Gst Msop Project - Modified v6x2y

BENEFITS  GST is most revolutionary Tax reform  GST would unite India into ‘One Country One Market’ as same tax rate would prevail all over the country

 Consumer would be the ultimate beneficiary  GST would help curb tax evasion  Removes Cascading effect  Transparency in taxation system.

BACKGROUNDS  Effective from 1st July 2017  A comprehensive Value Added Tax on Goods and Services  A destination based tax as against the present concept of origin based tax.  It is collected on value added at each stage of sale or purchase in the supply chain

 GST on supply of goods or services as against manufacture or on sale of goods or on provision of services.  Seamless input tax credit throughout the supply chain  All sectors are taxed with very few exceptions / exemptions

TAXES/DUTIES NOT TO BE SUBSUMED Taxes/ Duties not to be subsumed in CGST Basic Custom Duty (BCD) Excise duty on Tobacco products Specific cesses (As may be notified)

Taxes/ Duties not to be subsumed in SGST Taxes on Alcoholic Liquor for human consumption Toll Tax/ Road tax Property Tax Environment Tax Stamp duty on immovable property Tax on consumption / sale of electricity Entertainment tax by local bodies

TAX BURDEN ON CONSUMER : NOW & THEN.. Burden on consumer under present Indirect tax structure

Burden on consumer under proposed GST structure

Service Tax Sales Tax/ CST/VAT

CGST

Excise Duty

Entertain ment Tax

Customs

Consumer

Consumer

Luxury Tax

Octroi Entry Tax

IGST

SGST/

UTGST

Taxes/ Duties to be subsumed in GST Central Taxes/ Duties to be subsumed under CGST Central Excise Duty

State Taxes to be subsumed under SGST  State Value Added Tax

State excise duty (except on liquor)

Additional Duties of Excise  Purchase Tax Excise Duty under Medicinal & Toiletries Preparation Act

 Entertainment Tax (unless levied by the local body)

 Countervailing Duty (CVD)  Luxury Tax Special Additional Duty (SAD)  Service Tax  Surcharges & Cesses

 Entry Tax (not levied by local bodies)  Taxes on Lottery, Betting & Gambling  Surcharges & Cesses

HOW TO IDENTIFY TYPE OF APPLICABLE TAX

 In case of intra state supply –CGST and SGST  In case of interstate supply --IGST  In case of import of goods and services -IGST  Supply to SEZ -- zero rate of supply  Export --(A)zero rate of supply and eligibility of refund of credit (B) avail benefit of duty draw back

GOODS AND SERVICE TAX BUSINESS TRANSFORMATION DRIVERS OF ECONOMIC GROWTH & ITS CHALLENGES Presented by: Anjali Sampat Sweety Bajpai Shivram Mattaparthi

BENEFITS OF REGISTRATION  Legally recognized as supplier of goods or services  Proper ing of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.  on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

BUSINESS TRANSFORMATION  Main objective is to minimize the complexity of indirect taxes  GST will impact organizations and business ecosystem beyond taxation, financial planning and reporting

 Organisation to elevate the transformation from finance, ing, taxation, billing & sourcing, and look at the end-to-end business processes  To rationalize pricing across geographies and on the benefits to end-consumers  GST as a potent catalyst for competitive threat  GST is not only a tax reform, it is also a business reform as a whole

DRIVERS OF ECONOMIC GROWTH  GST can be a game-changer for the Indian economy as it would lead to simplified indirect taxes with easier compliance norms for business.

 Independent studies indicate that a full implementation of GST would lead to additional 0.9-1.7% annual growth in India’s GDP.  With the new tax regime, tax revenues are expected to rise by 0.2% while tax liabilities would come down, which can result in 20% lower logistics costs for non-bulk goods  Domestic products and services would become costeffective and contribute to 3.2-6.3% increase in exports of the Indian economy.

CHALLENGES  Initial hiccups in implementing it  Robust IT Network

 Extensive Training to Tax istration Staff  Many types of GST as compared to Global GST

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