GST- Driver for Economic Growth in India
By: – CSSANJAY MALHOTRA
Goods and Services Tax – GST
Dated:- 18-5-2015
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GST- Driver for Economic Growth in India
Reply By CS RAHUL AGARWAL as =
WONDERFUL PRESENTATION SIR. HATS OFF!!
REALLY VERY HAPPY TO KNOW ABOUT YOUR PROFILE AND MAKES ME FEEL THAT ATLEST I AM NOT THE ALONE CS IN IDT. THANKS FOR SHARING & YOUR EFFORTS.
Regards,
Dated: 23-5-2015
Reply By kailash singhal as =
dear sir ,
it is a very nice presentation and concerned gst authority should take everyday oath in their office that they will help the assessee / dealers and higher authority will make clear the clouds / doubts immediately and will issue circulars so ordinary person need not to be feeled that they are victims of new laws which had happened in the matter of Central Sales Tax Act, 1956 and thousand of cases was made for items which can be purchased against form c
regards
ca kc singhal
Dated: 24-5-201
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rms) 5
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WHY ???? GOODS AND SERVICE TAX GST introduction is to substitute the Multiple Tax structure with Single Tax structure. Change in Economic Environment (Economic Distortions) with Reduction in Transaction cost /RM/CG cost. Transaction is split into Goods & Services to provide for Taxation for each segment. GST will do away with the split off thus benefit the Industry in terms of complexity, compliance cost, etc.
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Benefits of GST – To Whom???? Industry Public / Society Professionals Retailers All Service Providers Reduce Compliance Costs Broadening Tax Base. Reduce Tax Distortions. Increase in Employment. Increase in GDP (approx US$ 15 Billion per year.
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Table
Commodity Present Tax Rates Proposed GST Rate Difference
Excise Duty VAT Total CGST SGST Total
CHEMICALS 12% 6.05% 18.05% 10% 10% 20% -1.95%
PHARMACEUTICALS 12% 6.05% 18.05% 10% 10% 20% -1.95%
SMALL PASSENGERS CARS 12% 12.50% 24.50% 10% 10% 20% 4.50%
MID SIZE CARS 24% 12.50
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make amendment in GST in relation to Inter-State transactions. Section 269A(1) allows Central Govt to levy & collect Tax on Inter State transaction & apportioned to State as defined by Parliament.
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GST Council consisting of Union FM/ Union MOR/State FM to be formed by President within 60 days from commencement of Constitution Act GST Council Formation
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Rates of GST for various Goods & Services Levy of Special rates For additional levy For natural calamities Types of Taxes to be subsumed Exempted List of Goods & Services Threshold Limit For Exemption GST Council Role of GST Council Any matter which council Feels important for GST
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Who are eligible to avail “VCES-2013” ? What is GST (Goods & Service Tax ? What are the Taxes Subsumed under GST ? GST – Single Tax Structure or Multiple Rates ???? What will be happen to Present Tax Exemptions Given by State / Centre? What types of Forms are available under GST?? Persons covered under GS
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in present regime Cost in GST Regime 1% additional tax Price of Material 100.00 100.00 100.00 Total Price 90.00 90.00 90.00 CGST 10% 9.00 9.00 9.00 Total Price with CGST 99.00 99.00 99.00 IGST / CST 4% 3.96 3.96 3.96 Total Value with Taxes 102.96 102.96 102.96 Additional Tax 1% 1.03 Less : Credit of CGST 9.00 9.00 9.00 Less : Credit of IGST 3.96 0.00 3.96 Net Cost Price 90.00 93.96 91.03
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GST vs VAT Concept of “Goods Declared of Special Importance” will have no place in GST i.e. will no longer exists. Petroleum Products will also be subject to GST but from a date to be notified. Till then the same continues to attract duty of Excise. Separate Rules for CGST & SGST. CGST will be retained by Centre and SGST by States. IGST will be levied by Centre & is sum of CGST & SGST.
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GST – Removing Tax distortions Input Tax Credit Restricted to Inputs used in the manufacture of Finished Goods. CENVAT breaks in Value chain from Input to Finished Goods. Ca
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ng CGST and SGST. IGST Cross utilisation allowed for IGST against IGST, CGST & SGST.
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Impact of GST on Exports & Imports Exports will be Exempted from all Centre & State Levies. Imports are subject to Levy of CGST & SGST. Benefit of SGST will be passed on to States where the goods are consumed as the principle of GST is destination based. Set off available for CSGST or SGST paid on Imports against the tax payable on finished goods
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GST REFUNDS WORLDWIDE REFUND worldwide in case of GST regime is processed within 14 days if submitted ONLINE and within 28 days if submitted MANUALLY. REFUND State VAT in India is processed after the filing of quarterly return / Annual Return and Time Range is 4 months – 2 years. In case of Excise / Service Tax time span is 15-90 days from claim submission.
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Compensation to States for Loss of State tax Revenues 100% Compensation to States for Loss of Tax Revenues for First 3 Years. 75% of Revenue Loss to be compensa
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another Concern area? Needs to be specified clearly as to the Tax Incidence. Dual Central GST and State GST should be calculated on the same Tax Base. List of Exempted goods under GST to be specified and items exempted under present tax structure should enjoy Exemption under GST also. Benefits available to New / Expansion Units under GST should be worked out to attract additional investment for Industrial & National Growth. Negative List of Services which are out of levy of GST should be specified. Similar Tax Treatment should exist for both Goods and Services, as differentiation leads to litigations. Common Classification of Goods and Services under both Central GST & State GST Laws . (Contd…)
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Voice of Industry in GST Model  GST Exemption in case of supplies to SEZ, EOU and deemed Exports. All forms i.e. C form, Border Forms to be done away with as is applicable under Central Excise Laws. Uniform Tax Collection & Return Filing system for Central & State GST. Si
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den. Article 366(12A) defines GST as “ Any tax on supply of goods and services or both EXCEPT taxes on supply of alcoholic liquor for human consumption .
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GST – Painless Taxation GST will distribute burden of Taxation equally between Manufacturing & Services. GST regime will have Lower Tax Rates and will broaden the Tax Base. Compliance Cost will be reduced. Increase in Exports & lower Prices for Consumers. GST introduction will have common market across nation due to removal of tax distortions.
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GOODS AND SERVICE TAX – How it Operates World Wide ???
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Industry Expectations from GST SUBSUME all taxes i.e. VAT, Purchase Tax, Mandi Tax, Rural Development fees, Octroi, Entry Tax, Stamp Duty, Electricity Duty, Cesses & Charges, Excise Duty, Customs Duty, Additional Duty of Customs, Service Tax under GST. GST Rate should range around 10 % in totality for both Central GST & State GST, if India follows Dual Model. Uniform rate of SGST acr
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