Goods and service Tax

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GOODS AND SERVICE TAX

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CONTENTS

• GST Introduction
• Benefits of GST
• Components of GST
• GST Registration
• GST Slab Rate

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GST INTRODUCATION

• GST or Goods and Services Tax is a comprehensive
  single tax levied on the supply of goods and
  services, from the manufacturer to the consumer
  across India.
• Goods and Services Tax in India will be a
  game-changing improvement for the economy by
  creating a common Indian market and reducing the
  cascading effect of the tax on the cost of goods
  and services.
• GST in India will impact the tax structure, tax
  computation, tax incidence, tax payment, credit
  utilization and reporting, compliance, leading to
  a complete remodel of the current indirect tax
  system. 
• The Rajya Sabha has cleared a constitutional
  amendment to bring about a system of GST (Goods
  and Services Tax) in India. 

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GOODS AND SERVICE TAX

• GST is by far one of the most awaited tax reforms
  in India. The present structure of Indirect Taxes
  in India is a bit complex Different kinds of
  taxes that are levied by the Central and State
  Governments on Goods and Services.
• For example, we have to pay Entertainment Tax for
  watching a movie. While Purchasing a product we
  have to pay VAT (Value Added Tax).
• Like wise there is the long list of taxes like
  Excise duties, Import Duties, Central Sales Tax,
  Luxury Tax, Service Tax which are levied some by
  the Central Government, and some are by the State
  governments.

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BENEFITS OF GST

• Goods and Services Tax is a tax on goods and
  services with the comprehensive and continuous
  chain of set-off benefits from the service
  providers and manufactures point up to the
  retailers level
• The Benefits of Goods and Services Tax can be
  summarized as types.
• Business and Industry
• Central Governments and State Governments
• Consumer

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BENEFITS FOR BUSINESS AND INDUSTRY

• Easy compliance
• Uniformity of Tax structures and rates
• Elimination of cascading
• Improved competitiveness
• Gain to Manufacturers and Exporters

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BENEFITS FOR CENTRAL AND STATE GOVERNMENT

• Easy and straightforward to administer
• Better controls on leakage
• Higher revenue efficiency
• BENEFITS FOR CONSUMER
• Single and transparent tax proportionate to the
  value of goods and services
• Relief in overall tax load

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COMPONENTS OF GST

• There will be two components of Goods and
  Services Tax
• CGST  (Central GST)
• SGST (State GST).
• Both Centre Government and State governments will
  simultaneously levy GST across the value chain.
• The tax will be levied on every supply of goods
  and services from manufacturer to the final
  consumer.
• Centre Government would levy and collect CGST
  (Central Goods and Services Tax), and State
  Governments of India would levy and collect the
  SGST (State Goods and Services Tax) on all
  transactions within a States.

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GST REGISTRATION

• The major features of the proposed registration
  procedures under Goods and Services Tax are as
  follows.
• For an Existing dealer, the Central
  Excise/Existing VAT/Service Taxpayers will not
  have to apply afresh for registration under Goods
  and Service Tax.
• For New dealers, a single application to be filed
  for GST registration online.
• Unified application to both tax authorities.
• The PAN based registration number will serve the
  purpose for Centre and State.
• Each dealer to be given a unique ID GSTIN (Goods
  and Services Tax Identification Number).
• Deemed approval within three days.
• Post registration verification is only in
  risk-based cases

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GST SLAB RATE IN INDIA

• Zero Tax Rate The Zero rate GST will be
  applicable for the 50 of goods falling under
  consumer price index basket. Zero Tax Rate goods
  will also include foods grains.
• 5 Tax slab  This will be levied on essential
  foods items of mass consumption used by ordinary
  people.
• 12 Tax Slab It is a standard slab rate.
• 18 Tax Slab The goods that are not included in
  the 12 GST Tax Slab rates will be taxed at 18
  slab rate.
• 28 Tax Slab  This rate will be levied on All
  items (especially luxurious goods). It will
  include car, washing machine, air conditioner,
  etc.

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