is expected around 14-16 per cent. After the total GST rate is arrived at, the States and the Centre will decide on the CGST and SGST rates. Currently, services are taxed at 10 per cent and the combined charge indirect taxes on most goods is around 20 per cent. Rishabh R. Adukia 15
- 16. SSoommee FFiigguurreess ttoo WWoonnddeerr ?? Balance Sheet Figure ? Kareena Kapoors Figure ? It is estimated that India will gain $15 billion a year by implementing the Goods and Services Tax as it would promote exports, raise employment and boost growth. It will divide the tax burden equitably between manufacturing and services. Source: NCAER Centre’s Tax-GDP Ratio has increased from 9.2% to 10.94% Rishabh R. Adukia 16
- 17. WWhhyy aarree ssoommee SSttaatteess aaggaaiinnsstt GGSSTT;; wwiillll tthheeyy lloossee mmoonneeyy?? The governments of Madhya Pradesh, Chhattisgarh and Tamil Nadu say that the information technology systems and the administrative infrastructure will not be ready to implement GST. The central government has offered to compensate States in case of a loss in revenues. Rishabh R. Adukia 17
- 18. WWhhyy aarree ssoommee SSttaatteess aaggaaiinnsstt GGSSTT;; wwiillll tthheeyy lloossee mmoonneeyy?? Some States fear if the uniform tax rate is lower than their existing rates, it will hit their tax kitty. The government believes that dual GST will lead to better revenue collection for States. However, backward and less-developed States could see a fall in tax collections. Rishabh R. Adukia 18
- 19. IIssssuueess IInn IImmpplleemmeennttaattiioonn Agreement on GST rates among states and Centre Constitutional amendments empowering states to levy tax on services & empowering centre to levy tax on sales. Compensation to be given by the Centre to States incurring revenue losses on implementation of GST. Rishabh R. Adukia 19
- 20. IIssssuueess IInn IImmpplleemmeennttaattiioonn Drafting & implementation of Centre GST and State GST laws are lagging behind. Final approval and support of industry is a must. Success of GST would depend upon implementation of IT resources in every nook and corner of the country. Rishabh R. Adukia 20
- 21. RReecceenntt NNeewwss IItteemmss Hon’ble Finance Minister Pranab Mukherjee December 15,2010 - Postponement of likely dates to roll out GST along with DTC i.e.1.4.2012-13 December 14,2010 – GST will be introduced in phases to bring consensus among states in new regime while earlier stand was to come out in transitory manner Rishabh R. Adukia 21
- 22. SSUUMMMMIINNGG UUPP What is GST ? ◦ G-Good ◦ S- Simple ◦ T- Transition Rishabh R. Adukia 22
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