INTRODUCTION OF TAX :-

Tax is imposing financial charges on individual or company by Central

Government or State Government. Collected Tax amount is used for infrastructure & other
development. These taxes can be levied by local. Regional or national government entities. The
taxed imposed are used to fund government activities like public works or services, boost the
country’s economy ant to improve the living standards of the citizens. However, all of the taxes
imposed must be supported by a passed by the citizens. However, all of the taxes imposed must
be supported by a passed by the parliament or state legislature. That’s why it is said that “Taxes
are paid nation are made”.

Direct tax:-

Direct Taxes are directly imposed & paid to Government of India. There has been a steady
rise in the net Direct tax collections in India over the years, which in healthy signal. Direct taxes,
which are imposed by the Government of India, are:

Income Tax:

Income tax, this tax is mostly known to everyone, Every individual whole total income
exceeds taxable limit has to pay income tax based on prevailing rates applicable time to time

Capital Gain Tax:

Capital Gain Tax as name suggests it is tax on gain capital. If you sale property, shares ,
bonds & precious material etc. and earn profit on it within predefined time frame you are
supposed to pay capital gain tax. Capital Gain Tax is categorized in short- term gains and long-
gains.

Securities Transaction tax:

A lot of people do not declare their profit and avoid paying capital gain tax,
as government can only tax those profits, which have been declared by people. To fight with this
situation Government has introduced STT (Securities Transaction Tax ) which is applicable on
every transition done at stock exchange. I,e if you buy or sell equity share, derivative
instrument, equity oriented mutual funds this tax is applicable.

Perquisite Tax

Earlier to Perquisite Tax we had tax called FBT(Fringe Benefits Tax) which was abolished in
2009, this tax is on benefit give by employee. If your company provides you non-monetary
benefits like car with drive, club membership, ESOP etc. All this benefit is taxable under
Perquisite tax.
Indirect Tax:

Indirect Tax is imposed on goods that you buy or services you enjoy. These taxes aren’t
directly payable to the Government by the consumer i.e you. They are collected and paid to the
Government by the person who provides the service or sells the product .

Sales Tax:

Sales Tax charged on the sales of movable goods. Sale Tax on Inter State sale is charged by
Union Government ,while sales tax on Intra-State sale (sale within State) (now termed as VAT) is
charged by State Government.

Service Tax:

Most of the paid services you take you have to pay service tax on those services. This tax
is called service tax. Over the past few years, service tax been expanded to cover new services.

Value Added Tax:

Tax imposed by Central Government on sale of goods is called as Sales Tax same is
called is called as Value Added tax by State Government. VAT is additional to the price of goods
and passed on to us as buyer (end user). VAT rates vary based on nature of item and state.

Custom Duty &Octroi (On Goods):

Custom Duty is a types of indirect tax charged on goods imported

into India. Octroi is tax applicable on goods entering in to municipality or any other jurisdiction
for use, consumption or sale. In simple terms one can call it as Entry Tax.

Excise Duty:

An excise or excise duty is a type of tax charged on goods produced within the country.
This is opposite to custom duty which is charged on bringing goods form outside of country.
Another name of this tax is CENVT(Central Value Added Ta

By Introduction of GST on 1stjuly, 2017 all indirect taxes are subsumed in GST. Total 15 different taxes
are abolished by introduction of single tax GST (goods & service Tax).

Taxes removed by introduction of GST are Central Excise Duty, Service Tax, Value Added
Tax, Countervailing duty, Custom Duty, Entertainment Tax, Luxury Tax, Lottery Tax, State
Surcharge, Sales Tax, Antidumping duty, Swacch Bharat Cess, KrishiKalyancess, Infrastructure
Cess& Education Cess.

So, Total number of tax in India is reduces from 25 to 10

 GOODS & SERVICE TAX

INTRODUCTION:

The Goods & Services Tax (GST), India’s biggest tax reform since Independence. Goods and
services Tax (GST) is an Indirect Tax which was introduced in India on 1stjuly, 2017 and was
applicable throughout India which replace multiple cascading taxes levied by the Central and
State Governments. The Goods and ServicesTax (GST) was applicable throughout India which
replace multiple cascading taxes levied by the Central and State Government. The Goods and
Services Tax(GST) was launched at midnight on 30thjune, 2017 by Prime Minister of India, Shri.
NarendraModi. The launch was marked at the Central Hall of the Parliament.

