2. MEANING
GST is an indirect, comprehensive, multistage,
destination-based tax that is levied on every value
addition.
Goods and Service Tax (GST) is an indirect tax levied
on the supply of goods and services.
3. INTRODUCTION
one nation, one tax
GST has replaced many Indirect Taxes in India.
Act was passed in the Parliament on 29th March 2017
This law came into force on 1st July,2017
Tax is levied at every point of sale
4. GST REPLACE FOLLOWING INDIRECT
TAXES
Central Excise Duty
Additional duties of Excise
Additional duties of Custom
Service Tax
Countervailing Duty
Special Countervailing Duty
Value Added Tax (VAT)
Central Sales Tax (CST)
Cess
Octroi
Entertainment Tax
Entry Tax
Purchase Tax
Luxury Tax
Advertisement taxes
Taxes applicable on lotteries & gambling
5. NEED OF GST IN INDIA
Tax Structure will be Simple
Tax revenue will increase
Competitive pricing
Boost to exports
6. ADVANTAGES OF GST
GST eliminates the cascading effect of tax
Higher threshold for registration
Composition scheme for small businesses
Simple and easy online procedure
The number of compliances is lesser
Defined treatment for E-commerce operators
Improved efficiency of logistics
Unorganized sector is regulated under GST
Mitigation of Cascading effect
Tackling Corruption and Tax Leakages
7. DISADVANTAGES OF GST
Increased costs due to software purchase
Being GST-compliant
GST will mean an increase in operational costs
GST came into effect in the middle of the financial year
GST is an online taxation system
SMEs will have a higher tax burden
IT Infrastructure
Petroleum Products don’t fall under the GST Slab
Coaching of Tax Officers
8. COMPONENTS OR TYPES OF GST
CGST
Collected by the Central Government on an intra-state sale
(Eg: Transaction happening within Maharashtra state).
SGST
Collected by the State Government on an intra-state sale
(Eg: Transaction happening within Maharashtra state).
IGST
Collected by the Central Government for inter-state sale
(Eg: Maharashtra state to Karnataka state).
UTGST/UGST
Collected by the Union Territory (UT) Government for Intra-UT
sales. (Eg: Transaction Happening within Andaman and Nicobar
islands)
9. TAX STRUCTURE
Transaction type Old Regime New Regime Revenues Share
Sales within the
state (Intra State)
VAT + Central
Excise/services tax.
CGST+SGST The revenue will be
shared equally
between the center
and the state.
Sales to another
state (Inter State)
Central Sales
Tax+Excise/Service
Tax
IGST There will only be
one type of tax
(central) in case of
inter-state sales. The
Centre will then
share the IGST
revenue based on the
destination of goods.
10. GST SLABS IN INDIA
--NIL–
Goods included Services included
Fresh Meat, Fish, Chicken, Eggs, Milk,
Curd, Butter Milk, Jaggery (Gur),
Lassi, unpacked Paneer, Fresh Fruits
& Vegetables, Natural Honey, Flour
(Atta & Maida), Pulses, Basmati Rice,
Gram Flour (Besan), Bread, Vegetable
Oil, Religious Sweets (Prasad),
Common Salt, Bindi, Vermillion
(Sindoor), Bangles, Stamps, Judicial
Papers, Printed Books, Newspapers.
Handloom Products, Textile – Jute,
Silk.
Hotel Services priced at
less than INR 1000
Education (exemption
continued from before)
Healthcare (exemption
continued from before)
11. --5%--
Goods included Services included
Skimmed Milk Powder, Milk food for
babies, Condensed milk, Packaged
Paneer, Cream, Frozen Vegetables,
Sugar, Spices, Edible Oil, Pizza Bread,
Rusk, Sweets, Fish Fillets, Tapioca
(sabu daana), Coffee, Tea, Juices,
Apparel – below 1000 INR, Footwear
– below 500 INR, Kerosene, LPG,
Coal, Solar Panels, Common Utilities
– Broom, Medical Goods - Medicines,
Stents, Newsprint, Lifeboats, Textile –
Cotton, Natural Fibre and yarns
Incense Sticks (Agarbatti)
Railway Travel
Economy Class Air Travel
Cab Aggregators (e.g. Uber
& Ola)
12. --12%--
Goods included Services included
Butter, Cheese, Ghee, Packaged Dry
Fruits, Snacks (Namkeen & Bhujia),
Packaged Chicken, Sausages, Jams,
Sauces, Fruit Juices, Packed Coconut
Water, Apparel – above 1000 INR,
Personal Hygiene – Tooth Powder,
Stationery – Exercise Books,
Notebooks, Common Utilities –
Sewing Machine, Umbrella, Ayurvedic
Medicine, Mobile Phones
Non-AC Hotels &
Restaurants
Business Class Air Travel
13. --18%--
Goods included Services included
Ice Cream, Preserved Vegetables,
Flavoured refined sugar, Pasta, Corn
Flakes, Pastries, Cakes, Soups,
Instant Food Mixes, Processed
Foods, Mineral Water, Branded
Garments, Footwear – above 500
INR, Personal Hygiene – Tissues,
Toilet Paper, Hair Oil, Soap Bars,
Toothpaste, Envelopes, Fountain
Pens, Printed Circuits, Monitors,
Iron & Steel Products, Biri wrapper
leaves (Tendu Patta), Biscuits, Textile
– Man-made fibre and yarn
Accommodation at hotels with tariff of
more than 2500 INR but less than 7500
INR
Supply of food / drinks in AC / 5 star and
above rated restaurants
Telecom Services
IT Services
Financial Services
Works Contract
Cinema Tickets worth 100 INR or less
14. --28%--
Goods included Services included
Chocolates, Chewing Gum, Custard
Powder, Aerated Water, Deodorants,
Shaving Cream, After Shave, Hair Shampoo,
Dye, Sunscreen, Perfume, Face Creams,
Detergents, Vacuum Cleaner, Shavers, Hair
Clippers, Washing Machines, Dish Washers,
Water Heaters & other Home Appliances,
Speakers, Cameras, Automobiles & Motor
Vehicles, Paint, Wallpaper, Ceramic Tiles,
Cement
Weighing Machines, Vending Machines,
ATM, Fireworks, Luxury / Demerit Goods* -
Pan Masala, Tobacco, Bidis, Aerated Drinks
& Motor Vehicles
Accommodation at hotels
with tariff of more than
7500 INR
Race course betting
Cinema Tickets worth
more than 100 INR
16. TYPES OF ASSESSMENT UNDER GST
Self Assessment
Provisional Assessment
Scrutiny of Returns
Assessment of Non-Filer of Returns
Assessment of unregistered persons
Summary assessment in special cases
17. TYPES OF GST RETURNS
GSTR-1:
GSTR-1 requires the taxpayer to furnish details of outward supplies or
sales.
