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GST Slabs Pdf Download -GST Rates
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GST Definition, Objective, Framework, Action Plan

& Scope
GST was first recommended by Kelkar Task Force on implementation of Fiscal Reforms
and Budget Management Act 2004 but the First Discussion Paper on Goods and Services
Tax in India was presented by the Empowered Committee of State Finance Ministers .10th
Nov.10th, 2009.
In 2011, the Constitution (115th Amendment) Bill, 2011 was introduced in Parliament to
enable the levy of GST. However, the Bill lapsed with the dissolution of the 15th Lok Sabha.
Subsequently, in December 2014, the Constitution (122nd Amendment) Bill, 2014 was
introduced in Lok Sabha. The Bill was passed by Lok Sabha in May 2015 and referred to a
Select Committee of Rajya Sabha for examination.

Objectives of GST
One Country One Tax
Consumption based tax instead of Manufacturing
Uniform registration, payment and Input Credit
To eliminate the cascading effect of Indirect taxes on single transaction
Subsume all indirect taxes at Centre and State Level under
Reduce tax evasion and corruption
Increase productivity
Increase Tax to GDP Ratio and revenue surplus
Increase Compliance
Reducing economic distortions

Regulatory Framework of GST

A new set up by Government of India named as GST Council.
The GST Council consists of
(a)the Union Finance Minister (as Chairman),
(b) the Union Minister of State in charge of Revenue or Finance, and
(c) the Minister in charge of Finance or Taxation or any other Minister,
nominated by each state government.
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All decisions of the GST Council will be made by three fourth majority of the votes
cast; the centre shall have one-third of the votes cast, and the states together shall
have two-third of the votes cast.

Action Plan of GST Council

List number of Taxes, cesses, and surcharges to be subsumed under GST
Preparation of list of goods and services subject to, or exempt from GST
Determination of threshold limit of turnover for application of GST
Fixation of rates
Preparation of model GST Laws, principles of levy, apportionment of tax benefits
Firming up Place of supply Rules
Recommend on Compensation to states losing on revenue post implementation of
GST, subject to maximum time limit of 5 years.

Scope of GST
All goods and services are covered under GST Regime except Alcoholic liquor for
Human Consumption,
Tobacco Products subject to levy of GST and Centre may also levy excise duty
GST Council yet to decide the incidence and levy of GST on following;
a)Crude Petroleum
b)High Speed Diesel (HSD)
c)Motor Spirit (Petrol)
d)Natural Gas
e)Aviation Turbine Fuel

Key Features of GST and Benefits of GST

The following are the key features of the proposed GST model:-
1.Dual Goods and Service Tax : CGST and SGST
2.Inter-State Transactions and the IGST Mechanism:The Centre would levy
and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of
goods and services. The IGST mechanism has been designed to ensure seamless
flow of input tax credit from one State to another. The inter-State seller would pay
IGST on the sale of his goods to the Central Government after adjusting credit of
IGST, CGST and SGST on his purchases (in that order). The exporting State will
transfer to the Centre the credit of SGST used in payment of IGST. The importing
dealer will claim credit of IGST while discharging his output tax liability (both CGST
and SGST) in his own State. The Centre will transfer to the importing State the
credit of IGST used in payment of SGST.
3.Destination-Based Consumption Tax:GST will be a destination-based tax.
This implies that all SGST collected will ordinarily accrue to the State where the
consumer of the goods or services sold resides.
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4.Computation of GST on the basis of invoice credit method: The liability
under the GST will be invoice credit method i.e. cenvat credit will be allowed on
the basis of invoice issued by the suppliers.
5.Payment of GST: The CGST and SGST are to be paid to the accounts of the
central and states respectively.
6.Goods and Services Tax Network (GSTN):A not-for-profit, Non-
Government Company called Goods and Services Tax Network (GSTN), jointly set
up by the Central and State Governments will provide shared IT infrastructure and
services to the Central and State Governments, tax payers and other stakeholders.
7.INPUT TAX CREDIT (ITC) SET OFF : ITC for CGST & SGST will be taken for
taxes allowed against central and state respectively.
8.GST on Imports : Centre will levy IGST on inter-State supply of goods and
services.Import of goods will be subject to basic customs duty and IGST.
9.Maintenance of Records : A taxpayer or exporter would have to maintain
separate details in books of account for availment, utilization or refund of Input Tax
Credit of CGST, SGST and IGST.
10.Administration of GST : Administration of GST will be the responsibility of
the GST Council , which will be the apex policy making body of the GST. Members of
GST Council comprised of the Central and State ministers in charge of the finance
portfolio.
11.Goods and Service Tax Council: The GST Council will be a joint forum of the
Centre and the States. The Council will make recommendations to the Union and
the States on important issues like tax rates, exemption list, threshold limits, etc.
One-half of the total number of Members of the Council will constitute the quorum
of GST council.