Goods and Services Tax(GST) is a single Indirect Tax for the whole nation, one which will
make India a unified common market. It is a single tax on the supply of goods and services, right
from the manufacturer to the consumer. It is a destination based tax. Any person, who is
providing or supplying goods and services, right from the manufacturer to the consumer. It is a
destination based tax. Any person, who is providing or supplying goods and services is liable to
charge GST. It will help realize the goal of “One Nation-One Market” GST has replaced many
indirect tax that previously existed in India, sush as Central Excise Duty, Services Tax, Surcharges,
Value Added Tax, Octroi, etc . which will help in eliminating time, cost and effort.

Goods and service tax is a comprehensive tax levy on manufacture, sale and
consumption of goods and service at a national level under which no distinction is made
between goods and services for levying of tax. It will mostly substitute all indirect taxes levied on
goods and services by the Central and State governments in India, GST is a tax on goods and
services under which every person is liable to pay tax on this output and is entitled to get input
tax credit on the paid on its inputs and ultimately the final consumer shall bear the tax.

Hence there is a lots of problem face by the manufacture that way government
introduce GST so the burden of all taxes are remove and only one tax is imposed to the
manufacture or the seller. So it is also beneficial for the government to maintain all paper work
regarding the taxes of the big company is easy to handle.
 TYPES OF GST

GST

INTRA-STSTE INTER-STSTE
MOVEMENT MOVEMENT

CENTRAL GOODS & STATE GOODS & INTEGREATED M

SERVICE TAX SERVICES TAX GOODS & SERVICE
(CGST) (SGST) TAX (IGST)

INTRA-STATE MOVEMENT:

The GST levied on the Intra-State supply of goods or services by the Centre
is Central Goods & Services Tax (CGST) and the States is State Goods & services Tax(SGST)

Central Goods & Services Tax (CGST):

Central Goods & Services Tax (CGST) is the centralized part of GST
that subsumes the present central taxations and levies. It is applicable the supply of goods & services of
standard services and commodities which can be amended periodically by a specialized body under the
Central Government. The revenue under Central Goods & Services Tax (CGST) collected by Central
Government on an Intra-State Sale. The input tax is given to the State Governments which they can
utilize only against the payment of CGST.

State Goods & Services Tax (SGST):

State Goods and Services Tax(SGST) is an important part of GST.

Various taxations and levies under the state authority are subsumed by state Goods and Services Tax as
one uniform. The revenue under State Goods and Services Tax collected by the State Government on an
Intra- State will be having their own State Authority to collect SGST.
INTER-STATE MOVEMENT:

The GST levied on the Inter-State supply of goods and services, Integrated Goods and Services is
collected by Centre.

Integrated Goods and Services:

Integrated Goods and Services is charged on the supply of commodities and services from one
state of another state. The revenue under Integrated Goods and services is collected by the Central
Government for Inter-State Sale. Integrated Goods and Services is also applicable on imports.

BENEFITS OF COST

1. Removing cascading tax effect :

In simple words, “cascading tax effect” means a tax on tax. Under GST, the input tax
credit can be availed smoothly across the spectrum of goods and service, thus reducing the tax
burden on the end user and removing cascading effect.
2. Composition scheme for small business:
GST also has an optional scheme of lower taxes for small businesses with turnover
between Rs.20 to 50 lakhs. It is called the composition scheme. It has now been proposed to be
increased to Rs.75 lakhs. This will bring respite from tax burdens to many small businesses.
3. Online simpler procedure under GST :
The entire GST process – starting from registration to filing returns and payment of
GST tax – is online, startups do not have to run around to tax offices to get various registration
under excise, VAT , Service tax,

4. Lesser compliance :
There are about 11 returns under GST, out of which 4 are basic returns which apply to all
taxable persons under GST. There are fears that the number of returns will increase after GST.
But the main GSTR-1 will be annually populated. But GSTR-2, GSTR-3, GSTR-4 will be auto-
populated.

5. Defined treatment for e-commerce:

For the first time, GST clearly maps out the provisions applicable to the e-
commerce sector and since these will apply all over India, there should be no complication
regarding inter-State movement of anymore.

