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Goods � and �Service Tax

Joseph K.A.

Training Associate-Economics

KVS-ZIET, Gwalior

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�GST –Introduction�

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption.
The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.
GST is for One Nation- One Tax System
GST is an Indirect Tax which has replaced many Indirect Taxes in India.

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GST- Continued….

The Goods and Service Tax Act was passed in the Parliament on 29th March 2017.
The Act came into effect on 1st July 2017
Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
It is collected from the point of Cunsumers.
In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services.
GST is one indirect tax for the entire country.
One Nation, One Tax.

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Decision Making on GST

1. GST is governed by the GST Council, which includes the Union and State Finance Ministers.

2. Present Chairperson- Mrs. Nirmala Sitaraman.

3. Present Convener of GST Council- Shri. Sushil Kumar Modi, Dy. CM of Bihar.

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GST Council

Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.
The GST Council is chaired by the Union Finance Minister, and other members are the Union State Minister of Revenue or Finance, and Ministers in-charge of Finance or Taxation of all the States.

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Additional Points- GST Rates

1. Only 0.25% GST on rough precious stones.
2. Only 3% GST on Gold.
3. Cess of 22% on top of 28% GST applies on selected items like aerated drinks, luxury cars and tobacco products.

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Excepted Items from GST

1. Petroleum Products
2. Alcoholic Drinks
3. Electricity

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How GST is Levied?��GST is levied on the value additions i.e. the monetary value added at each stage to achieve the final sale to the end customer�

�

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Advantages of GST

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Advantages of GST….�

1- GST has mainly removed the Cascading effect on the sale of goods and services. That is GST regime eliminates the tax on tax.
2- The cost of goods decreases.
3- GST is also mainly technologically driven. All activities like registration, return filing, application for refund and response to notice needs to be done online on the GST Portal; this accelerates the processes.

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Components of GST

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Components of GST…..

CGST: Collected by the Central Government on an intra-state sale. SGST: Collected by the State (including Delhi and Pondicherry) Government on an intra-state sale.
UTGST: Collected by UTs not having Legislatures.
IGST: Collected by the Central Government for inter-state sale.

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Important Questions

1. Explain the concept of GST.

2. Which are the different slabs of

GST?

3. Write a note on GST Council.

4. When did GST come into effect?

5. Who is the present Convener of

GST Council?

6. Explain the advantages and

disadvantages of GST.

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Thank You

Good Luck