Goods and Service Tax

(GST)• Submitted By Guided BySubmitted By Guided By

• Vijay Somase Vijay Somase Prof Kopate Mam Prof Kopate Mam

Prof Prof Khairnar mamKhairnar mam

Goods and Service Tax (GST)

• The Goods and Service Tax (GST) is a Value Added Tax (VAT) to be implemented in India, from April 2017.

• GST is comprehensive tax mechanism where in all major indirect

taxes are clubbed into one, whether they are levied on services(service tax) or goods(excise and vat).

• Government had promised that GST will reduce the compliance burdens at present.

• One of the aims of introducing GST is to reduce the cascading effects of taxes which is the primary focus of VAT but vat system is not comprehensive enough to do so.

GST Global

• More than 140 countries have already introduced GST/National VAT.

• France was the first country to introduce GST system in 1954.

• Typically it is a single rate system but two/three rate systems are also prevalent.

• Canada and Brazil alone have a dual VAT.

• Standard GST rate in most countries ranges between 15-20%.

Subsuming of Subsuming of Existing TaxesExisting Taxes

Tax Calculation VAT vs. GST

Under Central Excise and VAT• Sale bill of a Trader

(Within the State)

Under GST• Sale bill of a Trader

(Within the State)

Benefits to Business & Industry

• Easy compliance

• Uniformity of taxes & structures

• Removal of cascading

• Gain to manufacture & exporters

Benefits to central & state governments

• Simple & easy to administer

• Better controls on leakags

• Higher revenue efficiency

Benefits to consumer

• Single & transparent tax proportionate to the value of goods services

• Relif in over all tax burden

Summary

• We all will pay GST on every product or service we buy/ consume• All indirect taxes levied by the states and the center will be merged into one GST, we would exactly know how much tax we pay which at present is difficult to understand. • The sellers or service providers collect the tax from their customer.• Before depositing the same to the exchequer, they deduct the tax they have already paid.• The success of GST would rest upon efficiency, equity and Simplicity.

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