6. Increased efficiency in logistics:

When GST goes live, the restriction on inter-state movement of goods will be
lessened and the logistics sector might start consolidating warehouses across the country. As an
outcome of GST, warehouse operators and e-commerce players have already shown interest in
setting up their warehouses at strategic location.
 7. Regulating the unorganized sector:
GST has provisions for online compliances and payment, and availing of
input only when the supplier has accepted the amount, thereby bringing accountability and
regulation to these industries.
8. Others benefits:
a. GST is a transparent tax and also reduce number of indirect taxes.
b. Makes the taxation system easier to understand and cost effective in terms of
implementation.
c. Goods for other states during manufacturing can be bought at cheaper rates.
d. Uniformity of tax rates and structures, etc.

9. Others benefits:
e. GST is a transparent tax and also reduce number of indirect taxes.
f. Makes the taxation system easier to understand and cost effective in terms of
implementation.
g. Goods for other states during manufacturing can be bought at cheaper rates.
h. Uniformity of tax rates and structures, etc.

CHALLENGES OF GST:

1. Some Economist say that GST in India would impact negative on the real estate market. It would
add up to 8% to the cost of new homes and reduce demand by about 12%
2. Some Experts says that CGST, SGST are nothing but new names for Central Excise/Service Tax,
VAT and CST. Hence, there is no major reduction in the number of tax layers.
3. Some retail products currently have only 4% tax on them. After GST, garments and cloths could
become more expensive.
4. The aviation industry would be affected. Service taxes on airfares currently range from 6% to
9%. With GST, this rate will surpass 15% and effectively double the tax rate.
5. Adoption and migration to the new GST system would involve teething troubles and learning for
the entrie ecosystem.
6. Stamp Duty will continue to be imposed by the State Governments as it doesn’t fall under GST.
7. In the previous taxation system, some goods and services are exempt from taxes. That will not
be the case with GST as it will have minimum exemption. While the taxation system in practice
levies steep taxes on very few items, GST will impose low taxes on almost all items.

IMPORTANCE OF GST IN INDIAN CEONOMY:

GST is one of the biggest indirect tax reforms in the country. GST is expected to bring
together state economies and improve overall economic growth of the nation.
 GST is a comprehensive indirect tax levy on manufacture, sale and consumption of
goods as well as services at the national level. It will replace all indirect taxes levied on goods and
services by states and Central.

There are around 160 countries in the world that have GST in place. GST is a destination
based taxed where the tax is collected by the State where goods are consumed. India is going to
implement the GST from July 1,2017 and it has adopted the Dual GST model in which both States and
Central levies tax on Goods or Services or both.

SGST - State GST, collected by the State Government.

CGST – Central GST, collected by the Central Government.

IGST – Integrated GST, collected by the Central Government.

NEEDS FOR GST IN INDIA :

Introduction of GST is considered to be a singnificant step in the reform of indirect taxation in India.
Amalgamating of various Central and State taxed into a dingle tax would help mitigate the double
taxation, cascading, multiplicity of taxes, classification issues, taxable event, and etc., and leading to a
common national market.

GST will break the complicated structure of separate central and state taxes which
often overlap with each other to create a uniform taxation which will be applicable across the country.
Taxes will be implemented more effectively since a network of indirect taxes like excise duty, service tax,
central sales tax, value added tax(VAT) and Octroi will be replaced by one single tax. The state will still
have a say in taxation, as the number of taxes will be reduced to there with Central GST, State GST and
Integrated GST for inter-state dealings.

GST RATEAX:

GST rates are finalized on 1211 items, 6 categories are remaining to be decided rates. According
to the official sources, it is revealed that 81% of the items have been fall under the category of 0%, 5%,
12%, 18%, or 28%.

New GST Rates are applicable in allover India – New Delhi, Haryana, Assam, Mizoram,
Nagaland, Manipur, West Bengal, Uttrakhand, Rajasthan, Himachal Pradesh, Punjab, Maharashtra,
Kerala, Telangana, Tamil Nadu, Odisha, Kanyakumari, Goa, Chandigarh, Bihar, Uttar Pradesh, Arunachal
Pradesh, Gujarat, Andhra Pradesh, Meghalaya, Tripura, Chattishgarh and Madhya Pradesh. Only Jammu
Kashmir are exempt.
1. 0% or NIL RATE:
There won’t be any tax on almost 50% of items in the Consumer Price Index basket,
including grains used by the common man. No tax rates will be levied on basic food items which
includes fresh chicken, meat, milk, eggs, butter, curd, natural honey, besan, flour, wheat, bread,
stamps, sindoor, judicial papers, newspapers, bangles, handloom, salt, bindi, fresh fruits, and
vegetables, and so on.