Here We are Sharing Information About GST Slabs .

The four GST slabs have been set at 5%, 12%, 18% and 28% for different items or
services. The brackets are steeper than the rates of 6, 12, 18 and 26% earlier proposed by
the government.
To keep inflation in check, essential items including food, which at present constitute
roughly half of the consumer inflation basket, will be taxed at a zero rate. The lowest rate of
5 per cent would apply to common use items.
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The peak rate of 28% will apply to luxury goods. Luxury cars, tobacco products and aerated
drinks will attract an additional cess on top of the highest tax rate.
The additional cess and a clean energy cess will create a revenue pool which will be used to
compensate states for any loss of revenue during the first five years of the implementation
of GST,
Service Tax will go up from 15% to 18 %, said Revenue Secretary Hasmukh Adhia.
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GST Slabs Pdf Download -GST Rates Structure-gst rate pdf download

Slabs Details

There Will be 0 % Tax On More than 50 Percent Consumer Price

Basket Including Food Grains.
Government of India tried to Keep Foodgrains items Out of GST Slabs

0% .
This Will play An important Role In Curbing Inflation .
Food grains will be zero-rated to insulate people from inflationary
pressures.

In this Category Tax Will be 5 Percent .

5% Most of The items In this Category are Mass Consumed like Mustard
Oil ,Spices Etc

There Will be 12 Percent Tax In this Category .

12 % Items -Processed goods

18 % There Will 18 Percent Tax In this Slab .

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Slabs Details

Items - Smartphones,Mobiles,Toothpastes,Computer,Tablets etc

Most white goods, like washing machines, air conditioners,

refrigerators, shampoo, shaving stuff and soap, will be taxed at 28
percent (with riders).
28 % The current levy varies between nil tax to 30-31 percent.
The rider has been set as there are several items which are used by
the lower middle class.

Tax between 40 percent and 65 percent will be imposed on luxury

goods like high-end cars, pan masala, aerated drinks and tobacco
28 % Plus
Cess products.
In this Category Tax Will Be High .

A decision has also been taken to levy a cess in order to raise funds to
compensate states for the revenue losses they will incur. The government
estimates Rs 50,000 crore will be needed in the first year for compensation.
"If we have to raise this by way of tax, we will need Rs 1,72,000 crore,"
Finance Minister Arun Jaitley said.

GST Rates In Different Countries- Worldwide GST Rates

Country Year of Implementation Current Rate

Canada 1991 5%
Australia 2000 10%
Switzerland 1995 8%
Singapore 1993 7%
Japan 1989 5%
India Proposed (2016-17) 18 % ( Standard)
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GST Rate Based On RNR -Four rates
Merit Rate - Essential goods And Services
Standard Rate - Goods And Services In General
Special Rate - Precious Metals
Nil Rate - Exempted goods And Services

From Which Date GST Bill be implemented in India

Development of GST Frontend and Backend for 17 States by GSTN: End
December 2016
CBECs Backend systems: End November 2016
Backend systems of 14 States: End November 2016
Backend systems of Pr. CCA, Banks, RBI & State accounting authorities: End
November 2016
Testing and integration of GST Front end and backend of all stakeholders : Jan
March 2017
Both State and Union government are Committed to Implement from 1st April 2017 .

Difference Between Present Tax Structure and GST Structure

Present Regime vs. GST Regime.

