TaxTMI 
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TaxTMI 
GST - Understanding Goods and Services Tax (Short Presentation)
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....ST - Understanding Goods and Services Tax (Short Presentation) <br>GST<br>Dated:- 7-4-2017<br><BR>GST - Understanding Goods and Services Tax (Short Presentation) ============= Document 1 जीà¤à¤¸à¤Ÿà¥€ राषà¥à¤Ÿà¥à¤° कर बाजार GST GOODS AND SERVICES TAX Understanding Goods and Services Tax • Agenda â–¡ Journey so far â–¡ Design of GST â–¡ Main features of GST Law ☠Administration and IT Network Benefits of GST and Way Forward GST NATION TAX MARKET 1 The Journey so far Constitution (122nd Amendment) Bill (CAB) introduced in Lok Sabha Constitution (115th Amendment) Bill introduced Announcement 2011 to introd....
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....uce GST by 2010 2006 2009 2014 2013 Aug 2016 NATION TAX GST MARKET Mar 2017 12 GST Council Meetings CGST, SGST, UTGST, IGST, Compensation Cess Bills recommended Constitution Amendment Bill passed Three committees constituted by EC and GSTN set up First Discussion Paper (FDP) released by EC 2 The Effort and Work Done 10 Years... In Making GST NATION TAX MARKET 30 + 31000 + Industry 18000+ Man Hours of Sub-Groups & professionals discussion by Committees trained GST Council 14 Constitution 175 + 51000+ Empowered Amendment Officers Officers Committee Meetings and 5 Laws Meetings trained approved by collaborative effort 3 Existing Indirect Tax Structure in India Central Taxes Central Ex....
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....cise duty Additional duties of excise Excise duty levied under Medicinal & Toiletries Preparation Act • Additional duties of customs (CVD & SAD) Service Tax Surcharges & Cesses State Taxes State VAT / Sales Tax Central Sales Tax Purchase Tax Entertainment Tax (other than those levied by local bodies) Luxury Tax Entry Tax (All forms) Taxes on lottery, betting & gambling Surcharges & Cesses GST NATION TAX MARKET GST Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre to tax sale of goods and States to tax provision of services) 4 Understanding CGST, SGST, UTGST & IGST CGST Foreign Territory IGST CGST + UTGST IGST State 1 IGST + SGST IGST State 2 GST NATI....
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....ON TAX MARKET CGST + SGST Union territory IGST Credit can be used for payment of IGST, CGST, SGST / UTGST in that order 5 Ñл Features of Constitution Amendment Act GST NATION TAX MARKET â– Concurrent jurisdiction for levy & collection of GST by the Centre (CGST) and the States (SGST) â–¡ Centre to levy and collect IGST on supplies in the course of inter-State trade or commerce including imports â–¡ Compensation for loss of revenue to States for five years â–¡ GST on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas & aviation turbine fuel to be levied from a later date on recommendations of Council 6 GST Council - Constitution GST NATION TAX MARKET ....
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.... Consists of Finance Minister, the MOS (Finance) and the Minister of Finance / Taxation of each State Chairperson Union FM - â– Vice Chairperson - to be chosen amongst the Ministers of State Government Quorum is 50% of total members Decision by 75% majority â– Council to make recommendations on everything related to GST including laws, rules and rates etc. 7 GST Council - Decisions (1/2) GST NATION TAX MARKET Threshold limit for exemption to be Rs. 20 lac (Rs. 10 lac for special category States) â–¡ Compounding threshold limit to be Rs. 50 lac - not available to inter-State suppliers, service providers (except restaurant service) & specified category of manufacturers â–¡ Government may convert exemp....
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....tion scheme convert existing Area based schemes into reimbursement ☠Four tax rates namely 5%, 12%, 18% and 28% □ Some goods and services would be exempt □ Separate tax rate for precious metals based. 8 GST Council - Decisions (2/2) GST NATION TAX MARKET ☠Cess over the peak rate of 28% on specified luxury and sin goods - □ To ensure single interface all administrative control over ■90% of taxpayers having turnover below Rs. 1.5 cr would vest with State tax administration ■10% of taxpayers having turnover below of Rs. 1.5 cr. would vest with Central tax administration ■taxpayers having turnover above Rs. 1.5 cr. would be divided equally between Central and State tax ....
