GST Oct 17

Introduction/Concept of GST
Tax collection in India is around 14.5 Lakh Crore, of

which 34% is indirect tax
It is based on the VAT principles.
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It is implemented w.e.f 1St July 2017
It is levied only at a destination Consumption
Place.
Taxation power lies with both in the hands of CG as
well as SG also.
There will be no distinction between goods &
services.
After Introduction of GST, all the traders including
manufacturer will be paying both the type of taxes
(CGST & SGST). (Administered by one authority)
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GST leads to immense scope, opportunities as
well as some challenges also.
Centre is empowered to levy GST on Goods &
Services upon the Production stage, while
State have the power to tax on sale of goods.
 India has implemented dual GST.
It is a comprehensive levy and envisages tax
collection on both goods and services.
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It is also expected that GST will mitigate the
cascading effect of taxes.
In the mean time, it also helps in terms of
uniformity like in case of chargeability, definition of
taxable services or person, measure of levy, basis
of classification etc.
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WHY DOES INDIA NEED GST
• GST is being introduced majorly due to 2
reason:-
1. The current indirect tax structure is full of
uncertainties due to multiple rates.
2. Due to multiple rates there are multiple
forms.
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GST COUNCIL
GST levy will be administered by:

1. Union finance minister(chairman)
2. Union minister in charge of state revenue or
finance
3. Minister in charge of finance or taxation.
4. Any other minister(finance minister of the
state) nominated by each state government
would constitute the council.
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Old Tax structure in India
Old
Tax Structure
Indirect
Direct Tax
Tax
Wealth Central
Income State Tax
Tax Tax
Tax
Service Entry Tax,

Customs Excise VAT luxury tax,
Tax
Lottery
Tax, etc.
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New Tax structure in India
New
Tax Structure
Direct Tax Intra- state
CGST SGST
Income Tax Inter State
(Central) (State)
IGST
Customs (Central)
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Model/Components of GST
CGST IGST
SGST
(Central GST) (Integrated
(State GST)
GST)
• Replace central • Replace State • Levied on all inter

Excise Duty & Vat, Entry Tax, –state supplies of
service Tax. Entertainment goods or services
• Levied on all Tax, & Luxury which are sold or
intra-state Tax. transferred.
sale/supplies of • Levied on all • Applicable to
goods or intra-state imports of goods
services. sale/supplies of or services.
goods or
services.
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Benefit under GST
• Single taxation point.

• Uniform tax rate throughout India
• Common market
• Reduces Transaction cost. Computerized.
• Eliminates the cascading effect of taxes.
• Increase in Transparency.
• Widening the tax base
• Less evasion
• Reduces corruption.
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• Simplified tax laws.
• Increase in exports & employments.
• International competitiveness – set to go up by
about 5%.
• Increased FDI
• Growth in overall Revenues.
• Prevention of unhealthy competition among
states.
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Challenges of the GST Model
• Detailed and Timely Accounting is required.

• High compliance cost for small players
• Huge demand for accountants
• Will help in improving efficiency and cost
reduction
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FILING OF RETURNS UNDER GST
• Quarterly Returns (Taxpayers with Annual Turnover

upto Rs. 1.5 Crore who opt for Quarterly return filing)
Period (Quarterly) Due dates
July- Sept 10th January 2018
Oct- Dec 15th Feb 2018
Jan- Mar 30th April 2018
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For Taxpayers with Annual turnover of more than Rs
1.5 cr and for Taxpayers with the Annual turnover
of upto Rs 1.5 cr (who opt for monthly return filing
instead of Quarterly return filing)
Period Dates
July to Nov 10th Jan 2018
Dec 10th Feb 2018
Jan 10th Mar 2018
Feb 10th Apr 2018
March 10th May 2018
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TAXES SUBSUMED IN GST
Central Taxes
• Excise Duty
• Additional Excise duty
• Excise duty under medicinal and toilet preparation
Act
• Service Tax
• Additional Custom duty commonly known as
countervailing duty (CVD), special additional
duty(SAD)
• Surcharge
• CENVAT Central Taxes
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State Taxes
• Value added tax (VAT)
• Entertainment tax levied by states
• Luxury Tax
• Tax on Lottery, betting and gambling
• Entry tax other than for local bodies(Octroi)
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EXEMPTED ITEMS IN THE LIST OF GST :
• Alcohol for human consumption does not fall under the purview of GST in
India at present. The taxes imposed to Alcohol for human consumption are
continued as per the structure before GST implementation.
• Petroleum Products viz. petroleum crude, motor spirit (petrol), high speed
diesel, natural gas and aviation turbine fuel.
• Electricity-the category, Electricity has been kept aside under the purview of
GST at present. So, electricity does not fall under GST at present. Hence,
GST is not applicable for electricity. However, the taxes applicable at present
for electricity is continued as before.
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SECTOR WISE IMPACT OF
GST
After implementation of GST, it seems that there is going to