2. 5% SLAB RARE:
This is applicable on items of a mass consumption used by common people. Cream,
Skimmed Milk Powder, Fish, Frozen vegatables. Coffee, tea, branded paneer, Pizza bread,
sabudana spices, kerosene, medicines, coal, rusk, and so on are some of the items which will fall
under the category of 5% slab rate.

3. 12% SLAB RATE:

This is the standard rate under the GST regime. Items such as cheese, frozen meat
products, ghee, butter, and sausage, dry fruits in packages form, Bhujia, fruit. Juices, namkeen,
animal fat, tooth powder, Ayurvedic medicines, coloring books, agarbatti, picture books, sewing
machine, umbrella, and cellphones, and so on will fall under the 12% slab rate under GST

4. 18% SLAB RATE:

This is also a standard rate under GST regime. Most of the items will fall under 18%
slab rate, and it include corn flakes, notebooks, flavoured refined sugar, pastries and cakes, pasta,
jams, sauces, soup, tissues, instant food items or mixes, ice cream, mineral water, preserved
vegetable, tampons, envelope, printed circuit, steel products, camera, speakers and monitors, and
so on.

5. 28% SLAB RATE:

28% is the highest slab rate under GST. It include several items such as chewing gum,
chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala,
deodorants, aerated drinks, shaving creams, hair shampoo, after Shave, paint, bye, sunscreen,
wallpaper, ceramic tiles, water heater, dishwasher machine, washing machine, ATM, vending
machine, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal
use, yachts, and so on. All the items which are now taxed at around 30% will full under 28% GST
slab rate.
EXEMPTIONS UNDER GST:

Under GST. The Government has fixed GST rates on 1, 211 goods and 500 services in the range of 5% to
28%. Certain items such as alcohol, petrol, diesel and natural gas will be exempt under the GST. In
addition to these, the GST Council has also classified certain item under the 0% tax rate, implying that
GST will not be levied on them.

Some services such education, healthcare, hotels and lodges with tariff below Ra.1,ooo grandfathering
service have also been kept out of the GST purview. Rough precious and semi-precious stones will,
however, attract GST rate of 0.25%

Services by Government or a local authority excluding the following services:

1. Services by the Department of Posts by way of speed post, express parcel post, life
insurance, and agency services provided to a person other than Government.
2. Services in relation to an aircraft or a vessel, inside or outside the precints of a port or an
airport.
3. Transport of goods or passengers.
4. Any service, other then services covered under clauses(1) to {3) above, provided to
business entities.
5. Services by the Reserve Bank of India.
6. Services by a foreign diplomatic mission located in India.
7. Services relating to cultivation of plants and rearing of all life form of animals, except the
rearing of horses, for food, fibre, fuels, raw material or other similar products.
8. Services by way of access to a road or a bridge on payment of toll charges.
9. Teansmission or distribution of electricity by an electricity transmission or distribution
utility.
10. Services by way of renting of residential dwelling for use as residence.
11. Services by a veterinary clinic in relation to health care of animals or birds.
12. Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of
1961) by way of charitable activities, Charitable activities may be defined presently in
notification No. 25/2012-ST.
13. Services provided by a tour operator to a foreign tourist in relation to a tour conducted
wholly outside India.
14. Services by way of public conveniences such as provision of facilities of bathroom,
washrooms, lavatories, urinal or toilets.
15. Services by way of pre-conditioning, per-cooling, ripening, waxing, retail, packing,
labeling of fruits, and vegetables which do not change or alter the essential
characteristics of the said fruits or vegetables.
16. Services provided by Employees Provident Fund Organization (EPFO) to persons
governed under the Employees Provident Fund and Miscellaneous Provisions Act, 1952
(19 of 1952)
GST RULES:

When it comes to the GST rules, there are various categories under the rules. The major rules are
explained below.

