TaxTMI 
TaxTMI 
TaxTMI 
Presentation for GST Conclave/Workshop
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....resentation for GST Conclave/Workshop <br>GST<br>Dated:- 25-4-2017<br><BR>Presentation for GST Conclave/Workshop ============= Document 1 Understanding Goods and Services Tax Agenda Design of GST Main features of GST Law Administration and IT Network Benefits of GST and Way Forward 1 The Effort and Work Done 10 Years… In Making 14 EC Meetings in 10 years and 13 GSTC Meetings in 6 months 30 + Sub-Groups & Committees 175 + Officers Meetings 2 18000 + Man Hours of discussion by GST Council Constitution Amendment and 5 Laws approved by collaborative effort Existing Indirect Tax Structure in India Constitution amended to provide concurrent powers to both Centre & States to levy GST (Centre to tax sale of goods and State....
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....s to tax provision of services) 3 Central Excise duty Additional duties of excise Excise duty levied under Medicinal & Toilet Preparation Act Additional duties of customs (CVD & SAD) Service Tax Surcharges & Cesses 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 Central Taxes State Taxes GST Understanding CGST, SGST, UTGST & IGST Foreign Territory State 1 Union territory without legislature State 2 IGST CGST + SGST IGST IGST IGST CGST + SGST CGST + UTGST 4 Features of Constitution Amendment Act 5 Alcohol for human consumption Power to tax remains w....
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....ith the State Five petroleum products – crude oil , diesel, petrol, natural gas and ATF GST Council to decide the date from which GST will be applicable Tobacco Part of GST but power to levy additional excise duty with Central Government Entertainment tax levied by local bodies Power to tax remains with the State GST Council - Constitution Chairperson – Union FM Vice Chairperson - to be chosen amongst the Ministers of State Government Members - MOS (Finance) and all Ministers of Finance / Taxation of each State Quorum is 50% of total members States - 2/3 weightage and Centre - 1/3 weightage Decision by 75% majority Council to make recommendations on everything related to GST including laws, rules and rates etc. ....
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....6 GST Council - Decisions (1/2) Threshold limit for exemption to be Rs. 20 lac (Rs. 10 lac for special category States) Compounding threshold limit to be Rs . 50 lac with - Government may convert existing Area based exemption schemes into reimbursement based scheme Four tax rates namely 5%, 12%, 18% and 28% Some goods and services would be exempt Separate tax rate for precious metals 7 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 turn....
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....over above Rs. 1.5 cr. would be divided equally between Central and State tax administration GST Council - Decisions (2/2) 8 Compensation Mechanism for States 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 demerit goods 9 Main Features of the GST Act (1/4) All transactions and 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 Registration in three working days Input Tax Credit available on taxes paid on all procurements (except few specified ite....
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....ms) 10 Main Features of the GST Act (2/4) 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 11 Main Features of the GST Act (3/4) Tax can be deposited by internet banking, NEFT / RTGS, Debit/ credit card and over the counter Concept of TDS for certain specified categories Concept of TCS for E-Commerce Companies Refund to be granted within 60 days Provisional release of 90% refund to exporters within 7 days 12 Main ....
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....Features of the GST Act (4/4) 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 provision 13 GST Network (GSTN) 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 as Managed Service Provider (MSP) 34 GST Suvidha Providers (GSPs) appointed 14 Return Process (Example : Ret....
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....urn for July 2017) 15 Role of CBEC (Now CBIC) Role in Policy making: Drafting of GST Law, Rules & Procedures – CGST, UTGST & IGST Law Assessment, Audit, Anti-evasion & enforcement under CGST, UTGST & 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 16 Benefits of GST ( 1/2 ) 1 2 3 4 5 Overall Reduction in Prices Reduction in Cascading of Taxes Common National Market Benefits to Small Taxpayers Self-Regulating Tax System 6 Non-Intrusive Electronic Tax System 17 Decrease in ....
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....Inflation Ease of Doing Business Decrease in “Black†Transactions Benefits of GST ( 2/2 ) 7 8 9 10 Simplified Tax Regime Reduction in Multiplicity of Taxes Consumption Based Tax Abolition of CST 18 More informed consumer Poorer States to Gain Make in India 11 Exports to be Zero Rated 12 Protection of Domestic Industry - IGST Way Forward SGST law to be passed by the State Legislatures GST Council to fit tax rates to various categories of Goods or Services Sector Wise guidance notes to be prepared Migration and handholding of existing tax payers Outreach program for trade and industry Change Management 19 Thank You The following material is available on www. cbec.gov.in Presentation on GST GST â....
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....€“ Concept & Status FAQs on GST in Hindi and English CGST, UTGST, IGST & Compensation Acts Draft 14 Rules Constitutional Amendment Act Rs. 132 32% Rs. 100 Rs. 128 Rs. 100 Cost of production of goods is Rs. 100 Cumulative taxes of 32% levied All other taxes are replaced by GST Overall incidence of tax will be reduced Reduction in Price of Goods under GST Service Tax – 1% VAT 14.5% Excise 12.5% Entry Tax 2% CST 2% GST @ 28% 28% 21 Rs. 115 15% Rs. 97 Rs. ~115 Rs. 97 Cost of production of goods is Rs. 97 Service tax 15% and embedded VAT of ~3% Service tax replaced by GST Overall incidence of tax will be same Reduction in Price of Goods under GST GST 18% Service Tax VAT Rs. 100 22<BR> News - Pr....
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....ess release - PIB....