be a positive impact on various Industry.
Some Glimpse of GST Impact of various Industry :
Automobiles Industry
 Drive overall demand & reduce cost for end user by about
10%.
 Transportation time & overall cost will be reduced.
 Cost of Logistics will be curtailed by almost 30-40%.
Key beneficiaries : Bajaj Auto, Eicher Motors, Ashok Leyland,

Maruti Suzuki, Hero MotoCorp,
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Consumer Durables
 Reduction of the Price gap between organized & unorganized sector.
 Warehouse/logistics costs will be curtailed.
 Improve the operational profitability by almost 300-400 bps.
Key beneficiaries: Havells, Voltas, Blue Star, Bajaj Electricals, Hitachi
Logistics
 Boost demand for high tonnage trucks.
 Overall reduction in transportation costs.
 Improving growth opportunities for the organized players.
 Facilitate seamless inter-state flow of Goods.
Key beneficiaries : VRL Logistics, GATI Ltd, Blue Dart, Snowman Logistics
Cement
 Tax rate expected to decline
 Able to save their logistics costs/transportation costs.
Key beneficiaries : ACC, Ultratech, JK Cement, Shree Cement

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Banking & Financial services
 Under GST , effective tax rate is 18% as 14% earlier.

 Moderate increase in the cost of financial services like loan processing fees, debit/credit
charges, insurance premium etc.
IT
 Tax Rate is increased to 18%.
 Litigation around taxability of canned software will probably end under GST Regime.
Textile /Garments
 May be negatively impacted in case the output tax rate is high.
 No clarity whether a lower rate will continue in the proposed Tax regime.
 No clarity about the duty drawback benefits.
Key Players : Arvind, Raymond, Page Industries

Media
 Tax rate of around 18% as compared to 20-21%.
 Post GST, we expect concessional rate in news & Print sector.
Key beneficiary : Dish TV
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Conclusion
GST being a dynamic & comprehensive
legislation which has replaced most of the
Indirect Taxes of our Country.
Since it is a major indirect tax reform in India,
there are new legislation and procedures.
GST is the best example of cooperative
federalism.
Together, it take India to new heights of progress.
In Nutshell, it is a biggest tax reform till date in
our country.
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GST Oct 17

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Introduction/Concept of GST

Tax collection in India is around 14.5 Lakh Crore, of

GST levy will be administered by:

Service Entry Tax,

Direct Tax Intra- state

• Replace central • Replace State • Levied on all inter

• Single taxation point.

• Detailed and Timely Accounting is required.

• Quarterly Returns (Taxpayers with Annual Turnover

Period (Quarterly) Due dates

July- Sept 10th January 2018

Oct- Dec 15th Feb 2018

Jan- Mar 30th April 2018

July to Nov 10th Jan 2018

Dec 10th Feb 2018

Jan 10th Mar 2018

Feb 10th Apr 2018

March 10th May 2018

After implementation of GST, it seems that there is going to

Key beneficiaries : Bajaj Auto, Eicher Motors, Ashok Leyland,

Key beneficiaries: Havells, Voltas, Blue Star, Bajaj Electricals, Hitachi

Key beneficiaries : ACC, Ultratech, JK Cement, Shree Cement

 Under GST , effective tax rate is 18% as 14% earlier.

Key Players : Arvind, Raymond, Page Industries

Key beneficiary : Dish TV

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