DEAR PROFESSIONALS READ AND GAIN THE KNOWLEDGE OF GST. THANKS!

1. RROOLLLLEERR CCOOAASSTTEERR
OOFF GGSSTT
Rishabh R. Adukia
CA Final
Mumbai

2. TTooppiiccss ttoo bbee CCoovveerreedd
Introduction to GST
Need for GST
Global Scenario of GST
Key Features of GST to India
Latest Updates
Conclusion
Rishabh R. Adukia 2

3. DID YOU READ TODAYS NEWSPAPER ?
Yes….
DO YOU WANT TO READ TOMORROWS
NEWSPAPER ?
Rishabh R. Adukia 3

4. IInnttrroodduuccttiioonn ttoo GGSSTT
 One of the biggest taxation reforms in India
-- the Goods and Service Tax (GST) -- is all
set to integrate State economies and boost
overall growth.
 GST is a broad based and a single
comprehensive tax levied on goods and
services consumed in an economy.
 GST will create a single, unified Indian
market to make the economy stronger.
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5. NNEEEEDD FFOORR GGSSTT
 Abolition of taxes such as
◦ Octroi,
◦ Central Sales Tax,
◦ State-level sales tax,
◦ Entry tax,
◦ Stamp duty,
◦ Telecom license fees, turnover tax, tax on
IINNTTEEGGRRAATTIIOONN
consumption or sale of electricity, taxes on
transportation of goods and services, thus avoiding
multiple layers of taxation that currently exist in India.
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6. GGLLOOBBAALL SSCCEENNAARRIIOO OOFF
GGSSTT
France was the first country to introduce
GST system in 1954.
Almost 150 countries have already
implemented the GST. (Around 194 countries
in world as per UN)
Most of these have a unified GST system.
Brazil and Canada follow a dual system where
GST is levied by both the Union and the State
governments.
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7. GGLLOOBBAALL SSCCEENNAARRIIOO RRAATTEESS- AAVVGG
1155-2200%%
European Union Rates %
United Kingdom 17.5
Germany 19
France 19.6
Belgium 21
Australia 10
New Zealand 12.5
China 17
Rishabh R. Adukia Ashay Upadhayay7

8. KKeeyy FFeeaattuurreess ooff GGSSTT
 Simple Tax Structure with Single Rate
Central GST and State GST is likely to
operate in a parallel fashion
 Alcohol, tobacco, petroleum products are
likely to be out of the GST regime.
Also items below threshold limits to be
excluded
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9. IInnddiiccaattiivvee EExxeemmppttiioonnss
Exempted Products:
Food Grains, Bread, Salt, Milk,
Vegetables, Meat and Fish
Goods At Lower Rates:
Tea, Milk Powder, Coffee Beans,
Toys, Beedis, Bicycles
Exempted Services:
Govt. aided public health and
education
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10. TTyyppee ooff GGSSTT MMooddeellss
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11. LLiikkeellyy DDuuaall SSttrruuccttuurree ffoorr
IInnddiiaa
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12. IInntteeggrraatteedd GGSSTT ((IIGGSSTT))
For inter-state transactions
Centre to levy IGST which would be
CGST + SGST
Inter-state dealer will pay IGST after
adjusting IGST, CGST and SGST credit
on purchase
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13. SSeett -- ooffff ……
CGST against CGST
SGST against SGST
No Cross sectoral set-off between CGST
& SGST
IGST for CGST/SGST & vice versa
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14. IIGGSSTT ……
The seller in State X will pay the IGST
to the Centre
While paying IGST, seller will adjust his
lying IGST/CGST/SGST credit
Suppose Seller adjusts the SGST
against IGST payable,State X will have
to transfer the credit of SGST used by
the seller for payment of IGST to the
Centre
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15. RRAATTEE OOFF GGSSTT
Rate is expected around 14-16 per cent.
After the total GST rate is arrived at, the
States and the Centre will decide on the
CGST and SGST rates.
Currently, services are taxed at 10 per
cent and the combined charge indirect
taxes on most goods is around 20 per
cent.
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16. SSoommee FFiigguurreess ttoo WWoonnddeerr ??
Balance Sheet Figure ?
Kareena Kapoors Figure ?
It is estimated that India will gain $15 billion a
year by implementing the Goods and Services
Tax as it would promote exports, raise
employment and boost growth. It will divide
the tax burden equitably between
manufacturing and services.
Source: NCAER
Centre’s Tax-GDP Ratio has increased
from 9.2% to 10.94% Rishabh R. Adukia 16

17. WWhhyy aarree ssoommee SSttaatteess aaggaaiinnsstt
GGSSTT;; wwiillll tthheeyy lloossee mmoonneeyy??
The governments of Madhya Pradesh,
Chhattisgarh and Tamil Nadu say that the
information technology systems and the
administrative infrastructure will not be
ready to implement GST.
The central government has offered to
compensate States in case of a loss in
revenues.
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18. WWhhyy aarree ssoommee SSttaatteess aaggaaiinnsstt
GGSSTT;; wwiillll tthheeyy lloossee mmoonneeyy??
Some States fear if the uniform tax rate
is lower than their existing rates, it will
hit their tax kitty. The government
believes that dual GST will lead to better
revenue collection for States.
However, backward and less-developed
States could see a fall in tax collections.
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19. IIssssuueess IInn IImmpplleemmeennttaattiioonn
Agreement on GST rates among states
and Centre
Constitutional amendments empowering
states to levy tax on services &
empowering centre to levy tax on sales.
Compensation to be given by the Centre
to States incurring revenue losses on
implementation of GST.
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20. IIssssuueess IInn IImmpplleemmeennttaattiioonn
Drafting & implementation of Centre
GST and State GST laws are lagging
behind.
Final approval and support of industry is a
must.
Success of GST would depend upon
implementation of IT resources in every
nook and corner of the country. Rishabh R. Adukia 20

21. RReecceenntt NNeewwss IItteemmss
 Hon’ble Finance Minister Pranab
Mukherjee
 December 15,2010 - Postponement of
likely dates to roll out GST along with
DTC i.e.1.4.2012-13
 December 14,2010 – GST will be
introduced in phases to bring consensus
among states in new regime while earlier
stand was to come out in transitory
manner
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22. SSUUMMMMIINNGG UUPP
What is GST ?
◦ G-Good
◦ S- Simple
◦ T- Transition
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