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....administration 9 Compensation Mechanism for States GST NATION TAX MARKET Compensation = (State's Revenue for FY 2015-16)* 14%* -State's Revenue (for x year) Revenue of all taxes subsumed in GST by the State for 2015 – 16 as the base - Assumption of 14% Annual Growth Rate Compensation to be provided through Cess Cess only on few specified luxury and sin goods 10 Main Features of the GST Act (1/4) □ GST to be levied on supply of goods or services ☠All transactions and GST NATION TAX MARKET processes only through electronic mode - Non-intrusive administration □ PAN Based Registration ☠Registration only if turnover more than Rs. 20 lac Option of Voluntary Registration Deemed Registratio....
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....n in three days □ Input Tax Credit available on taxes paid on all procurements (except few specified items) 11 Main Features of the GST Act (2/4) GST NATION TAX MARKET ☠Credit available to recipient only if invoice is - matched – Helps fight huge evasion of taxes ☠Set of auto-populated Monthly returns and Annual Return □ Composition taxpayers to file Quarterly returns □ Automatic generation of returns □ GST Practitioners for assisting filing of returns □ GSTN and GST Suvidha Providers (GSPs) to provide technology based assistance 12 Main Features of the GST Act (3/4) Separate electronic ledgers for cash and credit GST NATION TAX MARKET □ Tax can be deposited by....
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.... internet banking, NEFT / RTGS, Debit/credit card and over the counter □ Cross utilization of IGST Credit first as IGST and then as CGST or SGST /UTGST ☠Concept of TDS for Government Departments Concept of TCS for E-Commerce Companies ☠Refund to be granted within 60 days □ Provisional release of 90% refund to exporters within 7 days 13 Main Features of the GST Act (4/4) GST NATION TAX MARKET □ Interest payable if refund not sanctioned in time Refund to be directly credited to bank accounts □ Comprehensive transitional provisions for smooth transition of existing tax payers to GST regime ☠Special procedures for job work System of GST Compliance Rating □ Anti-Profiteering pr....
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....ovision 14 Appeals and Revision under GST Proposed Structure of Appellate Tribunal First Appellate Authority or Revisional Authority All Disputes except Place of Supply Disputes GST NATION TAX MARKET Place of supply Disputes One Appellate Tribunal State President State Bench or Area Benches President National Bench or Regional Bench High Court Supreme Court 15 GST Network (GSTN) GST NATION TAX MARKET ☠A section 25 private limited company with Strategic Control with the Government ☠To function as a Common Pass-through portal for taxpayers- submit registration application ☠file returns make tax payments ☠To develop back end modules for 25 States (MODEL -II) □ Infosys appointed ....
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....as Managed Service Provider (MSP) □ 34 GST Suvidha Providers (GSPs) appointed 17 16 Role of CBEC GST NATION TAX MARKET ☠Role in Policy making: Drafting of GST Law, Rules & Procedures - CGST, UTGST & IGST Law ☠Assessment, Audit, Anti-evasion & enforcement under CGST & IGST Law □ Levy & collection of Central Excise duty on products outside GST - Petroleum Products & Tobacco Levy & collection of Customs duties □ Developing linkages of CBEC - GST System with GSTN ☠Training of officials of both Centre & States ☠Outreach programs for Trade and Industry 18 17 Benefits of GST Overall reduction in Prices for Consumers 1 GST NATION TAX MARKET 2 Reduction in Multiplicity of Taxes, C....
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....ascading and Double Taxation 3 4 Uniform Rate of Tax and Common National Market Broader Tax Base and decrease in "Black" transactions 5 Free Flow of Goods and Services - No Checkpoints 6 Non-Intrusive Electronic Tax Compliance System 18 Way Forward GST NATION TAX MARKET □ Passage of CGST, UTGST, IGST & Compensation Law by Parliament and passing of SGST laws by State Legislatures ☠GST Council to fit tax rates to various categories of Goods or Services ☠Rules relating to registration, returns, valuation, transitional, Input Credit etc. to be finalized □ Migration and handholding of existing tax payers ☠Outreach program for trade and industry Change Management 19 Thank You The following ....
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....material is available on www.cbec.gov.in • Presentation on GST • GST - Concept & Status • FAQs on GST in English and ten regional languages • Model GST Law • Draft Rules & Formats • Constitutional Amendment Act<BR> News - Press release - PIB....