GOODS AND SERVICE TAX

(GST)

PRESENTED BY :
 GOODS AND SERVICE TAX (GST)

 GST is a comprehensive tax mechanism where in all

major indirect taxes are clubbed into one. (whether
they are levied on services (service tax) or goods
(excise or vat))
 Goods and service tax is a Value added tax (VAT)
which is collected on sale or purchase in the supply
chain.
MODEL OF GST
GST STRUCTURE

STATE GST INTEGRATED GST

CENTRE GST

GST TO BE LEVIED BY
GST TO BE LEVIED BY GST TO BE LEVIED BY
THE CENTRAL
THE STATE THE CENTRE
GOVERNMENT IN
GOVERNMENT. GOVERNMENT.
PLACE OF CST.

LOCATION OF THE
CHARGABLE ONLY
SUPPLIER AND THE
WHEN THE SUPPLIER UNLIKE CST CREDIT
RECEPIENT WITHIN IGST = CGST + SGST
AND THE RECEPIENT OF IGST SHALL BE
THE COUNTRY IS
ARE BOTH LOCATED AVAILABLE
IMMATERIAL FOR THE
WITHIN THE STATE.
PURPOSE OF CGST
INDIRECT TAXES INCLUDED IN GST

Excise duty On manufacture

On
Customs duty
import/export
CENTRAL GST
On provision of
Service tax
services

GST On interstate
Central sales tax
sale

On sales of good
Value added tax
within the states
STATE GST
Entry Tax/Local On movement of
Body Taxes goods/transfer
BENEFITS OF GST
 1) Overall reduction in Prices for Consumers
 2) Reduction in Multiplicity of Taxes, Cascading
and Double Taxation
 3) Uniform Rate of Tax and Common National
Market
 4) Broader Tax Base and decrease in “Black”
transactions
 5) Free Flow of Goods and Services – No
Checkpoints
 6 Non-Intrusive Electronic Tax Compliance
System
NEEDS FOR GST
 TAX SYSTEM SHOULD BE :
1)Simple
2)Conducive
3)Fair
4)Representative
 GST is very important in the emerging
economic development.
 It gives full credit for input taxes collected.
 It helps in removing economic distortions.
 GST will help in development of common
national market.
 COMMODITIES NOT INCLUDED IN
GST: 1. ALCHOL PRODUCTS
2. PETROLEUM PRODUCTS
3. TOBACCO PRODUCTS
 TAXES NOT INCLUDED IN GST:
1.STAMP DUTY
2. PROPERTY TAX
3.TOLL TAX
4. PROPERTY TAX