GSTR-2:
GSTR -2 requires furnishing details of inward supplies or purchases.
GSTR-3:
GSTR-3 requires furnishing monthly return.
GSTR -4:
GSTR-4 Returns to be filed by Composition Tax Payers.
GSTR-5:
GSTR-5 Returns to be filed by Foreign Non-Resident Taxpayer.
18. GSTR-6:
GSTR-6 Returns to be filed by an Input Service Distributor.
GSTR-7:
GSTR-7 Returns to be filed by a Tax Deductor.
GSTR-8:
GSTR-8 Statement for Tax Collection at Source.
GSTR-9:
GSTR-9 Annual Return
GSTR-10:
GSTR-10 Final Return
GSTR-11:
GSTR-11 Inward supplies statement for persons having Unique identification
Number (UIN).
GST-3B:
GST-3B Summary Return for the month of July and August.
19. GST COUNCIL
GST Council is the governing body.
GST Council is an apex member committee to modify,
reconcile or to procure any law or regulation based on the
context of goods and services tax in India.
The council is headed by the union finance minister
The GST council is responsible for any revision or
enactment of rule or any rate changes of the goods and
services in India.
20. MEMBERS OF GST COUNCIL
Total Members in council:
33 members:- a. 2 members are of centre
b. 31 members are from 28 state & 3 Union territories
with legislation.
The council contains the following members
Union Finance Minister (as chairperson)
Union Minister of States in charge of revenue or finance (as member)
The ministers of states in charge of finance or taxation or other
ministers as nominated by each states government (as member).
21. Goods and Services Tax Network (GSTN)
The GSTN software is developed by Infosys Technologies.
"Goods and Services Tax Network" (GSTN) is a nonprofit
organization formed for creating a sophisticated network,
accessible to stakeholders, government and taxpayers to
access information from a single source (portal).
22. THE GSTN'S AUTHORIZED CAPITAL
(10 CRORE)
– Central Government held 24.5 percent of shares
– State government held 24.5 percent of shares
– The remaining 51 percent were held by non-
Government financial institutions, HDFC and HDFC
Bank hold 20%, ICICI Bank holds 10%, NSE Strategic
Investment holds 10% and LIC Housing Finance holds
11% .
25. Types of GST Registration
Normal Taxpayer
Casual Taxable Person
Composition Taxpayer
Non-Resident Taxable Person
Non-Resident Online Service Provider
Special Economic Zone Developer
GST TDS Deductor – Government Entities
UN Embassy/ Body/ other notified individuals
Special Economic Zone Unit
GST TDS Collector – E-commerce Companies
26. WHO NEED TO COMPLETE REGISTRATION
OF GST
A business that has a turnover of more than Rs. 40 lakhs to
register as a general taxable entity.
Person supplying online information and database access or
retrieval services from a place outside India to a person who
is not a registered taxable person.
Every e-commerce aggregator.
Person who supplies via an e-commerce aggregator.
Individuals registered under the pre-GST law.
Those paying tax under the reverse charge mechanism.
Agents of a supplier.
Input service distributor.
A non-resident taxable person or a casual taxable person
27. DOCUMENT REQUIRED TO COMPLETE
GST REGISTRATION
PAN card.
Aadhaar card.
Business address proof.
Bank account statement and cancelled cheque.
Incorporation Certificate or the business registration proof.
Digital Signature.
Director’s or Promoter’s ID proof, address proof, and
photograph.
Letter of Authorisation or Board Resolution from
Authorised Signatory.
28. GST CALCULATION FORMULA
Add GST:
GST Amount = (Original Cost x GST%)/100
Net Price = Original Cost + GST Amount
Remove GST:
GST Amount = Original Cost - [Original Cost x
{100/(100+GST%)}]
Net Price = Original Cost - GST Amount
Example of GST Calculation
In case a product is sold for Rs.2,000 and the GST rate
applicable to it is 12%, then net price of the product will be
Rs.2,000 + 12% of Rs.2,000 = Rs.2,000 + Rs.240 = Rs.2,240.