S.
Issues Present Regime GST Regime
NO
There are separate laws for
There will be only one such law because
separate levy. For e.g. Central
1. Broad scheme GST shall subsume various taxes as
Excise Act, 1944, respective
specified above.
State VAT laws.
There are separate rates. For
There will be one CGST rate and a uniform
2. Tax rates e.g. Excise 12.36 % and
rate of SGST across all states.
Service Tax 14%.
This Problem arises because This situation will not arise as CST concept
3 Cascading effect credit of CST and many other is being eliminated with introduction of
taxes not allowed. IGST.
Under this, tax burden is expected to reduce
Under present scenario, tax since all taxes are integrated which make it
4. Tax burden
burden on tax payer is high. possible the burden to be split equitably
between manufacturing and services
Due to presence of cascading
Cost Burden on As GST mechanism removes such effect by
5. effect, certain taxes become
Consumers providing credit, cost burden is reduced.
part of cost.
At present, there is no such Both Centre and State are vested with the
6 Concurrent Power power to both Centre and State power to make law on GST by virtue of
on same subject tax matter proposed Article 246A of the Constitution
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Tax compliance is complex
Tax compliance would be easier as only one
because of multiplicity of laws
7. Compliance law subsuming other taxes need to be
and their provisions to be
followed
followed.
Presently, tax is levied at two GST is to be levied only at final destination
Transparent Tax stages in broad manner i.e. 1. of consumption and not at various points.
8.
Administration When product moves out of This brings more transparency and
factory. 2. At retail outlet. corruption free tax administration.

List Of Taxes included in GST

Indirect Taxes That Will Be Included Under GST

State taxes which will be subsumed in SGST

VAT/Sales tax
Entertainment tax (unless it is levied by local bodies)
Luxury tax
Taxes on lottery, betting and gambling
State cess and surcharges to the extent related to supply of goods and services.
Entry tax not on in lieu of octroi

Central taxes which will be subsumed in CGST:

Central excise duty
Additional excise duty
The excise duty levied under The Medical and Toiletries Preparation Act
Service tax
Additional customs duty, commonly known as countervailing duty (CVD)
Special additional duty of customs (SAD)
Education cess
Surcharges
Taxes That May or May Not Be Subsumed Due To No Consensus Between The
Central And The State Governments and various other reasons
Stamp duty
Vehicle tax
Electricity duty
Other entry taxes and octroi
Entertainment tax (levied by local bodies)
Basic customs duty and safeguard duties on import of goods into India
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Impact of GST in Indian Economy
Reduce tax burden on producers and foster growth through more production. This double
taxation prevents manufacturers from producing to their optimum capacity and retards growth.
GST would take care of this problem by providing tax credit to the manufacturer.
Various tax barriers such as check posts and toll plazas lead to a lot of wastage for perishable
items being transported, a loss that translated into major costs through higher need of buffer
stocks and warehousing costs as well. A single taxation system could eliminate this roadblock
for them.
A single taxation on producers would also translate into a lower final selling price for the
consumer.
Also, there will be more transparency in the system as the customers would know exactly
how much taxes they are being charged and on what base.
GST would add to government revenues by widening the tax base.
GST provides credits for the taxes paid by producers earlier in the goods/services chain. This
would encourage these producers to buy raw material from different registered dealers and
would bring in more and more vendors and suppliers under the purview of taxation.
GST also removes the custom duties applicable on exports. Our competitiveness in foreign
markets would increase on account of lower cost of transaction.
The proposed GST regime, which will subsume most central and state-level taxes, is
expected to have a single unified list of concessions/exemptions as against the current
mammoth exemptions and concessions available across goods and services
The introduction of Goods and Services Tax would be a very noteworthy step in the field of
indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a
single tax, it would alleviate cascading or double taxation in a major way and pave the way for a
common national market. From the consumer point of view, the biggest advantage would be in
terms of reduction in the overall tax burden on goods and services. Introduction of GST would
also make Indian products competitive in the domestic and international markets. Last but not
the least, this tax, because of its transparent character, would be easier to administer. However,
once implemented, the system holds great promise in terms of sustaining growth for the Indian
economy.