I. Composition Rules:
This rule provides all the information about the procedural compliance. The
procedural compliance includes the intimation for Composition Scheme, the effective date
for levy, conditions, and restrictions on the levy, validity of levy and rate of tax.
II. Valuation Rules:
This rule includes the supply of goods or services for the consideration not wholly
in money. The value of the supply includes:
a. The open market value of supplies.
b. If an open market value Is not available, then the sum total of consideration in money
and any further amount of money which is equivalent to the consideration not in
money will considered.
III. Transition Rules:
Any business which is in an ongoing process or working mostly for 365 days of the
year is eligible for transition rules. For such businesses, the goods which are under the
transit is a regularly. This incident may happen on any given day and one can see delivery
trucks plying goods on highways. In such cases, GST transition rules apply.
IV. ITC Rules:
In simple terms, ITC means Input Tax Credit. This related to the taxable person, which
means GST will be charges on any supply of goods and or services to him which are used or
are intended to be used in his business. ITC is considered to be the backbone of the GST and
decides the eligibility criteria of the registered persons.
V. Invoice Rules:
Under GST rule, there has to be invoicing which need to be done properly following
all the guidelines and formats. These include supplier’s name, shipping and billing address,
HSN (Harmonized System of Normenclature) Code, place of supply rate.

GST FORMS:

Different types of forms to be filed under GST law:

1. Form GSTR – 1
To file details of outward supplies of taxable goods and or services effected by registered
taxable supplier on 10th of the next month.
2. Form GSTR – 2

To file details of inward supplies of taxable goods and or services effected claiming input
tax credit by registered taxable recipient on 15th of the next month.
 3. Form GSTR – 3
To file monthly return on the basis of finalization of details of outward supplies and
inward supplies along with the payment of amount of tax by registered taxable person on 20th of
the next month.

4. Form GSTR – 4
To file quarterly return for compounding taxable person by composition Supplier on 18th of the
month succeeding quarter.

5. Form GSTR – 5
To file return for non-resident foreign taxable person by non-resident taxable person on 20th of
the next month.

6. Form GSTR – 6
To file return for input services distributor by input service distributor on 13th of the next month.
7. Form GSTR-7
To file return of authorities deducting tax at source by tax deductor on 10th of the next month.
8. Form GSTR -8
To file details of supplies effected through e-commerce operator and the amount of tax
collected by e-commerce operator tax collector on 10th of the next month.
9. Form GSTR -9
To file annual return by registered taxable person 31st December of next financial year.
10. Form GSTR -10
To file final return by taxable person whose registration has been surrendered or
cancelled within 3 months of the date of cancellation or date of cancellation order, whichever is
later.
11. Form GSTR – 11
To file final details of inward supplies to be furnished by a person having UIN by a person
having UIN and claiming refund on 28th of the month following the month for which statement is
filed.

ITEMS GETS CHEAPER:

The following things items are expected to become cheaper under GST for the commonman:

I. Food:
Maida, Besan, Salt, Unbranded Atta, Unpacked Food grains, Fresh Vegetables and
Fruits, Food at smail restaurants, Cutley, Ketchup, Sauces and Pickle.
II. Personal Care:
Soaps, Hair oil and Toothpaste.
 III. Travel and Auto:
Airfares for economy class travel, Bike or Scooters with engine capacity below
350 cc SUVs, Entry-level sedan (except small car)

IV. Household:
Pressure coolers and Pans, and Stoves.

V. Entertaiment:
Movie tickets that cost less than Rs.100

VI. Hotels:
Rooms at Non-luxury hotels and Hotels with tariffs of less than Rs.7,500.

VII. Others:
Footwear and Apparels, Weighing Machinery, UPS, Revenue Stamps.

ITEMS GETS COSTLIER:

The following things/items are expected to become costlier under GST for the common man:

I. Food :
Tea and Coffee, Food at Fine dinning restaurants & 5-sta Hotels.

II. Personal Care:

Shampoos and Deodorants.

III. Travel and Auto :

Airfares for Business class and Train Tickets. Bikes which have and engine capacity of over
350c, Commuting by metro or rail may become expensive.

