GST – Understanding Goods and Services Tax (Short Presentation)
GST
Dated:- 7-4-2017
GST – Understanding Goods and Services Tax (Short Presentation)
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Document 1
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कर
बाजार
GST
GOODS AND SERVICES TAX
Understanding Goods and Services Tax
•
Agenda
â–¡ Journey so far
â–¡ Design of GST
â–¡ Main features of GST Law
☠Administration and IT Network
Benefits of GST and Way Forward
GST
NATION
TAX
MARKET
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The Journey so far
Constitution (122nd Amendment) Bill (CAB)
introduced in Lok Sabha
Constitution (115th
Amendment) Bill introduced
Announcement
2011
to introduce GST
by 2010
2006
2009
2014
2013
Aug
2016
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Mar 2017
12 GST Council
Meetings
CGST, SGST,
UTGST, IGST,
Compensation
Cess Bills
recommended
Constitution Amendment
Bill passed
Three committees constituted by
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o both Centre & States to
levy GST (Centre to tax sale of goods and States to tax provision of services)
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Understanding CGST, SGST, UTGST & IGST
CGST
Foreign Territory
IGST
CGST
+
UTGST
IGST
State 1
IGST
+
SGST
IGST
State 2
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CGST
+
SGST
Union territory
IGST Credit can be used for payment of IGST, CGST, SGST / UTGST in that order
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Features of Constitution Amendment Act
GST
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â– Concurrent jurisdiction for levy & collection of GST by
the Centre (CGST) and the States (SGST)
â–¡ Centre to levy and collect IGST on supplies in the
course of inter-State trade or commerce including
imports
â–¡ Compensation for loss of revenue to States for five
years
â–¡ GST on petroleum crude, high speed diesel, motor
spirit (commonly known as petrol), natural gas &
aviation turbine fuel to be levied from a later date on
recommendations of Council
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GST Council – Constitution
GST
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ions (2/2)
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☠Cess over the peak rate of 28% on specified luxury
and sin goods
–
â–¡ To ensure single interface all administrative
control over
â– 90% of taxpayers having turnover below Rs. 1.5 cr
would vest with State tax administration
â– 10% of taxpayers having turnover below of Rs. 1.5
cr. would vest with Central tax administration
â– taxpayers having turnover above Rs. 1.5 cr. would
be divided equally between Central and State tax
administration
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Compensation Mechanism for States
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Compensation = (State's Revenue for FY 2015-16)*
14%* -State's Revenue (for x year)
Revenue of all taxes subsumed in GST by the
State for 2015 – 16 as the base
–
Assumption of 14% Annual Growth Rate
Compensation to be provided through Cess
Cess only on few specified luxury and sin goods
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Main Features of the GST Act (1/4)
â–¡ GST to be levied on supply of goods or services
☠All transact
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y internet banking, NEFT / RTGS,
Debit/credit card and over the counter
â–¡ Cross utilization of IGST Credit first as IGST and then as
CGST or SGST /UTGST
☠Concept of TDS for Government Departments
Concept of TCS for E-Commerce Companies
☠Refund to be granted within 60 days
â–¡ Provisional release of 90% refund to exporters within 7
days
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Main Features of the GST Act (4/4)
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â–¡ Interest payable if refund not sanctioned in time
Refund to be directly credited to bank accounts
â–¡ Comprehensive transitional provisions for smooth
transition of existing tax payers to GST regime
☠Special procedures for job work
System of GST Compliance Rating
â–¡ Anti-Profiteering provision
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Appeals and Revision under GST
Proposed Structure of Appellate Tribunal
First Appellate Authority or
Revisional Authority
All Disputes except
Place of Supply
Disputes
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Place of supply
Disputes
One Appel
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with GSTN
☠Training of officials of both Centre & States
☠Outreach programs for Trade and Industry
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Benefits of GST
Overall reduction in Prices for Consumers
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2 Reduction in Multiplicity of Taxes, Cascading and Double Taxation
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Uniform Rate of Tax and Common National Market
Broader Tax Base and decrease in “Black” transactions
5 Free Flow of Goods and Services – No Checkpoints
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Non-Intrusive Electronic Tax Compliance System
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Way Forward
GST
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â–¡ Passage of CGST, UTGST, IGST & Compensation Law by
Parliament and passing of SGST laws by State
Legislatures
☠GST Council to fit tax rates to various categories of
Goods or Services
â˜
Rules relating to registration, returns, valuation,
transitional, Input Credit etc. to be finalized
â–¡ Migration and handholding of existing tax payers
☠Outreach program for trade and industry
Change Management
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Thank You
The following
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