PRESENTATION ON

GST
(GOODS AND SERVICES TAX)

TEAM(4) MEMBERS….
• RAHUL DEO
• RAVI KUMAR
• ANIL BABU S
• RAKESH ROSHAN
• FALGUNI CHAKRABORTHY
 GST - WORLD

• GST was invented by a French Tax Official in the year 1950.

• France was the first country to implement GST in 1954.
• There are around 160 countries in the world that have GST in place.
• The highest rates found in India with rates up to 28%, which is highest GST
rates in the world.
 What is GST..?

•Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-

based tax that is levied on every value addition.
•GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods
and Service Tax Act was passed in the Parliament on 29th March 2017. The Act
came into effect on 1st July 2017.
•This law has replaced many indirect tax laws that previously existed in India.
•GST is one indirect tax for the entire country.
•GST was publicized as “ONE NATION ONE TAX”.
•Destination-Based
•Consider goods manufactured in Maharashtra and are sold to the final consumer in
Karnataka. Since Goods & Service Tax is levied at the point of consumption so. So,
the entire tax revenue will go to Karnataka and not Maharashtra.

• .
 Tax Laws before GST

• There were many indirect taxes levied by both state and centre. States
mainly collected taxes in the form of Value Added Tax (VAT). Every state
had a different set of rules and regulations. Interstate sale of goods
was taxed by the Centre.
• In earlier tax regime, every state had a different set of rules and
regulations. There were many types of indirect taxes levied by both state
and centre. For example, when goods were manufactured and sold, excise
duty was charged by the centre. Over and above excise duty, VAT was also
charged by the state . This led to a Tax on Tax, also known as the
“CASCADING EFFECT”.
 Tax Laws before GST

• The following is the list of indirect taxes in the pre-GST regime: Central Excise Duty
– Duties of Excise
– Additional Duties of Excise
– Additional Duties of Customs
– Special Additional Duty of Customs
– Cess
– State VAT
– Central Sales Tax
– Purchase Tax
– Luxury Tax
– Entertainment Tax
– Entry Tax
– Taxes on advertisements
– Taxes on lotteries, betting, and gambling.
JOURNEY OF GST IN INDIA
 COMPONENTS OF GST
There are 3 taxes applicable under this system: 
1. CGST: Collected by the Central Government on an intra-state sale(Central
GST).
2. SGST: Collected by the State Government on an intra-state sale(State GST).
3. IGST: Collected by the Central Government for inter-state sale(Integrated
GST).
In case of CGST and SGST, Revenue will be shared equally between the
Centre and the state . In case of IGST, Centre will collect the tax and then
share the IGST revenue to states based on destination of goods.
 INPUT TAX CREDIT
• When you buy a product/service from a registered dealer you pay taxes on
purchase, while making sales, tax is collected and periodically the same is
adjusted with the tax you already paid at time of purchase and balance
liability of tax (tax on sales (minus) tax on purchase) is to be paid to the
government. This mechanism is called utilisation of input tax credit (tax on
purchase adjustment against tax liability on output i.e. sales).
 IMPLEMENTATION OF GST
• Comparison of indirect tax pre & post GST Regime
  PRE GST REGIME GST REGIME
AMOUNT(in AMOUNT(in
S.NO PARTICULARS RS.) PARTICULARS RS.)
COST OF POWER COST OF POWER
1 DRIL 3000 DRIL 3000
2 EXCISE @ 12.5% 375 CGST@ 9% 270
3 SUB TOTAL 3375 SGST @9% 270
VAT @14.5% ON
4 S.NO-3 490    
5 TOTAL AMOUNT 3865 TOTAL AMOUNT 3540
tax burden on the final customer= Rs.325.

• GST is going to have a two-pronged benefit.

– One, it will reduce the cascading effect of taxes.
– Two, By allowing input tax credit, it will reduce the burden of taxes
and, hopefully, prices
 Advantages of GST

1. GST eliminates the cascading effect of tax

2. Higher threshold for registration
3. Composition scheme for small businesses
4. Simple and easy online procedure
5. The number of compliances is lesser
6. Defined treatment for E-commerce operators
7. Improved efficiency of logistics
8. Unorganized sector is regulated under GST
 Disadvantages of GST

1. Increased costs due to software purchase

2. Being GST-compliant
3. GST will mean an increase in operational costs
4. GST came into effect in the middle of the financial year
5. GST is an online taxation system
6. SMEs will have a higher tax burden