GST - Final

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

GST - Final

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Transcript of GST - Final