GOODS AND SERVICES TAX IN INDIA

How many types of taxes are at present

1. EXCISE DUTY on manufacturing : CENTRAL GOVERNMENT

2. SERVICE TAX on services : CENTRAL GOVERNMENT3. VAT(Value Added Tax) : STATE GOVERNMENT 4. CST (Central Sales Tax) for inter state tax : STATE

GOVERNMENT TO CENTRAL GOVERTNMENT5. CUSTOM ON IMPORTS : CENTRAL GOVERNMENT6. SAD, CVD, STAMP DUTY, CESS SURCHARGE ON TAXES

BY CENTRAL GOVERNMENT AND MANY MORE………..

4

We have to get ready for TAX Planning and Surprises

GST- Meaning and it’s Structure‘G’ – Goods‘S’ – Services‘T’ – Tax

GST is a Comprehensive tax levied on which is levied on production, trading goods and provision of Services.

GST is a tax on Value addition made at each stage and benefit of setoff will be continued from manufacture / service providers up to retailers ,So that ultimate Consumer Should bear the tax.

OBJECTVES OF GST

One Country- One Tax Consumptions Based Tax Instead Of Manufacturing Uniform Registration ,Payment And Input Credit To Eliminate The Cascading Effect Of Indirect Taxes On

Single Transaction Reduce Tax Evasion And Corruption Increase Productivity

SECTORS THAT GET EFFECTED FROM

GST

TELECOM• Increased in effective rate from 15% to 18%-20%• Decentralized compliance under GST• Multistate circles- A CHALLENGE• Marginal increase in prices

BANKING• Increased in effective rate from 15% to 18%-20%• Marginal increase in prices

AUTOMOBILE• Decrease in effective rate of tax from 25-40% to 18-20%• Excise duty, VAT/CST, Octroi, Entry tax to be subsumed

under GST• Cross utilization of credit on goods and service• Automobiles will become cheaper

MEDIA• Service tax(15%) and entertainment tax(7%) to be

subsumed into GST(18-20%)• cross utilization of credit on goods and services • Marginal decrease in prices

PHARMACEUTECIALS• Excise duty(4-8%), VAT(5%)/CST(2%) other

state tax to be subsumed into GST• Cross utilization of credits on goods and

service• Increase in price if GST applied at normal rate

of 18-20% REAL STATE

• Stamp duty to be continued on land and constructed immovable property

• Cross utilization of credits on goods and services available under GST

• Increase in price with stamp duty and GST both being levied

THANK YOUPRESENTATION BY - RAHUL AGARWAL

TANSHI ARORA AKANSHA ANKIT SAXENA