TaxTMI 
TaxTMI 
GST- Driver for Economic Growth in India
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....ST- Driver for Economic Growth in India<br>By: - CSSANJAY MALHOTRA<br>Goods and Services Tax - GST<br>Dated:- 18-5-2015<br><br>Download Power Point Presentation on: 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 ordin....
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....ary 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: 24-5-2015 ============= Document 1 --- Slide 1 --- By : SANJAY MALHOTRA Practicing Company Secretary (Indirect Tax Matters ) # 95011-76633 ([email protected]) --- Slide 2 --- Goods & Service Tax CGST Central Excise Duty. Countervailing Duty on Imports. Special Additional Duty of Customs. Service Tax. Surcharge, Education Cess & SHE Cess. Additional Excise Duty. SGST VAT CST Entry Tax Surcharges & Cesses. Out of GST Basic Custom Duty. Safeguard Duties. Tax on Lottery, Betting....
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..... Luxury /Amusements/ Entertainment Tax levied by Local Bodies. Taxes on Petroleum (temporary period) No Consensus among states on Taxes i.e. Purchase Tax / Electricity Duty / Stamp Duty/Vehicle Tax --- Slide 3 --- Why GST ????????? 1 Single Tax Structrure & do away with CST . 8 Driver for Economic Growth. (GDP to grow by 2%) Reduction in Cost of Inputs, Consumables , Capital Goods. Broaden Tax Base / Tax Compliance. Benfit to Industry, Professionals, Society. 2 3 4 Reduction in Transaction Cost. (Elimination of Forms) 5 --- Slide 4 --- 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 ....
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....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. --- Slide 5 --- 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. --- Slide 6 --- --- Slide 7 --- --- 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% 12.5....
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....0% 24.50% 10% 10% 20% 4.50% MID SIZE CARS 24% 12.50% 36.50% 10% 10% 20% 16.50% ENGINEERING GOODS 12% 12.50% 24.50% 10% 10% 20% 4.50% GST – Impact on Businesses 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% 36.50% 10% 10% 20% 16.50% ENGINEERING GOODS 12% 12.50% 24.50% 10% 10% 20% 4.50% --- Slide 8 --- GST – Governance Model Do I have to take GST Registration No or Continue with Multiple registrations as exists? Collection / Deposit of Taxes by / to....
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.... whom – SGST & CGST ? Formats for submission of returns??? Single / Multiple Invoices for CSGST / SGST? --- Slide 9 --- GST – Constitutional Amendment Section 246 A(1) insertion proposed for Constitutional Amendment to allow States to make laws in reference to State GST. Central Govt is empower to 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. --- Slide 10 --- 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 --- Slide 11 --- Rates of GST for various Goods & Services Le....
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....vy 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 --- Slide 12 --- 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 GST ???? Present Tax VS GST – Benefits ??????? Cost Optimization in Supply Chain through GST ????? Cross Utilization of Central and State GST ???? --- Slide 13 --....
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....- Additional Tax 1% - Non Vatable What is Additional Tax & Time frame for applicability of same? * Whether the same can be set off against output tax??? Additional Tax @ 1% is applicable in case of Inter state sales to compensate State for losses. Valid for 2 years & may be extended. --- Slide 14 --- --- Table --- Particulars Duty Rate Cost in GST Regime Cost 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 ....
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....Cost Price 90.00 93.96 91.03 GST- Benefits to Industry/Society Particulars Duty Rate Cost in GST Regime Cost 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 --- Slide 15 --- 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 t....
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....he 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. --- Slide 16 --- 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. Cascading Impact of Taxes. For e.g. VAT/ CST on Excise Duty. No Tax Credit for CST. --- Slide 17 --- --- Table --- SR NO COUNTRY GST / VAT RATES 1 SINGAPORE 7% 2 CHINA 17% 3 INDONESIA 10% 4 PHILLIPINES 10% 5 TAIWAN 5% 6 U.K. 17.5% 7 AUSTRALIA 10% 8 GERMANY 16% 9 SOUTHY KOREA 10% 10 SWITZERLAND 8% SR NO COUNTRY GST / VAT RATES 1 SINGAPORE 7% 2 CHINA 17% ....
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....3 INDONESIA 10% 4 PHILLIPINES 10% 5 TAIWAN 5% 6 U.K. 17.5% 7 AUSTRALIA 10% 8 GERMANY 16% 9 SOUTHY KOREA 10% 10 SWITZERLAND 8% GST /VAT RATES WORLDWIDE --- Slide 18 --- Tax Structure in GST Lower Rates for Goods of Special Importance & basic necessities of life. Standard Rates for Industrial Goods. Special Rate for precious metals. Exempted List / Negative List for exemption from CGST / SGST Single Tax Rate for Taxation of Services. --- Slide 19 --- Cross Utilisation of GST CGST – Cross Utilisation of CGST is allowed against CGST. SGST- Cross Utilisation of SGST is allowed against SGST. CGST & SGST – No Cross Utilisation allowed among CGST and SGST. IGST Cross utilisation allowed for IGST against IGST, CGST & SGST. --- Sli....
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....de 20 --- 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 --- Slide 21 --- 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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.... Slide 22 --- 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 compensated in 4 th year. 50% of Revenue Loss to States to be compensated in 5 th Year. --- Slide 23 --- GST – When & by Whom?? When was GST First Implemented & Which Country Implemented the same? 1954 FRANCE --- Slide 24 --- Voice of Industry in GST Model  Clarity in the definition of Goods and Services to avoid unwanted litigation . (Software Services) Tax Rate should be uniform across states . Central Govt. should work out mechanism for funds allocation to State Govt . Multiple Tax Rates should be avoided under GST . GST Rates should not exceed beyond 16% max....
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....imum in total for both Central & State GST thus giving industries level playing field and reduce cost for end consumer . No cascading impact of GST at any stage in supply chain. Input Tax Credit shall be available for tax paid at each stage to the subsequent buyer and further set off should be available against the GST payable . (Contd..) --- Slide 25 --- Voice of Industry in GST Model Treatment of GST in case of Branch Transfers- 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....
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.... 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…) --- Slide 26 --- 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. Single Invoice (Reduction in transaction cost) for tr....
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....ansportation of Goods and availing Input Tax Credit under Central & State GST. Cross Credit allowed between Central & State GST- needs review. SSI Limit for GST exemption should be specified which should be equal to Rs. 1.50 cr under Central GST and Rs. 10 Lacs under State GST. Refund of Input Tax under GST in case of Exports on monthly basis and direct transfer to Company Accounts. Online mechanism should be looked at . Transitional Arrangement tax treatment should be specified in case of merger, demerger, change in name of company, etc ... --- Slide 27 --- . Thanks --- Slide 28 --- Multiple Taxes – Any Solution??? Wait..... GST will Take away your Tax worries. . --- Slide 29 --- GOODS AND SERVICE TAX GST is a Tax on Goods &....
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.... Services at each stage on Value addition with the facility of Input Credit availability for set off afterwards. GST Chains commences from Manufacture of Goods and ends at final Consumer of Goods who bears the Tax Burden. 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 . --- Slide 30 --- 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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....--- Slide 31 --- GOODS AND SERVICE TAX – How it Operates World Wide ??? --- Slide 32 --- 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 across states. --- Slide 33 --- Contributions of FM’s in GST<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....