IV. Household:
Televisions, Refrigerators, ACs, Washing Machine.
 V. Entertainment:
Movie tickets that cost above Rs. 100

VI. Hotels:
Which have room tariffs over Rs.7, 500

VII. Services:
Courier services, Mobile phone tariffs, Insurance premiums, Banking charges,
Broadhand services.

VIII. Sin:
Aerated Drinks, Cigarettes and Tobacco, and Luxury goods.

IX. Others:
Mobile bills, School Fees, Tuition Fees, Salon visits, and Buying a Flat/Shop.

IMPACT OF GS IN INDIA.

Major Sectors Before GST After GST

Agriculture 0% or Nil 0% or Nil
Tobacco 81% 160%
Hospitality & Restaurants 14.5% 18%
Electricity & Power 2% 0% or Nil
Aviation Industry 5.6%- 8.4% 5% - 12%
Luxury Items 19% 28%
Mutual Fund Industry 15% 18% - 22%
Startups 0% or Nil 0% or Nil
Entertainment 23.5% 28%
FMCG 18% 28%

I. Impact on Fruits and Vegetables/Agricultural Sector:

 Under the new tax regime which is GST, the tax rate on Fruits and
Vegetables wiilbe:

a. 0% or Nil tax rate on Fruits and Vegetables:

Fresh vegetable such as potatoes, cabbage, onion, tomatoes, carrot, beetroots,
cauliflower, so on.Fresh and citrus fruits such as lemon, coconut, guavas, bananas,
grapefruit, apples, etc.Dry fruits such as pistachios, hazelnuts, walnuts, almonds, etc.

b. 5% tax rate on Fruits and Vegetable:

Any kinds of frozen and chilled fruits and vegetable, cooked and uncooked.All kinds of
preserved nuts, vegetables and fruits.Areca nuts or suparee which is highly sought after
in India.

c. 12% tax rate on Fruits and Vegetable :

All kinds of juices, be it vegetable of fruits. All kinds of peeled and
shelled dry fruits.

d. 18% tax rate on Fruits and Vegetables:

Preserves such as fruits and jellies, purees made from nuts and other
vegetables and fruits and pastes.

II. Impact on Tobacco Industry:

All kinds of tobacco related items that are manufactured will attract a tax of
28%. Besides this, there will be an additional Cess charged on all kinds of tobacco products.
a. Cigar and cigarillos the extra cess will be 21% or Rs.4, 170 on each and every piece.
b. Chewing tobacco (will lime tube) the extra cess to be levied will be 140%.
c. Chewing tobacco (without lime tube) the extra cess to be levied will be 160%.

III. Impact on Hospitaliy& Restaurants Sector:

With the introduction of the GST this time, these will get consolidated
into a single tax. However, the rate would be different for different establishments, which
are:
a. 12% for the Non-AC and no alcohol serving restaurants. Which used to be in the range
of 13% to 14%.
b. 18% for the AC and alcohol serving restaurants, which used to be 22%.
 c. 28% for the 5-stare restaurants, which used to be 18%

IV. Impact on Electricity & Power:

The electricity and power sector depends a lot on the coal, kerosene, biogas
and other such kinds of fuel prices.
a. The coal costs are supposed to decrease by around R.100 to Ra.150 all across the
country.
b. This will also result in a drop of the electricity prices by 6 to 7 paise per unit.

Besides the lowest cost of electricity, the decreased coal prices are also
supposed to have a beneficial effect on the steel industry. This will be stabilizing the cost of steel.

V. Impact on Aviation Industry:

In a developing county like India, the Aviation industry is one of the most
rapidly growing sectors and reaps good profit every fiscal year. With the introduction of GST
rates list, the tax rates will be revised to:
a. 5% on the economy class tickets.
b. 12% on the business class tickets.

VI. Impact on Entertainment Industry:

The latest GST rates in India as Follows:

Types of Entertainment GST Rates

Circus 18%
Drama 18%
Theater 18%
Indian Classical Dance Including Folk 18%
Cinema 28%
Movie Festivals 28%
Casinos 28%
Amusement Parks 28%

VII. Impact on Luxury Items:

 Luxury Items are costly and that is why the name. These kind of products will
attract higher tax brackets. GST rates in India will make luxury items costlier for you as
follows:
a. The GST tax slab for the luxury items is going to be 28%
b. As per the proposed GST regulation, the Cess cap on luxury goods will be 15% (
additional to the GST slab)
c. There can be surges on this cess rate and as a result, the GST rate can even go up to
43%.

