Presentation for GST Conclave/Workshop
GST
Dated:- 25-4-2017
Presentation for GST Conclave/Workshop
=============
Document 1
Understanding Goods and Services Tax
Agenda
Design of GST
Main features of GST Law
Administration and IT Network
Benefits of GST and Way Forward
1
The Effort and Work Done
10 Years…
In Making
14 EC Meetings in 10 years and 13 GSTC Meetings in 6 months
30 +
Sub-Groups & Committees
175 + Officers Meetings
2
18000 +
Man Hours of discussion by GST Council
Constitution Amendment and 5 Laws approved by collaborative effort
Existing Indirect Tax Structure in India
Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre to tax sale of goods and States to tax provision of services)
3
Central Excise duty
Additional duties of excise
Excise duty levied under Medicinal & Toilet Preparation Act
Additional duties of customs (CVD & SAD)
Service Tax
Surcharges & Cesses
State VAT / Sales Tax
Cen
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
sters of Finance / Taxation of each State
Quorum is 50% of total members
States – 2/3 weightage and Centre – 1/3 weightage
Decision by 75% majority
Council to make recommendations on everything related to GST including laws, rules and rates etc.
6
GST Council – Decisions
(1/2)
Threshold limit for exemption to be Rs. 20 lac (Rs. 10 lac for special category States)
Compounding threshold limit to be
Rs
. 50 lac
with –
Government may convert existing Area based exemption schemes into reimbursement based scheme
Four tax rates namely 5%, 12%, 18% and 28%
Some goods and services would be exempt
Separate tax rate for precious metals
7
Cess over the peak rate of 28% on specified luxury and sin goods
To ensure single interface – all administrative control over
90% of taxpayers having turnover below Rs. 1.5
cr
would vest with State tax administration
10% of taxpayers having turnover below of Rs. 1.5 cr. would vest with Central tax administration
taxpayers having tur
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ns
Automatic generation of returns
GST Practitioners for assisting filing of returns
GSTN and GST Suvidha Providers (GSPs) to provide technology based assistance
11
Main Features of the GST Act
(3/4)
Tax can be deposited by internet banking, NEFT / RTGS, Debit/ credit card and over the counter
Concept of TDS for certain specified categories
Concept of TCS for E-Commerce Companies
Refund to be granted within 60 days
Provisional release of 90% refund to exporters within 7 days
12
Main Features of the GST Act
(4/4)
Interest payable if refund not sanctioned in time
Refund to be directly credited to bank accounts
Comprehensive transitional provisions for smooth transition of existing tax payers
to GST regime
Special procedures for job work
System of GST Compliance Rating
Anti-Profiteering provision
13
GST Network (GSTN)
A section 25 private limited company with Strategic Control with the Government
To function as a Common Pass-through portal for taxpayers-
submit r
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Inflation
Ease of Doing Business
Decrease in “Black” Transactions
Benefits of GST (
2/2
)
7
8
9
10
Simplified Tax Regime
Reduction in Multiplicity of Taxes
Consumption Based Tax
Abolition of CST
18
More informed consumer
Poorer States
to Gain
Make in India
11
Exports to be Zero Rated
12
Protection of Domestic Industry – IGST
Way Forward
SGST law to be passed by the State Legislatures
GST Council to fit tax rates to various categories of Goods or Services
Sector Wise guidance notes to be prepared
Migration and handholding of existing tax payers
Outreach program for trade and industry
Change Management
19
Thank You
The following material is available on
www. cbec.gov.in
Presentation on GST
GST – Concept & Status
FAQs on GST in Hindi and English
CGST, UTGST, IGST & Compensation Acts
Draft 14 Rules
Constitutional Amendment Act
Rs. 132
32%
Rs. 100
Rs. 128
Rs. 100
Cost of production of goods is Rs. 100
Cumulative taxes of 32%
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =