PRESENTATION PLAN – GOODS & SERVICES TAX (GST)
GST
Dated:- 26-9-2016
=============
\nDocument 1
\nGOODS &
\nSERVICES TAX
\n(GST)
\n1
\nPRESENTATION PLAN
\nWHY GST: PERCEIVED BENEFITS
\n\u00e2\u0153\u00b0 EXISTING INDIRECT TAX STRUCTURE
\n\u00e2\u009d\u2013 FEATURES OF CONSTITUTION AMENDMENT BILL
\n* FEATURES OF PROPOSED GST MODEL
\n* FEATURES OF DRAFT GST LAW
\n\u00e2\u0153\u00b0 GSTN
\n* ROLE OF CBEC
\n\u00e2\u0153\u00b0 WAY FORWARD
\n2
\nWHY GST?
\nPERCEIVED
\nBENEFITS
\n3
\nWHY GST: PERCEIVED BENEFITS
\nTo Trade
\n\u00e2\u02dc\u0090 Reduction in multiplicity of
\ntaxes
\n\u00e2\u02dc\u0090 Mitigation of cascading\/
\ndouble taxation
\n\u00e2\u2013\u00a1 More efficient
\nneutralization of taxes
\nespecially for exports
\n\u00e2\u02dc\u0090 Development of common
\nnational market
\n\u00e2\u2013\u00a1 Simpler tax regime
\n\u00e2\u2013\u00aa
\nFewer rates and
\nexemptions
\nDistinction between Goods
\n& Services no loner
\nrequired
\n* To Consumers
\n\u00e2\u02dc\u0090 Simpler Tax system
\n\u00e2\u02dc\u0090 Reduction in prices of
\ngoods & services due
\nto elimination of
\ncascading of taxes
\n\u00e2\u2013\u00a1 Uniform prices
\nthroughout the country
\n\u00e2\u2013\u00a1 Trans<\/p>\n
= = = = = = = =<\/p>\n
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For full text:-Visit the Source <\/a><\/p>\n
\nrecommendation of GSTC – Clause 19
\n\u00e2\u02dc\u0090 GST defined as any tax on supply of goods or services or both
\nother than on alcohol for human consumption – Article 366
\n(12A)
\n\u00e2\u2013\u00a1 Goods includes all materials, commodities & articles – Article
\n366 (12)
\n\u00e2\u02dc\u0090 Services means anything other than goods – Article 366 (26A)
\n\u00e2\u2013\u00a1 GST on petroleum crude, high speed diesel, motor spirit
\n(commonly known as petrol), natural gas & aviation turbine
\nfuel to be levied from a later date on recommendations of
\nGSTC
\n9
\n10
\n10
\n…FEATURES OF CAB…
\n* Key Features contd.
\n\u00e2\u02dc\u0090 GSTC – Article 279A
\nTo be constituted by the President within 60 days from the
\ncoming into force of the Constitution Amendment
\nConsists of Union FM & Union MOS (Rev)
\nConsists of Ministers in charge of Finance \/ Taxation of
\neach State
\nChairperson Union FM
\n–
\nVice Chairperson
\nState Government
\n–
\nto be chosen amongst the Ministers of
\nQuorum is 50%<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n\u00e2\u02dc\u0090 Central GST (CGST) levied & collected by Centre
\nState GST (SGST) levied & collected by States
\nCGST & SGST on intra-State supplies of goods \/ services
\nin India
\n13
\n\u00e2\u02dc\u2018
\n….GST – FEATURES….
\nIGST levied & collected by the Centre applicable to
\nInter-State supplies of goods \/ services in India
\nInter-state stock transfers of goods
\nImport of goods \/ services
\nExport of goods \/ services (if made on payment of GST under
\nclaim of rebate)
\n\u00e2\u0153\u00b0 Export of goods \/ services \u2013 Zero rated
\n–
\nAll goods or services likely to be covered under GST except:
\nAlcohol for human consumption – State Excise + VAT
\nElectricity – Electricity Duty
\nSale \/ purchase of Real Estate – Stamp Duty + Property Taxes
\n–
\nFive specified petroleum Products \u2013 to be brought under GST
\nfrom a later date on recommendation of GSTC
\nTobacco Products \u2013 under GST + Central Excise
\n–
\n14
\nSurcharge
\n& Cesses
\nService
\nTax
\n….GST – FEATURES….
\nCentral
\nExcise
\nduty\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nITC
\nCGST
\nSGST
\nIGST
\nCGST IGST SGST IGST IGST CGST
\nSGST
\n17
\nFEATURES OF
\nDRAFT GST LAW
\n(MGL)
\n18
\n\u00dc\u20ac
\n\u00dc\u20ac
\n\u00dc\u20ac
\nFEATURES OF MGL…
\n\u00e2\u02dc\u0090
\n\u00e2\u02dc\u0090
\nTax on supply of goods or services rather than manufacture \/
\nproduction of goods, provision of services or sale of goods
\nPowers to declare certain supplies as supply of goods or of
\nservices or of neither – Schedule II
\nOn Intra-State supplies of goods and\/ or services – CGST & SGST
\nshall be levied by the Central and State Government respectively,
\nat the rate to be prescribed
\nOn Inter-State supplies of goods and\/ or services – IGST shall be
\nlevied by the Central Government, at the rate to be prescribed
\nElaborate Rules provided for determining the place of supply
\nIntra-State supply of goods and\/or services – where the location of
\nthe supplier and the place of supply are in the same State
\nInter-State supply of goods and\/or services – where the location of
\nthe supplier and the place of supply are in diffe<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\npurposes)
\nNegative list approach for non-allowance of ITC
\nITC of tax paid on goods and \/ or services used for making
\ntaxable supplies by a taxable person allowed subject to four
\nconditions:
\npossession of invoice;
\nreceipt of goods or services;
\ntax actually paid by supplier to government;
\nfurnishing of return
\nFull ITC allowed on capital goods in one go
\n21
\n\u00dc\u20ac
\n\u00dc\u20ac
\n\u00dc\u20ac
\n\u00dc\u20ac
\n*
\n\u00dc\u20ac
\n\u00dc\u20ac
\n….FEATURES OF MGL….
\nProportionate credits allowed in case inputs, inputs services
\nand capital goods are used for business and non-business
\npurposes
\nProportionate credits allowed in case inputs, inputs services
\nand capital goods are used for taxable and non-taxable
\nsupplies
\nITC cannot be availed on invoices more than one year old
\nITC available only on provisional basis for a period of two
\nmonths until payment of tax and filing of valid return by the
\nsupplier
\nMatching of supplier's and recipient's invoice details
\nITC to be confirmed only after matching of such inf<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ncancellation by the tax authorities
\nNormal taxpayers, compositions taxpayers, Casual
\ntaxpayers, non-resident taxpayers, TDS Deductors, Input
\nservice Distributors (ISDs) to file separate electronic returns
\nwith different cut-off dates
\nAnnual return to be filed by 31st December of the following
\nFinancial Year along with a reconciliation statement
\nShort-filed returns not to be treated as a valid return for
\nmatching & allowing ITC and fund transfer between Centre
\nand States
\n24
\n….FEATURES OF MGL….
\nSystem of electronic cash ledger and electronic ITC ledger
\nTax can be deposited by internet banking, NEFT \/ RTGS,
\ndebit\/credit card and Over The Counter
\nDate of credit to the Govt. account in the authorized bank is
\nthe date of payment for credit in electronic cash ledger
\nPayment of Tax is made by way of the debit in the electronic
\ncash or credit ledger
\nHierarchy for discharging payments of various tax liabilities
\nProvision for TDS on certain entities
\nE-Commerce <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n\u00e2\u02dc\u0090
\nSelf-assessment of tax
\nProvisions for assessment of non-filers, unregistered persons &
\nsummary assessments in certain cases
\nProvision made for provisional assessment on request of taxable
\nperson to be finalized in six months
\n–
\nAudit can be conducted at the place of business of the taxable
\nperson or at the office of the tax authorities, after prior intimation to
\ntaxable person
\nAudit to be completed within 3 months, extendable by a further
\nperiod of 6 months
\nOn conclusion of audit, the taxable person to be informed about
\nfindings, his rights and obligations and reasons for the findings
\nAdjudication order to be issued within 3\/5 years of filing of annual
\nreturn in normal cases & fraud \/ suppression cases respectively
\n27
\n\u00dc\u20ac
\n…FEATURES OF MGL
\nNo separate time lines for issue of SCN and adjudication order
\nTaxable person can settle at any stage, right from audit\/investigation to
\nthe stage of passing of adjudication order and even thereafter
\nOfficers to have<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nRole in Policy making: Drafting of GST Law, Rules &
\nProcedures – CGST & IGST Law
\nAssessment, Audit, Anti-evasion & enforcement under
\nCGST & IGST Law
\nLevy & collection of Central Excise duty on products
\noutside GST – Petroleum Products & Tobacco
\nLevy & collection of Customs duties
\n* Evolving a joint Dispute resolution mechanism
\n* Developing linkages of CBEC-GST System with GSTN
\n\u00e2\u009d\u2013 Training of officials of both Centre & States
\n32
\nWAY FORWARD
\n33
\nWAY FORWARD….
\n* Constitution (101st) Amendment Act already notified on
\n\u00dc\u20ac
\n\u00dc\u20ac
\n*
\n*
\n08.09.2016
\nGST Council already notified wef 12.09.2016
\nRecommendation of Model GST laws by GST Council
\nCabinet Approval for the CGST and IGST laws by Centre
\nand for SGST laws by all states
\nPassage of CGST and IGST laws by Parliament and
\npassage of SGST laws by all State legislatures
\nNotification of GST Rules
\nEstablishment of IT framework
\n34
\n….WAY FORWARD
\n* Meeting implementation challenges
\n* Effective coordination bet<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n