Post on 16-Apr-2017
GST – IndiaPresentation by Suresh Advani
19th. November, 2016
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Contents
1.GST – Overview- History 1/2
2.GST – Overview – History 2/2
3.GST – Present Status
4.GST – Unique Number
5.GST – Registration
6.GST – Concept
7.GST –GST –Rates
8.GST – Proposed Structure
9.GST – Credits
10.GST – Coverages – Subsumed
11.GST – Coverages – Excluded
12.GST - Issues
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GST – Overview - history
In the year 2000 Vijpayee Government started discussion, for introduction of GST, Committee set up under Asim Dasgupta (Finance Minter of West Bengal), role of committee was design GST model as well as check IT preparation for same.
In his in budget speech of 2004-05, the then finance minister P .Chidambaram says: “In the medium-to-long term, it is my goal that the entire production-distribution chain should be covered by a national VAT (value added tax), or even better, a goods and services tax, encompassing both the centre and the states.”
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GST – Overview - History
2010 – Government launches mission mode for computerisation of Taxes, this is foundation stone for GST.
2011 – Congress introduces Constitution Amendment bill in Loksabha, main opposition parties oppose (BJP & Left) – bill sent to standing committee, , finally bill lapses in year 2014.
2012 – P. Chidambaram, has meeting with all state Finance Ministers to discuss GST.
2013 – Standing committee provides suggestion on Tax reforms and changes.
2015 Feb – Jaitley announces implementation of GST, in year 2016,
2016 May- Government passes Constitutional Amendment bill.
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GST – Present Status
GST Bill, which is passed in 2016 Sep.
Question in front of Ruling Government is, are we going to introduce as Money Bill or Finance Bill, Speaker of house will decide.
To Bring IT set up, 30,000 square feet areas has been set up in Delhi
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Digital Platform
Customers
State - GSTCentre GST
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GST – Unique Number
15 digit number
2 - Digit represents State
Next 10 - Digit represents PAN
Number
13th. digit number Consist of registration number of assesse,
14th digit is Z, for all number
15th. digit number is correction number
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GST – Registration
1.All the taxpayers with PAN validated from CBDT’s database are not
required to apply for fresh registration under GST. They can get provisional
GSTIN from GST portal with a validity of 6 months so that they can provide
relevant data as per GST registration form.
2.GST – Registration has started in most of states.
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GST – Concept
1. Consumption state to earn tax.
2. Manufacturing state will loose tax earnings.
3. States to be compensated for 5 years.
4. Avoids Cascading effect of tax.
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GST – Rates
The four GST slabs have been set at 5%, 12%, 18% and 28% for different items or services.
To keep inflation in check, essential items including food, which at present constitute roughly half of the consumer inflation basket, will be taxed at a zero rate. The lowest rate of 5 per cent would apply to common use items.
The peak rate of 28% will apply to luxury goods. Luxury cars, tobacco products and aerated drinks will attract an additional cess on top of the highest tax rate.
The additional cess and a clean energy cess will create a revenue pool which will be used to compensate states for any loss of revenue during the first five years of the implementation of GST, Mr Jaitley said.
Service Tax will go up from 15% to 18 %, said Revenue Secretary Hasmukh Adhia.
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GST – Proposed Structure
1. CGST – Central Goods and Service Tax
2. SGST – State Goods and Service Tax
3. IGST – Interstate Goods and Service Tax
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GST – Credits
1. Liberal Credits
2. Credits on all bills
3. Uploads Necessary to claim credits
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GST – Coverage - Subsumed
Subsumed:
Excise Duty
CVD, SAD
Service Tax
VAT
CST
Entry Tax
Octroi
LBT
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GST – Coverage - Excluded
Exculded:
Basic Customs Duty
Entertainment Tax
Taxes at Municipal Level
Electricity Duty
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GST – Issues
Old Wine in New Bottle
GST Staff
State and Central sharing.29 states and the two Union Territories with legislatures. Given the sharp
differences in the structure of the economy and sales tax revenue (as a ratio
of gross state domestic product, or GSDP) across states, the interests of the
states do not always coincide and considerable effort is needed to persuade
them to adopt a uniform or even a broadly harmonised structure and
administrative system for the tax.
Transitional period, accounting/ inventory/ set-off
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GST
Thank You