VIII. Impact on Mutual Fund Industry:

The effect of GST on the Mutual Fund industry is going to be quite big
and definitely it is not going to be easy. Either for those offering the investment services or
the investors in anyway. The consumers may have to pay more than what they do now. The
tax to be levied may range in between the 18% to 22% tax bracket.

IX. Impact on Businesses mainly startups & E-commerce:

GST is supposed to bring a radical change in the market involving small
businesses and e-commerce, actually for good, as follows:
a. Revenue system will get simpler:
At present startups are required to spend a good amount of items
on managing taxes at various levels, GST simplifies this entire procedure, thereby
helping startups find more time for business management.
b. Both sales and services taxation will be consolidated.
At present, VAT and services tax for sales and services are separate. So, if an
establishment such as a restaurant deals in both sales and services, the total tax to
be paid shoots up by a considerable amount. With GST, everything is going to be
consolidated.
c. New business will enjoy higher exemption:
GST increased the turnover value of startups from 5 lakhs to 10
lakhs who needs to get VAT enlistment and pay the same. And for those who have a
turnover in between Rs.10 lakhs to Rs,50 lakhs, will enjoy lower tax rates.
d. Higher liquidity values:
For most of the startups liquidity has been an issue, always. With
GST getting funding would be easier for the otherwise boots trapped companies.
e. Cost and time required for logistics will reduce:
GST will remove the cascading effect of tax, which will help in the
interstate development of transportation of goods as well. This will reduce the cost
of the logistics and the time for it as well.
So, starting and managing a business is going to get simpler with GST.
 X. Impact on Salaried employees, self –employed professionals:
GST is applicable mainly for businesses and hence won’t directly affect the
salaried class and self-employed professionals such as doctors, lawyers, etc. However, it will
impact their expenses due to the change in rates of goods and services they avail. Other
than that, they will continue to pay their income tax like before. The medical sector has
been exempted from GST.

There are some question or the rate of tax which is ask by the various sector and also there is answer,
they are followed:

1. What is the GST rate for rice bran?

Ans: Rice bran for use as aquatic feed including shrimp feed and prawn feed. Poultry feed & cattle
feed attracts nil GST. But rice bran for other uses attracts 5% GST.

2. What is the GST rate for tamarind kernel?

Ans: It is clarified that tamarind kernel is attracts Nil GST. However tamarind kernel of seed quality
attracts Nil GST, whereas tamarind kernel of other than deed quality attracts 5% GST.

3. GST rate on Nutritious diet being distributed under the integrated Child Development Scheme?

Ans:- Since the Pushtaaher distributed under the integrated Child Development Scheme, is a mixture
of proteins, various grains, wheat flour, sugar etc. it is attracts 18%GST

4. What is the GST rate on Turmeric?

Ans:- Fresh turmeric, other than in processed form, attracted Nil GST. But turmeric dried or ground
attracts 5% GST.

5. GST rate on.

I. Embroidery or chikan work in strips, piece or motifs:
II. Fabrics with embroidery or chikan work:
III. Garments or made up articles of textiles with embroidery or chikan work?

Ans:- A. Embroidery including chikanwork in strips, piece or motifs are attracts 12%

B. Fabrics with embroidery or chikan work attracted 5% GST

c. Garments or made up articles of textiles with embroidery.

 6. GST rate of parts of sewing machine ?

Ans:- hence it is attracts 12% GST. But parts of sewing machine attracts 18%

7. What is rate of GST rate for metal air cooler ?

Ans:- metal Air cooler attracts 18% GST.

8. What is GST rate for office revolving chairs?

Ans:- it attract 18% GST

9. What is the GST rate for stick file of plastic, documents bag of plastic and
Certificate bag of plastic?

Ans:- It attracts 28% GST rate .

10. What is the GST rate for posters with photography/ images etc. printed on it using
Digital offset press/digital printers on coated / uncoated paper ?

Ans:- these items fall under HS code 4911 and attract 12% GST
WORLD WIDE GST
France was the first country to introduce GST in 1954. Worldwide,

Almost 150 countries have introduced GST in one or other form since now. Most of

The countries have a unified GST system. Brazil and Canada follow a dual system. In

China, GST applies only to goods and the provisions of repairs, replacement and

Processing services. GST rates of some countries are given below;

COUNTRY RATE OF GST