GST- An Overview

Get ready with GST

Whether you are in consumer goods, logistics, automotive, manufacturing, pharmaceutical, or any other industry � your business will have a unique journey for GST implementation.

Goods and Services Tax

Goods and Services Tax - the upcoming revolutionary tax reform will bring unparalleled changes across all industries. As a market leader in enterprise applications - SAP is ready to empower businesses with customized industry specific solutions ensuring a smooth GST implementation.

GST - Get Future Ready

GST is not just about legal compliance, it is also an opportunity for Indian businesses to reduce costs and improve profitability. Learn how Prism helps you to get ready for the GST change, and benefit most from this reform.

Ensure Zero Disruption

Tax Migration of business processes and IT systems is a complex journey because of the risk of business disruption and efficiency loss. Read further to find out about SAP�s solutions to minimize this risk.

GST Threshold

The Goods and Services Tax Council, has struck political consensus on the GST threshold limit.

Finance Minister Arun Jaitley addressing the media after the meet said the threshold limit has been set at Rs 20 lakh. For North-Eastern and other small states, the limit is Rs 10 Lakh.

Dual GST Model

While a single, unified GST would have been be a preferred option, in keeping with our federal structure a concurrent dual GST model has been envisaged, with a Central Goods and Services Tax (CGST) and States Goods and Services Tax (SGST)being levied, in parallel, on the taxable value of every transaction through the supply chain.

Componets of GST

Central GST (CGST) � to be administered by the Centre State GST (SGST) � to be administered by the State Governments Inter-State GST (iGST) - to be levied on inter-State trade and administered andcollected by the Centre. The proceeds would be transferred accordingly.

Input credit system

Full input credit system would operate in parallel for the Central GST and the State GST.

Taxes paid against the Central GST shall be allowed to be taken as input tax credit (ITC) for the Central GST and could be utilized only against the payment of Central GST.

The same principle will be applicable for the State GST

GSTIN Number Format

Each taxpayer would be allotted a PAN-linked taxpayer identification number with a total of 13/15 digits.

This would bring the GST PAN-linked system in line with the prevailing PAN-based system for Income tax, facilitating data exchange and taxpayment

CGST Taxes to be SubsumedTaxes to be SubsumedThe taxes proposed to be subsumed in Central GST are:1 Central Excise Duty2 Additional Excise Duties3 The Excise Duty levied under the Medicinal and Toiletries Preparation Act4 Service Tax5 Additional Customs Duty (CVD)6 Special Additional Duty of Customs - 4% (SAD)7 Surcharges, and8 Cesses.

SGST Taxes to be SubsumedFollowing State taxes and levies would be, to begin with, subsumed under GST:1 VAT / Sales tax2 Entertainment tax (unless levied by the local bodies).3 Luxury tax4 Taxes on lottery, betting and gambling.5 State Cesses and Surcharges relating to supply of goods and services.6 Entry tax not in lieu of Octroi.